The Zero Lower Bound and the Liquidity Trap
... Up to now we have seen that as long as the central bank maintains its inflation targets, then the model with adaptive expectations predicts that deviations of the public’s inflation expectations from this target will be temporary and the economy will tend to converge back towards its natural level o ...
... Up to now we have seen that as long as the central bank maintains its inflation targets, then the model with adaptive expectations predicts that deviations of the public’s inflation expectations from this target will be temporary and the economy will tend to converge back towards its natural level o ...
Productivity Growth and the New Economy
... The present study addresses issues in the measurement of productivity growth. The major findings are as follows. First, this study analyzes a new data set by detailed industry. The new data set develops data on total output, business sector output, and “well-measured” output. Second, there has clear ...
... The present study addresses issues in the measurement of productivity growth. The major findings are as follows. First, this study analyzes a new data set by detailed industry. The new data set develops data on total output, business sector output, and “well-measured” output. Second, there has clear ...
Economics Power Guide
... In this state, Mr. Robinson and Ms. Crusoe will consume only their own products Robinson will only consume durians, and Crusoe will only consume mangosteens Say a volcanic eruption occurs, and a land bridge forms between the two islands Both individuals are tired of eating just their own pro ...
... In this state, Mr. Robinson and Ms. Crusoe will consume only their own products Robinson will only consume durians, and Crusoe will only consume mangosteens Say a volcanic eruption occurs, and a land bridge forms between the two islands Both individuals are tired of eating just their own pro ...
Ensuring Financial Stability: Financial Structure and the
... However, while the panel estimates confirm that monetary policy has predictable effects on residential property prices, by construction these estimates disregard all country specific information. Since a number of authors have asserted that the transmission mechanism of monetary policy depends on th ...
... However, while the panel estimates confirm that monetary policy has predictable effects on residential property prices, by construction these estimates disregard all country specific information. Since a number of authors have asserted that the transmission mechanism of monetary policy depends on th ...
Fiscal Policy and Macroeconomic Performance: an Overview
... increase in government purchases. The introduction of nominal rigidities, as found in the New Keynesian model, has two important implications for the size of the government purchases multiplier. First, labor demand is no longer constrained to correspond to the marginal product of labor, since output ...
... increase in government purchases. The introduction of nominal rigidities, as found in the New Keynesian model, has two important implications for the size of the government purchases multiplier. First, labor demand is no longer constrained to correspond to the marginal product of labor, since output ...
File - MCNEIL ECONOMICS
... either banks or the public increases the excess reserves of banks. (2) Selling securities in the open market to either banks or the public decreases the excess reserves of banks. b. It can raise or lower the reserve ratio. (1) Raising the reserve ratio decreases the excess reserves of banks and the ...
... either banks or the public increases the excess reserves of banks. (2) Selling securities in the open market to either banks or the public decreases the excess reserves of banks. b. It can raise or lower the reserve ratio. (1) Raising the reserve ratio decreases the excess reserves of banks and the ...
Financial crisis: causes, policy responses, Future
... the 1930’s and has shaken the very foundations of the market economies in the developed world. In Europe, the crisis led to very high budget deficits and unsustainable public debt levels, especially in some countries, resulting in staggering economic and social costs as well as unprecedented challen ...
... the 1930’s and has shaken the very foundations of the market economies in the developed world. In Europe, the crisis led to very high budget deficits and unsustainable public debt levels, especially in some countries, resulting in staggering economic and social costs as well as unprecedented challen ...
Shocks and Frictions in US Business Cycles: A Bayesian DSGE
... labor-augmenting technological progress. Households maximize a nonseparable utility function with two arguments (goods and labor effort) over an infinite life horizon. Consumption appears in the utility function relative to a time-varying external habit variable. Labor is differentiated by a union, ...
... labor-augmenting technological progress. Households maximize a nonseparable utility function with two arguments (goods and labor effort) over an infinite life horizon. Consumption appears in the utility function relative to a time-varying external habit variable. Labor is differentiated by a union, ...
