Macroeconomic Effects of Demonetization in India: Policy
... understand this complex monetary-fiscal scenario and make some scientific guesses about macroeconomic impacts of ‘Demonetization’ in India. The paper uses an econometric model that was estimated for 1985-’86 to 2009-’10 annual time series data. The estimated model shows significant macroeconomic ...
... understand this complex monetary-fiscal scenario and make some scientific guesses about macroeconomic impacts of ‘Demonetization’ in India. The paper uses an econometric model that was estimated for 1985-’86 to 2009-’10 annual time series data. The estimated model shows significant macroeconomic ...
Revival of Aggregate Demand Policies – Introduction
... The criteria for a proper discretionary fiscal policy are that the policy is transparent and credible, and that it operates in a symmetric and timely manner. The latter two objectives are, in principle achieved by acting in response to expected output gap movements and by setting symmetric threshold ...
... The criteria for a proper discretionary fiscal policy are that the policy is transparent and credible, and that it operates in a symmetric and timely manner. The latter two objectives are, in principle achieved by acting in response to expected output gap movements and by setting symmetric threshold ...
Chapter 11 - McGraw Hill Higher Education - McGraw
... Without savings, we could not have investment—the production of plant, equipment, and inventory. How can the system stay in balance? Markets inject the savings back into the system. Savings doesn’t sit in a bank vault, it is lent out to businesses, home buyers, and others. One person’s sav ...
... Without savings, we could not have investment—the production of plant, equipment, and inventory. How can the system stay in balance? Markets inject the savings back into the system. Savings doesn’t sit in a bank vault, it is lent out to businesses, home buyers, and others. One person’s sav ...
Scots Trial without Solutions
... Wage increases in the manufacturing and services sectors Trade negotiators are unable to complete a new trade agreement with another country Which of the following is a structural cause of Australia’s current account deficit? Falling demand for our exports from our trading partners An increase in do ...
... Wage increases in the manufacturing and services sectors Trade negotiators are unable to complete a new trade agreement with another country Which of the following is a structural cause of Australia’s current account deficit? Falling demand for our exports from our trading partners An increase in do ...
Economics 154b Spring 2006 National Income
... National income Y = MPL x L + MPK x K = L[(1-α)Y/L] +K[αY/K ] = Y (exhaustion of product theorem) Shares of capital and labor: share of K = RK/Y = (αY/K ) x (K/Y) = constant = α Why do economists like Cobb-Douglas? See next slides on historical data on factor shares. ...
... National income Y = MPL x L + MPK x K = L[(1-α)Y/L] +K[αY/K ] = Y (exhaustion of product theorem) Shares of capital and labor: share of K = RK/Y = (αY/K ) x (K/Y) = constant = α Why do economists like Cobb-Douglas? See next slides on historical data on factor shares. ...
Naples, Kingdom of, 1811
... Income distribution data: The source is Malanima (2006: p. 31), who uses the tax census data from 1811. This tax census is, for the purposes of establishing an estimate of income distribution, better than others because it surveyed not only tax paying units but also the poor (the indigent). Each of ...
... Income distribution data: The source is Malanima (2006: p. 31), who uses the tax census data from 1811. This tax census is, for the purposes of establishing an estimate of income distribution, better than others because it surveyed not only tax paying units but also the poor (the indigent). Each of ...
Testimony by James A - Fiscal Policy Institute
... in interpreting the unemployment rate. First, the labor force has declined over the last three years (the March 2005 level was about 42,000 below the March 2002 level). Weak employment conditions often reduce the labor force as discouraged workers give up the search for a job and others postpone the ...
... in interpreting the unemployment rate. First, the labor force has declined over the last three years (the March 2005 level was about 42,000 below the March 2002 level). Weak employment conditions often reduce the labor force as discouraged workers give up the search for a job and others postpone the ...
PDF Download
... The US fiscal swing has been enormous. In earlier decades, any swing of 1/2 a percentage point or more in a country’s cyclically adjusted budget balance was a major event. Yet the recent US fiscal expansion has been about eight times that size, and the UK swing about four times. In the euro area, by ...
