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Chapter 18
Chapter 18

D.C.A. Curtis. Monetary Policy Rules in Canada in the 1990s.
D.C.A. Curtis. Monetary Policy Rules in Canada in the 1990s.

... inflation while stimulating growth and employment. The data on price shocks in the upper panel of Table 2 illustrate conditions in Canada in the 1990’s and offer a comparison with earlier decades and with the experience in the United States. They show that both countries enjoyed stable supply side c ...
SP227: Lost at Sea: The Euro Needs a Euro Treasury
SP227: Lost at Sea: The Euro Needs a Euro Treasury

... credibility of monetary and fiscal policies would add stability to the policy regime. Macroeconomic policies focused on price stability and constrained by balanced-budget rules suggest themselves as “sound”, on this view. Arguably, the preoccupations of OCA theory have been of rather limited value ...
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... sign to the change in gold holdings. In September 1937, at the request of the Federal Reserve, the Treasury desterilized $300 million to meet seasonal demand for currency, not to address the economic downturn. It resumed sterilization in October. By this time, the U.S. economy was clearly in a reces ...
Relative British and American Income Levels during the First
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The Journal of Economic Education Consensus Among Economists

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mexico - Inter-American Development Bank
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... makes the tax system less progressive with respect to current income and provides particularly large benefits to households in the top 1 percent of the income distribution. This redistribution comes just after a twenty-year period when pre- and post-tax income became significantly less equal. Two ad ...
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Trying to Make Sense of the Principle of Effective Demand

... Perhaps the most influential textbook ever written is Paul A. Samuelson’s Economics. But although the macroeconomic framework of Economics evolves from a simple IncomeExpenditure model (SAMUELSON 1948, Chapter 12) via the same model supplemented by an IS/LM-analysis (SAMUELSON 1973, Chapter 12 plus ...
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Chapter 36 MC — Five Debates Over Macroeconomic Policy
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... 10. The Federal Reserve will tend to tighten monetary policy when a. interest rates are rising too rapidly. b. it thinks the unemployment rate is too high. c. the growth rate of real GDP is quite sluggish. d. it thinks inflation is too high today, or will become too high in the future. ANS: D PTS: 1 ...
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... of small changes in the marginal tax rates. This is for three reasons. First, small businesses can expense (immediately deduct in full) the cost of investment. This alone brings the effective tax rate on new investment to zero, regardless of the statutory rate. Second, if they can finance the invest ...
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El proceso de cambio de año de referencia e integración de las estadísticas económicas en Jamaica (STATIN, Jamaica)
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...  We already capture part of the informal sector in some estimates however there is a need to allocate between formal and informal by industries. ...
Marco Cangiano , E. Baldacci , S. Mahfouz , andAxel Schimmelpfenning The Effectiveness of Fiscal Policy in Stimulating Economic Activity: An Empirical Investigation (Second IMF Research Conference)..
Marco Cangiano , E. Baldacci , S. Mahfouz , andAxel Schimmelpfenning The Effectiveness of Fiscal Policy in Stimulating Economic Activity: An Empirical Investigation (Second IMF Research Conference)..

... Recent years have seen a revival of the debate about the role of fiscal policy in stimulating economic activity, particularly given the recessions in Asian crisis countries, the prolonged slump in Japan and, more recently, the slowdown in the United States. Lane and others (1999), while noting fisca ...
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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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