This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: NBER International Seminar on Macroeconomics
... review both why simply placing the above setup in an open-economy environment will not solve the problem and why introducing nominal frictions is not a clear solution either. Under the assumption of a small open economy, good news about future productivity will now lead to an increase in both consum ...
... review both why simply placing the above setup in an open-economy environment will not solve the problem and why introducing nominal frictions is not a clear solution either. Under the assumption of a small open economy, good news about future productivity will now lead to an increase in both consum ...
NBER WORKING PAPER SERIES THE WEITZMAN MODEL REVISITED
... with no government, no autonomous technical change and under competitive conditions, net income/product can be seen as the stationary-equivalent flow to discounted future consumption. This result is one way of formalizing Hicks’ (1939) third income measure that defines income as “[…] the maximum amo ...
... with no government, no autonomous technical change and under competitive conditions, net income/product can be seen as the stationary-equivalent flow to discounted future consumption. This result is one way of formalizing Hicks’ (1939) third income measure that defines income as “[…] the maximum amo ...
Ch 10
... • During the latter part of 2008, Japan experienced a 2.5 percent inflation rate as its growing exports raised Japanese aggregate demand. • By 2010, Japan experienced a deflation rate of 2.5 percent as purchases of Japanese export goods by residents of the United States and other nations plunged, ca ...
... • During the latter part of 2008, Japan experienced a 2.5 percent inflation rate as its growing exports raised Japanese aggregate demand. • By 2010, Japan experienced a deflation rate of 2.5 percent as purchases of Japanese export goods by residents of the United States and other nations plunged, ca ...
Medium Term Budget Policy Statement
... about three months before the annual budget. It sets out the economic context and assumptions that inform the following year’s budget, as well as the framework in which the budget is prepared. The budget framework consists of the fiscal framework, government spending priorities, the division of reso ...
... about three months before the annual budget. It sets out the economic context and assumptions that inform the following year’s budget, as well as the framework in which the budget is prepared. The budget framework consists of the fiscal framework, government spending priorities, the division of reso ...
Revised exam date: Tuesday, September 26, 2006
... State and represent graphically the law of demand. Why is the demand relationship an inverse relationship? Fully distinguish between change in quantity demanded and change in demand. State and represent graphically the law of supply. Fully distinguish between change in quantity supplied and change i ...
... State and represent graphically the law of demand. Why is the demand relationship an inverse relationship? Fully distinguish between change in quantity demanded and change in demand. State and represent graphically the law of supply. Fully distinguish between change in quantity supplied and change i ...
Business Confidence and Depression Prevention: A Mesoeconomic
... increase) in expected real aggregate demand. Due to space limitation, mathematical derivations of results are not presented here but are available in Ng (1992). As shown below, a fall in expected real aggregate demand will lead to a fall in aggregate output (and hence employment) by the full extent ...
... increase) in expected real aggregate demand. Due to space limitation, mathematical derivations of results are not presented here but are available in Ng (1992). As shown below, a fall in expected real aggregate demand will lead to a fall in aggregate output (and hence employment) by the full extent ...
Essay Questions
... However, government budget deficit may change both private savings and investment, thus avoiding a creation of the twin deficits. An example is the European countries reducing their budget deficits just prior to the introduction of the euro in January 1999. Now, under the “twin deficits: theory,” on ...
... However, government budget deficit may change both private savings and investment, thus avoiding a creation of the twin deficits. An example is the European countries reducing their budget deficits just prior to the introduction of the euro in January 1999. Now, under the “twin deficits: theory,” on ...
money supply
... Monetary Control (e.g. the United States) • Making monetary policy in practice – The channels of monetary policy transmission • Exactly how does monetary policy affect economic activity and prices? – The interest rate channel: as seen in the IS-LM model, a decline in money supply raises real intere ...
... Monetary Control (e.g. the United States) • Making monetary policy in practice – The channels of monetary policy transmission • Exactly how does monetary policy affect economic activity and prices? – The interest rate channel: as seen in the IS-LM model, a decline in money supply raises real intere ...
Here - home
... but is ' injected ' into the circular flow of income. It increases the level of aggregate demand and expenditure in the economy. Investment is expenditure on goods not for current consumption. It is used to make additions to the stock of capital in the economy. It is also an injection into the circu ...
... but is ' injected ' into the circular flow of income. It increases the level of aggregate demand and expenditure in the economy. Investment is expenditure on goods not for current consumption. It is used to make additions to the stock of capital in the economy. It is also an injection into the circu ...
The Unintended Consequences of the War on Poverty
... poverty rate may, in fact, be too high. Taking dynamic factors into consideration would probably lower the figure to less than 6 percent. This implies that the actual poverty rate in 2010 was more than twoand-one-half times higher than it could have been were it not for the excessive use of public a ...
