On the Desirability of Nominal GDP Targeting
... and wage level of output, particularly in real time. This point has been made by Orphanides (2001), Orphanides and van Norden (2002), and Orphanides (2003). Third, gap targeting may result in equilibrium indeterminacy. This point has been made in the context of sticky price New Keynesian models with ...
... and wage level of output, particularly in real time. This point has been made by Orphanides (2001), Orphanides and van Norden (2002), and Orphanides (2003). Third, gap targeting may result in equilibrium indeterminacy. This point has been made in the context of sticky price New Keynesian models with ...
Crisis and consolidation in the public finances
... deficit that Labour ran in in 2007-08 with a 0.2 per cent of GDP surplus, to spend 1.2 per cent of GDP more on welfare, 1.6 per cent of GDP more on debt interest and 0.4 per cent of GDP more on other annually managed expenditure, such as public service pensions. To pay for this, it plans to raise ju ...
... deficit that Labour ran in in 2007-08 with a 0.2 per cent of GDP surplus, to spend 1.2 per cent of GDP more on welfare, 1.6 per cent of GDP more on debt interest and 0.4 per cent of GDP more on other annually managed expenditure, such as public service pensions. To pay for this, it plans to raise ju ...
The Impact of Regional and Sectoral Productivity Changes on the U.S. Economy,
... economic activity. We make use of maps and …gures to show how economic activity varies across U.S. states and sectors. Section 2 presents the quantitative model. Section 3 describes in detail how to compute and aggregate measures of TFP, GDP, and welfare across di¤erent states and sectors, and shows ...
... economic activity. We make use of maps and …gures to show how economic activity varies across U.S. states and sectors. Section 2 presents the quantitative model. Section 3 describes in detail how to compute and aggregate measures of TFP, GDP, and welfare across di¤erent states and sectors, and shows ...
“Inventory Investment and Output Volatility”
... techniques adopted by the automotive industry. Third, an important innovation in inventory management has been the development of more sophisticated supply chains among firms and industries. Studying detailed industries allows us to examine the role of inventory management in the stage-of-fabricati ...
... techniques adopted by the automotive industry. Third, an important innovation in inventory management has been the development of more sophisticated supply chains among firms and industries. Studying detailed industries allows us to examine the role of inventory management in the stage-of-fabricati ...
Investment a Major Driver, Except in Countries Plagued by
... accelerate somewhat, especially if growth in the region as a whole picks up speed. MONTENEGRO Growth of up to 3% per year is expected, with investments and exports acting increasingly as the main drivers. The upcoming elections and joining NATO should prove stabilising factors, while improved region ...
... accelerate somewhat, especially if growth in the region as a whole picks up speed. MONTENEGRO Growth of up to 3% per year is expected, with investments and exports acting increasingly as the main drivers. The upcoming elections and joining NATO should prove stabilising factors, while improved region ...
Forecasting Short-Term Real GDP Growth in the Euro
... among private and central banks, including at the Bank of Canada. 1 This paper proposes an unrestricted mixed-data sampling (U-MIDAS) model for short-term forecasting of real GDP growth in the euro area and Japan. This new tool allows us to evaluate the usefulness of a wide range of indicators when ...
... among private and central banks, including at the Bank of Canada. 1 This paper proposes an unrestricted mixed-data sampling (U-MIDAS) model for short-term forecasting of real GDP growth in the euro area and Japan. This new tool allows us to evaluate the usefulness of a wide range of indicators when ...
UK inflation in the 1970s and 1980s: the role of
... expansionary; it aimed for low inflation, and did not try deliberately to push output above potential. Rather, the problem was that official measures of the output gap were only belatedly revised in response to the slowing in US productivity growth that began in the late 1960s.(2) Consequently, ‘re ...
... expansionary; it aimed for low inflation, and did not try deliberately to push output above potential. Rather, the problem was that official measures of the output gap were only belatedly revised in response to the slowing in US productivity growth that began in the late 1960s.(2) Consequently, ‘re ...
- UniCredit Bank
... picked up sharply. The underlying fiscal stance widened by about 2.5% of GDP in January-July from a year before, even though one-off revenues, cyclically-high tax receipts, and lower interest payments helped keep the headline deficit little changed. Similarly, monetary policy has remained expansiona ...
