NBER WORKING PAPER SERIES FIRM-SPECIFIC CAPITAL, NOMINAL RIGIDITIES AND THE BUSINESS CYCLE
... In our model aggregate inflation is inertial despite the fact that firms change prices frequently. The inertia reflects that when they do change prices, they do so by a small amount. Firms change prices by a small amount because each firm’s short run marginal cost curve is increasing in its own outp ...
... In our model aggregate inflation is inertial despite the fact that firms change prices frequently. The inertia reflects that when they do change prices, they do so by a small amount. Firms change prices by a small amount because each firm’s short run marginal cost curve is increasing in its own outp ...
NBER WORKING PAPER SERIES LAND-PRICE DYNAMICS AND MACROECONOMIC FLUCTUATIONS Zheng Liu Pengfei Wang
... LAND-PRICE DYNAMICS AND MACROECONOMIC FLUCTUATIONS I. Introduction The recent financial crisis caused by a collapse of the housing market propelled the U.S. economy into the Great Recession. A notable development during the crisis period was a slump in business investment in tandem with a sharp dec ...
... LAND-PRICE DYNAMICS AND MACROECONOMIC FLUCTUATIONS I. Introduction The recent financial crisis caused by a collapse of the housing market propelled the U.S. economy into the Great Recession. A notable development during the crisis period was a slump in business investment in tandem with a sharp dec ...
The Making of Economic Society
... The world has undergone dramatic economic change since the last edition of The Making of Economic Society was published. The economic crisis of 2007–2008, from which many countries including the U.S. are still only slowly recovering, was of historic proportions, involving a financial market collapse ...
... The world has undergone dramatic economic change since the last edition of The Making of Economic Society was published. The economic crisis of 2007–2008, from which many countries including the U.S. are still only slowly recovering, was of historic proportions, involving a financial market collapse ...
Nominal GDP Targeting and the Taylor Rule on
... The purpose of this paper is to argue that evaluating the desirability of a nominal GDP targeting rule relative to a Taylor rule requires that the actual information available to central bankers be taken into account in any model-based comparison. To accomplish this, we consider the implications fo ...
... The purpose of this paper is to argue that evaluating the desirability of a nominal GDP targeting rule relative to a Taylor rule requires that the actual information available to central bankers be taken into account in any model-based comparison. To accomplish this, we consider the implications fo ...
national mineral policy 2008 - Dr. Marri Channa Reddy Human
... Conclusion With the right kind of support, the mining sector has the potential ...
... Conclusion With the right kind of support, the mining sector has the potential ...
CHAP1.WP (Word5)
... policymakers can make to alter this dynamic adjustment to long-run equilibrium. The chapter then extends the model by analyzing the impact of supply shocks (rather than demand shocks) on inflation. The author explains different types of supply shocks and how inflation formation can be affected, with ...
... policymakers can make to alter this dynamic adjustment to long-run equilibrium. The chapter then extends the model by analyzing the impact of supply shocks (rather than demand shocks) on inflation. The author explains different types of supply shocks and how inflation formation can be affected, with ...
Chapter27 - Web.UVic.ca
... Why Inflation Influences the Nominal Interest Rate On the average, and other things remaining the same, a 1 percentage point rise in the inflation rate leads to a 1 percentage point rise in the nominal interest rate. Why? The answer is that the financial capital market and the money market are close ...
... Why Inflation Influences the Nominal Interest Rate On the average, and other things remaining the same, a 1 percentage point rise in the inflation rate leads to a 1 percentage point rise in the nominal interest rate. Why? The answer is that the financial capital market and the money market are close ...
Financial imbalances and financial fragility - ECB
... …nancial integration, current account imbalances, and …nancial crises. Although stylized, the model is able to account for some important features of the recent crisis, like the reversal in leverage of market-based …nancial institutions and the sudden collapse of the wholesale …nancial market. The … ...
... …nancial integration, current account imbalances, and …nancial crises. Although stylized, the model is able to account for some important features of the recent crisis, like the reversal in leverage of market-based …nancial institutions and the sudden collapse of the wholesale …nancial market. The … ...
WELFARE AND NORDIC CRISIS - MANAGEMENT STRATEGIES
... measures to adequately redistribute the costs of the crisis. Thus, the social policy setting at the onset of the crisis played a crucial role in shaping the effects of the crisis on economic wellbeing. Individuals who are economically vulnerable to start with are most often those most sensitive to t ...
