Inflation dynamics, marginal cost, and the output gap:
... confines of the current generation of models, the most one can say in favor of gapbased NKPCs is that they should perform no worse than cost-based NKPCs. This is because, in these models, monetary policy only affects inflation by affecting current and prospective marginal cost. However, there are so ...
... confines of the current generation of models, the most one can say in favor of gapbased NKPCs is that they should perform no worse than cost-based NKPCs. This is because, in these models, monetary policy only affects inflation by affecting current and prospective marginal cost. However, there are so ...
Solution
... The short-run aggregate supply curve slopes upward because nominal wages are sticky in the short run. Nominal wages are fixed by either formal contracts or informal agreements in the short run. So, as the aggregate price level falls and nominal wages remain the same, production costs will not fall b ...
... The short-run aggregate supply curve slopes upward because nominal wages are sticky in the short run. Nominal wages are fixed by either formal contracts or informal agreements in the short run. So, as the aggregate price level falls and nominal wages remain the same, production costs will not fall b ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: American Economic Policy in the 1980s
... main thrust of the Federal Reserve’s policy. However, within each major episode, decisions are continually made to adjust (or not to adjust) the degree of tightness or ease of monetary policy. The analysis of monetary policy must also be concerned with the reasons for and consequences of these adjus ...
... main thrust of the Federal Reserve’s policy. However, within each major episode, decisions are continually made to adjust (or not to adjust) the degree of tightness or ease of monetary policy. The analysis of monetary policy must also be concerned with the reasons for and consequences of these adjus ...
Growing like Spain: 1995-2007
... signal-extraction problem faced by banks to identify good firms becomes more noisy in bubble times, and hence credit may be allocated less efficiently.4 Second, Dı́az and Franjo (Forthcoming) show that the large increase in capital accumulation over the period was largely due to capital structures, whi ...
... signal-extraction problem faced by banks to identify good firms becomes more noisy in bubble times, and hence credit may be allocated less efficiently.4 Second, Dı́az and Franjo (Forthcoming) show that the large increase in capital accumulation over the period was largely due to capital structures, whi ...
... Fast track growth theory Turnpike introduced by Samuelson (1955), Each country/region needs to look at the sector/commodity what it has great potential and can be developed quickly, good because of the potential natural and because the sector has a competitive advantage to be developed. It means tha ...
Official PDF , 37 pages
... This de…nition of events considers output contractions only. The comprehensive …nancial crisis database of Laeven and Valencia (2013) has been considered a source for event dates. However, Laeven and Valencia (2013) focus on …nancial crises, and thereby exclude episodes in many economies, such as th ...
... This de…nition of events considers output contractions only. The comprehensive …nancial crisis database of Laeven and Valencia (2013) has been considered a source for event dates. However, Laeven and Valencia (2013) focus on …nancial crises, and thereby exclude episodes in many economies, such as th ...
Hysteresis and Persistent Long-term Unemployment
... long-term unemployment leaves persistent “scars” on the employment prospects of the unemployed. Also there could be a sectoral mismatch as certain sectors of the economy grow while other shrink or housing lock where unemployed workers with negative home equity cannot move to low unemployment areas. ...
... long-term unemployment leaves persistent “scars” on the employment prospects of the unemployed. Also there could be a sectoral mismatch as certain sectors of the economy grow while other shrink or housing lock where unemployed workers with negative home equity cannot move to low unemployment areas. ...
Managing Government Compensation and Employment
... Government compensation and employment policies are important for the efficient delivery of public services which are crucial for the functioning of economies and the general prosperity of societies. On average, spending on the wage bill absorbs around one-fifth of total spending. Cross-country vari ...
... Government compensation and employment policies are important for the efficient delivery of public services which are crucial for the functioning of economies and the general prosperity of societies. On average, spending on the wage bill absorbs around one-fifth of total spending. Cross-country vari ...
Embassy of India Thimphu COUNTRY NOTE ON BHUTAN
... Bhutan began to emerge from centuries of self-imposed isolation in 1962, by joining the Colombo Plan. It joined the United Nations (1971), Non-Aligned Movement (1973) and SAARC (1985). Bhutan does not have formal diplomatic relationship with any of the permanent members of UN Security Council. Bhuta ...
... Bhutan began to emerge from centuries of self-imposed isolation in 1962, by joining the Colombo Plan. It joined the United Nations (1971), Non-Aligned Movement (1973) and SAARC (1985). Bhutan does not have formal diplomatic relationship with any of the permanent members of UN Security Council. Bhuta ...
Indirect Domestic Value Added in Mexico`s Manufacturing Exports
... included in products directly exported by the country. The magnitude of indirect exports in any given economy depends on the intensity of the domestic intersectoral linkages in its productive system. The more intense both backward and forward linkages are, the greater indirect exports will be. The d ...
... included in products directly exported by the country. The magnitude of indirect exports in any given economy depends on the intensity of the domestic intersectoral linkages in its productive system. The more intense both backward and forward linkages are, the greater indirect exports will be. The d ...
Research on Zhengzhou’s Logistics Industry Development Based on Deepening Labor Division
... whether to participate in the decision-making division, so it is again determined by the level division, and one of the most important degree of labor division in the form of production to strengthen the roundabout and the emergence of new industry. Labor division between industries makes the longer ...
... whether to participate in the decision-making division, so it is again determined by the level division, and one of the most important degree of labor division in the form of production to strengthen the roundabout and the emergence of new industry. Labor division between industries makes the longer ...
