Revolution and Evolution in Twentieth
... but what the book was about was not general economic theory, but the state of macroeconomics. Second, macroeconomics is an interesting case because the degree to which there has been progress over the course of the century is sufficiently far from transparent as to make it still a suitable topic of ...
... but what the book was about was not general economic theory, but the state of macroeconomics. Second, macroeconomics is an interesting case because the degree to which there has been progress over the course of the century is sufficiently far from transparent as to make it still a suitable topic of ...
The Business Cycle in the Philippines
... supports predictions of supply-side led theories of economic fluctuations, like the real business cycle approach. In general, the economic literature uses price-output correlations to help discriminate between either real or supply-side, versus nominal or demand-side sources of cycles. Hence, if sup ...
... supports predictions of supply-side led theories of economic fluctuations, like the real business cycle approach. In general, the economic literature uses price-output correlations to help discriminate between either real or supply-side, versus nominal or demand-side sources of cycles. Hence, if sup ...
200591203131117
... Factor endowment theory: implications Factor price equalization The shift within each nation towards use of cheaper factors, and away from expensive ones, leads to more equal factor prices (if factors are mobile) ...
... Factor endowment theory: implications Factor price equalization The shift within each nation towards use of cheaper factors, and away from expensive ones, leads to more equal factor prices (if factors are mobile) ...
NBER WORKING PAPER SERIES CHOOSING THE FEDERAL RESERVE CHAIR: LESSONS FROM HISTORY
... justified in order to put the System in position to exercise credit control through open market operations whenever such action appeared to be necessary” (3/15/37, p. 9; see also 1/26/37, pp. 5-7). While the official statements stressed that such control could be used for expansion or contraction, i ...
... justified in order to put the System in position to exercise credit control through open market operations whenever such action appeared to be necessary” (3/15/37, p. 9; see also 1/26/37, pp. 5-7). While the official statements stressed that such control could be used for expansion or contraction, i ...
Real Interest Rate
... d. It must increase the domestic interest rates on its bonds. e. It must limit the flow of foreign capital investment. (59%) 8. Econ can produce either 2 tons of cocoa or 4 cars with 10 units of labor. Nomics can produce either 5 tons of cocoa or 25 cars with 10 units of labor. Based on this informa ...
... d. It must increase the domestic interest rates on its bonds. e. It must limit the flow of foreign capital investment. (59%) 8. Econ can produce either 2 tons of cocoa or 4 cars with 10 units of labor. Nomics can produce either 5 tons of cocoa or 25 cars with 10 units of labor. Based on this informa ...
lecture3_2008 - Dr. Rajeev Dhawan
... two consecutive quarters of decline in real GDP. How does that relate to the NBER's recession dating procedure? – Most of the recessions identified by our procedures consist of two or more quarters of declining real GDP, but not all of them – We consider the depth as well as the duration of the decl ...
... two consecutive quarters of decline in real GDP. How does that relate to the NBER's recession dating procedure? – Most of the recessions identified by our procedures consist of two or more quarters of declining real GDP, but not all of them – We consider the depth as well as the duration of the decl ...
economic policies and management
... o Increasing the sustainable rate of economic growth in the longer term o Achieving a sustained reduction in un-n o Increasing the level of national savings o Boosting Australia’s productivity growth o Improving Australia’s intnl competitiveness o Maintaining intnl confidence in the economy ...
... o Increasing the sustainable rate of economic growth in the longer term o Achieving a sustained reduction in un-n o Increasing the level of national savings o Boosting Australia’s productivity growth o Improving Australia’s intnl competitiveness o Maintaining intnl confidence in the economy ...
macropolicy in the rise and fall of the golden age
... countries divide into two main groups with respect to ...
... countries divide into two main groups with respect to ...
Project Syndicate, September 2012. Since the integration of
... divergence in private savings rate between the industrialized core and the emerging periphery--the former seeing a sharp rise in savings rate and the latter a steady decline; (2) large global imbalances between the two regions; (3) a steadfast decline in the world interest rate over the last twenty ...
... divergence in private savings rate between the industrialized core and the emerging periphery--the former seeing a sharp rise in savings rate and the latter a steady decline; (2) large global imbalances between the two regions; (3) a steadfast decline in the world interest rate over the last twenty ...
Forecasting fiscal variables
... interest rate payments on public debt. Similar conclusions are reached by Giannitsarou and Scott (2006) for a group of OECD economies. Examining the fiscal balance of governments using an inter-temporal budget constraint, they conclude that the primary surplus has significant explanatory power for a ...
... interest rate payments on public debt. Similar conclusions are reached by Giannitsarou and Scott (2006) for a group of OECD economies. Examining the fiscal balance of governments using an inter-temporal budget constraint, they conclude that the primary surplus has significant explanatory power for a ...
PRICES, THE CPI, AND INFLATION
... • Confusing real and nominal interest rates – Hides the true economic cost of borrowing money. – Many Americans viewed the 12% mortgage interest rates that banks charged in 1980 as scandalously high while they saw the 7% mortgage rates of 1998 as a great bargain. – In truth, however, the real intere ...
