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Bank of England Inflation Report May 2012
Bank of England Inflation Report May 2012

... (b) UK imports as a proportion of import-weighted total final expenditure. Import-weighted total final expenditure is calculated by weighting household consumption (including non-profit institutions serving households), whole-economy investment (excluding valuables), government spending, stockbuildi ...
Glossary
Glossary

... Nonfinancial public sector  General government plus nonfinancial public corporations. Output gap  Deviation of actual from potential GDP, in percent of potential GDP. Overall fiscal balance (also “headline” fiscal balance)  Net lending and borrowing, defined as the difference between revenue and tot ...
14 - The Citadel
14 - The Citadel

... Suppose government spending increases and everthing else remains unchanged. The increase in government spending leads to an increase in total spending. Assuming that firms adjust output to match the increased sales, then the increase in output implies a equal increase in real income. But people with ...
Aggregate Supply
Aggregate Supply

... more competitive. This is why relative inflation rates are important for net exports Exchange rate: a fall in the value of a country’s exchange rate (deprecation) makes its exports cheaper, in terms of foreign currency, and its imports more expensive. If demand for imports and exports is price elast ...
Monetary Policy Using the AD/AS Model Page 1 of 2
Monetary Policy Using the AD/AS Model Page 1 of 2

... in the long run have no affect on the real economy. Let’s see if we can recreate that result now in our model of the macroeconomy. Let’s look at how we would represent monetary policy using the aggregate demand and aggregate supply curves and see if, in fact, money can make a difference in the short ...
Economic Policy
Economic Policy

... 2. No government deficit 3. Continued (or higher) government spending B. Difficult to make meaningful tax cuts 1. Politicians get reelected by spending money 2. Strategy: raise taxes on “other people” IV. Economic theories and political needs A. Monetarism—inflation occurs when there is too much mon ...
- Bogazici University, Department of Economics
- Bogazici University, Department of Economics

Colombia : Macro rebalancing and key political milestones
Colombia : Macro rebalancing and key political milestones

... The macro rebalancing is likely to continue in the coming quarters. Given its dependence on the US for its exports and capital inflows, Colombia is exposed to the new US administration’s swerve towards protectionist policies. But the narrowing of the current account deficit should not be called into ...
Georgia - OECD.org
Georgia - OECD.org

MFE Macroeconomics Option - World Economy and Finance
MFE Macroeconomics Option - World Economy and Finance

... See Eggertsson, G. and Woodford, M. 2003/2004 on all these points Some fiscal instruments are much more effective than others. ...
Visual Study Guide
Visual Study Guide

... People who have given up looking for work, who are retired, students or full-time parents are not considered part of the labor force. ...
Publication Summary PDF
Publication Summary PDF

... In a study for the Mercatus Center at George Mason University, Scott Sumner—now director of the Mercatus Center’s Program on Monetary Policy—explains why the current interest-rate-targeting and inflation-targeting regime is inadequate and why the Fed should target nominal gross domestic product (NGD ...
Mankiw 5/e Chapter 1: The Science of Macroeconomics
Mankiw 5/e Chapter 1: The Science of Macroeconomics

How Budgets Interact with Economic Conditions
How Budgets Interact with Economic Conditions

... When answering the questions below, think about both the spending and the revenue sides of the budget, and answer using specific categories of spending (such as social services, health care, education, and public safety) and specific sources of revenue (such as the income tax, sales tax, and propert ...
canada`s reversed fiscal crisis
canada`s reversed fiscal crisis

... vow to cut spending may not be in office at the time the spending cuts are to be enacted, and the politicians who replace them may feel no obligation to follow through with the previously enacted spending cuts. No Congress can bind a future Congress, and legislation can always be changed. We should ...
US and World Politics
US and World Politics

... show that total global spending on military is $1.118 trillion, or about $173 per capita • 34% increase from ...
The demand for loanable funds
The demand for loanable funds

... A representative consul is shown in Figure 4-4. The 5% is called the coupon rate and the $5000 is called the par value. The two of these determine how much you will receive if you purchase the instrument. If you buy this thing, you will receive coupon rate times the par value or 0.05*$5000 = $250 ea ...
Fiscal Rules
Fiscal Rules

... The Use of Fiscal Rules in other Countries The rules vary among countries:  The rules refer to the public sector as a whole or to the central government budget.  The rules focus on the size of the deficit, on public debt, size of public expenditure etc.  Some countries set rules for one year, so ...
The Macroeconomics of Public Expenditure
The Macroeconomics of Public Expenditure

... • Optimal level of fiscal components depend upon (1) country-specific circumstances (high or low income), (2) debt situation, (3)fiscal institutions, (4) governance, (5) capacity in government and private sector etc.. ...
POLICY BRIEF
POLICY BRIEF

... The basic Keynesian framework for macroeconomics is the concept that in equilibrium GDP = C + I + G + NX. On the left side is GDP - the value of all final goods and services produced in the economy. On the right side are the sources of aggregate spending or demand - private consumption (C), private ...
13 Examining fiscal space issues in 7 countries
13 Examining fiscal space issues in 7 countries

... energy subsidies envisaged; but further ambitious objectives re raising public investment and social spending levels to increase economy’s growth rate In Philippines, need for infrastructure spending India, reprioritization would imply increased spending in social sectors and infrastructure; better ...
ECON 3080-200 Intermediate Macroeconomic Theory
ECON 3080-200 Intermediate Macroeconomic Theory

... Economics studies how people and institutions make decisions when confronted with multiple choices. Economics is divided into two fields: Microeconomics and Macroeconomics. Microeconomics studies the behavior of individuals and organizations (consumers, firms) at a disaggregated level; while macroec ...
Review - Leon County Schools
Review - Leon County Schools

... 2. limited liability – cannot go after the owners’ personal assets if the company declares bankruptcy or if there is a lawsuit filed against the firm/business iii. Corporations 1. stock holders own it and run by boards 2. principal agent problem – owners’ and boards’ desires may ...
Three Lectures in Economics by Kenneth Creamer
Three Lectures in Economics by Kenneth Creamer

... Note: Private sector seeks greater profits by taking on formerly public sector activity. And govt seeks to avoid neutralisation through debt. ...
chap 4 National Income(Economics)
chap 4 National Income(Economics)

... Due to illiteracy, most of the producers do not maintain proper records of production, cost and income which leads to under estimated NI. Many sources of income: Some people get their incomes from many other sources It is very difficult to compute their income from different sources and in this way ...
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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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