The “Orthodoxy” of Leon H. Keyserling: Advisor to the President.
... of the Federal Reserve. Higher interest rates would decrease investment and consumer borrowing to decrease investment aggregate demand back towards the level of aggregate supply—the diminishment of so called “excess demand”. But, to increase interest rates would also increase costs which may be pass ...
... of the Federal Reserve. Higher interest rates would decrease investment and consumer borrowing to decrease investment aggregate demand back towards the level of aggregate supply—the diminishment of so called “excess demand”. But, to increase interest rates would also increase costs which may be pass ...
Chapter 2
... calculate GDP. In our example the farmer starts with nothing and produces something worth $2000. Her value added is $2000. The grocer starts with something worth $2000, and produces something worth $2400. The grocer's value added is $400 (what did the grocer do to add this value?). The sum of the va ...
... calculate GDP. In our example the farmer starts with nothing and produces something worth $2000. Her value added is $2000. The grocer starts with something worth $2000, and produces something worth $2400. The grocer's value added is $400 (what did the grocer do to add this value?). The sum of the va ...
The Importance of Being Earnest About Fiscal Responsibility
... Quite independently, the Twelfth Finance Commission provided a detailed rationale for the fiscal deficit target of 6% for the Center and states combined. The Commission argued as follows. The Mastricht Treaty allows its members a 3% fiscal deficit. Undoubtedly, the higher savings rate in India will ...
... Quite independently, the Twelfth Finance Commission provided a detailed rationale for the fiscal deficit target of 6% for the Center and states combined. The Commission argued as follows. The Mastricht Treaty allows its members a 3% fiscal deficit. Undoubtedly, the higher savings rate in India will ...
Influences on the Australian Business Cycle
... popular characterisation of the rise in unemployment during the 1990-91 recession as being due to structural change and increased productivity was reflected at a deeper level in this theoretical debate. The real business cycle school argues that the fluctuation in unemployment in the US can be expla ...
... popular characterisation of the rise in unemployment during the 1990-91 recession as being due to structural change and increased productivity was reflected at a deeper level in this theoretical debate. The real business cycle school argues that the fluctuation in unemployment in the US can be expla ...
FISCAL POLICY IN BRAZIL AND JAPAN WHAT CAN BE LEARNED
... however, government spending exceeds tax revenue in the long run, there might be some kind of tax illusion which can be exploited by a Leviathan government. In such a situation it would make sense to search for (constitutional) constrains to tame Leviathan.” In the same direction Hagen and Harden (1 ...
... however, government spending exceeds tax revenue in the long run, there might be some kind of tax illusion which can be exploited by a Leviathan government. In such a situation it would make sense to search for (constitutional) constrains to tame Leviathan.” In the same direction Hagen and Harden (1 ...
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... major regions in the world seem to be moving in parallel. The judgements of the current economic situation in North America, Western Europe, Asia and Latin America were all still at a neutral or above neutral level at the beginning of 2008 (see Figure 1.2) and have almost synchronously deteriorated ...
... major regions in the world seem to be moving in parallel. The judgements of the current economic situation in North America, Western Europe, Asia and Latin America were all still at a neutral or above neutral level at the beginning of 2008 (see Figure 1.2) and have almost synchronously deteriorated ...
Keynesian Economics
... suppression of inflation in boom times by either increasing taxes or cutting back on government outlays. He argued that governments should solve problems in the short run rather than waiting for market forces to do it in the long run, because "in the long run, we are all dead."[16] This contrasted w ...
... suppression of inflation in boom times by either increasing taxes or cutting back on government outlays. He argued that governments should solve problems in the short run rather than waiting for market forces to do it in the long run, because "in the long run, we are all dead."[16] This contrasted w ...
Inflation - Murphonomics
... compare prices because they are effectively different goods. This is similar situation for many goods such as mobile phones and cars. 3. One off shocks may give a misleading impression. For example, a rise in oil prices will lead to higher inflation. But, this rise in prices may just be temporary. T ...
... compare prices because they are effectively different goods. This is similar situation for many goods such as mobile phones and cars. 3. One off shocks may give a misleading impression. For example, a rise in oil prices will lead to higher inflation. But, this rise in prices may just be temporary. T ...
The Federal Fiscal Outlook No. 04-2
... from Global Insight (formerly DRI). The CBO baseline assumes that current tax law is not changed (and so the Bush administration’s tax cuts disappear as currently mandated) and that real discretionary spending is constant. The three Global Insight forecasts differ in the macroeconomic assumptions on ...
... from Global Insight (formerly DRI). The CBO baseline assumes that current tax law is not changed (and so the Bush administration’s tax cuts disappear as currently mandated) and that real discretionary spending is constant. The three Global Insight forecasts differ in the macroeconomic assumptions on ...
Bird`s eye view of results - Transparency International Magyarország
... • communicate publicly at start about "rules" (e.g limits on unspecified spending cuts, laffer curve limits on large increases of tax rates etc) • be transparent about models used and key assumptions • communicate exclusively and bilaterally with parties: NEVER share party X's plan with party Y • CP ...
