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Research Department Working Paper No:05/07
Research Department Working Paper No:05/07

... these models it is possible to track the effects of the monetary expansion on the economy. The earliest version of this kind of models can be traced to Blejer (1977) and to Blejer and Leiderman (1981). However Blejer and Leiderman’s model was basically the short run analysis of the implications of t ...
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... policy on aggregate demand, assuming a given aggregate supply curve. 3. The text works through examples of government spending changes and tax changes, making full use of the multipliers. There is also an example using proportional taxes, as well as the “balanced budget multiplier” in the Appendix, ...
Reconciling Hayek s and Keynes views of recessions
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... functioned efficiently, such periods should not be socially painful. In particular, if economic agents interact in perfect markets and realize they have over-accumulated in the past, this should lead them to enjoy a type of holiday paid for by their past excessive work. Looking backwards in such a s ...
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... expanded and tested, and there is a better understanding of various policy options. Public Education: By educating opinion leaders, decision makers and the informed public, the debates on fiscal policy can be reframed. “The Fiscal Policy Program undertakes public education initiatives that include: ...
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Menu Costs and Phillips Curves - The University of Chicago Booth
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... these models would not exhibit the real effects of monetary shocks— Phillips curves—that they are designed to analyze. Under menu costs, any individual price will be constant most of the time and then occasionally jump to a new level. Thus the center of the model will be the firm’s pricing decision ...
Menu Costs and Phillips Curves
Menu Costs and Phillips Curves

... these models would not exhibit the real effects of monetary shocks— Phillips curves—that they are designed to analyze. Under menu costs, any individual price will be constant most of the time and then occasionally jump to a new level. Thus the center of the model will be the firm’s pricing decision ...
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... subsist on low wages, absence of social security benefits and general dire conditions while they are queing for “good” formal sector jobs. This involuntary view on informality argues that above-market clearing wages, too strict labor regulation and red tape force workers into informal work. In this ...
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Ms Habibi"s Textbook (Chapter 1)

... We can represent the operation of a capitalist economy using a circular-flow of income diagram. This diagram is a way of showing how the economy works to circulate output, spending and incomes in an economy over a period of time so that wants are satisfied. In our simple model of the economy, we wil ...
Macroeconomic Past Paper Questions and Mark
Macroeconomic Past Paper Questions and Mark

... • wage restraint may be conducive to social instability (industrial action) that may further worsen the economic slowdown • reducing unemployment benefits • social consequences of reducing benefits (poverty, inequality) • decrease in income tax may provide incentives for workers to work more • decre ...
Chapter 4 PowerPoint document
Chapter 4 PowerPoint document

... 4.1.2 Efficiency in production • Efficiency in production requires that the marginal rate of technical substitution be the same in the production of both commodities. That is ...
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Non-monetary economy

The non-monetary economy represents work such as household labor, care giving and civic activity that does not have a monetary value but remains a vitally important part of the economy. With respect to the current economic situation labor that results in monetary compensation becomes more highly valued than unpaid labor. Yet nearly half of American productive work goes on outside of the market economy and is not represented in production measures such as the GDP (Gross Domestic Product).The non-monetary economy seeks to reward and value work that benefits society (whether through producing services, products, or making investments) that the monetary economy does not recognize. An economic as well as a social imperative drives the work done in this economy. This method of valuing work would challenge ways in which unemployment and the labor force are all currently measured and generally restructure the way in which labor and work are constructed in America.The non-monetary economy also works to make the labor market more inclusive by valuing previously ignored forms of work. Some acknowledge the non-monetary economy as having a moral or socially conscious philosophy that attempts to end social exclusion by including poor and unemployed individuals economic opportunities and access to services and goods. Such community-based and grassroots movements encourage the community to be more participatory, thus providing a more democratic economic structures.Much of non-monetary work is categorized as either civic work or housework. These two types of work are critical to the operation of daily life and are largely taken for granted and undervalued. Both of these categories encompass many different types of work and are discussed below.It is important to point the microscope on these two areas because only certain people are very civically engaged and very frequently a certain group of people tend to do housework. Non-monetary economic systems hope to make community members more active, thus more democratic with more balanced representation, and to value housework that is commonly done by women and less valued.
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