... picked up sharply. The underlying fiscal stance widened by about 2.5% of GDP in January-July from a year before, even though one-off revenues, cyclically-high tax receipts, and lower interest payments helped keep the headline deficit little changed. Similarly, monetary policy has remained expansiona ...
OnlineAppendix
... The level of aggregate productivity Z̄, for a given current value of scientific knowledge Ar , is determined using equation (8). When f = 1, one can use the same procedure but instead of solving for Z̄ (the BGP level of Z, given Ar , is not pinned down), one must solve for the growth rate ḡz (and t ...
... The level of aggregate productivity Z̄, for a given current value of scientific knowledge Ar , is determined using equation (8). When f = 1, one can use the same procedure but instead of solving for Z̄ (the BGP level of Z, given Ar , is not pinned down), one must solve for the growth rate ḡz (and t ...
Member States whose 2017 Draft Budgetary Plans were assessed
... Finland is judged to be compliant in 2017 and 2018 with the annual fiscal adjustment of at least 0.6% of GDP towards the MTO, if the flexibility under the structural and investment clauses is granted; the clauses would allow a temporary deviation from the MTO adjustment path of 0.5% of GDP and add ...
... Finland is judged to be compliant in 2017 and 2018 with the annual fiscal adjustment of at least 0.6% of GDP towards the MTO, if the flexibility under the structural and investment clauses is granted; the clauses would allow a temporary deviation from the MTO adjustment path of 0.5% of GDP and add ...
European Economic Forecast Autumn 2013
... loops between the financial sector and public finances. The most immediate issue at the European level is therefore the completion of the Banking Union. This is not only needed to strengthen macro-financial stability by breaking the feedback loops between sovereigns and banks. It is also crucial in ...
... loops between the financial sector and public finances. The most immediate issue at the European level is therefore the completion of the Banking Union. This is not only needed to strengthen macro-financial stability by breaking the feedback loops between sovereigns and banks. It is also crucial in ...
European Economy. Reports and Studies. 3/2000. Public finances in
... deficit of 1.2 % of GDP for the euro area, down from 2.3 % in 1998. All Member States met the nominal budgetary targets fixed in the original 1998/99 stability and convergence programmes, and in some cases targets were surpassed by a wide margin. As regards the composition of budgetary adjustment in ...
... deficit of 1.2 % of GDP for the euro area, down from 2.3 % in 1998. All Member States met the nominal budgetary targets fixed in the original 1998/99 stability and convergence programmes, and in some cases targets were surpassed by a wide margin. As regards the composition of budgetary adjustment in ...
Lecture 5: Aggregate Expenditure and Output in the Short Run
... graph the consumption function using national income rather than disposable income. We can also calculate the MPC, which is the slope of the consumption function, using either the change in national income or the change in disposable income and always get the same value. The slope of the consumption ...
... graph the consumption function using national income rather than disposable income. We can also calculate the MPC, which is the slope of the consumption function, using either the change in national income or the change in disposable income and always get the same value. The slope of the consumption ...
European Economic Forecast Spring 2014
... vulnerabilities remain and require continued monitoring and policy action. Moreover, support from the external side may turn out to be weaker than earlier anticipated. While growth in advanced economies is generally firming, emerging market economies register a moderate deceleration, and world trade ...
... vulnerabilities remain and require continued monitoring and policy action. Moreover, support from the external side may turn out to be weaker than earlier anticipated. While growth in advanced economies is generally firming, emerging market economies register a moderate deceleration, and world trade ...
11.2 learning objective
... components of aggregate expenditure and define marginal propensity to consume and marginal propensity to save. ...
... components of aggregate expenditure and define marginal propensity to consume and marginal propensity to save. ...
The Impact of Regional and Sectoral Productivity Changes on the
... Using data on pairwise trade ‡ows across states by industry, as well as other regional and industry data, we calibrate the model and explore the regional, sectoral, and aggregate e¤ects of disaggregated productivity changes. Speci…cally, for a given productivity change located within a particular se ...
... Using data on pairwise trade ‡ows across states by industry, as well as other regional and industry data, we calibrate the model and explore the regional, sectoral, and aggregate e¤ects of disaggregated productivity changes. Speci…cally, for a given productivity change located within a particular se ...
Lecture Notes - Stanford University
... is produced in that country in a given year. The basic measure of this is a country’s gross domestic product (GDP). The idea is simple: to record the value of everything that is produced in the country in a year and add it up. GDP accounts can be constructed in three different (but equivalent) ways, ...
