interventionism: an economic analysis of priceless resource allocation
... Two further aspects have to be discussed before concluding this section. First, the counterfactual method of property economics should be used with care when historical (empirical) research is conducted. Counterfactual analysis means that measure A leads to such and such consequences that would not ...
... Two further aspects have to be discussed before concluding this section. First, the counterfactual method of property economics should be used with care when historical (empirical) research is conducted. Counterfactual analysis means that measure A leads to such and such consequences that would not ...
slides
... Nominal GDP Targeting: Practice • Unanticipated shifts in potential output growth translate into persistent deviations of inflation from desired target • Policy should be symmetric (example: what would PLT or NGDP targeting imply for the UK today?) • Relies on credible commitment to not let “bygone ...
... Nominal GDP Targeting: Practice • Unanticipated shifts in potential output growth translate into persistent deviations of inflation from desired target • Policy should be symmetric (example: what would PLT or NGDP targeting imply for the UK today?) • Relies on credible commitment to not let “bygone ...
Macroeconomic Issues and Vulnerabilities in the Global
... Stern School of Business New York University September 2014 ...
... Stern School of Business New York University September 2014 ...
A Realistic Neoclassical Multiplier
... the size and source of wage frictions. Of these conditions, the first is perhaps the most important for maximizing the multiplier effect. The first condition: Government expenditure should focus on “nontradables,” not “tradables.” Tradables are goods such as agricultural and mining products that can ...
... the size and source of wage frictions. Of these conditions, the first is perhaps the most important for maximizing the multiplier effect. The first condition: Government expenditure should focus on “nontradables,” not “tradables.” Tradables are goods such as agricultural and mining products that can ...
Document
... economic resources are scarce, only a limited number of goods and services can be produced with them. Therefore, goods and services are also scarce, so choices must be made. Microeconomics focuses on choices made in households, firms, and governments and how these choices affect particular markets, ...
... economic resources are scarce, only a limited number of goods and services can be produced with them. Therefore, goods and services are also scarce, so choices must be made. Microeconomics focuses on choices made in households, firms, and governments and how these choices affect particular markets, ...
April 19, 2001 - Questions
... members to consume consumer goods and services has risen or fallen since 1990, and by how much. Your answer to this union leader should be: (A)Real wages have fallen by more than 20%; (B) Real wages have fallen by between 10% and 20%; (C) Real wages have fallen by between 0% and 10%; (D) Real wages ...
... members to consume consumer goods and services has risen or fallen since 1990, and by how much. Your answer to this union leader should be: (A)Real wages have fallen by more than 20%; (B) Real wages have fallen by between 10% and 20%; (C) Real wages have fallen by between 0% and 10%; (D) Real wages ...
Is it a Recessionary Gap or a fall in Potential Output?
... monetary policy reaction curve to the right, which shifts the AD curve to the right. This would close the recessionary gap immediately, at the cost of permanently higher inflation. If, however, the inflation shock happens to come along with a decline in potential output, things would be very differe ...
... monetary policy reaction curve to the right, which shifts the AD curve to the right. This would close the recessionary gap immediately, at the cost of permanently higher inflation. If, however, the inflation shock happens to come along with a decline in potential output, things would be very differe ...
Answers to PS 3
... 1.An expansion of the central bank’s domestic assets leads to an equal fall in its foreign assets, with no change in the bank’s liabilities (or the money supply). The effect on the balance-of-payments accounts is most easily understood by recalling how the fall in foreign reserves comes about. After ...
... 1.An expansion of the central bank’s domestic assets leads to an equal fall in its foreign assets, with no change in the bank’s liabilities (or the money supply). The effect on the balance-of-payments accounts is most easily understood by recalling how the fall in foreign reserves comes about. After ...
Christina D. Romer Teach-In 0n the Great Depression and World
... that I often try to fight against is that World War II ended the Depression. I feel this claim sells short the tremendous progress that had been made toward recovery in the mid-1930s. Real GDP had increased by more than 40 percent between 1933 and 1937. 7 Had it not been for the second recession in ...
... that I often try to fight against is that World War II ended the Depression. I feel this claim sells short the tremendous progress that had been made toward recovery in the mid-1930s. Real GDP had increased by more than 40 percent between 1933 and 1937. 7 Had it not been for the second recession in ...
Lecture 6 - University of Wyoming
... caused by higher and higher spending are therefore inflationary as well as bad for growth if government spending does not increase the economy’s capital. ...
