Living Standards During Previous Recessions
... the first quarter of 1979, but grew again during the second quarter. This pattern of contraction followed by growth was repeated in quarters 3 and 4. However, the economy then experienced a continuous decline until 1981Q2. In the analysis below, we treat the early 1980s recession as lasting from 197 ...
... the first quarter of 1979, but grew again during the second quarter. This pattern of contraction followed by growth was repeated in quarters 3 and 4. However, the economy then experienced a continuous decline until 1981Q2. In the analysis below, we treat the early 1980s recession as lasting from 197 ...
BASIC ECON REVIEW QUESTIONS/ANSWERS ALL CHAPTERS
... The graph above shows two production possibilities curves for a nation that produces two goods, Y and Z. PP1 and PP2 show the production possibilities for years 1 and 2. The nation's total production then decreased after year 2. This change could be represented by a move from: A. F to A. B. A to E. ...
... The graph above shows two production possibilities curves for a nation that produces two goods, Y and Z. PP1 and PP2 show the production possibilities for years 1 and 2. The nation's total production then decreased after year 2. This change could be represented by a move from: A. F to A. B. A to E. ...
Economic Freedom and the Environment for Economic Growth
... from doing others. They must create a stable monetary environment and allow individuals to choose for themselves. But they must also keep taxes low, allow most production to take place in the private sector, and refrain from creating barriers to both domestic and international trade. The EFN economi ...
... from doing others. They must create a stable monetary environment and allow individuals to choose for themselves. But they must also keep taxes low, allow most production to take place in the private sector, and refrain from creating barriers to both domestic and international trade. The EFN economi ...
Should Transportation Spending be included in a Stimulus Program?
... However, in responding to weak economic conditions the government rarely relies on military spending as a form of stimulus (though some observers (e.g., Feldstein (2008)) did propose increases in military spending in response to the decline in growth in 2008). In an influential article, Blanchard an ...
... However, in responding to weak economic conditions the government rarely relies on military spending as a form of stimulus (though some observers (e.g., Feldstein (2008)) did propose increases in military spending in response to the decline in growth in 2008). In an influential article, Blanchard an ...
The estimation of money demand in the Slovak Republic
... The estimation results refer to the positive elasticity of the money supply relative to GDP as well as the deposit interest rate. The statistical significance of stocks and mutual fund shares/units was also confirmed – the fact that their elasticity is negative confirms the hypothesis of substitutio ...
... The estimation results refer to the positive elasticity of the money supply relative to GDP as well as the deposit interest rate. The statistical significance of stocks and mutual fund shares/units was also confirmed – the fact that their elasticity is negative confirms the hypothesis of substitutio ...
Makro-04
... • The multiplier is the ratio of the change in the equilibrium level of output to a change in some autonomous variable. • An autonomous variable is a variable that is assumed not to depend on the state of the economy—that is, it does not change when the economy changes. • In this chapter, for exampl ...
... • The multiplier is the ratio of the change in the equilibrium level of output to a change in some autonomous variable. • An autonomous variable is a variable that is assumed not to depend on the state of the economy—that is, it does not change when the economy changes. • In this chapter, for exampl ...
Does The Stock of Money Have Any Causal Significance?
... equation 2, a constant rate of inflation, and s i (with i = 1, 2) represents stochastic shocks. Equation 3 contains no stochastic shock, implying that monetary policy operates without random errors. It should also be noted that demand and supply shocks are captured in this model via two avenues: the ...
... equation 2, a constant rate of inflation, and s i (with i = 1, 2) represents stochastic shocks. Equation 3 contains no stochastic shock, implying that monetary policy operates without random errors. It should also be noted that demand and supply shocks are captured in this model via two avenues: the ...
The Zero Lower Bound and Endogenous Uncertainty
... happening in the economy. An increase in uncertainty occurs as the short-term nominal interest rate approaches its ZLB due to the restriction the constraint places on the ability of the central bank to stabilize the economy. In our model, the ZLB arises in states where the discount factor or technol ...
... happening in the economy. An increase in uncertainty occurs as the short-term nominal interest rate approaches its ZLB due to the restriction the constraint places on the ability of the central bank to stabilize the economy. In our model, the ZLB arises in states where the discount factor or technol ...
Aggregate Supply-Driven Deflation and Its Implications for Macroeconomic Stability David Beckworth
... two reasons: a decrease in aggregate demand or an increase in aggregate supply. The first type of deflation is a consequence of a collapse in nominal spending that may, in the presence of nominal rigidities, drive actual output below its natural rate level. This malign form of deflation is consisten ...
... two reasons: a decrease in aggregate demand or an increase in aggregate supply. The first type of deflation is a consequence of a collapse in nominal spending that may, in the presence of nominal rigidities, drive actual output below its natural rate level. This malign form of deflation is consisten ...
Globak Slack and Domestic Inflation Rates: A
... are both assigned significant posterior probabilities. Overall, mainly through the effect on domestic demand, global output can still affect domestic inflation rates. From the variance decomposition, shocks to global conditions account for a large share of output fluctuations in France, Germany, Can ...
... are both assigned significant posterior probabilities. Overall, mainly through the effect on domestic demand, global output can still affect domestic inflation rates. From the variance decomposition, shocks to global conditions account for a large share of output fluctuations in France, Germany, Can ...
Travelling Along the Third Way. A Swedish Model of Stabilisation
... economy, and also in the medium term, to control inflation. This policy was defined for an economy of fixed exchange rates. In the 1960s and 1970s, Rehn suggested revaluation as another deflationary means in the fight against inflation (see Rehn, 1977, p. 223). A restrictive fiscal policy, or a reva ...