... is produced in that country in a given year. The basic measure of this is a country’s gross domestic product (GDP). The idea is simple: to record the value of everything that is produced in the country in a year and add it up. GDP accounts can be constructed in three different (but equivalent) ways, ...
Sovereign Debt Restructurings: Delays in Renegotiations and Risk
... default probabilities, as observed in emerging market countries. Arellano and Bai (2014) and Lizarazo (2009) analyze contagion in a model in which multiple borrowers trade with risk-averse lenders. Our paper fills a gap in the literature by exploring how creditors’ business cycles influence debt res ...
... default probabilities, as observed in emerging market countries. Arellano and Bai (2014) and Lizarazo (2009) analyze contagion in a model in which multiple borrowers trade with risk-averse lenders. Our paper fills a gap in the literature by exploring how creditors’ business cycles influence debt res ...
Technological Diversification Miklos Koren and Silvana Tenreyro
... As said, this observation holds for the countries for which we have data and helps di¤erentiate our paper from …nancial-diversi…cation models that predict a negative comovement between micro and macro volatility. In the text, we discussed references supporting a positive comovement for the United St ...
... As said, this observation holds for the countries for which we have data and helps di¤erentiate our paper from …nancial-diversi…cation models that predict a negative comovement between micro and macro volatility. In the text, we discussed references supporting a positive comovement for the United St ...
Developing IFAD`s middle income country strategy
... Example: Turkey-16 of the 20 least-developed provinces, located in either the eastern or southeastern regions, have GDP less than 30% of the national average; ...
... Example: Turkey-16 of the 20 least-developed provinces, located in either the eastern or southeastern regions, have GDP less than 30% of the national average; ...
Global Optimization of Non-convex Generalized Disjunctive
... the closer the lower bound to the global optimum and that is why a large part of the research has been related to finding tighter relaxations. However, in general, finding the global optimum of large-scale non-convex MINLP models in reasonable computational time remains a largely unsolved problem. E ...
... the closer the lower bound to the global optimum and that is why a large part of the research has been related to finding tighter relaxations. However, in general, finding the global optimum of large-scale non-convex MINLP models in reasonable computational time remains a largely unsolved problem. E ...
The Effectiveness of Automatic Stabilizers
... – A larger government stabilizes GDP and the stabilizing effect increases with the degree of rigidities – But Consumption and Investment are more volatile with a larger government – the only reason why GDP is more stable is because of the stability of government spending – Introducing rule-of-thumb ...
... – A larger government stabilizes GDP and the stabilizing effect increases with the degree of rigidities – But Consumption and Investment are more volatile with a larger government – the only reason why GDP is more stable is because of the stability of government spending – Introducing rule-of-thumb ...
Exploring the Relationship Between Broadband and Economic Growth
... where GDPHH is Gross Domestic Product per household (constant 2000 dollars), KHH is capital stock values updated with Gross Fixed Capital Formation using the perpetual inventory method (per household), LABHH is labor force participation per household, LABEDHH is tertiary enrollment per laborer per h ...
... where GDPHH is Gross Domestic Product per household (constant 2000 dollars), KHH is capital stock values updated with Gross Fixed Capital Formation using the perpetual inventory method (per household), LABHH is labor force participation per household, LABEDHH is tertiary enrollment per laborer per h ...
Gross domestic product
Gross Domestic Product (GDP) is a measure of the size of an economy. It is defined as ""an aggregate measure of production equal to the sum of the gross values added of all resident, institutional units engaged in production (plus any taxes, and minus any subsidies, on products not included in the value of their outputs)"" by the OECD.GDP estimates are commonly used to measure the economic performance of a whole country or region, but can also measure the relative contribution of an industry sector. This is possible because GDP is a measure of 'value added' rather than sales; it adds each firm's value added (the value of its output minus the value of goods that are used up in producing it). For example, a firm buys steel and adds value to it by producing a car; double counting would occur if GDP added together the value of the steel and the value of the car. Because it is based on value added, GDP also increases when an enterprise reduces its use of materials or other resources ('intermediate consumption') to produce the same output.The more familiar use of GDP estimates is to calculate the growth of the economy from year to year (and recently from quarter to quarter). The pattern of GDP growth is held to indicate the success or failure of economic policy and to determine whether an economy is 'in recession'.