Sustainable macroeconomic balance and the implications for
... account, i.e. the trade balance, receives a lot of attention by practitioners, academics and the media alike. Although very volatile, the trade balance statistics are released each month and discussed in detail. The general feeling is that a negative balance, or a deficit, on the trade balance is no ...
... account, i.e. the trade balance, receives a lot of attention by practitioners, academics and the media alike. Although very volatile, the trade balance statistics are released each month and discussed in detail. The general feeling is that a negative balance, or a deficit, on the trade balance is no ...
"He who looks for the heart of the story in the distance between the
... Although the Potterian economy is a fictitious economy, we believe its study is worthwhile for several reasons. First, the author of the Harry Potter series, J.K. Rowling, is not an economist.3 Therefore, her perception of the economic world as reflected in the structure of the Potterian economy mig ...
... Although the Potterian economy is a fictitious economy, we believe its study is worthwhile for several reasons. First, the author of the Harry Potter series, J.K. Rowling, is not an economist.3 Therefore, her perception of the economic world as reflected in the structure of the Potterian economy mig ...
THE PROPOSED ECO: SHOULD WEST AFRICA
... range of economic growth among the countries is wide. With Benin growing at the slowest rate of 3% per annum and Burkina Faso growing at the fastest rate of 9.2% per annum, there is likely to be some dragging-effect within such a monetary union, with the slow growing economies dragging the fast grow ...
... range of economic growth among the countries is wide. With Benin growing at the slowest rate of 3% per annum and Burkina Faso growing at the fastest rate of 9.2% per annum, there is likely to be some dragging-effect within such a monetary union, with the slow growing economies dragging the fast grow ...
Final Lecture: Fiscal Policy
... Previously, we discussed Keynes theory that the economy sometimes needs to be kick-started through the initiation of government spending to stimulate economic activity and ...
... Previously, we discussed Keynes theory that the economy sometimes needs to be kick-started through the initiation of government spending to stimulate economic activity and ...
3 Methodology for measuring the impact of
... What do we mean by a minimal standard of living? Having identified the poor, how do we express the overall severity of poverty in a single measure or index? (World Bank 1990a:26.) The standard of living is usually expressed in terms of household income and expenditure which is an adequate yardstick. ...
... What do we mean by a minimal standard of living? Having identified the poor, how do we express the overall severity of poverty in a single measure or index? (World Bank 1990a:26.) The standard of living is usually expressed in terms of household income and expenditure which is an adequate yardstick. ...
a critical review of the literature on integrated macro
... up with his seminal article that culminated in the genesis of the Leontief Input-Output System. These two revolutionary ideas provided the foundations on which researchers developed two major strands of economy-wide quantitative methodologies, namely Macro-econometric Modeling and Input-Output Model ...
... up with his seminal article that culminated in the genesis of the Leontief Input-Output System. These two revolutionary ideas provided the foundations on which researchers developed two major strands of economy-wide quantitative methodologies, namely Macro-econometric Modeling and Input-Output Model ...
NBER WORKING PAPER SERIES THE COSTS OF FINANCIAL CRISES:
... large, while a host of social indicators suggest that welfare falls substantially, too. For example, in the months surrounding the sovereign default and devaluation in Argentina at the end of 2001, output fell by 15%, down 20% from its previous peak, while unemployment exceeded 20% and almost half o ...
... large, while a host of social indicators suggest that welfare falls substantially, too. For example, in the months surrounding the sovereign default and devaluation in Argentina at the end of 2001, output fell by 15%, down 20% from its previous peak, while unemployment exceeded 20% and almost half o ...
Assessing the Equilibrium Exchange Rate of the Cyprus Pound at
... that of the European Central Bank (ECB), which had been in place for some years. Within the context of the latter policy framework, the Central Bank of Cyprus (CBC) became fully independent in 2002, with a monetary policy framework fully consistent with that of the ECB including its primary goal of ...
