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What was the primary factor encouraging mainstream economists to
What was the primary factor encouraging mainstream economists to

An Empirical Analysis of the Inflation Targeting Framework in a Time of
An Empirical Analysis of the Inflation Targeting Framework in a Time of

... asset price bubbles and maintain financial stability. For all these to be pursued simultaneously, it is necessary for central banks to use additional policy instruments, since the shortterm interest rate is not well suited to perform all these tasks. Further, Svensson (2010) noted that financial-sta ...
ECONOMICS
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IOSR Journal Of Humanities And Social Science (IOSR-JHSS)
IOSR Journal Of Humanities And Social Science (IOSR-JHSS)

... It should however be noted here that majority of the business investments in the west African subregion and in Nigeria in particular depends very largely on bank credits availability. Thus, the need to develop the credit activities of commercial banks to sustain this need cannot be over emphasized. ...
Taking the Nation`s Pluse
Taking the Nation`s Pluse

... Although real GDP in the United States has grown at an average rate of approximately 3%, the growth has been characterized by economic ups-and-downs. Note, periods of recession are indicated with shading. ...
aggregate supply (AS) curve
aggregate supply (AS) curve

Answers to Text Questions and Problems in Chapter 7
Answers to Text Questions and Problems in Chapter 7

... 5. The natural unemployment rate is the sum of structural and frictional unemployment and excludes cyclical unemployment. Thus the natural unemployment rate by definition should not be affected by a recession. Also by definition, the cyclical unemployment rate rises in recession. The inflation rate ...
NBER WORKING PAPER SERIES BUSINESS CYCLES, CONSUMPTION AND RISK-SHARING: Chadwick C. Curtis
NBER WORKING PAPER SERIES BUSINESS CYCLES, CONSUMPTION AND RISK-SHARING: Chadwick C. Curtis

... virtue of China's 1.3 billion people it’s economy is large in an absolute terms and is poised to overtake Japan as the world's second largest. Its sustained growth in real per capita GDP, at an average of 8.6 percent from 1978-2007, is high by any standard.2 While there has been a good deal of econo ...
19e ch 35 insert C
19e ch 35 insert C

... actually is, and thus undertakes expansionary fiscal and monetary policies to try to achieve the lower rate. Use the concept of the short-run Phillips Curve to explain why these policies might at first succeed. Use the concept of the long-run Phillips Curve to explain the long-run outcome of these p ...
19e ch 35 insert C
19e ch 35 insert C

... actually is, and thus undertakes expansionary fiscal and monetary policies to try to achieve the lower rate. Use the concept of the short-run Phillips Curve to explain why these policies might at first succeed. Use the concept of the long-run Phillips Curve to explain the long-run outcome of these p ...
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Multipliers and output models in regional economics

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Paper - Dynare

quantity of real GDP supplied
quantity of real GDP supplied

Part I Overview and Poverty Impact of Main Macroeconomic Policies
Part I Overview and Poverty Impact of Main Macroeconomic Policies

... While the research evidence shows that budgetary stability is a necessary – though not sufficient – precondition for PPG (Klasen 2004), several countries are characterized by a weak fiscal policy. This is most often due to the inability or unwillingness to raise an adequate amount of tax revenue – a ...
The Theory of Optimum Deficits and Debt
The Theory of Optimum Deficits and Debt

... net of transfers and subsidies to be the same. It is well-known that, for example in the overlapping generations model of Diamond 1965, a balanced budget social security scheme implemented through lump sum taxes on the young and lump-sum transfer payments to the old will depress capital formation. M ...
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Financing Issues and Economic Effects of American Wars

NBER WORKING PAPER SERIES TARGETING NOMINAL INCOME: A NOTE Kenneth D. West
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... Woodr Wilson School Princeton University Princeton, NJ 08544 ...
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Optimal Combinations of Government Expenditures To Economic Growth Process in Iran

... money markets from the aggregate demand side and a production function and the labor market from the aggregate supply side. The goods and services market contain private consum ption function, private investment function, government consumption function, government investment function, imports and e ...
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The correlation of Demand and Supply shocks – Evidence

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... in a two—sector economy that is otherwise similar to the traditional one— sector Keynesian analysis. The key to this surprising possibility is that an increased budget deficit changes the sectoral balance of demand. A reduction of taxes or an increase in transfer payments raises the demand for consu ...
chapter 25
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... in the interest rate raises the total cost of a house for families that need to borrow money to make the purchase. c. Since people often borrow money to purchase consumer durables, an increase in the interest rate raises the monthly payments on these items. Consequently, consumers purchase fewer dur ...
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The role of Monetary Policy in Post-Keynesian Stock-Flow

NBER WORKING PAPER SERIES WHAT'S A RECESSION, ANYWAY? Edward E. Leamer
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... way to disparage a forecaster is to point out that he or she has predicted 18 of the last 10 recessions. But actually, the opposite is the case. Few econometric models and few backs-of-envelopes have the kind of nonlinearities that produce recession forecasts as central tendencies, and the forecast ...
Wage-led Growth: Concept, Theories and Policies. w
Wage-led Growth: Concept, Theories and Policies. w

... Preliminary remarks • The wage share has been falling in several countries over the last decades. • There has been a polarization of incomes, even within wage and salary income. • Average wages and average labour compensation have not kept up with productivity increases. • Growth processes seem to ...
Economics - Bangalore University
Economics - Bangalore University

... Theories of interest rate determination - Level of interest rates - Long period and Short period rates - Term Structure of Interest rates - Spread between lending and deposit rates - Administered interest rates - Appropriate interest rate policy. Module 3: The Central Bank, Commercial Banks and Mone ...
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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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