... • Confusing real and nominal interest rates – Hides the true economic cost of borrowing money. – Many Americans viewed the 12% mortgage interest rates that banks charged in 1980 as scandalously high while they saw the 7% mortgage rates of 1998 as a great bargain. – In truth, however, the real intere ...
real interest rate
... Fisher Effect (after the American economist Irving Fisher, who proposed it in 1930): the expected real interest rate is unaffected by the change in expected future inflation. The Fisher effect says that an increase in expected future inflation drives up nominal interest rates, where each additional ...
... Fisher Effect (after the American economist Irving Fisher, who proposed it in 1930): the expected real interest rate is unaffected by the change in expected future inflation. The Fisher effect says that an increase in expected future inflation drives up nominal interest rates, where each additional ...
Taking the Nation`s Pluse
... long-term projects like the purchase of a machine or operation of a business, it will both increase the risks and retard the level of such productive activities. Inflation distorts the information delivered by prices. People will respond to high and variable rates of inflation by spending less time ...
... long-term projects like the purchase of a machine or operation of a business, it will both increase the risks and retard the level of such productive activities. Inflation distorts the information delivered by prices. People will respond to high and variable rates of inflation by spending less time ...
The IS – LM / AD – AS Model: A General Framework for
... ¾ The role of inflationary expectations: • The Keynesian prescription for disinflation is ...
... ¾ The role of inflationary expectations: • The Keynesian prescription for disinflation is ...
NBER WORKING PAPER SERIES OPTIMAL OPERATIONAL MONETARY POLICY IN THE CHRISTIANO-EICHENBAUM-EVANS MODEL
... JEL No. E52, E61, E63 ABSTRACT This paper identifies optimal interest-rate rules within a rich, dynamic, general equilibrium model that has been shown to account well for observed aggregate dynamics in the postwar United States. We perform policy evaluations based on second-order accurate approximat ...
... JEL No. E52, E61, E63 ABSTRACT This paper identifies optimal interest-rate rules within a rich, dynamic, general equilibrium model that has been shown to account well for observed aggregate dynamics in the postwar United States. We perform policy evaluations based on second-order accurate approximat ...
Monetary policy and supply shocks - Hans-Böckler
... inflation is larger when a permanent increase in oil price inflation occurs, output losses are bigger if central banks try to keep headline inflation stable. The output losses are the result of the permanent trade-off between inflation and output, which can be derived from the new Keynesian Phillips ...
... inflation is larger when a permanent increase in oil price inflation occurs, output losses are bigger if central banks try to keep headline inflation stable. The output losses are the result of the permanent trade-off between inflation and output, which can be derived from the new Keynesian Phillips ...
CENTRE for ECONOMIC PERFORMANCE DISCUSSION PAPER
... sectors is restricted) are likely to suffer capital losses if increased openness shifts demand away from the sectors where these inputs have been ‘sunk’. Only if the government has a sufficiently rich arsenal of internal redistribution instruments and compensation is actually paid, is increased open ...
... sectors is restricted) are likely to suffer capital losses if increased openness shifts demand away from the sectors where these inputs have been ‘sunk’. Only if the government has a sufficiently rich arsenal of internal redistribution instruments and compensation is actually paid, is increased open ...
The role of the central bank balance sheet in monetary policy
... elastic supply of central bank liquidity to its counterparties in response to heightened demand induced by financial stress is considered in this article to be a passive deployment of the central bank balance sheet. This categorisation seems apt, since, in such cases, the consequences for the balan ...
... elastic supply of central bank liquidity to its counterparties in response to heightened demand induced by financial stress is considered in this article to be a passive deployment of the central bank balance sheet. This categorisation seems apt, since, in such cases, the consequences for the balan ...
expectations of inflation
... APPLYING THE CONCEPTS #1: Do regional differences in unemployment affect the natural rate of unemployment? ...
... APPLYING THE CONCEPTS #1: Do regional differences in unemployment affect the natural rate of unemployment? ...
Should central banks really be flexible?
... and encourages them to behave more aggressively. The argument is based on a model which explicitly analyzes the strategic interaction between the central bank and trade unions. Central bank flexibility enables trade unions to realize higher real wages without risking the unemployment of some insider ...
... and encourages them to behave more aggressively. The argument is based on a model which explicitly analyzes the strategic interaction between the central bank and trade unions. Central bank flexibility enables trade unions to realize higher real wages without risking the unemployment of some insider ...
Monetary policy
Monetary policy is the process by which the monetary authority of a country controls the supply of money, often targeting an inflation rate or interest rate to ensure price stability and general trust in the currency.Further goals of a monetary policy are usually to contribute to economic growth and stability, to lower unemployment, and to maintain predictable exchange rates with other currencies.Monetary economics provides insight into how to craft optimal monetary policy.Monetary policy is referred to as either being expansionary or contractionary, where an expansionary policy increases the total supply of money in the economy more rapidly than usual, and contractionary policy expands the money supply more slowly than usual or even shrinks it. Expansionary policy is traditionally used to try to combat unemployment in a recession by lowering interest rates in the hope that easy credit will entice businesses into expanding. Contractionary policy is intended to slow inflation in order to avoid the resulting distortions and deterioration of asset values.Monetary policy differs from fiscal policy, which refers to taxation, government spending, and associated borrowing.