... economy, and also in the medium term, to control inflation. This policy was defined for an economy of fixed exchange rates. In the 1960s and 1970s, Rehn suggested revaluation as another deflationary means in the fight against inflation (see Rehn, 1977, p. 223). A restrictive fiscal policy, or a reva ...
October Michael THE IFLATIO NARY PROCESS IN ISRAEL:
... with policy that fixes the real interest rate (assume adaptative expectations to avoid well—known problems of indeterminacy when expectations are rational), goods market equilibrium determines the real value of wealth. The appropriate interest rate is then enforced through open market operations in ...
... with policy that fixes the real interest rate (assume adaptative expectations to avoid well—known problems of indeterminacy when expectations are rational), goods market equilibrium determines the real value of wealth. The appropriate interest rate is then enforced through open market operations in ...
Swaziland: Policy Options and Strategies for Stimulating Fixed
... rates of government expenditure of the neighboring countries outpaced that of Swaziland during the past two decades. The average growth rates of GGFCE, however, mask the volatility in government expenditure. GGFCE growth rates of Swaziland exhibited a very high degree of volatility compared to other ...
... rates of government expenditure of the neighboring countries outpaced that of Swaziland during the past two decades. The average growth rates of GGFCE, however, mask the volatility in government expenditure. GGFCE growth rates of Swaziland exhibited a very high degree of volatility compared to other ...
Thirlwall`s Law and the Long-Term Equilibrium Growth Rate: an
... the significance of the estimated coefficient for the world income growth (ε) and for the terms of trade. The model is confirmed if (ε) is statistically significant and if the coefficient for terms of trade is very low or insignificant, the country under analysis being balance-ofpayments constrained ...
... the significance of the estimated coefficient for the world income growth (ε) and for the terms of trade. The model is confirmed if (ε) is statistically significant and if the coefficient for terms of trade is very low or insignificant, the country under analysis being balance-ofpayments constrained ...
GROWTH AND INFLATION IN SOUTH AFRICA: IS THERE
... Although stringent deflationary policies may be the appropriate response when inflation is well into the double-digit zone, it becomes more difficult to justify restrictive policies when inflation is brought back to single-digit rates. More importantly, there are various theoretical reasons (Thirlwa ...
... Although stringent deflationary policies may be the appropriate response when inflation is well into the double-digit zone, it becomes more difficult to justify restrictive policies when inflation is brought back to single-digit rates. More importantly, there are various theoretical reasons (Thirlwa ...
DP2010/04 Internationalised Production in a Small Open Economy Aur´
... to the study of monetary policy in small open economies.1 These models, enriched with many frictions such as habit formation in consumption, price and wage indexation, also became the workhorse of applied macroeconomic analysis. Most of these models assume that the traded good is a consumption good. ...
... to the study of monetary policy in small open economies.1 These models, enriched with many frictions such as habit formation in consumption, price and wage indexation, also became the workhorse of applied macroeconomic analysis. Most of these models assume that the traded good is a consumption good. ...
NBER WORKING PAPER SERIES ON THE ORIGINS OF "A MONETARY HISTORY"
... of money, and none produced an interpretation that integrated supply and demand. Historians of economic thought interested in Mitchell, for example Howard Sherman (2001), have downplayed Mitchell's views about the role of money in the business cycle, or emphasized the differences between Mitchell an ...
... of money, and none produced an interpretation that integrated supply and demand. Historians of economic thought interested in Mitchell, for example Howard Sherman (2001), have downplayed Mitchell's views about the role of money in the business cycle, or emphasized the differences between Mitchell an ...
Uncertainty Shocks and Equity Return Jumps and Volatility during
... rates of 20 per cent, 7.5 per cent, and 5 per cent, by October respectively. In the next twelve months, all three series fell at appreciably higher rates: 27 per cent, 13.5 per cent, and 17 per cent, respectively. All told, by October 1930, production had fallen 26 per cent, prices, 14 per cent, and ...
... rates of 20 per cent, 7.5 per cent, and 5 per cent, by October respectively. In the next twelve months, all three series fell at appreciably higher rates: 27 per cent, 13.5 per cent, and 17 per cent, respectively. All told, by October 1930, production had fallen 26 per cent, prices, 14 per cent, and ...
My lecture
... Economic Fluctuations 1. Economic fluctuations are irregular and unpredictable. 1. Business cycles do not follow similar periods. 2. The last recession was in 1991. 3. Before that we had recessions in 1970, 1974-75, 1980, and 1982. ...
... Economic Fluctuations 1. Economic fluctuations are irregular and unpredictable. 1. Business cycles do not follow similar periods. 2. The last recession was in 1991. 3. Before that we had recessions in 1970, 1974-75, 1980, and 1982. ...
Testing liquidity measures as bankruptcy prediction variables
... Testing liquidity measures as bankruptcy prediction variables The ultimate goal for the bankruptcy re- searcher has been, and still is, to find the perfect procedure to predict a company’s failure. This is due to the fact that several interested parties, for example, stockholders, financiers, employ ...
... Testing liquidity measures as bankruptcy prediction variables The ultimate goal for the bankruptcy re- searcher has been, and still is, to find the perfect procedure to predict a company’s failure. This is due to the fact that several interested parties, for example, stockholders, financiers, employ ...
Working Paper - Hans-Böckler
... characterised by a variable rate of capacity utilisation in the long run. Income distribution is determined by firms’ mark-up pricing in incompletely competitive goods markets and is hence mainly affected by the degree of competition in the goods market and by relative powers of firms and workers in ...
... characterised by a variable rate of capacity utilisation in the long run. Income distribution is determined by firms’ mark-up pricing in incompletely competitive goods markets and is hence mainly affected by the degree of competition in the goods market and by relative powers of firms and workers in ...
