Sticky Price Models, Durable Goods, and Real Wage
... Using the standard two sector New Keynesian model, Barsky, House, and Kimball (BHK) (2007) eloquently demonstrate that the degree of price flexibility in the durable goods sector dictates the response of aggregate output to a monetary shock. When nondurablegoods’ prices are sticky but durable-goods’ ...
... Using the standard two sector New Keynesian model, Barsky, House, and Kimball (BHK) (2007) eloquently demonstrate that the degree of price flexibility in the durable goods sector dictates the response of aggregate output to a monetary shock. When nondurablegoods’ prices are sticky but durable-goods’ ...
The Government Transfer Multiplier
... While both transfers and purchases boost aggregate demand directly, transfers also reduce aggregate supply (through a wealth effect on the labour supply of constrained households). Normally, one would think the reduction in aggregate supply would lower the transfer multiplier below the purchases mu ...
... While both transfers and purchases boost aggregate demand directly, transfers also reduce aggregate supply (through a wealth effect on the labour supply of constrained households). Normally, one would think the reduction in aggregate supply would lower the transfer multiplier below the purchases mu ...
DemiDec Fundamental Economics Resource
... Fiscal Policy ..................................................................................................................................... 95 Federal Taxes in the United States ................................................................................................... 96 Shortcomi ...
... Fiscal Policy ..................................................................................................................................... 95 Federal Taxes in the United States ................................................................................................... 96 Shortcomi ...
Markscheme
... A levels approach. This approach is used for parts 03 and 06 of the data response questions and the second part of each essay question. The Levels Mark Scheme on the next page identifies five levels representing differences in the quality of work. A range of marks is allocated to each level. First d ...
... A levels approach. This approach is used for parts 03 and 06 of the data response questions and the second part of each essay question. The Levels Mark Scheme on the next page identifies five levels representing differences in the quality of work. A range of marks is allocated to each level. First d ...
Economics 101 Assignment #5 Name
... policies, what happened to Real GDP in Mexico? What happened to the GDP Deflator? b. Another part of the government’s program was to create a large depreciation of the Mexican peso. On the graph below, draw the original situation again. Then, draw the changes caused by the depreciation of the peso. ...
... policies, what happened to Real GDP in Mexico? What happened to the GDP Deflator? b. Another part of the government’s program was to create a large depreciation of the Mexican peso. On the graph below, draw the original situation again. Then, draw the changes caused by the depreciation of the peso. ...
The costs of inflation – what have we learned?
... This article reviews what we know about the long-run impact of inflation on economic growth. Economic theory tells us that both high inflation and deflation adversely affect the economy. Inflation tends to benefit the wealthy at the expense of the poor and those on fixed incomes and it reduces econo ...
... This article reviews what we know about the long-run impact of inflation on economic growth. Economic theory tells us that both high inflation and deflation adversely affect the economy. Inflation tends to benefit the wealthy at the expense of the poor and those on fixed incomes and it reduces econo ...
Cyclicality in the Fiscal Policy of Nepal
... The study of fiscal policy responses to cyclical fluctuation of output is one way to access counter-cyclicality or pro-cyclicality of discretionary fiscal policy actions. As the basic objective of the paper is to access the historical counter-cyclicality or pro-cyclicality of fiscal policy in Nepal, ...
... The study of fiscal policy responses to cyclical fluctuation of output is one way to access counter-cyclicality or pro-cyclicality of discretionary fiscal policy actions. As the basic objective of the paper is to access the historical counter-cyclicality or pro-cyclicality of fiscal policy in Nepal, ...
Article: Interest and inflation rates through the lens of the theory of
... relationship between the nominal interest rate, the inflation rate and the real interest rate. In our analysis, the short run correlation can be explained by supply and demand shocks in a standard macroeconomic model, where Fisher’s theory is a key factor. If we assume long run monetary neutrality, ...
... relationship between the nominal interest rate, the inflation rate and the real interest rate. In our analysis, the short run correlation can be explained by supply and demand shocks in a standard macroeconomic model, where Fisher’s theory is a key factor. If we assume long run monetary neutrality, ...
Basics of Engineering Economy
... To find future inflated amount needed per year – Use market rate if to determine A, given P If future amount is known, fewer annual dollars are needed, since their current buying power is greater – Again, use if to determine A, given F Slide to accompany Blank and Tarquin Basics of Engineering Econo ...
... To find future inflated amount needed per year – Use market rate if to determine A, given P If future amount is known, fewer annual dollars are needed, since their current buying power is greater – Again, use if to determine A, given F Slide to accompany Blank and Tarquin Basics of Engineering Econo ...
Liquidity, Infinite Horizons and Macroeconomic Fluctuations*
... lived agents so that business cycle dynamics are easier to analyze due to the models’ tractability. These DGE models are mostly successful in replicating empirically reasonable business cycle dynamics, such as ampli…cation, persistence, hump-shaped impulse response, and oscillations. Why are these ...
