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... to shocks is the demand channel. In addition to increasing the disposable income of the unemployed, more generous UI also prevents wage cuts for the employed in response to a negative shock. We supplement the evidence set forth above by analyzing the response of average wages to shocks, …nding that ...
... to shocks is the demand channel. In addition to increasing the disposable income of the unemployed, more generous UI also prevents wage cuts for the employed in response to a negative shock. We supplement the evidence set forth above by analyzing the response of average wages to shocks, …nding that ...
Sharing a Ride on the Commodities Roller Coaster
... Several robustness tests and extensions are conducted on the benchmark model. First, SVAR results yield close estimates to those from the structural model in terms of the share of variance associated with commodity price shocks. Second, extending the model to allow for the risk premia to be affected ...
... Several robustness tests and extensions are conducted on the benchmark model. First, SVAR results yield close estimates to those from the structural model in terms of the share of variance associated with commodity price shocks. Second, extending the model to allow for the risk premia to be affected ...
NBER WORKING PAPER SERIES FINANCIAL INNOVATION AND ENDOGENOUS GROWTH Stelios Michalopoulos Luc Laeven
... technology and finance have evolved together, often in a synergistic manner, over several centuries (Allen and Gale, 1994; Frame and White, 2004; Goetzmann, 2009; Tufano, 2003). For example, to finance the construction of vast railroads in the 19th and 20th centuries, financial entrepreneurs develop ...
... technology and finance have evolved together, often in a synergistic manner, over several centuries (Allen and Gale, 1994; Frame and White, 2004; Goetzmann, 2009; Tufano, 2003). For example, to finance the construction of vast railroads in the 19th and 20th centuries, financial entrepreneurs develop ...
- Strathprints - University of Strathclyde
... effectively neutralised money, Hayek had so confused himself that he failed to recognise the real source of the disturbances he was depicting.1 In the course of this critique, Sraffa introduced the concept of ‘commodity rates of interest’. Recognition of the existence within the system of numerous c ...
... effectively neutralised money, Hayek had so confused himself that he failed to recognise the real source of the disturbances he was depicting.1 In the course of this critique, Sraffa introduced the concept of ‘commodity rates of interest’. Recognition of the existence within the system of numerous c ...
What kind of convergence does the euro area need?
... Smaller differentials in living standards across countries, e.g. poor and rich countries become more similar ...
... Smaller differentials in living standards across countries, e.g. poor and rich countries become more similar ...
Chapter 2. Can Fiscal Policy Stabilize Output?
... Kuwait, Norway) exhibit strongly stabilizing fiscal policies, as demonstrated by extremely large coefficients. Saved commodity revenues provide buffers that prevent procyclical adjustments in spending because the fiscal balance can more easily absorb even very large swings in oil prices and other sh ...
... Kuwait, Norway) exhibit strongly stabilizing fiscal policies, as demonstrated by extremely large coefficients. Saved commodity revenues provide buffers that prevent procyclical adjustments in spending because the fiscal balance can more easily absorb even very large swings in oil prices and other sh ...
Does Monetary Cooperation or Confrontation Lead to Successful
... and their market credibility. will have a short-run contractionary effect on output and thus on inflation, though multipliers and lags will vary.2 Currency effects from fiscal consolidation could go either way, depending upon the relative interest rate and confidence effects3—most central banks will ...
... and their market credibility. will have a short-run contractionary effect on output and thus on inflation, though multipliers and lags will vary.2 Currency effects from fiscal consolidation could go either way, depending upon the relative interest rate and confidence effects3—most central banks will ...
Is time ripe for price level path stability?
... make past policy mistakes very costly to unwind. The literature suggests, however, that through the endogenous expectation formation process price level targeting may automatically correct past policy mistakes. ...
... make past policy mistakes very costly to unwind. The literature suggests, however, that through the endogenous expectation formation process price level targeting may automatically correct past policy mistakes. ...
Systematic Errors in Growth Expectations over the Business Cycle
... xt is the process that governs growth dynamics in the first business-cycle regime. it follows a Bernoulli distribution and determines whether the economy is in the first business-cycle regime (it = 0) or in the second one (it = 1); the second regime occurs with probability pr , where this probabili ...
... xt is the process that governs growth dynamics in the first business-cycle regime. it follows a Bernoulli distribution and determines whether the economy is in the first business-cycle regime (it = 0) or in the second one (it = 1); the second regime occurs with probability pr , where this probabili ...
Fiscal spending multiplier calculations based on Input
... calibration of this share and correspondingly the question whether government spending crowds in consumption or not has remained controversial. The onset of the financial crisis has drawn attention to the effect of the economic environment and the monetary policy stance in particular on the size of ...
... calibration of this share and correspondingly the question whether government spending crowds in consumption or not has remained controversial. The onset of the financial crisis has drawn attention to the effect of the economic environment and the monetary policy stance in particular on the size of ...
