Understanding Inflation as a Joint Monetary-Fiscal Phenomenon Eric M. Leeper Campbell Leith
... net debt as a share of GDP rose between 37 and 79 percent across four advancedeconomy country groups. As central banks begin to raise interest rates toward more normal levels, these debt expansions will carry with them dramatically higher debt service to create fresh fiscal pressures. The Congressio ...
... net debt as a share of GDP rose between 37 and 79 percent across four advancedeconomy country groups. As central banks begin to raise interest rates toward more normal levels, these debt expansions will carry with them dramatically higher debt service to create fresh fiscal pressures. The Congressio ...
Chapter 15
... The forces that bring business-cycle turning points are the swings in autonomous expenditure such as investment and exports. The mechanism that gives momentum to the economy’s new direction is the multiplier. ...
... The forces that bring business-cycle turning points are the swings in autonomous expenditure such as investment and exports. The mechanism that gives momentum to the economy’s new direction is the multiplier. ...
Understanding Inflation as a Joint Monetary-Fiscal Phenomenon Eric M. Leeper Campbell Leith
... 7. Table 1 reports that government debt expansions during the recession were significant: net debt as a share of GDP rose between 37 and 79 percent across four advancedeconomy country groups. As central banks begin to raise interest rates toward more normal levels, these debt expansions will carry w ...
... 7. Table 1 reports that government debt expansions during the recession were significant: net debt as a share of GDP rose between 37 and 79 percent across four advancedeconomy country groups. As central banks begin to raise interest rates toward more normal levels, these debt expansions will carry w ...
Haberler, the League of Nations, and the Quest for
... of superficiality... I cannot believe that the solution can be reached by bringing together... excerpts from the views of a large number of writers, each differing from the other more or less in fundamentals. The answer must lie somewhere much deeper down, yet your method tempts you to skating rathe ...
... of superficiality... I cannot believe that the solution can be reached by bringing together... excerpts from the views of a large number of writers, each differing from the other more or less in fundamentals. The answer must lie somewhere much deeper down, yet your method tempts you to skating rathe ...
Information, Animal Spirits, and the Meaning of Innovations in
... view of con…dence. Permanent movements in consumption and income must re‡ect corresponding movements in technology, which is putatively una¤ected by animal spirits. If con…dence contained no news about future fundamentals and the relationship between con…dence and subsequent activity re‡ected only a ...
... view of con…dence. Permanent movements in consumption and income must re‡ect corresponding movements in technology, which is putatively una¤ected by animal spirits. If con…dence contained no news about future fundamentals and the relationship between con…dence and subsequent activity re‡ected only a ...
Chapter 7 - Dr. George Fahmy
... time, he assumed that changes in aggregate demand have no effect upon the price level as long as output is below the full-employment level. A constant price level analysis of economic activity is presented in Fig. 7-1, where the shift of aggregate demand from AD1 to AD2 raises output from Y1 to y* w ...
... time, he assumed that changes in aggregate demand have no effect upon the price level as long as output is below the full-employment level. A constant price level analysis of economic activity is presented in Fig. 7-1, where the shift of aggregate demand from AD1 to AD2 raises output from Y1 to y* w ...
Modeling Economic Growth
... analytical instrument that had been overlooked by economists despite some isolated attempts, especially Gustav Cassel’s ([1918] 1932; 1935) “uniform progress” (Boianovsky 2009). Although both Harrod and Domar defined economic dynamics in terms of rates of growth (instead of lags as in much of the co ...
... analytical instrument that had been overlooked by economists despite some isolated attempts, especially Gustav Cassel’s ([1918] 1932; 1935) “uniform progress” (Boianovsky 2009). Although both Harrod and Domar defined economic dynamics in terms of rates of growth (instead of lags as in much of the co ...
Economic Strength
... strength in this respect. A sustainable high level of economic strength would involve at least a more than average economic output and/or a more than average per capita income, a less than average rate of unemployment, a favourable, modern and diversified sectoral structure and (a potential for) int ...
... strength in this respect. A sustainable high level of economic strength would involve at least a more than average economic output and/or a more than average per capita income, a less than average rate of unemployment, a favourable, modern and diversified sectoral structure and (a potential for) int ...
Exploring the Dynamics of Global Liquidity
... the capacity of financial markets to absorb temporary fluctuations in demand and supply without undue dislocations in prices. In part because of the many purposes liquidity serves, there is no straightforward way to assess developments in global liquidity conditions.1 One challenge in measuring liqu ...
