modules 31 to 35
... Cutting interest rates to fight a slump in the economy caused by deflation can only go so far. Liquidity trap is when cutting interest rates cannot occur due to nominal rates close to 0%. ...
... Cutting interest rates to fight a slump in the economy caused by deflation can only go so far. Liquidity trap is when cutting interest rates cannot occur due to nominal rates close to 0%. ...
H E B C
... countries. Following the classical work by Burns and Mitchell (1946), we define business cycles as recurrent, but not necessarily periodic, fluctuations in economic activities with a duration of two to eight years. According to them, business cycles are characterized by their average duration and am ...
... countries. Following the classical work by Burns and Mitchell (1946), we define business cycles as recurrent, but not necessarily periodic, fluctuations in economic activities with a duration of two to eight years. According to them, business cycles are characterized by their average duration and am ...
Chapter 01Economics and Economic Reasoning
... B. people did not know that they should ignore sunk costs in reaching decisions. C. some things do not have a cost because people do not have to pay for them. D. social forces are sometimes more important than market forces. ...
... B. people did not know that they should ignore sunk costs in reaching decisions. C. some things do not have a cost because people do not have to pay for them. D. social forces are sometimes more important than market forces. ...
What drives the short-run costs of fiscal consolidation?
... spending news. Past fiscal consolidation episodes may not be fully representative of the circumstances faced by several economies in the current post-crisis environment. But, at a minimum, our evidence should raise doubts about studies claiming that based on historical evidence post-crisis multiplie ...
... spending news. Past fiscal consolidation episodes may not be fully representative of the circumstances faced by several economies in the current post-crisis environment. But, at a minimum, our evidence should raise doubts about studies claiming that based on historical evidence post-crisis multiplie ...
The Interaction between Household and Firm Dynamics and the
... in pro…ts, and su¤er costly bankruptcy when the sum of their liquid asset holdings and the collateral value of their capital is insu¢ cient to guarantee their liabilities. This bankruptcy is ine¢ cient since operating …rms have a positive net present value. New …rm creation requires initial search ...
... in pro…ts, and su¤er costly bankruptcy when the sum of their liquid asset holdings and the collateral value of their capital is insu¢ cient to guarantee their liabilities. This bankruptcy is ine¢ cient since operating …rms have a positive net present value. New …rm creation requires initial search ...
The Interaction between Household and Firm Dynamics and the
... in pro…ts, and su¤er costly bankruptcy when the sum of their liquid asset holdings and the collateral value of their capital is insu¢ cient to guarantee their liabilities. This bankruptcy is ine¢ cient since operating …rms have a positive net present value. New …rm creation requires initial search ...
... in pro…ts, and su¤er costly bankruptcy when the sum of their liquid asset holdings and the collateral value of their capital is insu¢ cient to guarantee their liabilities. This bankruptcy is ine¢ cient since operating …rms have a positive net present value. New …rm creation requires initial search ...
Unemployment dynamics and NAIRU estimates for Accession countries: a univariate approach
... out a series of labor markets variables as potential empirical determinants of the NAIRU, and the univariate method, where the time series properties of the macro variables are used to determine the NAIRU. The former approach establishes the NAIRU at the point where a stable Phillips-curve relations ...
... out a series of labor markets variables as potential empirical determinants of the NAIRU, and the univariate method, where the time series properties of the macro variables are used to determine the NAIRU. The former approach establishes the NAIRU at the point where a stable Phillips-curve relations ...
SECOND GENERATION INNOVATION
... dominant mode of production over the next two centuries. The fraction of the working population in agriculture was 35% in 1800 (Allen, 2001), 28% in 1851 and 12% in 1901 (Mitchell, 1988). Thus, population growth rates lowered per capita income growth rates almost on a one-to-one basis around 1600 an ...
... dominant mode of production over the next two centuries. The fraction of the working population in agriculture was 35% in 1800 (Allen, 2001), 28% in 1851 and 12% in 1901 (Mitchell, 1988). Thus, population growth rates lowered per capita income growth rates almost on a one-to-one basis around 1600 an ...
Marco Cangiano , E. Baldacci , S. Mahfouz , andAxel Schimmelpfenning The Effectiveness of Fiscal Policy in Stimulating Economic Activity: An Empirical Investigation (Second IMF Research Conference)..
... 1997-98 (Figure 1). This clearly points to the influence of some common external or other causes, such as the oil shocks or the Asian crisis. ...
... 1997-98 (Figure 1). This clearly points to the influence of some common external or other causes, such as the oil shocks or the Asian crisis. ...
Some unpleasant properties of log-linearized solutions when the
... the loglinearized approximate solution. This breakdown occurs when using parameterizations of the model that reproduce the U.S. Great Depression and the U.S. Great Recession. Conditions for existence and uniqueness of equilibrium based on the loglinearized equilibrium conditions are incorrect and off ...
... the loglinearized approximate solution. This breakdown occurs when using parameterizations of the model that reproduce the U.S. Great Depression and the U.S. Great Recession. Conditions for existence and uniqueness of equilibrium based on the loglinearized equilibrium conditions are incorrect and off ...
Is discretionary fiscal policy a mitigating mechanism that coun
... mechanism to counteract business cycle fluctuations. It has been argued that the fiscal policy might be a prominent alternative. Buti, In’t and Roeger (2001) emphasize the role of fiscal policy as a stabilizing actor for the economy as a complement to monetary policy in a union that is characterized ...
