Some Monetary Facts
... We study a cross section of countries rather than just a single country because we want our results to be independent of policy rules. If we were to study a single country, the correlations we obtained could be an artifact of the particular policy rule or rules being followed there. For example, sup ...
... We study a cross section of countries rather than just a single country because we want our results to be independent of policy rules. If we were to study a single country, the correlations we obtained could be an artifact of the particular policy rule or rules being followed there. For example, sup ...
#24 AP Deficits(FINA#F2593D
... regularly use the full-employment budget. Deficits can have varying effects on the economy, depending on how they are financed. One way to finance the deficit is to borrow from individuals in businesses. When this happens, the government absorbs savings, which would have been invested in other ways. ...
... regularly use the full-employment budget. Deficits can have varying effects on the economy, depending on how they are financed. One way to finance the deficit is to borrow from individuals in businesses. When this happens, the government absorbs savings, which would have been invested in other ways. ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Monetary Policy Rules
... questions that are posed in many other chapters, such as “What is the trade-off between inflation variability and output variability, under alternative specifications of the interest rate rule?’ However, we can study optimal policy within a basic macroeconomic model that captures central features of ...
... questions that are posed in many other chapters, such as “What is the trade-off between inflation variability and output variability, under alternative specifications of the interest rate rule?’ However, we can study optimal policy within a basic macroeconomic model that captures central features of ...
PROBLEMS AND SOLUTIONS for B-level course Joakim Persson
... total factor productivity between the years? Problem 8.3: Assume an economy which is characterized by perfect competition in the goods and labor market, in which the owners of capital get one-third of national income, and the workers receive two-thirds. Assume a Cobb-Douglas aggregate production fun ...
... total factor productivity between the years? Problem 8.3: Assume an economy which is characterized by perfect competition in the goods and labor market, in which the owners of capital get one-third of national income, and the workers receive two-thirds. Assume a Cobb-Douglas aggregate production fun ...
Exhibit 11 Keynesian aggregate expenditures model
... c. Correct. AE = C + I + G + (X - M). d. Incorrect. See the correct formula in answer c. 2. In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then a. inventory is depleted. b. inventory is unchanged. c. employment decreases. d. employment increases. ANS a. Incorr ...
... c. Correct. AE = C + I + G + (X - M). d. Incorrect. See the correct formula in answer c. 2. In the aggregate expenditures model, if aggregate expenditures (AE) are less than GDP, then a. inventory is depleted. b. inventory is unchanged. c. employment decreases. d. employment increases. ANS a. Incorr ...
Final Remarks
... pushes the demand for consumption goods up to the point where the surplus of these goods in Department II meets the higher demand of workers and capitalists in Department I. In this way it is the high level of investment itself that generates demand for consumption goods” (Kalecki 1954 [1993]: 29). ...
... pushes the demand for consumption goods up to the point where the surplus of these goods in Department II meets the higher demand of workers and capitalists in Department I. In this way it is the high level of investment itself that generates demand for consumption goods” (Kalecki 1954 [1993]: 29). ...
A.1. Reflecting on new developmentalism and classical
... What is new developmentalism and how is it distinguished from classical developmentalism that preceded it? 1 Following the publication of my book Developmental Macroeconomics, coauthored with Nelson Marconi and José Luis Oreiro, where we systematize the ideas and models that a group of economists h ...
... What is new developmentalism and how is it distinguished from classical developmentalism that preceded it? 1 Following the publication of my book Developmental Macroeconomics, coauthored with Nelson Marconi and José Luis Oreiro, where we systematize the ideas and models that a group of economists h ...
Monetary Policy Transparency and Private Sector Forecasts
... The central bank implements policy by moving the actual policy rate above or below the neutral rate when the output gap and inflation gap are nonzero. For example, if an economic shock causes weaker economic growth, the central bank would lower the policy rate below the neutral rate by an amount tha ...
... The central bank implements policy by moving the actual policy rate above or below the neutral rate when the output gap and inflation gap are nonzero. For example, if an economic shock causes weaker economic growth, the central bank would lower the policy rate below the neutral rate by an amount tha ...
2012 IOptimal Policy and the Sectoral Composition of Output
... through differing price rigidities, welfare can be improved through sector specific tax policy. If the government can levy sector specific taxes on firms, taxes rise in sectors hit by a positive productivity shock to limit price dispersion within a sector and so ensure efficient allocation of resour ...
... through differing price rigidities, welfare can be improved through sector specific tax policy. If the government can levy sector specific taxes on firms, taxes rise in sectors hit by a positive productivity shock to limit price dispersion within a sector and so ensure efficient allocation of resour ...
Presidents and the U.S. Economy: An Econometric Exploration
... None of them, of course, bears any responsibility for the views expressed here. Replication files and the paper's appendices can be downloaded from http://www.princeton.edu/~mwatson. ...
... None of them, of course, bears any responsibility for the views expressed here. Replication files and the paper's appendices can be downloaded from http://www.princeton.edu/~mwatson. ...
NBER WORKING PAPER SERIES INCOME DISPERSION AND COUNTER-CYCLICAL MARKUPS Chris Edmond Laura Veldkamp
... smaller and induces firms to keep prices high. Therefore when dispersion is high, prices stay high but profits are low. In contrast, in booms when dispersion is low, sellers who reduce prices attract many additional buyers (the larger shaded area in the right panel of figure 1). Therefore in booms, ...
