NBER WORKING PAPER SERIES FISCAL LIMITS AND MONETARY POLICY Eric M. Leeper
... require some minimum level of government expenditures to function, but most societies have adopted social compacts that put a floor on spending that is well above that minimum. Taken together, these considerations imply a maximum level of primary budget surpluses— call it smax . The expected discount ...
... require some minimum level of government expenditures to function, but most societies have adopted social compacts that put a floor on spending that is well above that minimum. Taken together, these considerations imply a maximum level of primary budget surpluses— call it smax . The expected discount ...
Big-bang versus Gradualism? - uni
... elites. Fourth, in the context of price reforms, a gradual reform is undesirable because it may induce an intertemporal speculation. Fifth, if any reform program needs mutual agreement, sequential plans may not work, owing to time-inconsistency. Finally, a big-bang approach brings the benefits more ...
... elites. Fourth, in the context of price reforms, a gradual reform is undesirable because it may induce an intertemporal speculation. Fifth, if any reform program needs mutual agreement, sequential plans may not work, owing to time-inconsistency. Finally, a big-bang approach brings the benefits more ...
Unemployment and Economic Recovery
... shows steady improvement. The unemployment rate is considered a lagging indicator, meaning that its ups and downs happen some time after the ups and downs of other indicators of economic activity. For example, more than a year elapsed before the unemployment rate trended downward following the end o ...
... shows steady improvement. The unemployment rate is considered a lagging indicator, meaning that its ups and downs happen some time after the ups and downs of other indicators of economic activity. For example, more than a year elapsed before the unemployment rate trended downward following the end o ...
lecture notes
... • Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand” • Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the value of the good to society and the cost to society of ...
... • Adam Smith made the observation that households and firms interacting in markets act as if guided by an “invisible hand” • Because households and firms look at prices when deciding what to buy and sell, they unknowingly take into account the value of the good to society and the cost to society of ...
say`s law: were (are) the critics right?
... Critics have often accused Say of declaring that product gluts are impossible. For example, Harrington (1981) writes, “. . . supply-side economics originated with Jean Baptiste Say . . . who declared that supply creates its own demand. To oversimplify only slightly, Say’s Law maintains that if busin ...
... Critics have often accused Say of declaring that product gluts are impossible. For example, Harrington (1981) writes, “. . . supply-side economics originated with Jean Baptiste Say . . . who declared that supply creates its own demand. To oversimplify only slightly, Say’s Law maintains that if busin ...
THE DEINDUSTRIAL REVOLUTION: THE RISE AND FALL OF UK
... foreign consumers and firms - and the latter is influenced by the exchange rate as well as any restrictions on trade such as tariffs. A frequent refrain in the analysis of the performance of UK manufacturing is that it has been hindered by inappropriate supply conditions – in particular an uncompeti ...
... foreign consumers and firms - and the latter is influenced by the exchange rate as well as any restrictions on trade such as tariffs. A frequent refrain in the analysis of the performance of UK manufacturing is that it has been hindered by inappropriate supply conditions – in particular an uncompeti ...
No Need to Panic About U.S. Government Deficits
... preceding discussion, however, changes if stimulus arises from fresh acts of private spending. Private spending creates income. Additional private spending today when resources are under-utilized does not, in the aggregate, borrow real resources from the future. But private spenders will necessarily ...
... preceding discussion, however, changes if stimulus arises from fresh acts of private spending. Private spending creates income. Additional private spending today when resources are under-utilized does not, in the aggregate, borrow real resources from the future. But private spenders will necessarily ...
Chapter 16 Macroeconomic Policy in an open economy
... supply curve. This intersection determines the equilibrium price level and output for the economy. Increases (decreases) in aggregate demand or aggregate supply result in rightward (leftward) shifts in these curves. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplica ...
... supply curve. This intersection determines the equilibrium price level and output for the economy. Increases (decreases) in aggregate demand or aggregate supply result in rightward (leftward) shifts in these curves. © 2011 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplica ...
The Keynesian Model - Lidderdale.com Home Page
... We make the simplifying assumption that income is the same as aggregate output. Put simply, the increase in wealth (i. e., income) of labor and the owners of capital (stock and bondholders) corresponds to the total output produced. In the traditional classical macroeconomic theory, equilibrium alway ...
... We make the simplifying assumption that income is the same as aggregate output. Put simply, the increase in wealth (i. e., income) of labor and the owners of capital (stock and bondholders) corresponds to the total output produced. In the traditional classical macroeconomic theory, equilibrium alway ...
Monetary Policy: Recent Experience and Future Directions
... There is a broad consensus that the financial crisis has been caused by several factors, such as: failures in financial regulation and supervision; structural changes in the financial sector, including the increased importance of the shadow banking system and securitisation; and global macro-economi ...
... There is a broad consensus that the financial crisis has been caused by several factors, such as: failures in financial regulation and supervision; structural changes in the financial sector, including the increased importance of the shadow banking system and securitisation; and global macro-economi ...
