Deficits Spo~l the Recovery? R~chard W. Kopcke*
... tuning of tax laws and spending programs to stabilize economic growth. Here, as in monetarism, markets "clear," but rational expectations distinguishes itself by assuming that households and businesses have sufficient (but not necessarily perfect) knowlege of one another’s rules for making economic ...
... tuning of tax laws and spending programs to stabilize economic growth. Here, as in monetarism, markets "clear," but rational expectations distinguishes itself by assuming that households and businesses have sufficient (but not necessarily perfect) knowlege of one another’s rules for making economic ...
NBER WORKING PAPER SERIES THE CONDUCT OF DOMESTIC ICY Robert J. Gordon
... set of basic constraints that limit the set of outcomes that it can achieve. These include constraints on aggregate supply behavior that determine how a given path of nominal income growth will be divided between inflation and output growth, as well as "velocity" constraints that influence the path ...
... set of basic constraints that limit the set of outcomes that it can achieve. These include constraints on aggregate supply behavior that determine how a given path of nominal income growth will be divided between inflation and output growth, as well as "velocity" constraints that influence the path ...
Working Paper No. 385 Macroeconomic Policies of the Economic
... Central Bank (ECB) projections for the same years is that this slow down will continue in 2003, with some recovery expected in 2004. A similar pattern is evident in the cases of the U.S. economy and Britain (where the situation does not appear to be as bad). However, it is the U.S. growth rate expec ...
... Central Bank (ECB) projections for the same years is that this slow down will continue in 2003, with some recovery expected in 2004. A similar pattern is evident in the cases of the U.S. economy and Britain (where the situation does not appear to be as bad). However, it is the U.S. growth rate expec ...
A two-period closed economy with sticky prices
... The model above can be solved in two different manners. In the classical case, current output is at its natural level, and the endogenous variable is the interest rate. In the Keynesian case, the interest rate is exogenous, and current output is exogenous. ...
... The model above can be solved in two different manners. In the classical case, current output is at its natural level, and the endogenous variable is the interest rate. In the Keynesian case, the interest rate is exogenous, and current output is exogenous. ...
Liquidity Traps and the Stability of Money Demand: Is Japan Really
... prices are still gradually declining. All these observations seem consistent with the broad definition of liquidity traps. 1 Perhaps more controversial is whether the Japanese economy has already reached the lower zero bound on nominal interest rates. Krugman (1999) refers to liquidity traps as a si ...
... prices are still gradually declining. All these observations seem consistent with the broad definition of liquidity traps. 1 Perhaps more controversial is whether the Japanese economy has already reached the lower zero bound on nominal interest rates. Krugman (1999) refers to liquidity traps as a si ...
Word - The Open University
... One unit of PPP buys the same given average volume of goods and services in all countries, whereas different amounts of national currency units are needed to buy this volume of goods and services, depending upon the national price level. For any given product, the PPP between two countries A and B i ...
... One unit of PPP buys the same given average volume of goods and services in all countries, whereas different amounts of national currency units are needed to buy this volume of goods and services, depending upon the national price level. For any given product, the PPP between two countries A and B i ...
ECON-205: Principles of Macroeconomics (Classroom)
... student’s comprehension and application of economic concepts. While there is some new vocabulary to master, the emphasis of the course is on analytical thinking and conceptual understanding. The exam format will be a combination of multiple choice and fill in the blank. Grades will be based on the f ...
... student’s comprehension and application of economic concepts. While there is some new vocabulary to master, the emphasis of the course is on analytical thinking and conceptual understanding. The exam format will be a combination of multiple choice and fill in the blank. Grades will be based on the f ...
Timeline of Famous Economists
... to see the arguments he gave for Classical theory being wrong. In essence Keynes argued that markets would not automatically lead to full-employment equilibrium , but in fact the economy could settle in equilibrium at any level of unemployment. This meant that Classical policies of non-intervention ...
... to see the arguments he gave for Classical theory being wrong. In essence Keynes argued that markets would not automatically lead to full-employment equilibrium , but in fact the economy could settle in equilibrium at any level of unemployment. This meant that Classical policies of non-intervention ...
After studying this chapter, you will able to
... Inflation is a very old problem and some countries even in recent times have experienced rates as high as 40% per month. The United States has low inflation now, but during the 1970s the price level doubled. Why does inflation occur, how do our expectations of inflation influence the economy, is the ...
... Inflation is a very old problem and some countries even in recent times have experienced rates as high as 40% per month. The United States has low inflation now, but during the 1970s the price level doubled. Why does inflation occur, how do our expectations of inflation influence the economy, is the ...
Money Demand (Handa, Chapter 2)
... pricing theory” or the “mark-up price theory”. Under this theory, the firms price according to the cost of production plus a normal rate of profit. In aggregate, this forms the price level. ...
... pricing theory” or the “mark-up price theory”. Under this theory, the firms price according to the cost of production plus a normal rate of profit. In aggregate, this forms the price level. ...
