How to measure a fiscal stimulus
... This input-side definition/measurement appears relatively easy to adopt in practice and may yield relatively comparable results across countries. Since an important concern when analysing a fiscal impulse is its effect on macroeconomic developments, an output-side def inition of fiscal stimulus put ...
... This input-side definition/measurement appears relatively easy to adopt in practice and may yield relatively comparable results across countries. Since an important concern when analysing a fiscal impulse is its effect on macroeconomic developments, an output-side def inition of fiscal stimulus put ...
NBER WORKING PAPER SERIES Carlo Favero Francesco Giavazzi
... of a shift in U.S. federal tax liabilities imply a multiplier significantly greater than one. Romer and Romer (forthcoming, R&R in what follows) find that tax increases are highly contractionary: according to their estimates a tax increase equivalent to 1 per cent of U.S. GDP reduces output over the ...
... of a shift in U.S. federal tax liabilities imply a multiplier significantly greater than one. Romer and Romer (forthcoming, R&R in what follows) find that tax increases are highly contractionary: according to their estimates a tax increase equivalent to 1 per cent of U.S. GDP reduces output over the ...
Chapter 7
... This initial distribution determines who can be an entrepreneur and who cannot Individuals with initial wealth above the threshold ...
... This initial distribution determines who can be an entrepreneur and who cannot Individuals with initial wealth above the threshold ...
2009 HSC Economics Sample Answers
... farmers. Greater exports would improve Australia’s BOGS which could reduce the CAD. Increasing exports will add to Australia’s economic growth rate as production increases in agricultural industries. However, as demand for Australian exports increase, the demand for $A will rise, leading to an appre ...
... farmers. Greater exports would improve Australia’s BOGS which could reduce the CAD. Increasing exports will add to Australia’s economic growth rate as production increases in agricultural industries. However, as demand for Australian exports increase, the demand for $A will rise, leading to an appre ...
Chapter 40: Aggregate demand (2.2)
... A strong influence in aggregate demand is the rate of interest, i.e. the ‘price’ one pays for borrowing money – alternatively, the ‘return’ one receives for keeping money in the bank. The interest rate is positively linked to the price level, i.e. when the price level goes up, so do interest rates. ...
... A strong influence in aggregate demand is the rate of interest, i.e. the ‘price’ one pays for borrowing money – alternatively, the ‘return’ one receives for keeping money in the bank. The interest rate is positively linked to the price level, i.e. when the price level goes up, so do interest rates. ...
2016 Paper 1 Specimen Paper
... internship, but certainly not aimed at providing a living wage. There are examples, particularly in the world of the arts and media industries, where unpaid internships can last for 12–18 ...
... internship, but certainly not aimed at providing a living wage. There are examples, particularly in the world of the arts and media industries, where unpaid internships can last for 12–18 ...
article - Federal Reserve Bank of Richmond
... Fiscal policy and monetary policy are distinct government functions. Fiscal policy is the government’s decisions about how to tax and how to spend the proceeds. Monetary policy is often described as the central bank’s actions to influence interest rates and the economy’s supply of money to affect ec ...
... Fiscal policy and monetary policy are distinct government functions. Fiscal policy is the government’s decisions about how to tax and how to spend the proceeds. Monetary policy is often described as the central bank’s actions to influence interest rates and the economy’s supply of money to affect ec ...
ch18lecture
... target inflation rate, the target rate for the currently measured CPI would be less than 1 percent a year. And it would be easy to construct a value-of-money index (VMI) that equals the CPI scaled back for the best available estimate of the upward measurement bias. ...
... target inflation rate, the target rate for the currently measured CPI would be less than 1 percent a year. And it would be easy to construct a value-of-money index (VMI) that equals the CPI scaled back for the best available estimate of the upward measurement bias. ...
PRESENTATION 2. Aggregate supply
... E = 1 – point W – the economy operates at full capacity on the Institutional PPF and produces potential GDP; the rate of unemployment is equal to the natural rate Steep E < 1 – from W to Z – the economy operates at overcapacity – prices increase faster than output Vertical Е = 0 – from Z – firms can ...
... E = 1 – point W – the economy operates at full capacity on the Institutional PPF and produces potential GDP; the rate of unemployment is equal to the natural rate Steep E < 1 – from W to Z – the economy operates at overcapacity – prices increase faster than output Vertical Е = 0 – from Z – firms can ...