Industrialization and Economic Growth Relationship in Nigeria
... shares of the GDP have remained very low and have drastically reduced. Reason behind this was that little or no attention was given to enjoining industries to produce and utilize local inputs. Thus, up to mid-1980s most industrial groups imported over 80 per cent of their raw material and almost 100 ...
... shares of the GDP have remained very low and have drastically reduced. Reason behind this was that little or no attention was given to enjoining industries to produce and utilize local inputs. Thus, up to mid-1980s most industrial groups imported over 80 per cent of their raw material and almost 100 ...
THE EFFECT OF INTEREST RATE, INFLATION RATE, GDP, ON
... recommended that Central Bank of Jordan should pay attention to the inflation phenomenon while conducting new monetary policies. Engen and Hubbard ( 2004): Researchers have determined that an increase in federal government debt equivalent to one percent of GDP, all else equal, would be expected to i ...
... recommended that Central Bank of Jordan should pay attention to the inflation phenomenon while conducting new monetary policies. Engen and Hubbard ( 2004): Researchers have determined that an increase in federal government debt equivalent to one percent of GDP, all else equal, would be expected to i ...
US monetary and fiscal policy in the 1930s
... impact of monetary policy explains a range of 20–70 per cent of the decline in real output between 1929 and 1933. Some scholars argue that the recovery that started in mid-1933 was driven by the Roosevelt administration’s adoption of a new ‘reflationary’ policy regime that simultaneously freed the U ...
... impact of monetary policy explains a range of 20–70 per cent of the decline in real output between 1929 and 1933. Some scholars argue that the recovery that started in mid-1933 was driven by the Roosevelt administration’s adoption of a new ‘reflationary’ policy regime that simultaneously freed the U ...
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... Economic shocks often permeate borders generating comovement in nations’ business cycles over time. For many countries, a significant portion of the fluctuations in their own GDP series are the result of shocks that originate abroad.1 Perhaps not surprisingly, comovement in output is known to be muc ...
... Economic shocks often permeate borders generating comovement in nations’ business cycles over time. For many countries, a significant portion of the fluctuations in their own GDP series are the result of shocks that originate abroad.1 Perhaps not surprisingly, comovement in output is known to be muc ...
The Thatcher Experiment: The First Two Years
... ing and on oil rents and a reduction in public expenditure), by restoring "a broad balance of power in the framework of collective bargaining"2 (measures to remove specific abuses in picketing and the closed shop) and by other measures aimed at encouraging market forces to work as freely and flexibl ...
... ing and on oil rents and a reduction in public expenditure), by restoring "a broad balance of power in the framework of collective bargaining"2 (measures to remove specific abuses in picketing and the closed shop) and by other measures aimed at encouraging market forces to work as freely and flexibl ...
Fiscal and monetary policy: interdependence and possible sources
... Must there necessarily be tension between monetary and fiscal policy? This might be true if these two areas of economic policy were pursuing conflicting goals. However, if we look at the objectives of monetary and fiscal policy, we can see that they are very similar (cf. chart 1). Today, in most adv ...
... Must there necessarily be tension between monetary and fiscal policy? This might be true if these two areas of economic policy were pursuing conflicting goals. However, if we look at the objectives of monetary and fiscal policy, we can see that they are very similar (cf. chart 1). Today, in most adv ...
Bajada, Economic Principles 3e
... to ensure full employment at all times. • Two basic assumptions of the classical theory are: – underspending is most unlikely to occur – prices and wages adjust to ensure that a decline in spending would not result in a fall in real output, employment and real incomes. ...
... to ensure full employment at all times. • Two basic assumptions of the classical theory are: – underspending is most unlikely to occur – prices and wages adjust to ensure that a decline in spending would not result in a fall in real output, employment and real incomes. ...
DP2003/07 Has the rate of economic growth changed?
... current account deficit, deflated asset prices, shaky consumer confidence, and geopolitical uncertainty. These factors may point to ...
... current account deficit, deflated asset prices, shaky consumer confidence, and geopolitical uncertainty. These factors may point to ...
Engels` Pause: A Pessimist`s Guide to the British Industrial
... (1992), and, most recently, Antràs and Voth (2003). We now have well researched estimates of the growth of real output, the three main inputs (land, labour, and capital), and overall productivity. More recent research by Feinstein (1998), Allen (1992, 2007), Turner, Beckett, and Afton (1997), and Cl ...
... (1992), and, most recently, Antràs and Voth (2003). We now have well researched estimates of the growth of real output, the three main inputs (land, labour, and capital), and overall productivity. More recent research by Feinstein (1998), Allen (1992, 2007), Turner, Beckett, and Afton (1997), and Cl ...
Intro to Macro
... In actuality, we cannot verify that the supply curve ever slopes downward. It is unlikely that the income effect dominates for low wage rates. The most likely case would be for the supply curve to bend backwards at high wage rates. High wage rate professions tend to involve more "workaholic" type in ...
... In actuality, we cannot verify that the supply curve ever slopes downward. It is unlikely that the income effect dominates for low wage rates. The most likely case would be for the supply curve to bend backwards at high wage rates. High wage rate professions tend to involve more "workaholic" type in ...