... The US fiscal swing has been enormous. In earlier decades, any swing of 1/2 a percentage point or more in a country’s cyclically adjusted budget balance was a major event. Yet the recent US fiscal expansion has been about eight times that size, and the UK swing about four times. In the euro area, by ...
Chapter 02 by MGirvin
... Low Interest rates can encourage borrowing and may lead to more investment in capital goods and in turn help the economy grow Low interest rates for long periods of time can increase the money supply too much and may cause speculative bubbles (housing prices) ...
... Low Interest rates can encourage borrowing and may lead to more investment in capital goods and in turn help the economy grow Low interest rates for long periods of time can increase the money supply too much and may cause speculative bubbles (housing prices) ...
View/Open
... some formula for economic policy by which we could foresee a slackening in the rate of increase in the price level and a concomitant settling of the rate of wage increases so that these two would be broadly consistent, with no adverse effect on output, productivity, and so forth. Unfortunately, the ...
... some formula for economic policy by which we could foresee a slackening in the rate of increase in the price level and a concomitant settling of the rate of wage increases so that these two would be broadly consistent, with no adverse effect on output, productivity, and so forth. Unfortunately, the ...
federal budget - cloudfront.net
... • If taxes are increased to make the federal debt’s interest payments, it may diminish incentives for Americans to work, save, and invest. • In selling bonds to raise money, the federal government competes with the private sector for scarce resources, leading to higher-than-normal interest rates (Cr ...
... • If taxes are increased to make the federal debt’s interest payments, it may diminish incentives for Americans to work, save, and invest. • In selling bonds to raise money, the federal government competes with the private sector for scarce resources, leading to higher-than-normal interest rates (Cr ...
The Cyclically Adjusted Deficit in Israel
... relative to a change of one percent in the output gap (which is the difference between actual GDP and an estimate of the economy’s productive potential in a particular period); and 2) the percentage change in tax revenues relative to a change of one percent in the tax base. The calculation of these ...
... relative to a change of one percent in the output gap (which is the difference between actual GDP and an estimate of the economy’s productive potential in a particular period); and 2) the percentage change in tax revenues relative to a change of one percent in the tax base. The calculation of these ...
FEdERal BUdgEt dEFicit - Constitutional Rights Foundation
... National High school U.s. History standard 24: Understands how the New deal addressed the great depression, transformed american federalism, and initiated the welfare state. (1) Understands the first and second New Deals (e.g., the success of the relief, recovery, and reform measures associated with ...
... National High school U.s. History standard 24: Understands how the New deal addressed the great depression, transformed american federalism, and initiated the welfare state. (1) Understands the first and second New Deals (e.g., the success of the relief, recovery, and reform measures associated with ...
Textbooks and Pure Fiscal Policy: The Neglect of Monetary Basics
... who neglect monetary basics all use the IS-LM framework, a simultaneousequations system that does not admit to sequential description. In other words, the textbook authors have made the best of a difficult situation However tempting such an apology might be, it must be pointed out that the macroecon ...
... who neglect monetary basics all use the IS-LM framework, a simultaneousequations system that does not admit to sequential description. In other words, the textbook authors have made the best of a difficult situation However tempting such an apology might be, it must be pointed out that the macroecon ...
Fiscal policy and private investment. Latin America in a comparative
... Spain, Korea and Ireland, it is observed that a small change of VAT in total tax receipts has left the tax ratio at the same level it was in 1990. Let us now see in detail the case of the Latin-American countries. As can be seen in Table 4, consumption-related tax receipts (general taxes on goods an ...
... Spain, Korea and Ireland, it is observed that a small change of VAT in total tax receipts has left the tax ratio at the same level it was in 1990. Let us now see in detail the case of the Latin-American countries. As can be seen in Table 4, consumption-related tax receipts (general taxes on goods an ...
Economics 101 Name
... A good used in the production of another good, such as iron produced to be used to make steel The amount of production necessary to have full employment (i.e., the natural rate of unemployment Real Gross Domestic product (GDP) per hour worked An adjustment to one’s income by the amount the CPI chang ...
... A good used in the production of another good, such as iron produced to be used to make steel The amount of production necessary to have full employment (i.e., the natural rate of unemployment Real Gross Domestic product (GDP) per hour worked An adjustment to one’s income by the amount the CPI chang ...
