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Impulse or Propagation? How the Tides turned in Business Cycle
Impulse or Propagation? How the Tides turned in Business Cycle

Ch. 14
Ch. 14

... We might be interested in the interest rates on CDs, mortgage rates, credit card interest rates?  Usually, interest rates all go hand in hand.  When the Fed increases the federal funds rate, banks increase their prime rates, too. ...
Snake-Oil Tax Cuts - Harvard Kennedy School
Snake-Oil Tax Cuts - Harvard Kennedy School

... congressman wishing to increase spending had to show how they would raise taxes to pay for it. Logically, a Congressman contemplating a new spending program to benefit some favored supporters will be more inhibited by fears of constituents complaining about an immediate tax increase (under the regim ...
8-page report
8-page report

Social spending
Social spending

... spending. Public social spending is closest to the OECD average in Brazil at just over 15% of GDP. In Brazil, public spending on pension benefits amounts to almost 10% of GDP (which is a conservative estimate, see the note to Figure 3), compared to 8% of GDP on average across the OECD. This is all t ...
model - Amazon Web Services
model - Amazon Web Services

... • Thus demand and expenditure functions if they are to be set against reality must be defined at some reasonably high level of aggregation. • The idea that we should start at the level of the isolated individual is one which we may well have to abandon.” • But most didn’t know about these conditions ...
A Keynesian Macroeconomic Model with New
A Keynesian Macroeconomic Model with New

... auctioneerdoes not call out arraysof prices while time standsstill. Rathereconomic actors must consciously decide whether to bid prices upwardsor downwards.This takes time! Even if expectations are rational, there is no guaranteethat marketswill continuouslyclear. However, in such a world, if policy ...
chapter 9W The Multiplier Model
chapter 9W The Multiplier Model

The Political Economy of Government Debt
The Political Economy of Government Debt

... 2014.2 In addition,the provision of public goods, which is therefore not classified as directly redistributive, has a redistributive component to the extent that public goods are used more or less intensively by individuals in different income brackets. The structure of taxation, such as the progre ...
Studies on the Macroeconomics of Monetary Union - Jultika
Studies on the Macroeconomics of Monetary Union - Jultika

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Time Consistency and the Duration of Government Debt

... The signalling channel of quantitative easing (QE) The paper o¤ers a useful theoretical framework for thinking about monetary policy and government debt management It is conceptually well-understood that, QE works by shortening the maturity of the public debt held by private investors, as a policy l ...
Next Richest - California State University, Long Beach
Next Richest - California State University, Long Beach

paper - University of Oxford, Department of Economics
paper - University of Oxford, Department of Economics

... we would adjust debt downwards but at a very slow rate, and this might appear in the short term to be little different to the random walk steady state case. This emphasises that the key, and robust, result of this analysis is that debt adjustment should be slow. ...
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Y - Terry College of Business

...  Short run: Many prices are “sticky” at some predetermined level. The economy behaves much differently when prices are sticky. CHAPTER 9 ...
Deflation - Tata Mutual Fund
Deflation - Tata Mutual Fund

... • Because the price of goods is falling, consumers have an incentive to delay purchases and consumption until prices fall further, which in turn reduces economic activity even further. ...
Infinite Money and Infrastructural Power
Infinite Money and Infrastructural Power

... costs across the long eighteenth century” (Brewer 1989; Neal 2000; Storrs 2009, 1-2; Wright 1999). Brewer's assertion of the primacy of taxes in explaining England's success in international conflict has not gone unchallenged. Recently many scholars have defended Dickson's focus on borrowing capacit ...
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MacroIntro

... would not. Advances in computation and statistics meant that large models could be constructed meant to represent large economies. ...
Fiscal Federalism in the Russian Federation: Problems and
Fiscal Federalism in the Russian Federation: Problems and

... authorities have a recognised power to enforce free trade and factor mobility between regions. The theory proposes that the highly limited tax authority of the federal government prevents expropriation of private interests by the centre, while competition between regions in the context of trade and ...
The Economic Consequences of Mr Osborne
The Economic Consequences of Mr Osborne

... fixed capital formation of central and local government; transfer payments are deliberately excluded; government debt is measured as a share of GDP; interest rate figures are for the yield on long-term government bonds; and prices are measured by the GDP deflator. ...
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Ch10

chapter 2 the macroeconomic implications of devaluation and import
chapter 2 the macroeconomic implications of devaluation and import

... that the quantity of output (and therefore presumably employment) is given. The core of their argument then concerns the response to alternative policies of the terms of trade, which alone can generate any putative benefits from protection. But, however elaborate the theoretical superstructure which ...
CHAPTER 2 Measuring the Performance of the Canadian Economy
CHAPTER 2 Measuring the Performance of the Canadian Economy

... GDP can change solely due to inflation. Only if real GDP grows faster than population, will real income per capita increase. But real GDP per capita still does not take into account changes in income distribution, changes in environmental quality, or leisure, all of which influence the economic welf ...
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Size, Trend, and Policy Implications of the Underground Economy Renzo Orsi

... underground economy is negatively correlated with the cyclical component of the official output, thus providing evidence of a double business cycle in the Italian economy. The estimated model is then used to assess the implications of alternative fiscal policies. We find that at the actual tax rates ...
Fiscal Divergence and Business Cycle Synchronization
Fiscal Divergence and Business Cycle Synchronization

... negative and OLS is both larger and closer to zero (from below) than IV estimates, which could indicate endogeneity. ...
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Fiscal multiplier

In economics, the fiscal multiplier (not to be confused with monetary multiplier) is the ratio of a change in national income to the change in government spending that causes it. More generally, the exogenous spending multiplier is the ratio of a change in national income to any autonomous change in spending (private investment spending, consumer spending, government spending, or spending by foreigners on the country's exports) that causes it. When this multiplier exceeds one, the enhanced effect on national income is called the multiplier effect. The mechanism that can give rise to a multiplier effect is that an initial incremental amount of spending can lead to increased consumption spending, increasing income further and hence further increasing consumption, etc., resulting in an overall increase in national income greater than the initial incremental amount of spending. In other words, an initial change in aggregate demand may cause a change in aggregate output (and hence the aggregate income that it generates) that is a multiple of the initial change.The existence of a multiplier effect was initially proposed by Keynes student Richard Kahn in 1930 and published in 1931. Some other schools of economic thought reject or downplay the importance of multiplier effects, particularly in terms of the long run. The multiplier effect has been used as an argument for the efficacy of government spending or taxation relief to stimulate aggregate demand.In certain cases multiplier values less than one have been empirically measured (an example is sports stadiums), suggesting that certain types of government spending crowd out private investment or consumer spending that would have otherwise taken place. This crowding out can occur because the initial increase in spending may cause an increase in interest rates or in the price level. In 2009, The Economist magazine noted ""economists are in fact deeply divided about how well, or indeed whether, such stimulus works"", partly because of a lack of empirical data from non-military based stimulus. New evidence came from the American Recovery and Reinvestment Act of 2009, whose benefits were projected based on fiscal multipliers and which was in fact followed - from 2010 to 2012 - by a slowing of job loss and private sector job growth.
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