... measures to adequately redistribute the costs of the crisis. Thus, the social policy setting at the onset of the crisis played a crucial role in shaping the effects of the crisis on economic wellbeing. Individuals who are economically vulnerable to start with are most often those most sensitive to t ...
... By the mid-1950s, it was clear that knowledge of demand and supply conditions was sufficient to calculate welfare losses due to distorted prices -- but also that certain adjustments might be necessary in applying ordinary demand functions for this purpose. At this time, however, two important develo ...
No:10 Research Department Working Paper
... level of balance sheet. Due to capital account liberalization in 1989, the Central Bank lost its control over monetary aggregates. Priority was given to financial stability rather than controlling inflation in the face of increasing currency substitution as seen from a rise in the share of foreign ...
... level of balance sheet. Due to capital account liberalization in 1989, the Central Bank lost its control over monetary aggregates. Priority was given to financial stability rather than controlling inflation in the face of increasing currency substitution as seen from a rise in the share of foreign ...
Jan 13
... (ii) A levels approach. This approach is used for marking questions 04 and 08 of the data response questions. The Levels Mark Scheme on the next page identifies five levels representing differences in the quality of work. A range of marks is allocated at each level. First decide the level into which ...
... (ii) A levels approach. This approach is used for marking questions 04 and 08 of the data response questions. The Levels Mark Scheme on the next page identifies five levels representing differences in the quality of work. A range of marks is allocated at each level. First decide the level into which ...
NBER WORKING PAPER SERIES MONETARY POLICY MATTER? A NEW TEST IN
... these monetary disturbances are highly persistent. Second, the six shocks that we identify account for a considerable fraction of postwar economic fluctuations. And third, evidence from the interwar era also suggests that monetary disturbances have large real effects. ...
... these monetary disturbances are highly persistent. Second, the six shocks that we identify account for a considerable fraction of postwar economic fluctuations. And third, evidence from the interwar era also suggests that monetary disturbances have large real effects. ...
Sample
... a. consumer needs and wants Incorrect: In a planned economic system, the government plays a greater role in determining the goods and services provided and how they are produced and distributed. b. government or a centralized group Correct: In a planned economic system, the government plays a greate ...
... a. consumer needs and wants Incorrect: In a planned economic system, the government plays a greater role in determining the goods and services provided and how they are produced and distributed. b. government or a centralized group Correct: In a planned economic system, the government plays a greate ...
Chapter 4 Inflation and Deflation
... fifty-year period, moving in 1980 into the range identified in Table 1 as hyper-inflation. That was indeed a dangerous year (30-year fixed mortgage rates on home loans were above 15% at the time) and it was only cured by an absolutely Draconian policy response (described in the lecture) that threw t ...
... fifty-year period, moving in 1980 into the range identified in Table 1 as hyper-inflation. That was indeed a dangerous year (30-year fixed mortgage rates on home loans were above 15% at the time) and it was only cured by an absolutely Draconian policy response (described in the lecture) that threw t ...
A Demographic View: Do not write off US GDP growth ”
... educational attainment (iii) widened inequality and (iv) increasing level of government debt. Edward Lazear et al. (2012)4 provided a different and more optimistic perspective by arguing that weak economic growth is the reason for heightened joblessness rather than fundamental labour market weakness ...
... educational attainment (iii) widened inequality and (iv) increasing level of government debt. Edward Lazear et al. (2012)4 provided a different and more optimistic perspective by arguing that weak economic growth is the reason for heightened joblessness rather than fundamental labour market weakness ...
The Modern Macroeconomic Debate
... goods (exports) will fall, causing the Canadian AD curve to shift to the left. A rise in foreign income leads to an increase in Canadian exports and a rightward shift of the Canadian AD ...
... goods (exports) will fall, causing the Canadian AD curve to shift to the left. A rise in foreign income leads to an increase in Canadian exports and a rightward shift of the Canadian AD ...
Managing Credit Bubbles - Universitat Pompeu Fabra
... acknowledge support from the ERC (Consolidator Grant FP7-615651-MacroColl and Advanced Grant FP7-249588ABEP, respectively), and Martin thanks the IMF Research Fellowship. ...
... acknowledge support from the ERC (Consolidator Grant FP7-615651-MacroColl and Advanced Grant FP7-249588ABEP, respectively), and Martin thanks the IMF Research Fellowship. ...