Principles of Economics, Case and Fair,9e
... economy is operating at or above potential output, there is general agreement that there is a maximum level of output (below the vertical portion of the short-run aggregate supply curve) that can be sustained without inflation. ...
... economy is operating at or above potential output, there is general agreement that there is a maximum level of output (below the vertical portion of the short-run aggregate supply curve) that can be sustained without inflation. ...
The Political Economy of Keynesian Demand Management
... ailing economy. Two important questions thus emerge. First, does the relationship between deficits, debt and incumbent reelection extend beyond Bartels’s limited sample of counties and time period? Second, does voters’ electoral behavior in relationship to deficits and debt vary across recession and ...
... ailing economy. Two important questions thus emerge. First, does the relationship between deficits, debt and incumbent reelection extend beyond Bartels’s limited sample of counties and time period? Second, does voters’ electoral behavior in relationship to deficits and debt vary across recession and ...
Gains from Commitment in Monetary Policy: Implications of the Cost
... In dynamic economic systems, private agents’ current choices depend upon their expectations of future government actions. In their seminal contribution, Kydland and Prescott (1977) discuss how this property often generates a policy environment in which commitment on the part of the policy maker to a ...
... In dynamic economic systems, private agents’ current choices depend upon their expectations of future government actions. In their seminal contribution, Kydland and Prescott (1977) discuss how this property often generates a policy environment in which commitment on the part of the policy maker to a ...
ECONOMICS
... GDP fell from $977 billion to $716 billion, and the price level dropped from 10.6 to 7.9, measured relative to a price level of 100 in the base year 2005. ...
... GDP fell from $977 billion to $716 billion, and the price level dropped from 10.6 to 7.9, measured relative to a price level of 100 in the base year 2005. ...
BALANCE OF PAYMENTS ADJUSTMENT
... be in surplus. A balance of payments deficit can, therefore, only be corrected if the level of absorption changes relative to the level of income (Du Plessis et al., 1998:251). The empirical literature is replete with studies on the monetary approach to balance of payment. Mixed results were obtaine ...
... be in surplus. A balance of payments deficit can, therefore, only be corrected if the level of absorption changes relative to the level of income (Du Plessis et al., 1998:251). The empirical literature is replete with studies on the monetary approach to balance of payment. Mixed results were obtaine ...
A Antonio Martino
... is thoroughly discredited: an unexpected acceleration of inflation may temporarily reduce unemployment below its “natural rate,” but this effect is short-lived. Only an accelerating inflation could keep unemployment below its “natural rate,” but even that unappetizing possibility is dubious (Friedma ...
... is thoroughly discredited: an unexpected acceleration of inflation may temporarily reduce unemployment below its “natural rate,” but this effect is short-lived. Only an accelerating inflation could keep unemployment below its “natural rate,” but even that unappetizing possibility is dubious (Friedma ...
The budget surplus rule scam - Centre for Labour and Social Studies
... support the level of demand in the economy to maintain a reasonable level of employment. There is often a need in accounting terms for a budget deficit to balance against the trade deficit and low levels of investment. In now aiming for a budget surplus, the Chancellor needs to explain how circumsta ...
... support the level of demand in the economy to maintain a reasonable level of employment. There is often a need in accounting terms for a budget deficit to balance against the trade deficit and low levels of investment. In now aiming for a budget surplus, the Chancellor needs to explain how circumsta ...
Fiscal and Monetary Policies The Nominal Anchor
... The Classical Dichotomy (long-run neutrality of money) implied that the long-run equilibrium values of real variables (e.g., employment, output, real interest rates) don’t depend on monetary conditions The Quantity Theory of Money (MV = PY ) was typically the link between the money supply and the pr ...
... The Classical Dichotomy (long-run neutrality of money) implied that the long-run equilibrium values of real variables (e.g., employment, output, real interest rates) don’t depend on monetary conditions The Quantity Theory of Money (MV = PY ) was typically the link between the money supply and the pr ...
Chapter 24: Aggregate Demand, Aggregate Supply, and Inflation
... Some consumption is autonomous (= “independent” of DPI): it may depend on other factors such as wealth or stock values. (even at zero income, Bill Gates would consume something) The consumption function proposed by Keynes is: ...
... Some consumption is autonomous (= “independent” of DPI): it may depend on other factors such as wealth or stock values. (even at zero income, Bill Gates would consume something) The consumption function proposed by Keynes is: ...
Interest Rate Rules and Equilibrium Stability
... special interest since it is a more generalized version of habit formation, as agents form habits over consumption of individual goods that form the composite consumption good. Deep habit formation give rise to the same consumption Euler equation, but unlike the more widely used habit formation at t ...
... special interest since it is a more generalized version of habit formation, as agents form habits over consumption of individual goods that form the composite consumption good. Deep habit formation give rise to the same consumption Euler equation, but unlike the more widely used habit formation at t ...
Chapter 21 Stabilization Policy with Backward
... with inflation to the same degree means that consumer choices are distorted: Even firms with the same level of marginal costs may charge different prices on any given day, simply because they do not adjust their prices at the same time. This relative price distortion will tend to be more severe, the ...
... with inflation to the same degree means that consumer choices are distorted: Even firms with the same level of marginal costs may charge different prices on any given day, simply because they do not adjust their prices at the same time. This relative price distortion will tend to be more severe, the ...
Some unpleasant properties of log-linearized solutions when the
... large government purchases multipliers in excess of two in the loglinearized economy, produce government purchase multipliers as low as 1.09 in the nonlinear economy. Indeed, we find that the most plausible parameterizations of the nonlinear model have the property that there is no paradox of toil an ...