... caused by higher and higher spending are therefore inflationary as well as bad for growth if government spending does not increase the economy’s capital. ...
Unit 1 - Камышинский технологический институт
... year. It was a big sum, 10 times bigger the average income at that time. With the financial security of this grant, Smith devoted ten years to writing his work which founded economic science. Its full title was An Inquiry into ...
... year. It was a big sum, 10 times bigger the average income at that time. With the financial security of this grant, Smith devoted ten years to writing his work which founded economic science. Its full title was An Inquiry into ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... explicit microeconomic foundations and no long-run trade-off between inflation and real activity. From the Keynesian side, they feature inflation dynamics that are based on monopolistically competitive firms that set nominal prices in an optimal fashion, but also face some costs of adjusting prices ...
... explicit microeconomic foundations and no long-run trade-off between inflation and real activity. From the Keynesian side, they feature inflation dynamics that are based on monopolistically competitive firms that set nominal prices in an optimal fashion, but also face some costs of adjusting prices ...
Introduction to Macroeco...d Homework
... 6. Which of the following would shift the Solow growth curve to the right? a. an increase in the growth rate of spending b. the invention of a new computer chip that makes assembly production twice as fast c. a decrease in the rate of inflation d. a severe drought that decreases crop production and ...
... 6. Which of the following would shift the Solow growth curve to the right? a. an increase in the growth rate of spending b. the invention of a new computer chip that makes assembly production twice as fast c. a decrease in the rate of inflation d. a severe drought that decreases crop production and ...
3 - DSE
... reflecting some form of social democratic consensus, recognising some well-defined national interest, and threatened by some real or apparent potential enemy. Given the external potential enemy it is necessary to deter aggression and it is done by developing a particular level of capability. High mi ...
... reflecting some form of social democratic consensus, recognising some well-defined national interest, and threatened by some real or apparent potential enemy. Given the external potential enemy it is necessary to deter aggression and it is done by developing a particular level of capability. High mi ...
EDITragan_12ce_ch23
... was dramatic, but many observers were surprised at its modest impact on the Canadian economy. For more information on how changes in oil prices affect Canada, and for why the negative AS effect is smaller now than in the 1970s, look for “Oil Prices and the Canadian Economy” in the Additional Topics ...
... was dramatic, but many observers were surprised at its modest impact on the Canadian economy. For more information on how changes in oil prices affect Canada, and for why the negative AS effect is smaller now than in the 1970s, look for “Oil Prices and the Canadian Economy” in the Additional Topics ...
Document
... The total change in aggregate demand from a change in government spending is equal to the change in government spending times the spending multiplier. The total change in aggregate demand from a change in taxes is equal to the change in taxes times the tax multiplier. ...
... The total change in aggregate demand from a change in government spending is equal to the change in government spending times the spending multiplier. The total change in aggregate demand from a change in taxes is equal to the change in taxes times the tax multiplier. ...
PPT
... in; this is known as a balanced budget. Negative and positive values for SPublic are known as budget deficits and budget surpluses respectively. Since the federal government funds its current deficits with borrowing (selling Treasury bonds), this takes away from the ...
... in; this is known as a balanced budget. Negative and positive values for SPublic are known as budget deficits and budget surpluses respectively. Since the federal government funds its current deficits with borrowing (selling Treasury bonds), this takes away from the ...
Chapter 13 GDP Output Gap - McGraw Hill Higher Education
... gap may have been smaller than thought; workers may have resisted pay cuts; and perhaps most important, at low rates of either inflation or deflation firms may change prices less frequently, reducing the impact of output gaps. If so, this would provide a buffer to deflation in the rich world today, ...
... gap may have been smaller than thought; workers may have resisted pay cuts; and perhaps most important, at low rates of either inflation or deflation firms may change prices less frequently, reducing the impact of output gaps. If so, this would provide a buffer to deflation in the rich world today, ...
Global FDI flows fell sharply last year by Kanaga Raja (28 Jan 13)
... debtors and thereby keep interest rates in check and restore credit supply, which in turn will lead to economic recovery. An alternative diagnosis of the cause of the global crisis points to private overindebtedness and not fiscal profligacy - even if one of its consequences was a deterioration in t ...
... debtors and thereby keep interest rates in check and restore credit supply, which in turn will lead to economic recovery. An alternative diagnosis of the cause of the global crisis points to private overindebtedness and not fiscal profligacy - even if one of its consequences was a deterioration in t ...