... lived agents so that business cycle dynamics are easier to analyze due to the models’ tractability. These DGE models are mostly successful in replicating empirically reasonable business cycle dynamics, such as ampli…cation, persistence, hump-shaped impulse response, and oscillations. Why are these ...
MURAYA NORMAN NJUGUNA - University of Nairobi
... genesis in World Bank and other development partners linking persistent poverty and many development challenges to poor governance, weak institutions and rampant corruption. The term good governance has broad meaning, however key principles suffice among them participation of the citizenry in runnin ...
... genesis in World Bank and other development partners linking persistent poverty and many development challenges to poor governance, weak institutions and rampant corruption. The term good governance has broad meaning, however key principles suffice among them participation of the citizenry in runnin ...
PDF Download
... from loan demand shocks. In fact, as Bernanke and Gertler (1995) and Oliner and Rudebusch (1996) argue, when the economy is hit by a negative shock, it is often impossible to distinguish whether the usual deceleration in bank lending stems from a shift in demand or supply. On the one hand, the corpo ...
... from loan demand shocks. In fact, as Bernanke and Gertler (1995) and Oliner and Rudebusch (1996) argue, when the economy is hit by a negative shock, it is often impossible to distinguish whether the usual deceleration in bank lending stems from a shift in demand or supply. On the one hand, the corpo ...
Were There Structural Breaks in the Effects of Japanese Monetary
... rate rose from 2.2 percent (February 1991) to 5.4 percent (February 2002).3 For these reasons, this period of turmoil is referred as the lost decade (Hayashi and Prescott, 2002) or the great recession (Kuttner and Posen, 2001). In order to explain this economic stagnation, a number of competing hypo ...
... rate rose from 2.2 percent (February 1991) to 5.4 percent (February 2002).3 For these reasons, this period of turmoil is referred as the lost decade (Hayashi and Prescott, 2002) or the great recession (Kuttner and Posen, 2001). In order to explain this economic stagnation, a number of competing hypo ...
Real-Time Estimation of Trend Output and Kevin J. Lansing *
... the well-documented productivity slowdown of the early 1970s while the second captures the postulated arrival of the so-called “new economy’’ in the mid-1990s, which is thought by some to be characterized by faster trend productivity growth.5 Initially, Fed policymakers interpret these trend shifts ...
... the well-documented productivity slowdown of the early 1970s while the second captures the postulated arrival of the so-called “new economy’’ in the mid-1990s, which is thought by some to be characterized by faster trend productivity growth.5 Initially, Fed policymakers interpret these trend shifts ...
Understanding Inflation and the Implications for
... Both before and after the September 2008 watershed, economists would have liked to have had a clearer understanding of the determinants of inflation. If the economy remained weak and the degree of resource slack rose, how much disinflationary pressure would be exerted, if any? In other words, to wha ...
... Both before and after the September 2008 watershed, economists would have liked to have had a clearer understanding of the determinants of inflation. If the economy remained weak and the degree of resource slack rose, how much disinflationary pressure would be exerted, if any? In other words, to wha ...
NBER WORKING PAPER SERIES OPTIMAL MONETARY POLICY WITH COLLATERALIZED
... results, our analysis indicates that the optimal volatility of inflation is increasing in two parameters symbolizing heterogeneity: (i) the borrower’s weight in the planner’s objective function; (ii) the borrower’s impatience rate (relative to the saver). However, and due to the presence of price st ...
... results, our analysis indicates that the optimal volatility of inflation is increasing in two parameters symbolizing heterogeneity: (i) the borrower’s weight in the planner’s objective function; (ii) the borrower’s impatience rate (relative to the saver). However, and due to the presence of price st ...
Unemployment File
... equilibrium wage will be We for Qe workers. The labour market is equilibrium. Now assume a fall in aggregate demand in the economy results in a fall in the demand for labour as firms cut back on production as shown in graph (a). Firms will reduce their demand for labour from ADL to ADL1 as shown in ...
... equilibrium wage will be We for Qe workers. The labour market is equilibrium. Now assume a fall in aggregate demand in the economy results in a fall in the demand for labour as firms cut back on production as shown in graph (a). Firms will reduce their demand for labour from ADL to ADL1 as shown in ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... one such source of information is the stated objective of this chapter. The authors study the household consumption and labor supply response to a government spending shock. Identification proceeds as in Nakamura and Steinsson (2011). When government spending increases, its distribution across state ...
... one such source of information is the stated objective of this chapter. The authors study the household consumption and labor supply response to a government spending shock. Identification proceeds as in Nakamura and Steinsson (2011). When government spending increases, its distribution across state ...
The impact of fiscal policy on government bond spreads in emerging
... Schadler (2007); they want to show that the EU new member states (NMS) enjoyed lower spreads than other emerging market countries because of the rise in credibility of economic policy thanks to their EU membership. The approach in modelling that they use is as follows: they choose three dependent va ...
... Schadler (2007); they want to show that the EU new member states (NMS) enjoyed lower spreads than other emerging market countries because of the rise in credibility of economic policy thanks to their EU membership. The approach in modelling that they use is as follows: they choose three dependent va ...