... large government purchases multipliers in excess of two in the loglinearized economy, produce government purchase multipliers as low as 1.09 in the nonlinear economy. Indeed, we find that the most plausible parameterizations of the nonlinear model have the property that there is no paradox of toil an ...
Transfer Problem Dynamics: Macroeconomics of the Franco
... fer problem has been theoretical, and set in the context of simple, static models of international trade. Many studies focus on relatively narrow, qualitative questions regarding the impact of the transfer on welfare of the donor or the recipient. Since the traditional models tend to ignore many ch ...
... fer problem has been theoretical, and set in the context of simple, static models of international trade. Many studies focus on relatively narrow, qualitative questions regarding the impact of the transfer on welfare of the donor or the recipient. Since the traditional models tend to ignore many ch ...
The Impact of a Reduced Rate of VAT on Restaurants 3
... Secondly, many international tourists include multiple destinations in their itinerary. This has important implications for the level of demand for a given destination. For example, higher than expected prices in one destination may result in the consumption of fewer tourism services with compensati ...
... Secondly, many international tourists include multiple destinations in their itinerary. This has important implications for the level of demand for a given destination. For example, higher than expected prices in one destination may result in the consumption of fewer tourism services with compensati ...
Money and Inflation
... that the one-shot increase in government expenditure leads to only a temporary increase in the inflation rate, not to an inflation in which the price level is continually rising. If, however, government spending increased continually, we could get a continuing rise in the price level. It appears, th ...
... that the one-shot increase in government expenditure leads to only a temporary increase in the inflation rate, not to an inflation in which the price level is continually rising. If, however, government spending increased continually, we could get a continuing rise in the price level. It appears, th ...
Income inequality as a cause of the Great Recession?
... given to the renewed interest in inequality as a macroeconomic risk. In the remainder of this introduction, we will first briefly discuss the Rajan hypothesis and the debates to which it has given rise (Section 1.1). Section 1.2 then summarises the approach and main results of our literature survey. ...
... given to the renewed interest in inequality as a macroeconomic risk. In the remainder of this introduction, we will first briefly discuss the Rajan hypothesis and the debates to which it has given rise (Section 1.1). Section 1.2 then summarises the approach and main results of our literature survey. ...
GACE Economics Assessment Study Companion
... P. Understands how the aggregate supply and aggregate demand model is used to determine equilibrium price level and output in the short run and in the long run Q. Understands how employment is related to real GDP R. Understands how inflationary and recessionary gaps are defined in the context of the ...
... P. Understands how the aggregate supply and aggregate demand model is used to determine equilibrium price level and output in the short run and in the long run Q. Understands how employment is related to real GDP R. Understands how inflationary and recessionary gaps are defined in the context of the ...
ABSTRACT Title of dissertation: ESSAYS ON FISCAL POLICY IN DEVELOPING COUNTRIES
... the cyclicality of policies arising from this political structure. In this model, a …scal agent with time-consistent preferences would conduct countercyclical policies: all households prefer countercyclical transfers to procyclical transfers of the same magnitude, because transfers are valued more i ...
... the cyclicality of policies arising from this political structure. In this model, a …scal agent with time-consistent preferences would conduct countercyclical policies: all households prefer countercyclical transfers to procyclical transfers of the same magnitude, because transfers are valued more i ...
Public Investment in Resource Abundant Low
... investment as it accrues. Our simulation shows that during the windfall period, the economy experiences fast growth but traded-good production also shrinks for a prolonged period due to a real exchange rate appreciation, with some negative effects on productivity in that sector (Dutch disease). The ...
... investment as it accrues. Our simulation shows that during the windfall period, the economy experiences fast growth but traded-good production also shrinks for a prolonged period due to a real exchange rate appreciation, with some negative effects on productivity in that sector (Dutch disease). The ...
Inflation: Are Higher Prices the Only Problem?
... Throw pennies on the classroom floor (10-20 cents). Explain it has been sitting in your change jar for a long time, and you’ve decided to get rid of it. Ask students if they or someone in their family has a change jar for collecting spare coins. Also ask if they would stop to pick up a penny or a ni ...
... Throw pennies on the classroom floor (10-20 cents). Explain it has been sitting in your change jar for a long time, and you’ve decided to get rid of it. Ask students if they or someone in their family has a change jar for collecting spare coins. Also ask if they would stop to pick up a penny or a ni ...
NBER WORKING PAPER SERIES ARE DEVALUATIONS CONTRACTIONARY? Sebastian Edwards Working Paper No. 1676
... errors, however, are my own. Financial support from the National Science Foundation, Grant SES 84-19932, is gratefully acknowledged. The research reported here is part of the NBER's research program in International Studies. Any opinions expressed are those of the author and not those of the Nationa ...
... errors, however, are my own. Financial support from the National Science Foundation, Grant SES 84-19932, is gratefully acknowledged. The research reported here is part of the NBER's research program in International Studies. Any opinions expressed are those of the author and not those of the Nationa ...
the resources boom and macroeconomic policy in australia
... The changing incremental effect of the resources boom During the resources boom, Australia’s export prices have increased by 170% in foreign currency terms, with the increase heavily concentrated on the resources sector. This has led to a rise in the exchange rate and an increase in ...
... The changing incremental effect of the resources boom During the resources boom, Australia’s export prices have increased by 170% in foreign currency terms, with the increase heavily concentrated on the resources sector. This has led to a rise in the exchange rate and an increase in ...
Chapter 8 Business Cycles
... or recessions. Both expansions and contractions exhibit persistence, so once an expansion or contraction begins, it tends to last some time. Level of difficulty: 1 Section: 8.1 ...
... or recessions. Both expansions and contractions exhibit persistence, so once an expansion or contraction begins, it tends to last some time. Level of difficulty: 1 Section: 8.1 ...