Annual Meeting - Lorenzo Bini Smaghi
... effects, deviations from PPP are mean-reverting. According to this research, the adjustment in the euro area is actually found to be quicker in Economic and Monetary Union than in regions of the United States.9 However, more research is needed on this important issue; moreover, the situation is clea ...
... effects, deviations from PPP are mean-reverting. According to this research, the adjustment in the euro area is actually found to be quicker in Economic and Monetary Union than in regions of the United States.9 However, more research is needed on this important issue; moreover, the situation is clea ...
Fiscal policy
... • There is a clear link (this is no surprise) with the political cycle (reforms would normally start right at the beginning of the legislative cycle) • However, surprisingly, there is no robust empirical evidence of the textbook hypotheses of excess fiscal spending in pre-election periods … Can you ...
... • There is a clear link (this is no surprise) with the political cycle (reforms would normally start right at the beginning of the legislative cycle) • However, surprisingly, there is no robust empirical evidence of the textbook hypotheses of excess fiscal spending in pre-election periods … Can you ...
The Frequency Analysis of the Business Cycle
... regarded as the product of an operator that contains the unit roots of the denominator of the ARIMA operator. The cycles are attributed to an complementary operator that contains the stable roots. This decomposition has been advocated by Beveridge and Nelson (1981), and it has been interpreted, in t ...
... regarded as the product of an operator that contains the unit roots of the denominator of the ARIMA operator. The cycles are attributed to an complementary operator that contains the stable roots. This decomposition has been advocated by Beveridge and Nelson (1981), and it has been interpreted, in t ...
Keynes, Keynesians and Contemporary Monetary Theory and Policy
... structure and behaviour of many economies post Keynes’s influence on economic policy in the late 1930s and early 1940s. The two policy changes are the increased role of government in management of the aggregate economy and the creation of central banks acting in the public interest. Prior to t ...
... structure and behaviour of many economies post Keynes’s influence on economic policy in the late 1930s and early 1940s. The two policy changes are the increased role of government in management of the aggregate economy and the creation of central banks acting in the public interest. Prior to t ...
Chapter 11 Slides PPT
... (2) Y is real GDP, C is consumption, I is investment, G is government spending, X is exports and M is imports, T is net taxes and YD is disposable income. (3) “a” is autonomous consumption, intercept of the consumption function. (4) “b” is the MPC, slope of the consumption function (5) “m” is the MP ...
... (2) Y is real GDP, C is consumption, I is investment, G is government spending, X is exports and M is imports, T is net taxes and YD is disposable income. (3) “a” is autonomous consumption, intercept of the consumption function. (4) “b” is the MPC, slope of the consumption function (5) “m” is the MP ...
14.02 Principles of Macroeconomics Problem Set 3 Fall 2005 ***Solution***
... In our setting, the equilibrium real wage is fully determined by the price setters (see page 131 of the textbook). The nominal equilibrium wage increases if workers bargaining power goes up, but the equilibrium price level also increases (the increase in bargaining power would be reflected in an inc ...
... In our setting, the equilibrium real wage is fully determined by the price setters (see page 131 of the textbook). The nominal equilibrium wage increases if workers bargaining power goes up, but the equilibrium price level also increases (the increase in bargaining power would be reflected in an inc ...
Lecture 4
... Why central banks watch the stock markets (and vice versa) • When the stock market booms, households become wealthier and this stimulates consumer spending. • Rising share prices also make it more attractive for firms to issue new shares and this facilitates increased investment spending. • Central ...
... Why central banks watch the stock markets (and vice versa) • When the stock market booms, households become wealthier and this stimulates consumer spending. • Rising share prices also make it more attractive for firms to issue new shares and this facilitates increased investment spending. • Central ...
The Natural Rate as Economic Forecasting Tool
... The LW and KA neutral-rate estimates were 0.2 percent and −0.1 percent, respectively, in the third quarter of 2016. The corresponding policy gaps were −1.2 – 0.2 = −1.4 and −1.2 + 0.1 = −1.1 percentage points. By either measure, policy was accommodative but not nearly so much as in the fixed-r* fram ...
... The LW and KA neutral-rate estimates were 0.2 percent and −0.1 percent, respectively, in the third quarter of 2016. The corresponding policy gaps were −1.2 – 0.2 = −1.4 and −1.2 + 0.1 = −1.1 percentage points. By either measure, policy was accommodative but not nearly so much as in the fixed-r* fram ...
G97/2 The Inflation-Output Trade-Off: Is The Phillips Curve
... slowly; and (c) the monetary authority reacts slowly, but the Phillips curve is linear. Model simulation shows that: (a) If the Phillips curve is asymmetric, ceteris paribus, slower policy reactions to demand shocks lead to greater variations in output and inflation than prompt policy reactions. In ...
... slowly; and (c) the monetary authority reacts slowly, but the Phillips curve is linear. Model simulation shows that: (a) If the Phillips curve is asymmetric, ceteris paribus, slower policy reactions to demand shocks lead to greater variations in output and inflation than prompt policy reactions. In ...
34 - CERGE-EI
... Why central banks watch the stock markets (and vice versa) • When the stock market booms, households become wealthier and this stimulates consumer spending. • Rising share prices also make it more attractive for firms to issue new shares and this facilitates increased investment spending. • Central ...
... Why central banks watch the stock markets (and vice versa) • When the stock market booms, households become wealthier and this stimulates consumer spending. • Rising share prices also make it more attractive for firms to issue new shares and this facilitates increased investment spending. • Central ...
Aggregate Supply Curve
... the country’s per-capita real output almost doubled from $5283 to $9660. In the postwar period (1945-), percapita real output more than tripled to $33 389 by 2002. Copyright © 2005 by McGraw-Hill Ryerson Limited. All rights reserved. ...
... the country’s per-capita real output almost doubled from $5283 to $9660. In the postwar period (1945-), percapita real output more than tripled to $33 389 by 2002. Copyright © 2005 by McGraw-Hill Ryerson Limited. All rights reserved. ...
An Introduction to Macroeconomics
... and analyze economic data. An almost infinite number of data items can be looked at, including the amount of new construction taking place each month, how many ships laden with cargo are arriving at our ports each year, and how many new inventions have been patented in the last few weeks. That being ...
... and analyze economic data. An almost infinite number of data items can be looked at, including the amount of new construction taking place each month, how many ships laden with cargo are arriving at our ports each year, and how many new inventions have been patented in the last few weeks. That being ...
The Influence of Monetary and Fiscal Policy on Aggregate Demand
... Panel (a) shows the money market. When the government increases its purchases of goods and services, the resulting increase in income raises the demand for money from MD1 to MD2, and this causes the equilibrium interest rate to rise from r1 to r2. Panel (b) shows the effects on aggregate demand. The ...
... Panel (a) shows the money market. When the government increases its purchases of goods and services, the resulting increase in income raises the demand for money from MD1 to MD2, and this causes the equilibrium interest rate to rise from r1 to r2. Panel (b) shows the effects on aggregate demand. The ...
The Unemployment Bias of the New Consensus View of
... framework has also shown remarkable flexibility, being able to encompass recent theoretical notions, including the natural rate hypothesis, and the expectations-augmented or inertia Phillips curve. It has also absorbed the rational expectation hypothesis, and built on the insights and methodology o ...
... framework has also shown remarkable flexibility, being able to encompass recent theoretical notions, including the natural rate hypothesis, and the expectations-augmented or inertia Phillips curve. It has also absorbed the rational expectation hypothesis, and built on the insights and methodology o ...