Interest Sensitivity and Volatility Reductions: Cross‐Section Evidence No. 05‐4
... A vast literature has established that monetary policy significantly influences the shortrun course of the real economy and has examined how best to conduct monetary policy.5 Most of this literature uses small macroeconomic models with monetary policy approximated by an interest-rate rule, such as t ...
... A vast literature has established that monetary policy significantly influences the shortrun course of the real economy and has examined how best to conduct monetary policy.5 Most of this literature uses small macroeconomic models with monetary policy approximated by an interest-rate rule, such as t ...
romewp2013-01 - Research on Money in the Economy” ROME
... money and credit. In NM models, the behaviour of prices is closely tied to the behaviour of money. However, when it comes to monetary policy decision making, NM models usually suffer from a lack of concreteness in their definition of money since basically all assets can be considered as a means of t ...
... money and credit. In NM models, the behaviour of prices is closely tied to the behaviour of money. However, when it comes to monetary policy decision making, NM models usually suffer from a lack of concreteness in their definition of money since basically all assets can be considered as a means of t ...
IB Economics SL Unit 2: Macroeconomics
... income. Money that is received by firms that does not come directly from the households. An example of injecQons is investment spending it results in a physical increase in plant or equipment. Another ...
... income. Money that is received by firms that does not come directly from the households. An example of injecQons is investment spending it results in a physical increase in plant or equipment. Another ...
the informal sector and formal competitiveness in
... The purpose of this paper is to investigate the informal sector of the Senegalese economy with focus on the relationship with formal sector competitiveness. The paper is based on three research questions. 1. What are the characteristics of the informal sector in Senegal? 2. What are the linkages, si ...
... The purpose of this paper is to investigate the informal sector of the Senegalese economy with focus on the relationship with formal sector competitiveness. The paper is based on three research questions. 1. What are the characteristics of the informal sector in Senegal? 2. What are the linkages, si ...
Measuring a Nation`s Income
... Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. ...
... Harcourt, Inc. items and derived items copyright © 2001 by Harcourt, Inc. ...
The Reconnection Agenda
... system back up and running. Large injections of liquidity would get credit flowing again. But it’s one thing to get the blood flowing (to boost the credit supply) and quite another to get the heart beating strongly again (to stimulate demand). For that, we’d need a significant Keynesian stimulus pac ...
... system back up and running. Large injections of liquidity would get credit flowing again. But it’s one thing to get the blood flowing (to boost the credit supply) and quite another to get the heart beating strongly again (to stimulate demand). For that, we’d need a significant Keynesian stimulus pac ...
Journal of the History of Economic Thought THE LEVEL AND
... to describe a one-shot (static) functioning of the economy.1 While the Tableau was a theoretical and illustrative piece, Chapter VII of Philosophie rurale was an attempt to show how Quesnay’s theoretical concepts fit into reality. In Philosophie rurale, Quesnay also contrasted the economies of Franc ...
... to describe a one-shot (static) functioning of the economy.1 While the Tableau was a theoretical and illustrative piece, Chapter VII of Philosophie rurale was an attempt to show how Quesnay’s theoretical concepts fit into reality. In Philosophie rurale, Quesnay also contrasted the economies of Franc ...
Hoover and the Great Depression
... would sweep the world a decade later. Hoover’s view reflected the popular misconception that cyclical downturns were the result of “overproduction” and “underconsumption.” In short, if business got ahead of itself and produced too much stuff, and at the same time kept its prices too high and/or pai ...
... would sweep the world a decade later. Hoover’s view reflected the popular misconception that cyclical downturns were the result of “overproduction” and “underconsumption.” In short, if business got ahead of itself and produced too much stuff, and at the same time kept its prices too high and/or pai ...
Fiscal policy in an oil economy
... adoption of the fiscal rule. The objective of ensuring that future generations also benefit from Norway’s petroleum wealth is met by spending the expected real return on the Fund while leaving the principal untouched. The objective of stable economic development implies a gradual and sustainable inc ...
... adoption of the fiscal rule. The objective of ensuring that future generations also benefit from Norway’s petroleum wealth is met by spending the expected real return on the Fund while leaving the principal untouched. The objective of stable economic development implies a gradual and sustainable inc ...
Understanding Reforms in Nepal - International Budget Partnership
... classical thinking. Failure of the Washington Consensus also underlined the need for such a review. These developments compelled bringing back aspects of institutions and political economy in the orbit of economic reforms and their processes although, unlike in the past, on different footings and pe ...
... classical thinking. Failure of the Washington Consensus also underlined the need for such a review. These developments compelled bringing back aspects of institutions and political economy in the orbit of economic reforms and their processes although, unlike in the past, on different footings and pe ...
8 the economy at full employment: the classical model
... 38) Because the marginal product of labor decreases as the quantity of labor employed increases, the quantity of labor a firm demands A) rises as the real wage rate falls. B) rises as the money wage rate rises. C) can either rise or fall as the real wage rate changes depending on what is happening t ...
... 38) Because the marginal product of labor decreases as the quantity of labor employed increases, the quantity of labor a firm demands A) rises as the real wage rate falls. B) rises as the money wage rate rises. C) can either rise or fall as the real wage rate changes depending on what is happening t ...
Interest Rates and Their Role in the Economy during Transition. The
... developed and tested in, say, developed country with established financial and credit market with low level of inflation, may not always be appropriate when they are applied to transition, inflationary or other economy. Moreover, using different methods and models, economists may reach different con ...
... developed and tested in, say, developed country with established financial and credit market with low level of inflation, may not always be appropriate when they are applied to transition, inflationary or other economy. Moreover, using different methods and models, economists may reach different con ...