Reconciling Hayek s and Keynes views of recessions
... induced by the need for liquidation creates a multiplier process that leads to an excessive reduction in activity. Although prices are free to adjust, the liquidation creates a period of deficient aggregate demand where economic activity is too low because people spend too cautiously due to increase ...
... induced by the need for liquidation creates a multiplier process that leads to an excessive reduction in activity. Although prices are free to adjust, the liquidation creates a period of deficient aggregate demand where economic activity is too low because people spend too cautiously due to increase ...
Chapter 3. Will It Hurt?
... (taxes versus spending), and the perceived risk of sovereign default in shaping the outcome? What are the consequences of many countries cutting deficits at the same time? •• Does fiscal consolidation have different effects when interest rates are near zero? Interest rates have rarely been near zero ...
... (taxes versus spending), and the perceived risk of sovereign default in shaping the outcome? What are the consequences of many countries cutting deficits at the same time? •• Does fiscal consolidation have different effects when interest rates are near zero? Interest rates have rarely been near zero ...
chap11
... Ricardian Equivalence • Economist Robert Barro argues that consumers will see the budget deficit as an increase in future taxes and cut back on consumption – what matters for the determination of consumption spending this year is not what taxes are levied on you this year, but what all the changes i ...
... Ricardian Equivalence • Economist Robert Barro argues that consumers will see the budget deficit as an increase in future taxes and cut back on consumption – what matters for the determination of consumption spending this year is not what taxes are levied on you this year, but what all the changes i ...
Introduction
... of these theories show that the current fiscal states are partly explained by differences in countries’ relative economic prosperity and partly by EU’s institutional features that systematically favor smaller member states. The current redistribution mechanism can be analyzed from either a normative ...
... of these theories show that the current fiscal states are partly explained by differences in countries’ relative economic prosperity and partly by EU’s institutional features that systematically favor smaller member states. The current redistribution mechanism can be analyzed from either a normative ...
Macroeconomic Impact of Public Sector Enterprises: Some
... An analysisof the macroeconomicimpactof public sector enterprises(PSEs)for 1960-61to 1989-90shows. (i) relativelylittle increasein their overalldeficit comparedto the sharp deteriorationof the grossfiscal deficit and (ii) a steep declinein their budgetarydependence.Whilethe PSEs' internalresourcesin ...
... An analysisof the macroeconomicimpactof public sector enterprises(PSEs)for 1960-61to 1989-90shows. (i) relativelylittle increasein their overalldeficit comparedto the sharp deteriorationof the grossfiscal deficit and (ii) a steep declinein their budgetarydependence.Whilethe PSEs' internalresourcesin ...
Household Borrowing and the Possibility of “Consumption-Driven, Profit-Led Growth” WORKING PAPER 2016-01
... wage-led or profit-led – given the appropriate form of the investment function.2 The modifications to the investment function required to effect this synthesis of Classical/Cambridge and Kalecki-Steindl growth theory have not met with universal approval.3 . But the possibility that growth may be ei ...
... wage-led or profit-led – given the appropriate form of the investment function.2 The modifications to the investment function required to effect this synthesis of Classical/Cambridge and Kalecki-Steindl growth theory have not met with universal approval.3 . But the possibility that growth may be ei ...
Chile`s new fiscal rule
... been absent. The biggest problem in the calculation of the structural balance is related to correctly identifying cyclical and structural components, such as cyclical and potential output. Although a variety of methods exist for calculating potential output and corresponding output gaps, all of them ...
... been absent. The biggest problem in the calculation of the structural balance is related to correctly identifying cyclical and structural components, such as cyclical and potential output. Although a variety of methods exist for calculating potential output and corresponding output gaps, all of them ...
Economics 101 Assignment #3 (20 Points) Name
... Pick out the stock of a particular company (any company). Find the value of the stock of that company in the most recent week. You will find this information either in a newspaper or on the Internet. Then, find the value of that stock one year ago (or as close to that date as you can). The company I ...
