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Types of inflation (and deflation)
Types of inflation (and deflation)

Scotland: Public spending and revenue
Scotland: Public spending and revenue

National debt brakes and convergence in the European
National debt brakes and convergence in the European

... the supply-curve to the right (yjs). Fiscal policy can influence the positions of the demand and supply curve by a variation of autonomous public expenditure or the tax rate. *** Insert Figure 4 about here *** In addition, automatic stabilisers also exert impact on the external position of ea countr ...
Macroeconomics
Macroeconomics

... For decades Keynesians and classical economists split in to autonomous areas, the former studying macroeconomics and the latter studying microeconomics. In the 1970s new classical macroeconomics challenged Keynesians to ground their macroeconomic theory in microeconomics. The main policy difference ...
the role of government, 1920-1940: monetary and
the role of government, 1920-1940: monetary and

... In 1924 the Open Market Investment Committee decided to purchase securities to build up the Fed’s portfolio so as to be able to check any future inflation arising from the gold imports. In 1927 the interest rate differential between New York and London was reduced to slow down the flow of gold into ...
Agenda - British Precast
Agenda - British Precast

... Construction output is expected to fall significantly over the next 2-3 years. Any reduction in public expenditure would exacerbate this problem Total construction output and gross public expenditure ...
NBER WORKING PAPER SERIES HOW DO MONETARY AND FISCAL POLICY
NBER WORKING PAPER SERIES HOW DO MONETARY AND FISCAL POLICY

... Formation of the Euro area raises new questions about the coordination of monetary and fiscal policy. Twelve countries – each with its own tax and spending policies – are now married by a common monetary policy. Does the common monetary policy have the same effect in each of the countries, and the s ...
Interactive Tool
Interactive Tool

... growth in capacity, inflationary pressures tend to emerge. If growth in spending is less than the growth in capacity, then the economy will not be producing as much as it could. As a result, unemployment may rise. When the Federal Reserve adopts a restrictive monetary policy it sells bonds in order ...
A New Method for Constructing a Cyclically Adjusted
A New Method for Constructing a Cyclically Adjusted

... answering the question, “What would net lending be if the output gap were zero?”. In contrast to other measures of the CAB, our indicator captures not only the effects of the degree of resource utilization (i.e. the output gap and the unemployment gap), but also the relationship of the principal tax ...
AP Government and Politics - United States: Monetry and
AP Government and Politics - United States: Monetry and

... Some programs are automatic, such as unemployment, while others are ad hoc. The same points can be made on the revenue side. The opposite types of activities can be utilized to slow economic expansion during periods of inflation. ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
This PDF is a selection from a published volume from... National Bureau of Economic Research

... it remains lower in steady state. Thus the transfer improves the long-run fiscal situation as well as ending the output slump. Does it matter if the fiscal expansion is financed with money rather than debt? Money finance prevents the debt-income ratio from jumping up when the transfer occurs. For ba ...
Interactive Tool
Interactive Tool

... This growth allowed the Federal Reserve to cut the target federal funds rate more than it otherwise would have during and following the 2001 recession and has reduced inflationary pressures in the recovery since. The number of hours worked increased by 1.4 percent over the last 12 months. If product ...
Aggregate Supply and the Price Level
Aggregate Supply and the Price Level

... give the individual a higher level of satisfaction. The line 'XY' represents the budget constraint imposed by the number of waking hours available in a day (note: the horizontal intercept is equal to 16) with a slope determined by the real wage rate 'w'. In any indifference curve model, equilibrium ...
Why Has Income Inequality in Thailand Increased?
Why Has Income Inequality in Thailand Increased?

... - This interpretation leads us to put MLD or the Gini coefficient between the agricultural and nonagricultural sectors since DUAL is large under relative household income disparity and even household share of agricultural and nonagricultural ...
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... Federal Net Interest as a Percentage of GDP ...
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Slides 3

...  But there are also publicly provided goods and services from which exclusion is possible and hence user fees, or user prices, could be charged for their use. The most well-known examples are education, health care, transportation systems, parks, transportation, policing and protection of neighborh ...
07-08 - Ministry of Finance
07-08 - Ministry of Finance

... on the other hand, can lead to higher inflation, higher interest rates and crowding out of private investment, all of which can hamper growth and poverty reduction efforts. Economic growth and human development critically depend on accumulation of physical and human capital, which in turn requires a ...
This PDF is a selection from an out-of-print volume from... of Economic Research
This PDF is a selection from an out-of-print volume from... of Economic Research

... demand that are translated into fluctuations in output and employment because wages and prices are considerably less than fully flexible over the relevant time horizons. This view of the world has long prevailed in the work on business cycles, which thus sharply departed from the competitive marketc ...
Chapter 5 The Circular Flow of Income and Product
Chapter 5 The Circular Flow of Income and Product

... as a means of payment for buying goods and services. (A formal definition of money will be given in Chapter 10.) The forms of money that are most familiar to consumers are coins, paper currency, and bank account balances. Just as there is a certain stock of water in the White Water Canyon ride on an ...
SUSTAINABILITY OF THE PUBLIC DEBT AND BUDGET DEFICIT
SUSTAINABILITY OF THE PUBLIC DEBT AND BUDGET DEFICIT

... debt, evaluated in dollars and respectively in Lei, computed with the exchange rate base registered at the end of each year. The first line at the bottom of the graphs represents the dynamics of governmental debt, the second line traces the evolution of the gross public debt, and the third one, at t ...
Scharpf , Fritz W.. 'Monetary Union, Fiscal Crisis and the Preemption of Democracy.' Paper presented at the LEQS Annual Lecture ' Saving the Euro at the expense of democracy in Europe?' on 12 May 2011 at the London School of Economics , LEQS Paper No. 36, May 2011
Scharpf , Fritz W.. 'Monetary Union, Fiscal Crisis and the Preemption of Democracy.' Paper presented at the LEQS Annual Lecture ' Saving the Euro at the expense of democracy in Europe?' on 12 May 2011 at the London School of Economics , LEQS Paper No. 36, May 2011

... The German Bundesbank was the first to establish a Monetarist regime in the early 1970s. After having dramatically demonstrated the destructive potential of monetary retrenchment in the crisis of 1973/4, the Bank did in fact confront the government and the unions with the offer of an implicit “socia ...
Personal Finance Grade Levels 9-12
Personal Finance Grade Levels 9-12

... An introduction to consumers and producers in the circular market flow including market exchanges: flow of resources, products, and money, consumer goods and services, wants and needs; exploring basic economic questions; macroeconomics and microeconomics; limited resources, price, supply and demand ...
Current challenges for Europe
Current challenges for Europe

... Secondly, the European markets’ greater inflexibility makes it necessary to adopt a “preemptive” monetary policy strategy capable of stably anchoring inflation expectations. This is a direct consequence of the fact that, in the context of a high degree of inflexibility, the more inflation is allowed ...
Long Run Aggregate Supply
Long Run Aggregate Supply

... Event: oil prices rise 1. increases costs, P shifts SRAS (assume LRAS constant) 2. SRAS shifts left 3. SR eq’m at point B. P2 P higher, Y lower, unemp higher P1 From A to B, stagflation, a period of falling output and rising prices. CHAPTER 33 ...
Part 1
Part 1

... learn about specific economic factors (historically and in real time) Develop intuition for how factors are related ...
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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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