Midterm 2
... possible. Use the back of the pages if necessary. 1. Write out the growth accounting equation. Describe how the equation was used to try to determine what may have caused the growth slowdown in the United States from 3.7 percent per year in 1948-1973 to 1.55 percent per year from 1973-1982. (A simil ...
... possible. Use the back of the pages if necessary. 1. Write out the growth accounting equation. Describe how the equation was used to try to determine what may have caused the growth slowdown in the United States from 3.7 percent per year in 1948-1973 to 1.55 percent per year from 1973-1982. (A simil ...
Alice Sindzingre - Overseas Development Institute
... increased from 6% to 15%; private capital inflows (including FDI) fell from 2 to 1 % of GDP (Morrissey). • Aid dependence: negative effects: volatility, unpredictability of aid flows, problems of capacity of absorption. • Bulir and Hamann: volatility of aid much higher than that of revenue and incre ...
... increased from 6% to 15%; private capital inflows (including FDI) fell from 2 to 1 % of GDP (Morrissey). • Aid dependence: negative effects: volatility, unpredictability of aid flows, problems of capacity of absorption. • Bulir and Hamann: volatility of aid much higher than that of revenue and incre ...
Bill of Rights in Action The WPA:
... Morgenthau. Along with other cuts, he reduced WPA spending by twothirds. This ended the jobs of over a million WPA workers. With fewer paychecks in the economy, private businesses cut back and laid off employees. By 1938, unemployment was back up to 19 percent. Roosevelt quickly reversed course, res ...
... Morgenthau. Along with other cuts, he reduced WPA spending by twothirds. This ended the jobs of over a million WPA workers. With fewer paychecks in the economy, private businesses cut back and laid off employees. By 1938, unemployment was back up to 19 percent. Roosevelt quickly reversed course, res ...
Activity - Scepticism surrounds Swan`s surplus scenario
... billion 1, the third deficit in a row. The 2011-12 budget forecast an underlying cash deficit of $22.6 billion. But updated forecasts in the November 2011 MYEFO now have the expected deficit at $37.1 billion. 2 The government blames the budget blowout on 'deterioration in the global economy and unev ...
... billion 1, the third deficit in a row. The 2011-12 budget forecast an underlying cash deficit of $22.6 billion. But updated forecasts in the November 2011 MYEFO now have the expected deficit at $37.1 billion. 2 The government blames the budget blowout on 'deterioration in the global economy and unev ...
PDF of this report - Center on Budget and Policy Priorities
... Balancing the budget in ten years would likely necessitate more than $6 trillion of program cuts or revenue increases over the decade. And while balancing the budget over the decade would not have to occur through the spending-cuts-only approach that Republican leaders have championed, even a packag ...
... Balancing the budget in ten years would likely necessitate more than $6 trillion of program cuts or revenue increases over the decade. And while balancing the budget over the decade would not have to occur through the spending-cuts-only approach that Republican leaders have championed, even a packag ...
Basic Macroeconomic Relationships
... DISPOSABLE INCOMESPEND OR SAVE! We all know that consumption is 2/3 (or more) of GDP ...
... DISPOSABLE INCOMESPEND OR SAVE! We all know that consumption is 2/3 (or more) of GDP ...
An investigation of the effects oftaxation on Irish... A frequently cited explanation for Ireland's persistently high unemployment... Diarmaid A. Smyth Senior Sophister
... There were four main reasons why effective tax rates on labour became so high and penalising in Ireland, thus greatly contributing to unemployment by lessening work incentives; Firstly, the sub-indexation of basic tax allowances meant that an increasing proportion of workers' gross incomes were subj ...
... There were four main reasons why effective tax rates on labour became so high and penalising in Ireland, thus greatly contributing to unemployment by lessening work incentives; Firstly, the sub-indexation of basic tax allowances meant that an increasing proportion of workers' gross incomes were subj ...
Assessing the impact of austerity in the Greek economy: A sectoral
... The principal goal of the Economic Adjustment Programmes (EAPs) applied in Greece since 2010 was the elimination of the economy’s so-called ‘dual deficit problem’ by a mix of austerity and internal devaluation measures. This policy prescription was originally expected to put the country’s public deb ...