... Pick out the stock of a particular company (any company). Find the value of the stock of that company in the most recent week. You will find this information either in a newspaper or on the Internet. Then, find the value of that stock one year ago (or as close to that date as you can). The company I ...
Mexico 1958-86: From Stabilizing Development to the Debt Crisis
... at positive levels throughout SD, after 1972 this policy was allowed to lapse. Nominal interest rates were not adjusted upward in step with increases in inflation, and as real rates turned negative the “financial miracle” terminated abruptly. The total stock of real bank funds fell 13.3 percent from ...
... at positive levels throughout SD, after 1972 this policy was allowed to lapse. Nominal interest rates were not adjusted upward in step with increases in inflation, and as real rates turned negative the “financial miracle” terminated abruptly. The total stock of real bank funds fell 13.3 percent from ...
PDF
... trade position, terms of trade, the difference between intermediate and finished products, the effects on unemployment, private research effects, and the impact of public research on deadweight costs of commodity policies (Alston, Edwards and Freebaim; Edwards and Freebaim; Fox; Murphy, Furtan and ...
... trade position, terms of trade, the difference between intermediate and finished products, the effects on unemployment, private research effects, and the impact of public research on deadweight costs of commodity policies (Alston, Edwards and Freebaim; Edwards and Freebaim; Fox; Murphy, Furtan and ...
v. saving behaviour and the effectiveness of fiscal policy
... through a variety of channels besides tax discounting. The most direct, incorporated into most conventional aggregate demand models, may arise because a fiscal stimulus boosts disposable income and the propensity to consume out of an extra dollar of income is generally significantly less than one in ...
... through a variety of channels besides tax discounting. The most direct, incorporated into most conventional aggregate demand models, may arise because a fiscal stimulus boosts disposable income and the propensity to consume out of an extra dollar of income is generally significantly less than one in ...
Chapter 10
... amount of interest earnings forgone when income is spent on consumption instead of saved. Therefore the opportunity cost of consumption is high, and individuals will choose to spend less on consumption and supply more saving. Therefore the quantity of saving supplied increases when the real interest ...
... amount of interest earnings forgone when income is spent on consumption instead of saved. Therefore the opportunity cost of consumption is high, and individuals will choose to spend less on consumption and supply more saving. Therefore the quantity of saving supplied increases when the real interest ...
Indonesia—Managing Decentralization
... In the medium term, once all the functions assigned by Law 22/99 have been decentralized, the transfers would be insufficient to cover costs for virtually all public services (estimated at about 6 to 9 percent of GDP). However, during the transition, particularly in 2001, it may not be possible to d ...
... In the medium term, once all the functions assigned by Law 22/99 have been decentralized, the transfers would be insufficient to cover costs for virtually all public services (estimated at about 6 to 9 percent of GDP). However, during the transition, particularly in 2001, it may not be possible to d ...
Ch24 Aggregate Demand Supply Model Multiple Choice Questions
... A. The wealth effect: As the price level falls, the buying power of people’s savings increases and induces them to spend more. B. The substitution effect: As the price level falls, people buy more of the cheaper goods and less of other goods. C. The interest rate effect: As prices for outputs rise, ...
... A. The wealth effect: As the price level falls, the buying power of people’s savings increases and induces them to spend more. B. The substitution effect: As the price level falls, people buy more of the cheaper goods and less of other goods. C. The interest rate effect: As prices for outputs rise, ...
The Fiscal Impact of Immigration
... affect the taxable economy are “static” and can reveal the net fiscal impact of a stock of immigrants in a given year. There are just a handful of insightful static analyses, but most are not worth consideration (See Rubenstein and Martin 2008 and Ruark 2010 for examples of poor fiscal impact analy ...
... affect the taxable economy are “static” and can reveal the net fiscal impact of a stock of immigrants in a given year. There are just a handful of insightful static analyses, but most are not worth consideration (See Rubenstein and Martin 2008 and Ruark 2010 for examples of poor fiscal impact analy ...