Interest Sensitivity and Volatility Reductions: Cross‐Section Evidence No. 05‐4
... A vast literature has established that monetary policy significantly influences the shortrun course of the real economy and has examined how best to conduct monetary policy.5 Most of this literature uses small macroeconomic models with monetary policy approximated by an interest-rate rule, such as t ...
... A vast literature has established that monetary policy significantly influences the shortrun course of the real economy and has examined how best to conduct monetary policy.5 Most of this literature uses small macroeconomic models with monetary policy approximated by an interest-rate rule, such as t ...
Can global economic conditions explain low New Zealand inflation? AN2015/03
... Figure 1 breaks down the contribution of tradables and non-tradables inflation to CPI inflation. The deviation of annual CPI inflation from its long-term average is presented in the black line. The contribution tradables inflation makes to this total deviation from average is presented in the grey b ...
... Figure 1 breaks down the contribution of tradables and non-tradables inflation to CPI inflation. The deviation of annual CPI inflation from its long-term average is presented in the black line. The contribution tradables inflation makes to this total deviation from average is presented in the grey b ...
- FRASER (St.Louis Fed)
... were conservative in the sense that they resisted change, but they did not like things as they were. This conservatism was less a program than an attitude, but those who shared the attitude felt they also had a victory in the victory of Ronald Reagan. There were undoubtedly some people who thought t ...
... were conservative in the sense that they resisted change, but they did not like things as they were. This conservatism was less a program than an attitude, but those who shared the attitude felt they also had a victory in the victory of Ronald Reagan. There were undoubtedly some people who thought t ...
AP ECON – Final Exam Review
... ____ 23. Which of the followign is the most liquid monetary aggregate? a. M2 d. near-moneys b. M1 e. M3 c. dollar bills ____ 24. Suppose, for simplicity, that a bank uses a single interest rate for loans and deposits, there is no inflation, and all unspent money is deposited in the bank. The interes ...
... ____ 23. Which of the followign is the most liquid monetary aggregate? a. M2 d. near-moneys b. M1 e. M3 c. dollar bills ____ 24. Suppose, for simplicity, that a bank uses a single interest rate for loans and deposits, there is no inflation, and all unspent money is deposited in the bank. The interes ...
Block I - Bhoj University
... According to the LAW OF DEMAND, as price goes up; the quantity demanded by consumers goes down. As the price falls, the quantity demanded by consumers goes up. This law concerns itself with the consumer side of microeconomics. It tells us the quantity desired of a given product or service at a given ...
... According to the LAW OF DEMAND, as price goes up; the quantity demanded by consumers goes down. As the price falls, the quantity demanded by consumers goes up. This law concerns itself with the consumer side of microeconomics. It tells us the quantity desired of a given product or service at a given ...
PDF of this page - University of North Dakota
... study of Economics. Analysis of factors influencing aggregate levels of output, employment, and prices; introduction to U.S. monetary system; price determination and resource allocation under competitive and monopolistic conditions. Review of selected contemporary economic issues. (No credit if Econ ...
... study of Economics. Analysis of factors influencing aggregate levels of output, employment, and prices; introduction to U.S. monetary system; price determination and resource allocation under competitive and monopolistic conditions. Review of selected contemporary economic issues. (No credit if Econ ...
Government Spending Multipliers in Good Times and in Bad
... state but to very low multipliers in the low unemployment state. We perform extensive robustness checks with respect to our measures of state, sample period, the behavior of taxes, and alternative estimation frameworks and find little change in the estimates. We find mixed evidence on the size of th ...
... state but to very low multipliers in the low unemployment state. We perform extensive robustness checks with respect to our measures of state, sample period, the behavior of taxes, and alternative estimation frameworks and find little change in the estimates. We find mixed evidence on the size of th ...
Investment-Specific and Neutral News Shocks and Macroeconomic
... of these four shocks (investment-specific news and non-news, and neutral news and non-news) in macroeconomic fluctuations, thus allowing them to ‘compete on equal grounds’ for the purpose of explaining the business cycle. To the very best of my knowledge, this is the first paper to do so. The motiva ...
... of these four shocks (investment-specific news and non-news, and neutral news and non-news) in macroeconomic fluctuations, thus allowing them to ‘compete on equal grounds’ for the purpose of explaining the business cycle. To the very best of my knowledge, this is the first paper to do so. The motiva ...
Government Spending Multiplier in Turkey June 2015
... can be observed in remarkable improvements in …scal indicators. For instance, General Government budget de…cit to GDP ratio gradually decreased from 11.8 percent in 2001 to 0.1 percent in 20057 . Similarly, EU-de…ned General Government debt stock to GDP ratio showed downward trend and reached 52.7 p ...
... can be observed in remarkable improvements in …scal indicators. For instance, General Government budget de…cit to GDP ratio gradually decreased from 11.8 percent in 2001 to 0.1 percent in 20057 . Similarly, EU-de…ned General Government debt stock to GDP ratio showed downward trend and reached 52.7 p ...