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Présentation PowerPoint
Présentation PowerPoint

... 2) Economic decision makers choose a level of anticipated inflation consistent with the announced policy, implying the economy will be positioned on the short run Phillips curve at full employment. 3) The policy maker implements the best possible policy. Since the short run Phillips curve is now fix ...
July Economic Outlook
July Economic Outlook

... fall as the domestic demand falls, or the foreign currency falls until the two currencies reach parity. Unfortunately, the global economy is much more complex than this currency valuation theory. Another way to determine if a currency is undervalued or overvalued is to determine the total value of a ...
The economic crisis: How to stimulate economies without increasing
The economic crisis: How to stimulate economies without increasing

... go on for two decades or more. In attempting to stop interest rates rising excessively by purchasing government bonds on the secondary market, risky bond accumulation is increasingly destabilising the central bank balance sheet (particularly if pari passu applies: that is, that the ECB accepts equal ...
Cost-push inflation
Cost-push inflation

... the demand-pull theory, which states that all sectors in the economy try to buy more than the economy can produce. Shortages are then created and merchants lose business. To compensate, some merchants raise their prices. Others don't offer discounts or sales. In the end, the price level rises. A sec ...
Analytical Articles. The natural interest rate: concept, determinants
Analytical Articles. The natural interest rate: concept, determinants

... this method, relationships between the variables based on economic theory are imposed in order to build an “ideal” economy of full employment or of flexible prices and wages. An example is the work of Del Negro et al. (2015), who estimate a DSGE model for the United States using data on interest rat ...
Micro-Macro Mix with solution
Micro-Macro Mix with solution

... 1. In the context of equilibrium of an industry, price and output are simultaneously determined. But in the context of equilibrium GDP, we focus only on output, not the price. Why? Ans. It is true that in the context of equilibrium GDP, we focus on the volume of output, not the price level. This is ...
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PDF

... in the latter part of the 20th century. However, the process did not progress as quickly as international trade liberalisation. Nevertheless, from 1970 onwards there was a general tendency for global foreign direct investment inflow as a percentage of gross global domestic product to rise, with a sp ...
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The recession of 1937—A cautionary tale
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... speed at which industrial production contracted is greater than during the Great Depression. From its peak in July 1937 to its trough in May 1938, industrial production declined 32 percent. By comparison, it took two full years for industrial production to fall as much from ...
The Political Economy of Policy Reform: Insights from Southeast Asia
The Political Economy of Policy Reform: Insights from Southeast Asia

... Fourth, as noted, the bureaucracy is a key actor. It may range from being a passive bystander to an active player in a negative or positive sense. The literature generally makes two presumptions concerning their role. The first is a division between the key economic policy agencies such as finance m ...
Fiscal policy in the AS-AD model Screen 1 In this presentation we
Fiscal policy in the AS-AD model Screen 1 In this presentation we

... therefore the price level decreases. This decrease in the price level spills over into the financial market where the real money supply increases and the interest rate declines. In the goods market lower interest rate leads to more investment spending which increases the demand for goods and therefo ...
Time Consistency and the Duration of Government Debt
Time Consistency and the Duration of Government Debt

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... of the firms. When demand increases, some firms can increase price immediately, even though their costs of production may not change. This causes the short-run aggregate supply curve to slope upward. You may have to review the concept of profit per unit of output and the difference between a perfect ...
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elias c. grivoyannis

... (6) “Health Production through Prevention of Vertical Transmission of HIV from Mother-toChild in East Africa” presented on 3/27/09, 11:00 AM, in session 64: Health Spending and Economic Performance, at the Western Economic Association International, Pacific Rim Conference, hosted by Ryukoku Universi ...
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... important implications for both theoretical economic modelling, economic forecasting and the analysis of economic policy. Whilst the theoretical idea that economic variables vary asymmetrically over time and that the economy may operate differently in different phases of the business cycle (e.g. the i ...
Chapter 17: Monetary Policy
Chapter 17: Monetary Policy

... or the output gap • The Fed places more weight to the inflation loss and less to output loss • The weight on inflation determines how inflation and output change over time after a shock hits the economy Copyright © Houghton Mifflin Company. All rights reserved. ...
The Science of Macroeconomics
The Science of Macroeconomics

... Solving the equations • If we have a set of equations such that the number of equations is equal to the number of endogenous variables in the equations, then we can usually solve the equations and express each endogenous variable in the equations in terms of the exogenous variables and parameters • ...
Chapter 23
Chapter 23

... economy’s factors of production are fully employed. We produce the goods and services that make up real GDP by using factors of production: labor and human capital, physical capital, land, and entrepreneurship. At any given time, the quantities of human capital, physical capital, land, entrepreneurs ...
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NBER WORKING PAPER SERIES TECHNOLOGY SHOCKS AND MONETARY POLICY: Jordi Galí

... Our theoretical analysis focuses on three alternative monetary policy rules. First, we derive and characterize the optimal policy. In the context of our model that policy is the one that fully stabilizes prices. Second, we derive the equilibrium responses to a technology shock of a number of variabl ...
(c) Curriculum for B.Sc. Degree in Economics 100 Level Harmattan
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Chapter 10

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The Open Economy Revisited: the Mundell
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Did High Wages or High Interest Rates Bring Down the Weimar
Did High Wages or High Interest Rates Bring Down the Weimar

... capital compared to the late Empire was decisive in restraining investment.16 The significantly slower expansion of the capital stock therefore becomes a result not of union pressure and heavy-handed state intervention, but a consequence of the peculiarities of the German capital market during the i ...
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Business cycle

The business cycle or economic cycle is the downward and upward movement of gross domestic product (GDP) around its long-term growth trend. These fluctuations typically involve shifts over time between periods of relatively rapid economic growth (expansions or booms), and periods of relative stagnation or decline (contractions or recessions).Used in the indefinite sense, a business cycle is a period of time containing a single boom and contraction in sequence.Business cycles are usually measured by considering the growth rate of real gross domestic product. Despite being termed cycles, these fluctuations in economic activity can prove unpredictable.A boom-and-bust cycle is one in which the expansions are rapid and the contractions are steep and severe.
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