Sample quiz 1
... b. nominal GDP relative to real GDP c. the price of a basket of goods that changes every year, relative to the same basket in a base year d. the price of fixed basket of goods and services, relative to the price of the same basket in a base year (11) Other things equal, an increase in the interest r ...
... b. nominal GDP relative to real GDP c. the price of a basket of goods that changes every year, relative to the same basket in a base year d. the price of fixed basket of goods and services, relative to the price of the same basket in a base year (11) Other things equal, an increase in the interest r ...
Stocks and Flows
... this year; the total value of all houses in the U. S. on January 1, 2009; Government debt. In many applications a flow variable is the rate of change in a stock variable. A bathtub with water flowing in from a faucet. The amount of water in the tub at any moment is a stock variable. The units of a s ...
... this year; the total value of all houses in the U. S. on January 1, 2009; Government debt. In many applications a flow variable is the rate of change in a stock variable. A bathtub with water flowing in from a faucet. The amount of water in the tub at any moment is a stock variable. The units of a s ...
balcerowicz
... • The manner of fiscal policy tightening is of far greater importance in terms of its aftermath than the scale of deficit reduction. Among the successful fiscal adjustments, those that focus on cuts in public sector wage expenditure and in transfers to households are particularly frequent (see e.g. ...
... • The manner of fiscal policy tightening is of far greater importance in terms of its aftermath than the scale of deficit reduction. Among the successful fiscal adjustments, those that focus on cuts in public sector wage expenditure and in transfers to households are particularly frequent (see e.g. ...
This PDF is a selection from a published volume from... Bureau of Economic Research
... future. Debt-to-GDP had fallen from 49% in 1993 to 33% in 2000, nearly undoing the increase in the debt from 26% to 49% that had occurred between 1981 and 1993. Policy makers were actively debating the implications of the United States paying down all its publicly held debt, raising questions such a ...
... future. Debt-to-GDP had fallen from 49% in 1993 to 33% in 2000, nearly undoing the increase in the debt from 26% to 49% that had occurred between 1981 and 1993. Policy makers were actively debating the implications of the United States paying down all its publicly held debt, raising questions such a ...
Technical Note on the Basis of Assumptions Regarding the Effect of
... dividend tax revenues are estimated to be about 3-4% higher than in the absence of the package. In the case where all investment is financed by equity, this could increase the user cost of capital by about 0.6%. Using the New Zealand Treasury Model (NZTM) we estimate that the increase in the user co ...
... dividend tax revenues are estimated to be about 3-4% higher than in the absence of the package. In the case where all investment is financed by equity, this could increase the user cost of capital by about 0.6%. Using the New Zealand Treasury Model (NZTM) we estimate that the increase in the user co ...
Overall effect: Y
... In order to discuss the dynamics, we need to impose an adjustment assumption: the money market always clears quickly while the goods market clears slowly. In terms of the above diagrams, for the fiscal policy adjustment, the movement is always along the LM curve. For the monetary adjustment, the eco ...
... In order to discuss the dynamics, we need to impose an adjustment assumption: the money market always clears quickly while the goods market clears slowly. In terms of the above diagrams, for the fiscal policy adjustment, the movement is always along the LM curve. For the monetary adjustment, the eco ...
Exam questions first prelim ECON 102
... corner," he said. Consumer prices rose 3.4 percent last year, but were up at a more subdued pace of 2.2 percent once food and energy costs were stripped out -- a level that some Fed policy-makers may see as at the top of their tolerance range. Explain how the interest rates could boost or hinder eco ...
... corner," he said. Consumer prices rose 3.4 percent last year, but were up at a more subdued pace of 2.2 percent once food and energy costs were stripped out -- a level that some Fed policy-makers may see as at the top of their tolerance range. Explain how the interest rates could boost or hinder eco ...
Which of the following occurs when real GDP reaches its
... What type of policy seeks to lower interest rates or increase the money supply, allowing money to be acquired more easily, increasing economic activity in an economy? A ...
... What type of policy seeks to lower interest rates or increase the money supply, allowing money to be acquired more easily, increasing economic activity in an economy? A ...