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... Wolfgang Nierhaus Ifo Institute for Economic Research at the University of Munich Poschingerstrasse 5 Germany – 81679 Munich [email protected] ...
Document
Document

... and thereby no change in aggregate output YS or real national income Y. The flexibility of nominal wage W ensure the separation of the world of nominal variables such as W and P, and the world of the real variables such as N, YS, and Y. There is a dichotomy between the real and the nominal variables ...
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... constituted the immediate response to the financial crisis of 2007-8, the belief and hope being that lower rates would quickly reflate asset prices and stimulate demand. NIRP began to enter the picture when the policy interest rate was pushed to zero – the so-called zero lower bound (ZLB). In the f ...
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... deposits that normally vary in unison with the quantity of money), provided that the velocities of circulation and the volume of trade remain unchanged, and that there be a given state of development in deposit banking. This is one of the chief propositions concerning the level of prices or its reci ...
Mods 17-18-19 Practice
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... A. long-run aggregate supply; short-run aggregate supply; aggregate demand B. aggregate demand; short-run aggregate supply; long-run aggregate supply C. short-run aggregate supply; long-run aggregate supply; aggregate demand D. aggregate demand; long-run aggregate supply; short-run aggregate supply ...
Country experiences – international The New Zealand Experience
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... The nature of the New Zealand debate regarding the speed of fiscal consolidation is quite different to the international debate (see the Treasury, 2012; 2013b). Debt sustainability analyses suggest a need for fiscal consolidation in many economies. At the same time, there is a growing body of empiri ...
The Business Cycle Behavior of Working Capital
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... Ramey and West (1999), but it is still evolving. Hornstein (1998) also provides a detailed overview of stylized facts associated with inventory investment. Holding inventories is inherently costly, because by dedicating funds to the purchase of inputs that will only result in cash ‡ows in the future ...
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The projection process and accuracy of the RBNZ projections

... The Bank’s forecasts can be compared with those of other forecasting agencies. Typically forecasts are compared using standard statistical measures such as the root mean squared error (RMSE), where a low value means better forecasting performance. Figures 1 and 2 provide such an evaluation of the Ba ...
Introduction to Economics
Introduction to Economics

... affect the overall price level but do not affect output – During the early 1930s, the economy went through the Great Depression, when the production of goods and services plummeted – During the early 1940s, the United States entered World War II, and the economy experienced rapidly rising production ...
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Full Report of PTC Impact Analysis

... adversely affect the U.S. economy more broadly Rail service disruptions lasting only one month will engender a 2.6 percentage point hit to U.S. real GDP growth during 1st quarter 2016 and could thrust the U.S. economy from one of modest expansion into one of contraction. The shock will generate ripp ...
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Global Recessions as a Cascade Phenomenon with

Indeterminacy with Progressive Taxation and Sector
Indeterminacy with Progressive Taxation and Sector

... belief-driven business cycles is much less stringent, thus lies in the range of empirical plausibility. Nevertheless, all of these early studies postulate in…nitely elastic labor supply, which is known to be inconsistent with the U.S. data at the micro-level. While subsequent research has considered ...
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chapter overview

... economy. B. Political considerations: Government has other goals besides economic stability, and these may conflict with stabilization policy. 1. A political business cycle may destabilize the economy: Election years have been characterized by more expansionary policies regardless of economic condit ...
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PDF Download

... economy has been the lack of consistency in policies. The economy therefore fell into a state of “dynamic inconsistency,” in which economic agents could not believe that the government and policy makers would adopt consistent policy-making attitudes in the future. It is said that asset prices (as of ...
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maintaining economic stability

philipscurve
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... the same level of unemployment will be associated with a higher level of inflation. ...
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On the Complementarities between Innovation Policies and Demand Management in the

... Changing taxes and unemployment benefits tuning up fiscal policies does delock the economy from the low growth trajectory and brings it to the high growth one avg. GDP growth almost the same, but Keynesian policies have strong countercyclcial effects ...
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... There will be three examinations given during the semester at dates that will be announced. Answers will be all written. In preparing for these examinations, you should answer all of the Objectives at the beginning of each chapter. Unless otherwise informed, you are responsible for all of these ques ...
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Theme 2 The UK economy: performance and

... before the recession ‘at around $38,000 (US$ PPP)’. One advantage of using GDP per capita is that it is easy to calculate from official government figures. The methodology for calculating GDP is well understood and it does not require a separate calculation. Governments across the world have agreed ...
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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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