National Income and Product Accounts Gross Domestic Product
... Profits from current production, referred to as corporate profits with inventory valuation adjustment (IVA) and capital consumption adjustment (CCAdj) in the NIPAs, is a measure of the net income of corporations before deducting income taxes that is consistent with the value of goods and services ...
... Profits from current production, referred to as corporate profits with inventory valuation adjustment (IVA) and capital consumption adjustment (CCAdj) in the NIPAs, is a measure of the net income of corporations before deducting income taxes that is consistent with the value of goods and services ...
A literature review of Happiness and Economics and
... plotted on the vertical axis) have developed in the period between 1958 and 1991 (displayed on the horizontal axis). The rise in income per capita of an incredible 600 per cent reflects the households’ higher purchasing power: In 1991 the standard of living had reached such a high level that the ave ...
... plotted on the vertical axis) have developed in the period between 1958 and 1991 (displayed on the horizontal axis). The rise in income per capita of an incredible 600 per cent reflects the households’ higher purchasing power: In 1991 the standard of living had reached such a high level that the ave ...
Ch 29
... If the government of Mexico cuts income taxes,Mexico’s aggregate demand _________. A. decreases, and the AD curve shifts leftward B. increases, and the AD curve shifts rightward C. is unchanged because it just increases the amount that taxpayers transfer to the government D. is unchanged, but the pr ...
... If the government of Mexico cuts income taxes,Mexico’s aggregate demand _________. A. decreases, and the AD curve shifts leftward B. increases, and the AD curve shifts rightward C. is unchanged because it just increases the amount that taxpayers transfer to the government D. is unchanged, but the pr ...
Academy of Economic Studies Doctoral School of Finance and
... • Wilcox shows in 1989 that the fiscal sustainability is attained when xt is a stationary process with a zero average. However, Uctum and Wickens (2000) demonstrates a more general result, showing that this is a condition sufficient but not necessary, the fiscal sustainability being observed also wh ...
... • Wilcox shows in 1989 that the fiscal sustainability is attained when xt is a stationary process with a zero average. However, Uctum and Wickens (2000) demonstrates a more general result, showing that this is a condition sufficient but not necessary, the fiscal sustainability being observed also wh ...
Economics: Explore and Apply 1/e by Ayers and Collinge Chapter
... The objective of supply-side policy is to ensure that output associated with full employment is as high as possible. Supply-side policies are designed to increase productivity, such as through increasing capital formation. Full-employment output will change in response to changes in structural ...
... The objective of supply-side policy is to ensure that output associated with full employment is as high as possible. Supply-side policies are designed to increase productivity, such as through increasing capital formation. Full-employment output will change in response to changes in structural ...
GOVERNMENT DEBT AND DEFICITS IN CANADA: A Macro
... the level of overall public-sector debt. In addition, we focus our analysis further by constraining all fiscal adjustments to come through either taxes or transfers; that is, the analysis takes the level of government expenditures on goods and services as fixed. In doing so, we do not mean to sugges ...
... the level of overall public-sector debt. In addition, we focus our analysis further by constraining all fiscal adjustments to come through either taxes or transfers; that is, the analysis takes the level of government expenditures on goods and services as fixed. In doing so, we do not mean to sugges ...
Working Paper No. 385 Macroeconomic Policies of the Economic
... respectively, which might lead the world economy out of the present slowdown, though the recent rise in the value of the euro may knock the rate of growth down further. In terms of unemployment and inflation the situation is no better. The euro area unemployment is already high at 8.8 percent (April ...
... respectively, which might lead the world economy out of the present slowdown, though the recent rise in the value of the euro may knock the rate of growth down further. In terms of unemployment and inflation the situation is no better. The euro area unemployment is already high at 8.8 percent (April ...
NATIONAL ACCOUNTS
... produced by an establishment, excluding the value of any goods and services used in an activity for which the establishment does not assume the risk of using the products in production, and excluding the value of goods and services consumed by the same establishment except for goods and services use ...
... produced by an establishment, excluding the value of any goods and services used in an activity for which the establishment does not assume the risk of using the products in production, and excluding the value of goods and services consumed by the same establishment except for goods and services use ...