State and Local Budgets during Business Contractions
... Although this article primarily deals with the behavior of state and local budgets in business contractions, the persistence of high rates of inflation in recent recessions necessitates comment on the budget impact of inflation. Inflation increases state and local receipts, as it increases nominal i ...
... Although this article primarily deals with the behavior of state and local budgets in business contractions, the persistence of high rates of inflation in recent recessions necessitates comment on the budget impact of inflation. Inflation increases state and local receipts, as it increases nominal i ...
Is Fiscal Profligacy the Cause of the Crisis? Prabhat Patnaik
... the current account deficit that a curtailment in government expenditure will bring about but rather a further reduction in the growth rate of the economy through an even greater slump in aggregate demand (with only a marginal fall, if at all, in the current account deficit). The predicament of the ...
... the current account deficit that a curtailment in government expenditure will bring about but rather a further reduction in the growth rate of the economy through an even greater slump in aggregate demand (with only a marginal fall, if at all, in the current account deficit). The predicament of the ...
IB ECONOMICS SL
... e. Lack of a functioning financial system f. Unequal distribution of income g. Adverse terms of trade/foreign protectionism 91. Explain the Harrod-Domar model and Lewis model for growth/development strategies. 92. What is the “Washington Consensus”? Name five of its key points. 93. What is Foreign D ...
... e. Lack of a functioning financial system f. Unequal distribution of income g. Adverse terms of trade/foreign protectionism 91. Explain the Harrod-Domar model and Lewis model for growth/development strategies. 92. What is the “Washington Consensus”? Name five of its key points. 93. What is Foreign D ...
Exiting from Low Interest Rates to Normality
... The consensus view on the Great Contraction is that it was brought about by the Federal Reserve’s inability to prevent four banking panics between 1930 and 1933 from precipitating a collapse of the money supply. Friedman and Schwartz (1963a) argued that had the Fed conducted open market operations a ...
... The consensus view on the Great Contraction is that it was brought about by the Federal Reserve’s inability to prevent four banking panics between 1930 and 1933 from precipitating a collapse of the money supply. Friedman and Schwartz (1963a) argued that had the Fed conducted open market operations a ...
Chapter 11 - Pearson Higher Education
... long-term declines of certain industries. The NATURAL RATE OF UNEMPLOYMENT occurs when the number of jobs created approximately equals the number of qualified workers searching for the jobs. 1. The level of GDP produced when the economy is at the natural rate of unemployment is called the NATURAL LE ...
... long-term declines of certain industries. The NATURAL RATE OF UNEMPLOYMENT occurs when the number of jobs created approximately equals the number of qualified workers searching for the jobs. 1. The level of GDP produced when the economy is at the natural rate of unemployment is called the NATURAL LE ...
Inflation & Growth
... Inflation is a tax on money holders. A change in the rate of inflation can therefore change wealthholders’ preference between holding their wealth in the form of money or in the form of real assets and thus affect the growth rate. However, given the small proportion of total wealth which is held i ...
... Inflation is a tax on money holders. A change in the rate of inflation can therefore change wealthholders’ preference between holding their wealth in the form of money or in the form of real assets and thus affect the growth rate. However, given the small proportion of total wealth which is held i ...
L12_20110513
... 1. Future generations of taxpayers will be burdened by the government’s debt. This will lower the standard of living for these future generations. 2. Budget deficits cause crowding out. Reduced national saving raises interest rates and lowers investment. A lower capital stock reduces productivity an ...
... 1. Future generations of taxpayers will be burdened by the government’s debt. This will lower the standard of living for these future generations. 2. Budget deficits cause crowding out. Reduced national saving raises interest rates and lowers investment. A lower capital stock reduces productivity an ...
The Summary of the Annual Report of the Central Bank of Sri Lanka
... today, 8th April 2014. Following are some of the highlights of the report. ...
... today, 8th April 2014. Following are some of the highlights of the report. ...
What else is at the NY Fed?
... theory of money — and the Fed manages the money supply – In the long run, employment and GDP are determined by capital, labor, and technology/productivity/ideas. Fostering efficient credit markets is something the Fed does (and others do) through oversight ... – In the short run? We have seen that a ...
... theory of money — and the Fed manages the money supply – In the long run, employment and GDP are determined by capital, labor, and technology/productivity/ideas. Fostering efficient credit markets is something the Fed does (and others do) through oversight ... – In the short run? We have seen that a ...
Darwinian-or-creationist-IDL-1
... Negative real yields make for very mediocre results The great Prophet told his true believers that if they acted on his advice, (maintaining negative real rates) the economy would not stagnate or remain at a sub optimum equilibrium, since the hated “hoarders” would be punished. ...
