The United States as a monetary union
... countries. This is likely partly to result from the greater price transparency and integration provided by the single currency. But this cannot be separated from other factors such as a common language and culture, and the federal regulation of commerce. The evidence suggests that competitive pressu ...
... countries. This is likely partly to result from the greater price transparency and integration provided by the single currency. But this cannot be separated from other factors such as a common language and culture, and the federal regulation of commerce. The evidence suggests that competitive pressu ...
17.1 HOW THE FED CONDUCTS MONETARY POLICY
... The exchange rate responds to changes in the interest rate in the United States relative to the interest rates in other countries—the U.S. interest rate differential. When the Fed raises the federal funds rate, the U.S. interest rate differential rises and, other things remaining the same, the U.S. ...
... The exchange rate responds to changes in the interest rate in the United States relative to the interest rates in other countries—the U.S. interest rate differential. When the Fed raises the federal funds rate, the U.S. interest rate differential rises and, other things remaining the same, the U.S. ...
The Data of Macroeconomics
... § only sells $9 million worth § Does this violate the expenditure = output identity? ...
... § only sells $9 million worth § Does this violate the expenditure = output identity? ...
Lecture Notes - Wiwi Uni
... The dispute between these two schools is not only theoretical. Based on theory, economists from both camps have di¤erent views about economic policy. In RBC-theory business cycles arise because households react optimally to technology shocks. Hence there is no role for government policy to improve m ...
... The dispute between these two schools is not only theoretical. Based on theory, economists from both camps have di¤erent views about economic policy. In RBC-theory business cycles arise because households react optimally to technology shocks. Hence there is no role for government policy to improve m ...
Taylor Economics Chapter 28 Test Bank
... 2. Identify and briefly explain the neoclassical argument and the key building blocks of neoclassical approach. Neoclassical economics argues that over time, the economy adjusts back to its potential GDP level of output. The neoclassical approach is based on two key building blocks. First, over the ...
... 2. Identify and briefly explain the neoclassical argument and the key building blocks of neoclassical approach. Neoclassical economics argues that over time, the economy adjusts back to its potential GDP level of output. The neoclassical approach is based on two key building blocks. First, over the ...
PDF
... First, consider the "no information" case where coupons are distributed without additional demandenhancing instruction. Increased purchases of the target commodities are due entirely to participants facing an effective price below the market price. Let d represent an individual demand for the target ...
... First, consider the "no information" case where coupons are distributed without additional demandenhancing instruction. Increased purchases of the target commodities are due entirely to participants facing an effective price below the market price. Let d represent an individual demand for the target ...
Nudging the Fed Toward a Rules-Based Policy
... precisely the wrong signal. And yet, quite clearly, that cannot always be the case; economists would surely not have come to the conclusion that low interest rates represent easy money without at least some empirical justification. So what is the short- and long-run impact of monetary policy on nomi ...
... precisely the wrong signal. And yet, quite clearly, that cannot always be the case; economists would surely not have come to the conclusion that low interest rates represent easy money without at least some empirical justification. So what is the short- and long-run impact of monetary policy on nomi ...
Chapter 14 - The Citadel
... Also, this correlation occurs because the need for military spending by each nation is determined by outside factors that affect all countries at the same time. And further, stock market trends that are internationally correlated affect the amount of capital gains tax that can be collected by ...
... Also, this correlation occurs because the need for military spending by each nation is determined by outside factors that affect all countries at the same time. And further, stock market trends that are internationally correlated affect the amount of capital gains tax that can be collected by ...
Lecture 9 - Leona Craig Art Gallery
... Government spending is considered autonomous expenditure: they are not affected in any systematic way by changing interest rates or income. The rationale for that assumption is that government spending results, primarily, from political decisions, not from economic impetus, like the level of output ...
... Government spending is considered autonomous expenditure: they are not affected in any systematic way by changing interest rates or income. The rationale for that assumption is that government spending results, primarily, from political decisions, not from economic impetus, like the level of output ...
ch17
... The exchange rate responds to changes in the interest rate in the United States relative to the interest rates in other countries—the U.S. interest rate differential. When the Fed raises the federal funds rate, the U.S. interest rate differential rises and, other things remaining the same, the U.S. ...
... The exchange rate responds to changes in the interest rate in the United States relative to the interest rates in other countries—the U.S. interest rate differential. When the Fed raises the federal funds rate, the U.S. interest rate differential rises and, other things remaining the same, the U.S. ...
the impact of fiscal policy on inflation in nigeria
... services exceed aggregate supply, thereby leading to a general rise in price levels (Gbanador 2007). Usually the shortages create competition on the side of demand for the few available products leading to some kind of informal bidding for available items. The aggregate demand for these goods and se ...
