This PDF is a selec on from a published volume... Bureau of Economic Research
... autoregressions (EVARs), whether the sample includes World War II and Korea or excludes them, an increase in government spending never leads to a significant rise in private spending. In fact, in most cases it leads to a significant fall. These results imply that the government spending multiplier i ...
... autoregressions (EVARs), whether the sample includes World War II and Korea or excludes them, an increase in government spending never leads to a significant rise in private spending. In fact, in most cases it leads to a significant fall. These results imply that the government spending multiplier i ...
Chapter 1: Introduction
... The IS curve as presented in Chapter 10 is enough to enable us to think about business cycles, as long as the central bank uses open market operations to set the real interest rate. But not all central banks peg interest rates today. Not all central banks that peg interest rates today pegged them in ...
... The IS curve as presented in Chapter 10 is enough to enable us to think about business cycles, as long as the central bank uses open market operations to set the real interest rate. But not all central banks peg interest rates today. Not all central banks that peg interest rates today pegged them in ...
What Explains Inflation in China?
... in the general price level is termed inflation and a decrease deflation. Inflation and deflation distort price signals, leading to inefficient allocation of resources; they also undermine the credibility of the central bank, making it difficult to conduct macroeconomic management. Therefore, major a ...
... in the general price level is termed inflation and a decrease deflation. Inflation and deflation distort price signals, leading to inefficient allocation of resources; they also undermine the credibility of the central bank, making it difficult to conduct macroeconomic management. Therefore, major a ...
Macro-economics of balance-sheet problems and the
... expansionary fiscal policy. Furthermore, counter-cyclical fiscal policy is also more attractive under severe balance-sheet problems and a binding zero lower bound, because the risk of wrongly dosing or timing fiscal policy is smaller than under normal conditions. Under normal conditions, the economy ...
... expansionary fiscal policy. Furthermore, counter-cyclical fiscal policy is also more attractive under severe balance-sheet problems and a binding zero lower bound, because the risk of wrongly dosing or timing fiscal policy is smaller than under normal conditions. Under normal conditions, the economy ...
1 - Whitman People
... are the inputs of other firms, so if output prices are increasing there will be an increase in at least some input prices. It is also unrealistic to assume that wage rates will remain constant as the overall price level is increasing. Another reason why the AS curve cannot be the sum of the supply c ...
... are the inputs of other firms, so if output prices are increasing there will be an increase in at least some input prices. It is also unrealistic to assume that wage rates will remain constant as the overall price level is increasing. Another reason why the AS curve cannot be the sum of the supply c ...
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... more generous UI, because the unemployed have higher disposable income. Furthermore, we also provide evidence suggesting that higher UI increases the average wages of the employed individuals, for instance, due to an increase in aggregate demand and possibly by boosting their bargaining power. Final ...
... more generous UI, because the unemployed have higher disposable income. Furthermore, we also provide evidence suggesting that higher UI increases the average wages of the employed individuals, for instance, due to an increase in aggregate demand and possibly by boosting their bargaining power. Final ...
Inflation During and After the Zero Lower Bound
... economies for which the ZLB has been a constraint in recent years? Second, what inflation dynamics should one expect before and after nominal interest rates lift off from the ZLB? Third, does the fact that both Japan and U.S. have experienced near zero interest rates for more than five years mean th ...
... economies for which the ZLB has been a constraint in recent years? Second, what inflation dynamics should one expect before and after nominal interest rates lift off from the ZLB? Third, does the fact that both Japan and U.S. have experienced near zero interest rates for more than five years mean th ...
Price Stability versus Full Employment: The Phillips Curve Dilemma
... Thus, I felt that a detailed analysis of this discussion seemed necessary before any modern approach could be discussed. Acquiring this knowledge, for different and most of the time personal reasons, took much longer than expected, so that this dissertation focuses particularly on the developments i ...
... Thus, I felt that a detailed analysis of this discussion seemed necessary before any modern approach could be discussed. Acquiring this knowledge, for different and most of the time personal reasons, took much longer than expected, so that this dissertation focuses particularly on the developments i ...
Aggregate Supply
... Classical Economics—A Recap Most economists believe classical theory describes the world in the long run, but not the short run. ...
... Classical Economics—A Recap Most economists believe classical theory describes the world in the long run, but not the short run. ...
essen-ch23-presentat..
... Classical Economics—A Recap Most economists believe classical theory describes the world in the long run, but not the short run. ...
... Classical Economics—A Recap Most economists believe classical theory describes the world in the long run, but not the short run. ...
Document
... help determine the extent to which increases in aggregate demand lead to increases in real output (economics)|output or instead to increases in prices (inflation). In the diagram, an increase in any of the components of 'AD' (at any given 'P') shifts the 'AD' curve to the right. This increases both ...
... help determine the extent to which increases in aggregate demand lead to increases in real output (economics)|output or instead to increases in prices (inflation). In the diagram, an increase in any of the components of 'AD' (at any given 'P') shifts the 'AD' curve to the right. This increases both ...
WHAT KEYNESIAN REVOLUTION
... common reference point for argument and analysis, augmented by use of IS-LM to derive the AD curve on the Aggregate Demand/Aggregate Supply diagram and of the 45-degree “Keynesian cross diagram” for derivation of the IS goods market equilibrium curve (see Axel Leijonhufvud’s “Life Among the Econ,” i ...
... common reference point for argument and analysis, augmented by use of IS-LM to derive the AD curve on the Aggregate Demand/Aggregate Supply diagram and of the 45-degree “Keynesian cross diagram” for derivation of the IS goods market equilibrium curve (see Axel Leijonhufvud’s “Life Among the Econ,” i ...