... The principal goal of the Economic Adjustment Programmes (EAPs) applied in Greece since 2010 was the elimination of the economy’s so-called ‘dual deficit problem’ by a mix of austerity and internal devaluation measures. This policy prescription was originally expected to put the country’s public deb ...
Presentation to the Western Cape Provincial Legislature
... • Allocation for health: 0.2% annual average real increase over the MTEF • Commission concern: quality of health care in wake of fiscal consolidation • Commission recommendations: – Tightening of monitoring and oversight mechanisms on procurement practises in health departments – HR, financial manag ...
... • Allocation for health: 0.2% annual average real increase over the MTEF • Commission concern: quality of health care in wake of fiscal consolidation • Commission recommendations: – Tightening of monitoring and oversight mechanisms on procurement practises in health departments – HR, financial manag ...
NBER WORKING PAPER SERIES MONEY, IMPERFECT INFORMATION AND ECONOMIC FLUCTUATIONS Bruce Greenwald
... phenomenon to be explained by any adequate macro-theory;15 again, what has to be explained is not only the presence of these effects, but their magnitude and form, e.g. why contractionary monetary policies often seem more effective in inducing a curtailment of economic activity than expansionary mon ...
... phenomenon to be explained by any adequate macro-theory;15 again, what has to be explained is not only the presence of these effects, but their magnitude and form, e.g. why contractionary monetary policies often seem more effective in inducing a curtailment of economic activity than expansionary mon ...
- National Affairs
... Keynesians have objected to the supply-side emphasis on relative price effects in fiscal policy. They have argued that decisions to work or save were either not affected by tax rates or were affected positively--i.e., that people would continue working or saving to compensate for the money lost to h ...
... Keynesians have objected to the supply-side emphasis on relative price effects in fiscal policy. They have argued that decisions to work or save were either not affected by tax rates or were affected positively--i.e., that people would continue working or saving to compensate for the money lost to h ...
Practice Questions - Arizona Educator Proficiency Assessments
... an increase in the ratio of capital to labor in major industries ...
... an increase in the ratio of capital to labor in major industries ...
TaxIQ Meeting Materials - American Bar Association
... are highly uncertain. But few would dispute that, even under optimistic assumptions, continuation of current policies would lead to an enormous accumulation of debt with potentially disastrous consequences for the U.S. economy. The most important of CBO’s assumptions, as it tacitly acknowledges, is ...
... are highly uncertain. But few would dispute that, even under optimistic assumptions, continuation of current policies would lead to an enormous accumulation of debt with potentially disastrous consequences for the U.S. economy. The most important of CBO’s assumptions, as it tacitly acknowledges, is ...
Coyote Economist Inequality and the Great Recession News.from.the.Department.of.Economics,.CSUSB
... and working class households. But, since publicly available data are not organized by economic class, we’re forced to work with income and wealth quintiles as a way of approximating the class divisions we’re ultimately interested in. The Great Recession started in December of 2007 and lasted for 18 ...
... and working class households. But, since publicly available data are not organized by economic class, we’re forced to work with income and wealth quintiles as a way of approximating the class divisions we’re ultimately interested in. The Great Recession started in December of 2007 and lasted for 18 ...
Chapter 19: Aggregate Expenditure and Equilibrium Output
... a) What are the marginal propensity to consume in Freedonia, and the marginal propensity to save. b) Graph equations (3) and (4) and solve for equilibrium income. c) Suppose equation (2) were changed to(2’) I = 110. What is the new equilibrium level of income? By how much does the $10 increase in pl ...
... a) What are the marginal propensity to consume in Freedonia, and the marginal propensity to save. b) Graph equations (3) and (4) and solve for equilibrium income. c) Suppose equation (2) were changed to(2’) I = 110. What is the new equilibrium level of income? By how much does the $10 increase in pl ...
THE FISCAL POLICY FRAMEWORK IN CHINA Liu Lida* In the last
... effective supply of public goods. For example, the government may directly increase the supply of public goods through fiscal spending on national defence and major infrastructure projects. Second, the government may use economic, legal and administrative measures to address externalities, especiall ...
... effective supply of public goods. For example, the government may directly increase the supply of public goods through fiscal spending on national defence and major infrastructure projects. Second, the government may use economic, legal and administrative measures to address externalities, especiall ...