... Negative real yields make for very mediocre results The great Prophet told his true believers that if they acted on his advice, (maintaining negative real rates) the economy would not stagnate or remain at a sub optimum equilibrium, since the hated “hoarders” would be punished. ...
- International Growth Centre
... lower future inflation expectation. However if they believe is that the debt will be paid for via seignorage (either as a result of past experience or the spending is not generating the needed growth to support the repayment from taxes), future inflation expectation will be high and will increase cu ...
... lower future inflation expectation. However if they believe is that the debt will be paid for via seignorage (either as a result of past experience or the spending is not generating the needed growth to support the repayment from taxes), future inflation expectation will be high and will increase cu ...
CFO11e_ch28
... inflation was high—even when output was low. Had the Fed not had such high interest rates in this period, the recession would likely have been less severe, but inflation would have been even worse. Paul Volcker, Fed chair at that time, was both hailed as an inflation-fighting hero and pilloried for ...
... inflation was high—even when output was low. Had the Fed not had such high interest rates in this period, the recession would likely have been less severe, but inflation would have been even worse. Paul Volcker, Fed chair at that time, was both hailed as an inflation-fighting hero and pilloried for ...
view Capitalism reset: Anatole Kaletsky
... going to be in exports rather than in serving the domestic market, and in developing new energy technologies, even if they seem uneconomic relative to today’s prices for coal and oil. GZ: What about consumption? AK: House building in America is going to be much weaker in the next ten years than it h ...
... going to be in exports rather than in serving the domestic market, and in developing new energy technologies, even if they seem uneconomic relative to today’s prices for coal and oil. GZ: What about consumption? AK: House building in America is going to be much weaker in the next ten years than it h ...
2.4 Fiscal Policy
... Glossary fluctuation(s) frequent change(s) especially from a high to a low level and back again ...
... Glossary fluctuation(s) frequent change(s) especially from a high to a low level and back again ...
Exam (pdf - 278.08kb)
... lower gross domestic product and easing of interest rates in China. Consequently, there were lower levels of demand for Australia’s commodity exports such as iron ore. The depreciation of the Australian dollar (around $0.68 US currently) has given rise to a much healthier level of net external deman ...
... lower gross domestic product and easing of interest rates in China. Consequently, there were lower levels of demand for Australia’s commodity exports such as iron ore. The depreciation of the Australian dollar (around $0.68 US currently) has given rise to a much healthier level of net external deman ...
DSU PP Ch 26 New Deal and FDR_Concise
... June 16 of 1933 FDR signed 15 historic bills for… 1. Relief for the unemployed 2. Reform of business practices 3. Recovery of the economy during the Great Depression. These programs came to be known as the “NEW DEAL”. Many historians believe this to be one of the most creative periods in American po ...
... June 16 of 1933 FDR signed 15 historic bills for… 1. Relief for the unemployed 2. Reform of business practices 3. Recovery of the economy during the Great Depression. These programs came to be known as the “NEW DEAL”. Many historians believe this to be one of the most creative periods in American po ...
Monetary Policy Rules - Central Web Server 2
... understand that it is in their self-interest to contemplate seriously what path the Federal Reserve likely will pursue for monetary policy and to align their expectations about future inflation with their perceptions of Fed actions. A monetary policy rule must take into account these market expectat ...
... understand that it is in their self-interest to contemplate seriously what path the Federal Reserve likely will pursue for monetary policy and to align their expectations about future inflation with their perceptions of Fed actions. A monetary policy rule must take into account these market expectat ...
Aggregate Supply Under Price Rigidity
... producer has to offer a higher wage not only to that (marginal) hour but also to all the (inra-marginal) existing hours. Equilibrium employment occurs at a point where the marginal factor costs is equal to the marginal productivity. Equilibrium wage is shown at point B, with the worker'’ real wage m ...
... producer has to offer a higher wage not only to that (marginal) hour but also to all the (inra-marginal) existing hours. Equilibrium employment occurs at a point where the marginal factor costs is equal to the marginal productivity. Equilibrium wage is shown at point B, with the worker'’ real wage m ...
Principles of Economics Third Edition by Fred Gottheil
... Traditional Theories of the Business Cycle 7. How does the accelerator contribute to the business cycle? • Having acquired additional capital stock through investment, firms must experience even higher sales. But if consumers simply maintain their level of consumption, inventories build up and inve ...
... Traditional Theories of the Business Cycle 7. How does the accelerator contribute to the business cycle? • Having acquired additional capital stock through investment, firms must experience even higher sales. But if consumers simply maintain their level of consumption, inventories build up and inve ...