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FT.com print article
FT.com print article

... ruined, is ruined in a conventional way along with his fellows, so that no one can really blame him.” Not for him, then, was the notion of “efficient markets”. The second lesson is that the economy cannot be analysed in the same way as an individual business. For an individual company, it makes sens ...
Policy Note - Levy Economics Institute of Bard College
Policy Note - Levy Economics Institute of Bard College

... The government also had to face the emergence of corruption scandals in 2014. The biggest of those scandals involved the largest firm in the country: Petrobras, the oil company of which the federal government is the largest stockholder.5 The corruption scandals had a negative impact on the Brazilian ...
Spring 2004 Forecast Presentation UK
Spring 2004 Forecast Presentation UK

... • Mixed picture: predominance of non-tradable sectors amongst FDI and domestic credit recipients, feeding the domestic demand boom; yet, continued foreign investor interest in the manufacturing sector strengthens Romania’s export ...
Fiscal Policy in a Model With Financial Frictions
Fiscal Policy in a Model With Financial Frictions

... response functions (IRFs) of output to a one percent jump in government expenditure and to the equivalent reduction in each of the three taxes in the economy. In all four cases, the fiscal shocks are debt financed (and, thus, paid in the medium run by reductions in government expenditure). The most ...
ap economics
ap economics

... 5) We learned that the government also serves as an actor in the circular flow model. In the terms above, you identify various avenues of government revenue in the form of taxes. Review your notes over the categories of government expenditures (there are five), the particular items in each category, ...
Chapter 14
Chapter 14

...  Explain the basic ideas behind Keynesian economics and how they have been applied to policies in America (the Great Depression).  Define recession and explain how the federal government attempts to measure unemployment.  Detail the mechanisms of the public debt, distinguishing between net and gr ...
The fiscal crisis in the united states and the history of tax consent
The fiscal crisis in the united states and the history of tax consent

... in 1981. The electoral victory of George ...
Aggregate Expenditure - Southeast Missouri State University
Aggregate Expenditure - Southeast Missouri State University

... • Consumption function: relationship between consumption expenditure and disposable income (consumption depends on disposable income) • MPC (marginal propensity to consume): the fraction of the change in disposable income that is spent on consumption – MPC = Δ C / Δ Disposable Income – MPC for the U ...
Powerpoint Presentation
Powerpoint Presentation

... government consumption expenditures and gross investment (G) – government spending on final goods and services, including additions to the capital stock ...
GDP and growth
GDP and growth

... govt, Armed forces….) and materials used (books, medicines, stationary….) • Note. Transfer payments- eg. Unemployment benefits and pensions are not included in government spending neither are debt interest repayments (no output is produced for these payments) ...
section a (compulsory)
section a (compulsory)

... increase the provincial economic growth rate to 6% by 2014 despite challenges. Between 2004 and 2006 economic growth has been robust, exceeding 4% each year. However, in 2006, the provincial growth rate of 4.4% was below the national growth rate of 5.4%. Statistics South Africa says in 2007 in Mpuma ...
Economics 157b Economic History, Policy, and
Economics 157b Economic History, Policy, and

... Origins of the Great Recession (2007 - ???) • Housing prices peaked in mid 2006 and have fallen about 40 percent. • In 2007, investors suddenly discovered that subprime mortgages were much riskier than had been supposed. • This led to financial problems, especially for highly leveraged financial in ...
Fourth Edition - pearsoncmg.com
Fourth Edition - pearsoncmg.com

... 22.1 percent of the federal budget—and spending on everything else the federal government does—from paying the salaries of FBI agents, to operating the national parks, to supporting scientific research—which makes up 9.4 percent of the budget. In addition to purchases, there are three other categori ...
monetary and fiscal policies - Marlboro Central School District
monetary and fiscal policies - Marlboro Central School District

... Supply side shocks cause cyclical instability by shifting short-run aggregate supply (SRAS) although they are unlikely to have any major impact on the long-run productive potential of the economy. A negative supply-side shock might be caused by a rise in world oil prices - over the last thirty year ...
keynesian economics
keynesian economics

... So having moved along the Phillips Curve from U to V, the firms now begin to lay people off once again and unemployment moves back to W. Next time around the firms and consumers are ready for this, and anticipate the inflation. If the government insist on trying again the economy will do the same th ...
Chapter 4
Chapter 4

... – amount spent by government = amount collected in taxes  Surplus budget – amount spent by government = less than that collected in taxes  Deficit budget – amount spent by government = more than that collected in taxes ...
Key-Economic-Concepts-2013-Euro
Key-Economic-Concepts-2013-Euro

... But euro area inflation is expected to come down (to below 2%, within the ECB’s “comfort zone”) due to slow growth and high unemployment. ...
CONCEPT OF MACROECONOMICS
CONCEPT OF MACROECONOMICS

... and entrepreneurship are used by firms to produce a good or service. The firms pay households a reward for using these factors. Rent for land, wages for labour, interest for capital and profit for entrepreneurship. Collectively these rewards are called income and we use the letter Y to represent the ...
Business cycles
Business cycles

... rise at faster rates if monetary policy stimulates aggregate demand enough to push labor and capital markets beyond their long-run capacities. In fact, a monetary policy that persistently attempts to keep short-term real rates low will lead eventually to higher inflation and higher nominal interest ...
Department of Economics
Department of Economics

... opportunity cost of inability to use tax reductions to correct for a recession because of a large federal government deficit the “crowding out” effect the current Canadian fiscal dividend federal debt reduction when the economy has not attained a full employment position ...
Why in the World Are We All Keynesians Again? Executive Summary
Why in the World Are We All Keynesians Again? Executive Summary

... indirectly from their decreasing taxes. In the latter case, by decreasing the amount of taxes collected from individuals and businesses in the economy, net (or disposable) private incomes are higher. The hope is that individuals and businesses, finding themselves with more of their incomes and profi ...
Implication of the Financial Crisis and Credit Risk Controlling Model
Implication of the Financial Crisis and Credit Risk Controlling Model

... only significant on theory, but also important in practice to find out the credit control levels. For those, many scholars have achieved some important results. No doubt, these results are helpful to form this paper. In this paper, we, basing on influence on investment multiplier from credit, firstl ...
Federal Budget 2014-15
Federal Budget 2014-15

... that, as yet, have not been acted upon. While the spending cuts and increases in revenue will act as a drag on the economy, they are not expected to halt ongoing economic growth. The Budget is full of measures it hopes will lift productivity and change attitudes. When assessing the multitude of cha ...
continued - Human Kinetics
continued - Human Kinetics

... • Export of services (tourism spending as a result of hosting a sport event). The service being exported is the entertainment of the event or other attractions associated with the event; a benefit to regional economy. • Import spending (foreign companies used to build sport facilities or venues). Th ...
ppt
ppt

... • Eric Leeper had it backwards: – "Monetary science, fiscal alchemy" (Jackson Hole, 2010). ...
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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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