Slide - MyWeb
... This will shift the AD curve to the right, from AD0 to AD1, and lead to an increase in output with very little increase in the price level. ...
... This will shift the AD curve to the right, from AD0 to AD1, and lead to an increase in output with very little increase in the price level. ...
Interest Rates, Unemployment and Inflation
... the Bank of Canada had begun to set as early as in 1988. It can also be argued that, in contrast, fiscal policy had been on the right course. The structural fiscal balance had been improving every year after 1985, and as of 1989 the debt-to-GDP ratio had been stabilized. The comparison with US event ...
... the Bank of Canada had begun to set as early as in 1988. It can also be argued that, in contrast, fiscal policy had been on the right course. The structural fiscal balance had been improving every year after 1985, and as of 1989 the debt-to-GDP ratio had been stabilized. The comparison with US event ...
Martin Feldstein Working Paper No. 680 NBER's project 1050
... the income from capital used in the nonfinancial corporate sector. The total effective tax rate has risen from less than 60 percent in the mid—1960's to more than 70 percent in the late 1970's. (2) The higher effective tax rate reduces the real net rate of return to those who provide investment capi ...
... the income from capital used in the nonfinancial corporate sector. The total effective tax rate has risen from less than 60 percent in the mid—1960's to more than 70 percent in the late 1970's. (2) The higher effective tax rate reduces the real net rate of return to those who provide investment capi ...
Quasi-Commodity Money
... historical gold standard, it does apply to proposals for 100-percent commodity money regimes, including those proposed by Murray Rothbard (1962) and James Buchanan (1962) in their own contributions to In Search of a Monetary Constitution. 3 In practice, as Friedman (1986) himself eventually conceded ...
... historical gold standard, it does apply to proposals for 100-percent commodity money regimes, including those proposed by Murray Rothbard (1962) and James Buchanan (1962) in their own contributions to In Search of a Monetary Constitution. 3 In practice, as Friedman (1986) himself eventually conceded ...
Chapter 10
... its inflation targets, achieving them, and operating at ‘arms length’ from government/politicians ...
... its inflation targets, achieving them, and operating at ‘arms length’ from government/politicians ...
Anti-Inflationary Policies in a Democratic Free Market Society Barry Bosworth
... trying to do something in a voluntary program and trying to identify the real alignments of our institutions. How do we change the nature of labormanagement negotiations to give people adequate incentives to hold down their wage and price increases without trying to use an incentive that has proved ...
... trying to do something in a voluntary program and trying to identify the real alignments of our institutions. How do we change the nature of labormanagement negotiations to give people adequate incentives to hold down their wage and price increases without trying to use an incentive that has proved ...
Monetary Policy after the Crisis - Ten Lessons from a Fixed
... (price stability) and instruments (the short-term interest rate), central banks still apply different strategies and approaches in implementation of monetary policy. Denmark has conducted a fixed-exchange-rate policy since the 1980s, cf. Chart 1 and 2. Several other small European countries also pur ...
... (price stability) and instruments (the short-term interest rate), central banks still apply different strategies and approaches in implementation of monetary policy. Denmark has conducted a fixed-exchange-rate policy since the 1980s, cf. Chart 1 and 2. Several other small European countries also pur ...
כלכלת ישראל - משרד האוצר
... The growth rate is expressed as the rate of quarter-on-quarter change in annual terms. In 1999–2000, Israel had a very vigorous growth rate relative to the economy’s past performance and by international standards. Since October 2000, the growth rate has been declining due to the global economic slo ...
... The growth rate is expressed as the rate of quarter-on-quarter change in annual terms. In 1999–2000, Israel had a very vigorous growth rate relative to the economy’s past performance and by international standards. Since October 2000, the growth rate has been declining due to the global economic slo ...
The role of Monetary Policy in Post-Keynesian Stock-Flow
... As much as in the circuitist literature, bank deposits come into existence because of loans granted to firms by banks, and transferred to households. As households and the government spend their money on goods, and households make financial investments in equities, the firms are able to pay back par ...
... As much as in the circuitist literature, bank deposits come into existence because of loans granted to firms by banks, and transferred to households. As households and the government spend their money on goods, and households make financial investments in equities, the firms are able to pay back par ...
NBER WORKING PAPER SERIES OPTIMAL MONETARY AND FISCAL POLICY Jordi Gali
... rigidities. The …rst issue pertains to the conditions for equilibrium determinacy. As is well known from the closed economy literature, in order to guarantee the uniqueness of equilibrium the central bank must eventually adjust the nominal interest rates more than one-for-one with changes in in‡atio ...
... rigidities. The …rst issue pertains to the conditions for equilibrium determinacy. As is well known from the closed economy literature, in order to guarantee the uniqueness of equilibrium the central bank must eventually adjust the nominal interest rates more than one-for-one with changes in in‡atio ...
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.