The Small Open-Economy New Keynesian Phillips Curve: Empirical
... the Netherlands, Spain, Sweden, Switzerland and the United Kingdom. We include France, Germany and the UK even if they are not small countries since they are fairly open and interdependent in terms of consumption habits, whereas we do not consider the US and Japan which have a much lower import shar ...
... the Netherlands, Spain, Sweden, Switzerland and the United Kingdom. We include France, Germany and the UK even if they are not small countries since they are fairly open and interdependent in terms of consumption habits, whereas we do not consider the US and Japan which have a much lower import shar ...
Post World War II politics and Keynes`s aborted revolutionary
... Keynesianism after World War II. Moreover the political atmosphere of the time discouraged those who might have attempted to explain Keynes’s revolutionary theory. To illustrate the problem we will use the example of Paul Samuelson’s attempt to propagate Keynesianism and compare it with Keynes’s rev ...
... Keynesianism after World War II. Moreover the political atmosphere of the time discouraged those who might have attempted to explain Keynes’s revolutionary theory. To illustrate the problem we will use the example of Paul Samuelson’s attempt to propagate Keynesianism and compare it with Keynes’s rev ...
NBER WORKING PAPER SERIES INFLATION REPORTS Eric M. Leeper
... long-run inflation rate to be equal to the target inflation rate? This theoretical argument is relevant for forecasting. In an econometric model of inflation, one might well find that short- to medium-run forecasts are driven by many of the factors on which Inflation Reports focus—relative prices, r ...
... long-run inflation rate to be equal to the target inflation rate? This theoretical argument is relevant for forecasting. In an econometric model of inflation, one might well find that short- to medium-run forecasts are driven by many of the factors on which Inflation Reports focus—relative prices, r ...
The relevance of Keynes
... investment (accumulation of capital). But by the same token it enlarges the scope for speculation and thus makes economic life more volatile. This has been exactly the effect of ‘securitisation’ in the last few years. However, the story is only half told. Investment depends on what Keynes calls the ...
... investment (accumulation of capital). But by the same token it enlarges the scope for speculation and thus makes economic life more volatile. This has been exactly the effect of ‘securitisation’ in the last few years. However, the story is only half told. Investment depends on what Keynes calls the ...
Inflation, Deflation and All That
... But standing back from the individual cases, there is something of a pattern. While this hardly amounts to widespread deflation, or a deflationary spiral, it is clear that instances of falling prices are now a little more common, and tend to be a little more persistent, than used to be the case. Nor ...
... But standing back from the individual cases, there is something of a pattern. While this hardly amounts to widespread deflation, or a deflationary spiral, it is clear that instances of falling prices are now a little more common, and tend to be a little more persistent, than used to be the case. Nor ...
Chapter 12
... Which of the following will cause the short-run aggregate supply curve to shift to the right? a. ...
... Which of the following will cause the short-run aggregate supply curve to shift to the right? a. ...
Chapter 27 Money and Inflation
... According to the monetarist view of inflation, a continually increasing money supply causes (a) the aggregate demand curve to shift right along a stationary aggregate supply curve, leading to continually increasing aggregate output and prices. (b) the aggregate supply curve to shift left along a sta ...
... According to the monetarist view of inflation, a continually increasing money supply causes (a) the aggregate demand curve to shift right along a stationary aggregate supply curve, leading to continually increasing aggregate output and prices. (b) the aggregate supply curve to shift left along a sta ...
This PDF is a selection from a published volume from
... projection on two factors extracted from our large panel produces forecasts of the GDP growth rate and inflation comparable with the Greenbook forecasts and a forecast of the federal funds rate up to two quarters ahead, which is in line with that of the future market. Our analysis extends the foreca ...
... projection on two factors extracted from our large panel produces forecasts of the GDP growth rate and inflation comparable with the Greenbook forecasts and a forecast of the federal funds rate up to two quarters ahead, which is in line with that of the future market. Our analysis extends the foreca ...
Full employment
Full employment, in macroeconomics, is the level of employment rates where there is no cyclical or deficient-demand unemployment. It is defined by the majority of mainstream economists as being an acceptable level of unemployment somewhere above 0%. The discrepancy from 0% arises due to non-cyclical types of unemployment, such as frictional unemployment (there will always be people who have quit or have lost a seasonal job and are in the process of getting a new job) and structural unemployment (mismatch between worker skills and job requirements). Unemployment above 0% is seen as necessary to control inflation in capitalist economies, to keep inflation from accelerating, i.e., from rising from year to year. This view is based on a theory centering on the concept of the Non-Accelerating Inflation Rate of Unemployment (NAIRU); in the current era, the majority of mainstream economists mean NAIRU when speaking of ""full"" employment. The NAIRU has also been described by Milton Friedman, among others, as the ""natural"" rate of unemployment. Having many names, it has also been called the structural unemployment rate.The 20th century British economist William Beveridge stated that an unemployment rate of 3% was full employment. Other economists have provided estimates between 2% and 13%, depending on the country, time period, and their political biases. For the United States, economist William T. Dickens found that full-employment unemployment rate varied a lot over time but equaled about 5.5 percent of the civilian labor force during the 2000s. Recently, economists have emphasized the idea that full employment represents a ""range"" of possible unemployment rates. For example, in 1999, in the United States, the Organisation for Economic Co-operation and Development (OECD) gives an estimate of the ""full-employment unemployment rate"" of 4 to 6.4%. This is the estimated unemployment rate at full employment, plus & minus the standard error of the estimate.The concept of full employment of labor corresponds to the concept of potential output or potential real GDP and the long run aggregate supply (LRAS) curve. In neoclassical macroeconomics, the highest sustainable level of aggregate real GDP or ""potential"" is seen as corresponding to a vertical LRAS curve: any increase in the demand for real GDP can only lead to rising prices in the long run, while any increase in output is temporary.