... that of the European Central Bank (ECB), which had been in place for some years. Within the context of the latter policy framework, the Central Bank of Cyprus (CBC) became fully independent in 2002, with a monetary policy framework fully consistent with that of the ECB including its primary goal of ...
productivity performance in south africa
... A narrative of South African productivity performance from the 1960s until 2000 requires the unravelling of an intriguing saga characterised by a major transformation in the economy, especially in trade and industrial and factor market policies, and a dramatic transformation in the political system ...
... A narrative of South African productivity performance from the 1960s until 2000 requires the unravelling of an intriguing saga characterised by a major transformation in the economy, especially in trade and industrial and factor market policies, and a dramatic transformation in the political system ...
Macroeconomics Lecture Note
... the Keynesian view, the government is able to do so, as it is not constrained by the budget constraint: The government is the only economic agent that can spend more than earn for a prolonged period of times due to its prerogative or sovereign privileges of printing paper monies and issuing bonds. H ...
... the Keynesian view, the government is able to do so, as it is not constrained by the budget constraint: The government is the only economic agent that can spend more than earn for a prolonged period of times due to its prerogative or sovereign privileges of printing paper monies and issuing bonds. H ...
The End of the Great Depression
... because the dramatic rise in G over that span (from 16.9% of YN in 1941:Q2 to 25.6% in 1941:Q4) leads to nonsensical results However, simulations are still run through 1941:Q4 using the VAR coefficients estimated through 1941:Q2 This makes our results based off of those coefficients biased against i ...
... because the dramatic rise in G over that span (from 16.9% of YN in 1941:Q2 to 25.6% in 1941:Q4) leads to nonsensical results However, simulations are still run through 1941:Q4 using the VAR coefficients estimated through 1941:Q2 This makes our results based off of those coefficients biased against i ...
Limits to redistribution in a democracy: a survey
... propensity to engage in canvassing and spending time on party meetings, which supports the notion that the rich are a more powerful interest group since they can afford to devote more resources to lobbying. Olson (1965) as well as Peltzman (1976) pointed out how larger group size can be a disadvanta ...
... propensity to engage in canvassing and spending time on party meetings, which supports the notion that the rich are a more powerful interest group since they can afford to devote more resources to lobbying. Olson (1965) as well as Peltzman (1976) pointed out how larger group size can be a disadvanta ...
Is Europe going far enough? Reflections on the Stability and Growth
... pursuing the same objectives, other forms of coordination are required than if preferences are disjunct and inflexible. Furthermore, if policy objectives need to be revalued in changed circumstances, discretionary forms of policy-making are more adequate, than if one needs to stick to a given policy ...
... pursuing the same objectives, other forms of coordination are required than if preferences are disjunct and inflexible. Furthermore, if policy objectives need to be revalued in changed circumstances, discretionary forms of policy-making are more adequate, than if one needs to stick to a given policy ...
Modern Macroeconomics and Monetary Policy (15th ed.)
... • The AD-AS model illustrates that nominal GDP is the product of the price (P) and output (Y) of each final-product good purchased during the period. • GDP can also be visualized as the money stock (M) times the number of times it is used to buy those final goods & services (V). • If V and Y are con ...
... • The AD-AS model illustrates that nominal GDP is the product of the price (P) and output (Y) of each final-product good purchased during the period. • GDP can also be visualized as the money stock (M) times the number of times it is used to buy those final goods & services (V). • If V and Y are con ...
1. Introduction Well documented stylized facts regarding observed
... the weak propagation mechanism in standard RBC models. Assuming that optimizing agents encounter no market failure and that productivity shocks are serially independent across sectors, a sector-specific shock will have its primary effect on the originating sector depending on how large or small the ...
... the weak propagation mechanism in standard RBC models. Assuming that optimizing agents encounter no market failure and that productivity shocks are serially independent across sectors, a sector-specific shock will have its primary effect on the originating sector depending on how large or small the ...
Natural Resources: What Strategy for Afghanistan?
... commodities and processed goods – and attracting foreign direct investments (FDI) in the mining sector. Thirdly, rents from natural resources can be distributed through various social transfer ...
... commodities and processed goods – and attracting foreign direct investments (FDI) in the mining sector. Thirdly, rents from natural resources can be distributed through various social transfer ...