... • communicate publicly at start about "rules" (e.g limits on unspecified spending cuts, laffer curve limits on large increases of tax rates etc) • be transparent about models used and key assumptions • communicate exclusively and bilaterally with parties: NEVER share party X's plan with party Y • CP ...
GDP Equation - Nominal and Real
... Macroeconomics looks at the measurement of aggregate output. ...
... Macroeconomics looks at the measurement of aggregate output. ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Rational Expectations and Economic Policy
... unique levels of aggregate output, employment, and unemployment, denoted for obscure historical reasons as “natural” levels. Levels of aggregate output and employment above, equal to, or below their natural levels are associated with rates of inflation higher than, equal to, or less than inflation r ...
... unique levels of aggregate output, employment, and unemployment, denoted for obscure historical reasons as “natural” levels. Levels of aggregate output and employment above, equal to, or below their natural levels are associated with rates of inflation higher than, equal to, or less than inflation r ...
ETP Economics Midterm Examination
... a19.Suppose U.S.-based Intel builds and operates a new chip factory in Mexico. Future production from such an investment would a. increase Mexico's GDP more than it would increase Mexico's GNP. b. increase Mexico's GNP more than it would increase Mexico's GDP. c. not affect Mexico's GNP, but would i ...
... a19.Suppose U.S.-based Intel builds and operates a new chip factory in Mexico. Future production from such an investment would a. increase Mexico's GDP more than it would increase Mexico's GNP. b. increase Mexico's GNP more than it would increase Mexico's GDP. c. not affect Mexico's GNP, but would i ...
Lecture 2
... The point estimate of consumption growth under business as usual in Stern (2006) is g(C(t)) = 1.3% a year. Use this in equation (4) to obtain: D(t) = 2.05% a year for Cline D(t) = 4.30% a year for Nordhaus D(t) = 1.40% a year for Stern That is why Cline and Stern arrive at similar conclusions and w ...
... The point estimate of consumption growth under business as usual in Stern (2006) is g(C(t)) = 1.3% a year. Use this in equation (4) to obtain: D(t) = 2.05% a year for Cline D(t) = 4.30% a year for Nordhaus D(t) = 1.40% a year for Stern That is why Cline and Stern arrive at similar conclusions and w ...
Demand effects of financialisation and changes in functional income
... debt and asset prices for economic stability. Minsky (1995) regarded debt cycles as the driver of economic fluctuations. Recently there have been several attempts to formalise his model (Charles 2008; Fazzari et al. 2008; Keen 1995; Ryoo 2013), but there is no agreed-upon model yet.1 There is also a ...
... debt and asset prices for economic stability. Minsky (1995) regarded debt cycles as the driver of economic fluctuations. Recently there have been several attempts to formalise his model (Charles 2008; Fazzari et al. 2008; Keen 1995; Ryoo 2013), but there is no agreed-upon model yet.1 There is also a ...
CHAPTER 17 MACROECONOMIC POLICY IN AN OPEN ECONOMY
... Neither fiscal policy nor monetary policy are successful in promoting internal balance 25. Under a system of managed-floating exchange rates with modest exchange rate intervention: a. Fiscal policy is successful in promoting internal balance, while monetary policy is unsuccessful ...
... Neither fiscal policy nor monetary policy are successful in promoting internal balance 25. Under a system of managed-floating exchange rates with modest exchange rate intervention: a. Fiscal policy is successful in promoting internal balance, while monetary policy is unsuccessful ...
Can an increase in public investment sustainably lift
... In the short term an investment-led stimulus boosts output and reduce the debt-to-GDP ratio .........16 Public investment has a positive long-term effect on growth .............................................................18 The outcomes depend markedly on assumptions about the rate of return on ...
... In the short term an investment-led stimulus boosts output and reduce the debt-to-GDP ratio .........16 Public investment has a positive long-term effect on growth .............................................................18 The outcomes depend markedly on assumptions about the rate of return on ...
Macro Vision
... Non-recurring revenue: As observed in recent years, tax authorities are likely to once again rely on non-recurring revenue from concessions, extraordinary dividends and Refis. Because the annual volumes of these revenues have been gradually declining (which is intuitive in the case of concessions an ...
... Non-recurring revenue: As observed in recent years, tax authorities are likely to once again rely on non-recurring revenue from concessions, extraordinary dividends and Refis. Because the annual volumes of these revenues have been gradually declining (which is intuitive in the case of concessions an ...
Macroeconomic Policy, Inequality and Poverty Reduction in India and China
... other capitalist economies, where involuntary unemployment is rampant and fiscal and monetary measures have to be used to stimulate effective demand. However, China, by contrast, has had a very different institutional structure for most of this period, where the basic elements of a command economy h ...
... other capitalist economies, where involuntary unemployment is rampant and fiscal and monetary measures have to be used to stimulate effective demand. However, China, by contrast, has had a very different institutional structure for most of this period, where the basic elements of a command economy h ...