L7-9InstrumentsMABP
... Argentina was on a currency board => no sterilization. In 1995 allowed reserve outflows to shrink the money supply, raise i, contract spending. ...
... Argentina was on a currency board => no sterilization. In 1995 allowed reserve outflows to shrink the money supply, raise i, contract spending. ...
Why in the World Are We All Keynesians Again? Executive Summary
... it dip (barely) below 8 percent. This has not stopped the Obama administration from pushing for further fiscal stimulus. Whether or not fiscal spending stimulus is effective hinges critically on the size of the spending multiplier, which is dependent on several factors. In particular, if individuals ...
... it dip (barely) below 8 percent. This has not stopped the Obama administration from pushing for further fiscal stimulus. Whether or not fiscal spending stimulus is effective hinges critically on the size of the spending multiplier, which is dependent on several factors. In particular, if individuals ...
Block I - Bhoj University
... codified as the Solow-Swan Growth Model, which involved a series of equations which showed the relationship between labor-time, capital goods, output, and investment. According to this view, the role of technological change became crucial, even more important than the accumulation of capital. This m ...
... codified as the Solow-Swan Growth Model, which involved a series of equations which showed the relationship between labor-time, capital goods, output, and investment. According to this view, the role of technological change became crucial, even more important than the accumulation of capital. This m ...
Chapter 18 The Keynesian Model 1. The popular theory prior to the
... a. Incorrect. If the economy is experiencing unemployment equilibrium, the Keynesian school recommends that the government undertake fiscal policy to stimulate aggregate demand. b. Correct. If the economy is experiencing unemployment equilibrium, the Keynesian school recommends that the government u ...
... a. Incorrect. If the economy is experiencing unemployment equilibrium, the Keynesian school recommends that the government undertake fiscal policy to stimulate aggregate demand. b. Correct. If the economy is experiencing unemployment equilibrium, the Keynesian school recommends that the government u ...
NBER WORKING PAPER SERIES GLOBALIZATION AND INFLATION DYNAMICS: Argia M. Sbordone
... in the individual firms production costs moves up the firms’ distribution curve, making profitable for more firms to enter the market. The resulting increase in the variety of goods traded increases the overall degree of competition: this is captured in the model by making the demand elasticity, and ...
... in the individual firms production costs moves up the firms’ distribution curve, making profitable for more firms to enter the market. The resulting increase in the variety of goods traded increases the overall degree of competition: this is captured in the model by making the demand elasticity, and ...
Monetary and Fiscal Policies in a Sudden Stop: Is tighter brigther
... The design of optimal policy responses to adverse capital account shocks during periods of global capital market turmoil (i.e., skyrocketing bond spreads and a sharp retrenchment in capital inflows or Sudden Stop) has been the source of a lively debate, particularly at the time of the Tequila, the A ...
... The design of optimal policy responses to adverse capital account shocks during periods of global capital market turmoil (i.e., skyrocketing bond spreads and a sharp retrenchment in capital inflows or Sudden Stop) has been the source of a lively debate, particularly at the time of the Tequila, the A ...
Introduction to Macroeconomics
... In line with modern macroeconomics microfounded important role for expectations analyzed in general equilibrium But much simpler one or two periods instead of infinity, less formal We will Analyze separately major markets: goods (consumption, investment) labour money Put them together to form genera ...
... In line with modern macroeconomics microfounded important role for expectations analyzed in general equilibrium But much simpler one or two periods instead of infinity, less formal We will Analyze separately major markets: goods (consumption, investment) labour money Put them together to form genera ...
Chapter 1 - Carlos Pitta
... 1. Economists try to address their subject with a scientist’s objectivity. Like all scientists, they make appropriate assumptions and build simplified models in order to understand the world around them. Two simple economic models are the circular-flow diagram and the production possibilities fronti ...
... 1. Economists try to address their subject with a scientist’s objectivity. Like all scientists, they make appropriate assumptions and build simplified models in order to understand the world around them. Two simple economic models are the circular-flow diagram and the production possibilities fronti ...
NBER WORKING PAPER SERIES GOLD STERILIZATION AND THE RECESSION OF 1937-38
... multiplier during this period and argues that “it would be very difficult” to attribute most of the decline in output to fiscal policy.3 And while Friedman and Schwartz (1963) put great emphasis on the contractionary impact of higher reserve requirements, subsequent studies have found little suppor ...
... multiplier during this period and argues that “it would be very difficult” to attribute most of the decline in output to fiscal policy.3 And while Friedman and Schwartz (1963) put great emphasis on the contractionary impact of higher reserve requirements, subsequent studies have found little suppor ...
Sustainable Future Fiscal and Debt Policies
... Moreover, public revenues in Spain are highly sensitive to changes in economic activity, much higher than in the other euro countries, mainly in the case of the personal income tax. This means that during downturns, fiscal deficits increase in Spain much more than in other economies due to the high ...
... Moreover, public revenues in Spain are highly sensitive to changes in economic activity, much higher than in the other euro countries, mainly in the case of the personal income tax. This means that during downturns, fiscal deficits increase in Spain much more than in other economies due to the high ...
Chapter 24 The Open Economy with Fixed Exchange Rates
... was the huge increase in international capital mobility during the 1990s which greatly increased the scope for speculative attacks against ’soft’ Þxed exchange rate regimes. The weakness of a Þxed exchange rate regime where the exchange rate can be adjusted is that speculation is virtually risk-free ...
... was the huge increase in international capital mobility during the 1990s which greatly increased the scope for speculative attacks against ’soft’ Þxed exchange rate regimes. The weakness of a Þxed exchange rate regime where the exchange rate can be adjusted is that speculation is virtually risk-free ...