... the capacity of financial markets to absorb temporary fluctuations in demand and supply without undue dislocations in prices. In part because of the many purposes liquidity serves, there is no straightforward way to assess developments in global liquidity conditions.1 One challenge in measuring liqu ...
15.1 expenditure plans and real gdp
... M = M0 + mY, but let’s assume M0 = 0, so M = mY AE = C + I + G + X – M; substitute for C and M. AE = C0 + b (1 – t) Y + I + G + X – mY; rearrange AE = C0 + I + G + X + b (1 – t) Y – mY Let A = C0 + I + G + X; factor out Y AE = A + (b (1 – t) – m)Y; Let g = b (1 – t) – m AE = A + gY ...
... M = M0 + mY, but let’s assume M0 = 0, so M = mY AE = C + I + G + X – M; substitute for C and M. AE = C0 + b (1 – t) Y + I + G + X – mY; rearrange AE = C0 + I + G + X + b (1 – t) Y – mY Let A = C0 + I + G + X; factor out Y AE = A + (b (1 – t) – m)Y; Let g = b (1 – t) – m AE = A + gY ...
28 EXPENDITURE MULTIPLIERS**
... more than $600 billion went toward poor and middle-class tax cuts, safety net spending (more unemployment assistance and food stamps), and aid to state governments with budget shortfalls. These are the most directly simulative parts of the bill, bolstering demand and preventing lay-offs—and stimulat ...
... more than $600 billion went toward poor and middle-class tax cuts, safety net spending (more unemployment assistance and food stamps), and aid to state governments with budget shortfalls. These are the most directly simulative parts of the bill, bolstering demand and preventing lay-offs—and stimulat ...
Inflation Through the Lens of the Fiscal Theory
... 10. Exacerbating the fiscal fallout from the crisis, aging populations worldwide create long-run fiscal stress whose resolution in most countries is uncertain. This kind of uncertainty operates at low frequencies and may conflict with the long-run objectives of monetary policy. It is hard to think a ...
... 10. Exacerbating the fiscal fallout from the crisis, aging populations worldwide create long-run fiscal stress whose resolution in most countries is uncertain. This kind of uncertainty operates at low frequencies and may conflict with the long-run objectives of monetary policy. It is hard to think a ...
House Price Cycles and the Real Economy
... real GDP as calculated by the IMF's International Financial Statistics , house prices are expressed in real terms by deflating the nominal house price indices by CPI, credit is bank credit to the private sector deflated by CPI. 1. The charts do suggest that stationarity is only achieved at the speci ...
... real GDP as calculated by the IMF's International Financial Statistics , house prices are expressed in real terms by deflating the nominal house price indices by CPI, credit is bank credit to the private sector deflated by CPI. 1. The charts do suggest that stationarity is only achieved at the speci ...
Monetary Science, Fiscal Alchemy
... The sharp contrast between the science of monetary policy and the alchemy of fiscal policy is puzzling when viewed from the perspective of a macroeconomist. There are clear parallels between the two macro policy tools. Both can have strong effects on aggregate demand, inflation, and economic activit ...
... The sharp contrast between the science of monetary policy and the alchemy of fiscal policy is puzzling when viewed from the perspective of a macroeconomist. There are clear parallels between the two macro policy tools. Both can have strong effects on aggregate demand, inflation, and economic activit ...
Fiscal policy to stabilise the economy in the EMU
... the economy can be caught in a liquidity trap: because nominal interest rates cannot be negative, it is impossible also to achieve negative real interest rates if prices are falling. Japan is a recent example (see EEAG, 2003). But also in more normal situations, there can be limitations to monetary ...
... the economy can be caught in a liquidity trap: because nominal interest rates cannot be negative, it is impossible also to achieve negative real interest rates if prices are falling. Japan is a recent example (see EEAG, 2003). But also in more normal situations, there can be limitations to monetary ...
- Rainer Maurer
... ■ The standard assumption in the neoclassical model is that within a production period ("one year") the capital stock is constant, because current investment in capital It needs to be installed first, before it can become productive. Therefore It enters the capital stock not in period t ("this year" ...
... ■ The standard assumption in the neoclassical model is that within a production period ("one year") the capital stock is constant, because current investment in capital It needs to be installed first, before it can become productive. Therefore It enters the capital stock not in period t ("this year" ...