... services exceed aggregate supply, thereby leading to a general rise in price levels (Gbanador 2007). Usually the shortages create competition on the side of demand for the few available products leading to some kind of informal bidding for available items. The aggregate demand for these goods and se ...
The Natural Resource Curse and Fiscal Decentralization
... We present a model that postulates that this effect can be a consequence of tax competition and labor market rigidities, amplified by differences in the degree of agglomeration economies across a country’s regions.6 When labor is less mobile than capital, and inputs display diminishing marginal return ...
... We present a model that postulates that this effect can be a consequence of tax competition and labor market rigidities, amplified by differences in the degree of agglomeration economies across a country’s regions.6 When labor is less mobile than capital, and inputs display diminishing marginal return ...
New Keynesian Model
... Consider the short-run response to an unanticipated (unexpected) policy such as an unexpected increase in the money supply. Case #1 The Fed, concerned about the unemployment rate, conducts an open market purchase unexpected by the ...
... Consider the short-run response to an unanticipated (unexpected) policy such as an unexpected increase in the money supply. Case #1 The Fed, concerned about the unemployment rate, conducts an open market purchase unexpected by the ...
NBER WORKING PAPER SERIES ITS IMPLICATIONS Jeffrey A. Frankel
... developing countries alike, is upward bias in economic assumptions such as economic growth and commodity prices. This is hypothesis of central interest in the paper. But we should note that there are other possible reasons as well why official budget forecasts could be overly optimistic on average. ...
... developing countries alike, is upward bias in economic assumptions such as economic growth and commodity prices. This is hypothesis of central interest in the paper. But we should note that there are other possible reasons as well why official budget forecasts could be overly optimistic on average. ...
Does consumer credit support domestic growth or imports?
... Similarly, according to economic theory, an increase in the disposable income of the households leads to a rise in consumption in a smaller proportion, so overall demand in the country. From a Keynesian perspective, with production being determined by demand in the short run, consumers can contribut ...
... Similarly, according to economic theory, an increase in the disposable income of the households leads to a rise in consumption in a smaller proportion, so overall demand in the country. From a Keynesian perspective, with production being determined by demand in the short run, consumers can contribut ...
... Point C is superior to point B because it is important to enhance the future of society. If society is initially at point C , it must sacrifice 6 units of bread to obtain one more unit of tractors. If society produces 2 units of tractors and 12 units of bread, it is not using its available resources ...
‘Right back where we started from’: from ‘the Roy H. Grieve
... ‘Say’s Law’- the proposition that the very act of supplying goods to the market implies a corresponding volume of demand – arguing that a producer was desirous either of consuming his own product or of exchanging it for the products of others. Essentially, therefore, the view was that desire to purc ...
... ‘Say’s Law’- the proposition that the very act of supplying goods to the market implies a corresponding volume of demand – arguing that a producer was desirous either of consuming his own product or of exchanging it for the products of others. Essentially, therefore, the view was that desire to purc ...
On the Causes of the Increased Stability of the U.S. Economy
... deviation in the later period. This is precisely the pattern observed in the aggregate data, and it is matched in no sector other than durables. The volatility in the nondurables and structures sectors more closely follows the pattern of inflation volatility, being high in the middle period but pres ...
... deviation in the later period. This is precisely the pattern observed in the aggregate data, and it is matched in no sector other than durables. The volatility in the nondurables and structures sectors more closely follows the pattern of inflation volatility, being high in the middle period but pres ...
Budget forecast - Office for Budget Responsibility
... in the sustainability of the pre-Budget path for fiscal deficits. ...
... in the sustainability of the pre-Budget path for fiscal deficits. ...
141topic3-as-ad-ch27-ppt
... But it has no effect on long-run aggregate supply, since no change in relative prices. Along the same SAS, money wage rate is constant. Money wage rate is higher on the SAS to the left than on the SAS to the right, given a price level. Parkin: Macroeconomics. Adapted by Dr. Mohamed A abdalla ...
... But it has no effect on long-run aggregate supply, since no change in relative prices. Along the same SAS, money wage rate is constant. Money wage rate is higher on the SAS to the left than on the SAS to the right, given a price level. Parkin: Macroeconomics. Adapted by Dr. Mohamed A abdalla ...
aggregate supply (AS) curve
... 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. ...