... poverty rate may, in fact, be too high. Taking dynamic factors into consideration would probably lower the figure to less than 6 percent. This implies that the actual poverty rate in 2010 was more than twoand-one-half times higher than it could have been were it not for the excessive use of public a ...
PDF
... mainly represented through the ownership and especially the control of the corporate sector. It is certainly nothing new to say that if governments wanted to maximize social welfare they should concentrate on the provision of public goods, including “pure” public goods as well as other goods which t ...
... mainly represented through the ownership and especially the control of the corporate sector. It is certainly nothing new to say that if governments wanted to maximize social welfare they should concentrate on the provision of public goods, including “pure” public goods as well as other goods which t ...
Chapter 13 Money and the Economy
... impacts the loanable funds market by causing a a. positive liquidity effect only. . b. negative liquidity effect, i.e. it reduces the supply of loanable funds. c. negative income effect as real GDP tends to declined. d. combination of effects including the liquidity effect, the price level effect, i ...
... impacts the loanable funds market by causing a a. positive liquidity effect only. . b. negative liquidity effect, i.e. it reduces the supply of loanable funds. c. negative income effect as real GDP tends to declined. d. combination of effects including the liquidity effect, the price level effect, i ...
Unit 5 Practice MC Questions
... 65. Every year at this time, Congress discovers, with a great public show of dismay and indignation, the existence of the American tax code and the agency that administers it, the Internal Revenue Service. There are high-minded calls for abolishing the current tax system and replacing it.... Around ...
... 65. Every year at this time, Congress discovers, with a great public show of dismay and indignation, the existence of the American tax code and the agency that administers it, the Internal Revenue Service. There are high-minded calls for abolishing the current tax system and replacing it.... Around ...
The Great Recession, ‘Rainy Day’ Funds, and Countercyclical Fiscal Policy... Latin America
... The current financial crisis has been the most severe and widespread that the international economy has experienced since the Great Depression of the 1930s. Although it originated in the United States, the crisis spread internationally very quickly. Developing countries in particular were affected t ...
... The current financial crisis has been the most severe and widespread that the international economy has experienced since the Great Depression of the 1930s. Although it originated in the United States, the crisis spread internationally very quickly. Developing countries in particular were affected t ...
queen`s university at kingston
... aggregate supply curve shifts downward and the economy moves downward along the aggregate demand curve, AD1. Ultimately in the long-run, the economy moves back to its original equilibrium at E1. So, after the supply shock the long-run equilibrium price, P1=1 and output, Y1=3000. At the long-run equi ...
... aggregate supply curve shifts downward and the economy moves downward along the aggregate demand curve, AD1. Ultimately in the long-run, the economy moves back to its original equilibrium at E1. So, after the supply shock the long-run equilibrium price, P1=1 and output, Y1=3000. At the long-run equi ...
Lecture 5: Aggregate Expenditure and Output in the Short Run
... 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 Theory of Monetary Degradation as the Development of Post
... investment activity and depress real output. External financing æ creation of credit money by banks and non-bank financial intermediaries - is very important for rapid economic growth. Post Keynesian economists believe that ñthe banks hold the key position in the transition from a lower to a higher ...
... investment activity and depress real output. External financing æ creation of credit money by banks and non-bank financial intermediaries - is very important for rapid economic growth. Post Keynesian economists believe that ñthe banks hold the key position in the transition from a lower to a higher ...
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... currency board and entered the ERM II. As a result, Estonia’s basic interest policy was dictated by the ECB, which also influences the fiscal policy pursued by the euro countries through its new debt manage ment policies. For this reason the traditional recom mendations for combating recessions in ...
... currency board and entered the ERM II. As a result, Estonia’s basic interest policy was dictated by the ECB, which also influences the fiscal policy pursued by the euro countries through its new debt manage ment policies. For this reason the traditional recom mendations for combating recessions in ...
EDITragan_12ce_ch23
... For any given P, the AD curve shows the level of real GDP (Y) for which desired aggregate expenditure equals actual GDP (Y). ...
... For any given P, the AD curve shows the level of real GDP (Y) for which desired aggregate expenditure equals actual GDP (Y). ...
CHAP16
... causes an exchange rate appreciation, a fall in net exports (or increase in the trade deficit). 4. The Ricardian view holds that debt-financed tax ...
... causes an exchange rate appreciation, a fall in net exports (or increase in the trade deficit). 4. The Ricardian view holds that debt-financed tax ...
department of economics
... The literature has considered several potential sources of autonomous demand, including exports, private consumption, residential investment and government consumption. I shall discuss each of these in turn. ...
... The literature has considered several potential sources of autonomous demand, including exports, private consumption, residential investment and government consumption. I shall discuss each of these in turn. ...