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Wage led
Wage led

... A note on the empirical work assessing demand regimes • It should be pointed out that usually in empirical studies of the demand regimes, the accelerator effect is not taken into account. • The researcher only looks at the short-run multiplier and profitability effects. • This means that, by constr ...
Optimal fiscal and monetary policy in a medium
Optimal fiscal and monetary policy in a medium

... observed business cycle fluctuations for a wide range of nominal and real variables. Following the lead of Kimball (1995), the model emphasizes the importance of combining nominal as well as real rigidities in explaining the propagation of macroeconomic shocks. Specifically, the model features four ...
Models of Military Expenditure and Growth: A Critical
Models of Military Expenditure and Growth: A Critical

... determine potential output. Some of the demand effects, e.g. crowding out of investment, may also have supply effects by changing the capital stock. The literature differs in whether the focus is on total output, including that used by the military, or just civilian output. Conscription and other fo ...
0273 EN
0273 EN

... European cohesion policy. An economic context characterised by price stability and sound budget balances will benefit from lower interest rates. This, in turn, stimulates investment and capital accumulation, increasing both productivity and employment. It also helps to increase the rate and diffusio ...
NP‐NLH‐323  2013 NLH General Rate Application  Page 1 of 1 Q. 
NP‐NLH‐323  2013 NLH General Rate Application  Page 1 of 1 Q. 

... Newfoundland's high contingent liabilities also constrain the ratings. The province's primary contingent risk relates to its wholly-owned local energy provider, Nalcor Energy, a holding company that owns NLH. NLH's consolidated operations include a vertically integrated, regulated electrical utility ...
SSE in Riga - Harvard Kennedy School
SSE in Riga - Harvard Kennedy School

... ***p<0.01, **p<0.05, *p<0.1. (Robust standard errors in parentheses.) Random effects. ...
Monetary Policy and Economic Policy
Monetary Policy and Economic Policy

... outcomes like economic growth, inflation, exchange rates with other currencies and unemployment. Where currency is under a monopoly of issuance, or where there is a regulated system of issuing currency through banks which are tied to a central bank, the monetary authority has the ability to alter th ...
Bank of Korea - Harvard Kennedy School
Bank of Korea - Harvard Kennedy School

Chapter 7 Chile`s New Fiscal Rule
Chapter 7 Chile`s New Fiscal Rule

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The End of the Treasury
The End of the Treasury

The Fiscal Impact of Immigration Alex Nowrasteh Immigration Policy Analyst
The Fiscal Impact of Immigration Alex Nowrasteh Immigration Policy Analyst

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Income Distribution and Current Account Imbalances
Income Distribution and Current Account Imbalances

... will raise or lower aggregate personal, let alone national saving. Leigh and Possi (2009, p.58), for example, argue that (i)f the rich save more than the poor, then a mean-preserving transfer from poor to rich would raise aggregate saving rates. This view continues to be the conventional wisdom am ...
A socioeconomics approach
A socioeconomics approach

... According to the consensus, in the long run only the supply side matters, while in the short run, both supply side and demand side variables matter. Unlike the 1960s version of Keynesian economics, fiscal policy is given a small role to play on the demand side (although government can influence the ...
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Introduction to Macroeconomics

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2008 SNA - United Nations Economic Commission for Europe

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Chapter 15 Monetary Policy
Chapter 15 Monetary Policy

... 61. When the Fed lends to commercial banks [ ], this is called the (Fed Funds Rate/discount rate) and when commercial banks make loans to one another, this is the (Fed Funds Rate/ Discount Rate). 62. The Keynesian cause-effect chain of an easy money policy would be to (buy/sell) bonds; which would ( ...
Does Ricardian Equivalence Hold When Expectations are not
Does Ricardian Equivalence Hold When Expectations are not

debt and macroeconomic stability
debt and macroeconomic stability

... thereby induce deleveraging. As experienced in the financial crisis, a shock to the apparently small sub-prime market was transformed into a full-blown crisis in large part due to balance sheet vulnerabilities. High debt levels in the financial sector create additional vulnerabilities, which can rev ...
Document
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... • an increase in G and/or decrease in T • shifts AD right  Contractionary fiscal policy • a decrease in G and/or increase in T • shifts AD left  Fiscal policy has two effects on AD. CHAPTER 33 ...
Liquidity Traps and Monetary Policy: Managing a Credit Crunch
Liquidity Traps and Monetary Policy: Managing a Credit Crunch

... real interest rate becomes negative for several periods.4 The reason is that savings must be reallocated to lower productivity entrepreneurs, but they will only be willing to do it for a lower interest rate. To put it differently, the “demand” for loans falls, which in turn pushes down the real inte ...
Chapter 18 - The Citadel
Chapter 18 - The Citadel

... policymaking is unlikely to exert sizable long-run effects on any nation’s economy.  Most also agree that aggregate supply shocks contribute to business cycles.  There is a general consensus that monetary and fiscal policy measures are effective in the short run. Slide 18-57 ...
Chapter 20 - Aggregate demand and aggregate supply
Chapter 20 - Aggregate demand and aggregate supply

... wealth rises, interest rates fall, and the exchange rate depreciates. These effects stimulate spending on consumption, investment, and net exports. Increased spending on any or all of ...
Chapter 10
Chapter 10

... cash flow occur ONLY if we accept the project?” • If the answer is “yes”, it should be included in the analysis because it is incremental • If the answer is “no”, it should not be included in the analysis because it will occur anyway • If the answer is “part of it”, then we should include the part t ...
employee stock options and holding gains in national
employee stock options and holding gains in national

... final consumption expenditure when purchased by households, yet the consumer may regard them as assets that are to be consumed gradually over a long service life. In this paper we are not going to concentrate to consider the setting the boundaries between consumer durable goods and investments.2 ...
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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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