... smaller and induces firms to keep prices high. Therefore when dispersion is high, prices stay high but profits are low. In contrast, in booms when dispersion is low, sellers who reduce prices attract many additional buyers (the larger shaded area in the right panel of figure 1). Therefore in booms, ...
chapter summary
... typically create political pressure for tax hikes to balance the budget (however misguided this policy may be). Those with jobs lose bargaining power in seeking higher wages. The list can go on. Unemployment imposes a variety of costs. 3. You might choose to list and give examples of each of the fou ...
... typically create political pressure for tax hikes to balance the budget (however misguided this policy may be). Those with jobs lose bargaining power in seeking higher wages. The list can go on. Unemployment imposes a variety of costs. 3. You might choose to list and give examples of each of the fou ...
Objectives for Class 24: The Business Cycle and
... If the decline is very large, the period is called a depression. Production is falling, incomes are falling, there are fewer jobs, and there are more unemployed workers. A recession is a bad time. (According to an old joke --- it is a recession if many people are unemployed. It is a depression if YO ...
... If the decline is very large, the period is called a depression. Production is falling, incomes are falling, there are fewer jobs, and there are more unemployed workers. A recession is a bad time. (According to an old joke --- it is a recession if many people are unemployed. It is a depression if YO ...
UK BUSINESS CONFIDENCE MONITOR REPORT Q1 2010 INSPIRING CONFIDENCE icaew.com/bcm
... confidence has risen for the fourth quarter in succession, three out of five UK businesses are still running below capacity. This means businesses will be able to increase output and take advantage of the fragile economic recovery without taking on new staff. The spare capacity in the economy will a ...
... confidence has risen for the fourth quarter in succession, three out of five UK businesses are still running below capacity. This means businesses will be able to increase output and take advantage of the fragile economic recovery without taking on new staff. The spare capacity in the economy will a ...
PDF Download
... standard deviation of log real GDP per employee to see whether the dispersion of GDP per employee distribution decreased over time (σ-convergence).1 Figure 3.1 shows the EU27 regions where the horizontal axis shows the productivity level in 1991 and the vertical axis represents subsequent average gr ...
... standard deviation of log real GDP per employee to see whether the dispersion of GDP per employee distribution decreased over time (σ-convergence).1 Figure 3.1 shows the EU27 regions where the horizontal axis shows the productivity level in 1991 and the vertical axis represents subsequent average gr ...
Rudiger Dornbusch Working Paper No. i66
... ministers later, stability is a prospect far removed and the traditional conflicts about real wages; distribution, and inflation remain topical and are further complicated by an external debt crisis. In late 1983 production of manufactures and real GDP were still at ...
... ministers later, stability is a prospect far removed and the traditional conflicts about real wages; distribution, and inflation remain topical and are further complicated by an external debt crisis. In late 1983 production of manufactures and real GDP were still at ...
Aggregate Expenditures
... analysis does not apply, because inflation will not allow it to stay there. This possibility is referred to as an inflationary gap, which is the excess of the aggregate expenditure function above that consistent with a full employment equilibrium. ©2004 Prentice Hall Publishing ...
... analysis does not apply, because inflation will not allow it to stay there. This possibility is referred to as an inflationary gap, which is the excess of the aggregate expenditure function above that consistent with a full employment equilibrium. ©2004 Prentice Hall Publishing ...
Keynes and Marx - Post-Keynesian Economics Study Group
... Soon after the publication of The General Theory, Keynes manifested his dissatisfaction with the ‘final product’ of the intellectual process which had started in 1931-32 and he stated an intention to re-cast his ideas in a clearer and more satisfactory way. Joan Robinson thought that starting from M ...
... Soon after the publication of The General Theory, Keynes manifested his dissatisfaction with the ‘final product’ of the intellectual process which had started in 1931-32 and he stated an intention to re-cast his ideas in a clearer and more satisfactory way. Joan Robinson thought that starting from M ...
The Business Cycle and Unemployment
... If the decline is very large, the period is called a depression. Production is falling, incomes are falling, there are fewer jobs, and there are more unemployed workers. A recession is a bad time. (According to an old joke --- it is a recession if many people are unemployed. It is a depression if YO ...
... If the decline is very large, the period is called a depression. Production is falling, incomes are falling, there are fewer jobs, and there are more unemployed workers. A recession is a bad time. (According to an old joke --- it is a recession if many people are unemployed. It is a depression if YO ...
1) The objectives of the Federal Reserve in its conduct of monetary
... Conduct of Monetary Policy: Goals and Targets ...
... Conduct of Monetary Policy: Goals and Targets ...
ch 6- ch9 review
... 4. An increase in labor input does not necessarily increase output per capita. T 5. Frictional unemployment results from persons being temporarily between jobs. T 6. . Structural employment can arise because jobs that require particular skills disappear. T 7. Structural unemployment is easily measur ...
... 4. An increase in labor input does not necessarily increase output per capita. T 5. Frictional unemployment results from persons being temporarily between jobs. T 6. . Structural employment can arise because jobs that require particular skills disappear. T 7. Structural unemployment is easily measur ...