... mechanism to counteract business cycle fluctuations. It has been argued that the fiscal policy might be a prominent alternative. Buti, In’t and Roeger (2001) emphasize the role of fiscal policy as a stabilizing actor for the economy as a complement to monetary policy in a union that is characterized ...
aggregate demand and aggregate supply
... Thus far we have found that changes in the price level cause changes in the level of spending by domestic consumers, businesses, government and foreign buyers in such a way that we can predict changes in the amount of real domestic output; that is, an increase in the price level, other things being ...
... Thus far we have found that changes in the price level cause changes in the level of spending by domestic consumers, businesses, government and foreign buyers in such a way that we can predict changes in the amount of real domestic output; that is, an increase in the price level, other things being ...
the use of reserve requirements in an optimal monetary policy
... rates, reducing credit growth and curbing excessive private sector leverage during the expansionary phase of the credit cycle (Garcia-Escribano et al. (2011)). In turn, those Central Banks have decreased reserve requirements to provide liquidity and reduce financial system interest rates in the cont ...
... rates, reducing credit growth and curbing excessive private sector leverage during the expansionary phase of the credit cycle (Garcia-Escribano et al. (2011)). In turn, those Central Banks have decreased reserve requirements to provide liquidity and reduce financial system interest rates in the cont ...
Christiano, Eichenbaum and Rebelo
... in desired saving, which partially undoes the effect of a given fall in output. So, the total fall in output required to reduce desired saving to zero is very large. This scenario resembles the paradox of thrift originally emphasized by Keynes (1936) and recently analyzed by Krugman (1998), Eggertss ...
... in desired saving, which partially undoes the effect of a given fall in output. So, the total fall in output required to reduce desired saving to zero is very large. This scenario resembles the paradox of thrift originally emphasized by Keynes (1936) and recently analyzed by Krugman (1998), Eggertss ...
Steven Davis presentation
... • 10% of EPU H = 1 articles discuss uncertainty about who will make economic policy decisions, 68% discuss uncertainty about what policies will be undertaken or when, and 47% discuss uncertainty about the effects of past, present or future policy actions. • The who share of EPU H = 1 triples in pres ...
... • 10% of EPU H = 1 articles discuss uncertainty about who will make economic policy decisions, 68% discuss uncertainty about what policies will be undertaken or when, and 47% discuss uncertainty about the effects of past, present or future policy actions. • The who share of EPU H = 1 triples in pres ...
Unemployment benefits extensions at the zero lower bound on
... Following the dramatic increase of the US unemployment rate during the Great Recession, policy makers have triggered an unprecedent unemployment insurance (UI) benefits extension. The maximum benefits duration has increased from 26 weeks to 99 weeks in some states (see Figure 4). This policy has bee ...
... Following the dramatic increase of the US unemployment rate during the Great Recession, policy makers have triggered an unprecedent unemployment insurance (UI) benefits extension. The maximum benefits duration has increased from 26 weeks to 99 weeks in some states (see Figure 4). This policy has bee ...
An exploration of real-time revisions of output
... and therefore of the fiscal stance. Chart 3 shows that this is not confirmed by data. Revisions of realtime estimates of changes in output gaps are also sizeable and of an opposite sign if we distinguish between expansions and recessions. This pattern prevails in all the fifteen countries in our sam ...
... and therefore of the fiscal stance. Chart 3 shows that this is not confirmed by data. Revisions of realtime estimates of changes in output gaps are also sizeable and of an opposite sign if we distinguish between expansions and recessions. This pattern prevails in all the fifteen countries in our sam ...
Aggregate Supply and Aggregate Demand
... They make supply plans in the short run. Imagine a photo of the economy at a moment in time. There are existing inputs (which determine production possibilities and long-run aggregate supply), and businesses face given input prices. They know what the wage rate is if they want to hire more labour; t ...
... They make supply plans in the short run. Imagine a photo of the economy at a moment in time. There are existing inputs (which determine production possibilities and long-run aggregate supply), and businesses face given input prices. They know what the wage rate is if they want to hire more labour; t ...
Free Full Text ( Final Version , 817kb )
... critiques. There are two main schools thoughts as to the causes of inflation: monetarist views and Keynesian views. Basically, monetarists emphasize longterm money supply effects on inflation while Keynesians tend to analyses inflation in the short run. Monetarists considered money growth as the onl ...
... critiques. There are two main schools thoughts as to the causes of inflation: monetarist views and Keynesian views. Basically, monetarists emphasize longterm money supply effects on inflation while Keynesians tend to analyses inflation in the short run. Monetarists considered money growth as the onl ...
Inflation Scares and Forecast-Based Monetary Policy
... outcomes to the expectations formation process breaks down. As stressed by Friedman (1979) and Sargent (1993), the explicit learning process that economic agents are assumed to employ to form expectations should then be examined instead. Concern for misspecification of the expectations formation pro ...
... outcomes to the expectations formation process breaks down. As stressed by Friedman (1979) and Sargent (1993), the explicit learning process that economic agents are assumed to employ to form expectations should then be examined instead. Concern for misspecification of the expectations formation pro ...
Aggregate Demand and Aggregate Supply
... A third reason for the rise in the total quantity of goods and services demanded as the price level falls can be found in changes in the net export component of aggregate demand. All other things unchanged, a lower price level in an economy reduces the prices of its goods and services relative to fo ...
... A third reason for the rise in the total quantity of goods and services demanded as the price level falls can be found in changes in the net export component of aggregate demand. All other things unchanged, a lower price level in an economy reduces the prices of its goods and services relative to fo ...