The Economics of Money, Banking, and Financial
... aggregate or the inflation rate. Its strategy revolves around using an implicit nominal anchor in the form of an overriding concern to control inflation in the long run. This involves forward-looking behavior and "pre-emptive strikes" by policy actions to prevent inflation. This forward-looking beha ...
... aggregate or the inflation rate. Its strategy revolves around using an implicit nominal anchor in the form of an overriding concern to control inflation in the long run. This involves forward-looking behavior and "pre-emptive strikes" by policy actions to prevent inflation. This forward-looking beha ...
The slowdown in emerging market economies and its
... which has affected economic activity and caused contractions in investment in commodity-related sectors (see Chart 5). In some larger countries, particularly Brazil and Russia, declines in key commodity prices have interacted with other shocks (including political uncertainty and the fallout from ge ...
... which has affected economic activity and caused contractions in investment in commodity-related sectors (see Chart 5). In some larger countries, particularly Brazil and Russia, declines in key commodity prices have interacted with other shocks (including political uncertainty and the fallout from ge ...
MBIE briefing for incoming Ministers
... New Zealand’s recent economic performance and short-term prospects are sound. The challenge is to increase productivity and ongoing output growth to sustain higher economic growth. New Zealand’s economic history, experiences of other small, developed economies and the global environment (including t ...
... New Zealand’s recent economic performance and short-term prospects are sound. The challenge is to increase productivity and ongoing output growth to sustain higher economic growth. New Zealand’s economic history, experiences of other small, developed economies and the global environment (including t ...
SEDP-2014-11-Chen-Kirsanova-Leith
... ‘good policy’ - a desirable change in monetary policy rule parameters and/or the implicit inflation target. The improvement in policy making is typically associated with the Volcker disinflation which tends to be dated as occurring in 1979.1 Much of the literature surrounding the ‘good policy’ versu ...
... ‘good policy’ - a desirable change in monetary policy rule parameters and/or the implicit inflation target. The improvement in policy making is typically associated with the Volcker disinflation which tends to be dated as occurring in 1979.1 Much of the literature surrounding the ‘good policy’ versu ...
Inflation and Economic Growth
... Hyperinflations aside, the relationship between inflation and growth has been at the very center of macroeconomic theory debates since the monetarist counterrevolution against Keynesianism beginning in the 1960s.2 The main progeny of that counterrevolution—the “natural rate of unemployment,” the ver ...
... Hyperinflations aside, the relationship between inflation and growth has been at the very center of macroeconomic theory debates since the monetarist counterrevolution against Keynesianism beginning in the 1960s.2 The main progeny of that counterrevolution—the “natural rate of unemployment,” the ver ...
POPULATION AGING, MARGINAL PROPENSITY TO CONSUME
... accumulated human capital within learning time t and accumulated effective labor supply within work time 1-t of 15 generations. The latter depended on contemporary age structure and human capital. Then they elicited the total outputs corresponding to material capital and effective labor through the ...
... accumulated human capital within learning time t and accumulated effective labor supply within work time 1-t of 15 generations. The latter depended on contemporary age structure and human capital. Then they elicited the total outputs corresponding to material capital and effective labor through the ...
This PDF is a selection from a published volume from
... over the past twenty years is the explicit recognition that policy behavior is purposeful and responds endogenously to the state of the economy. Substantial progress has been made by research that examines how various monetary policy rules perform in dynamic stochastic general equilibrium (DSGE) mod ...
... over the past twenty years is the explicit recognition that policy behavior is purposeful and responds endogenously to the state of the economy. Substantial progress has been made by research that examines how various monetary policy rules perform in dynamic stochastic general equilibrium (DSGE) mod ...
The Impact of terrorism on Turkey\`s economic performance From
... economic factors contribute to the rise of terrorism. Poor economic performance limits employment and other economic opportunities, and worsens income inequality and poverty. The surge in poverty and inequality increases the number of potential recruits for terrorism. Lack of economic opportunities ...
... economic factors contribute to the rise of terrorism. Poor economic performance limits employment and other economic opportunities, and worsens income inequality and poverty. The surge in poverty and inequality increases the number of potential recruits for terrorism. Lack of economic opportunities ...
NBER WORKING PAPER SERIES Christopher J. Erceg Christopher Gust
... become increasingly interested in the consequences of greater trade openness for macroeconomic behavior. Considerable attention has focused on how external shocks may play a more prominent role in driving domestic fluctuations as trade linkages grow, and as developing countries such as China exert a ...
... become increasingly interested in the consequences of greater trade openness for macroeconomic behavior. Considerable attention has focused on how external shocks may play a more prominent role in driving domestic fluctuations as trade linkages grow, and as developing countries such as China exert a ...
Economic Growth and Business Cycles: The Labor Supply Decision with Two Types of Technological Progress
... supply decision. A relatively rapid influx of new goods will generally increase labor supply, while relatively more technological advance for existing goods will reduce labor supply to the market. Short run variations in the relative importance of the two types of technological change are seen to im ...
... supply decision. A relatively rapid influx of new goods will generally increase labor supply, while relatively more technological advance for existing goods will reduce labor supply to the market. Short run variations in the relative importance of the two types of technological change are seen to im ...
Chapter 8: The Natural Rate of Unemployment and the Phillips Curve
... The Phillips curve relation between the change in the inflation rate and the unemployment rate has shifted to the right over time, suggesting a steady increase in the natural unemployment rate in the European Union since 1960. © 2003 Prentice Hall Business Publishing ...
... The Phillips curve relation between the change in the inflation rate and the unemployment rate has shifted to the right over time, suggesting a steady increase in the natural unemployment rate in the European Union since 1960. © 2003 Prentice Hall Business Publishing ...