Coherent macroeconomic statistics
... • Main objectives of macroeconomic policies – High, but sustainable economic growth – High/full employment – Price stability – External balance – Influence the distribution of income and wealth – Provision of public goods – Efficient allocation of resources – High private consumption ...
... • Main objectives of macroeconomic policies – High, but sustainable economic growth – High/full employment – Price stability – External balance – Influence the distribution of income and wealth – Provision of public goods – Efficient allocation of resources – High private consumption ...
Document
... can be negated when businesses and workers anticipate the effects of these policies ...
... can be negated when businesses and workers anticipate the effects of these policies ...
Lesson 1 - VU LMS - Virtual University
... If AS and AD in an economy intersect at a point a, and after a rightward shift in AD and a leftward shift in AS, the new equilibrium obtains at a g which is vertically above point a, does this necessarily imply that the long-run AS curve is vertical? It would only be so if the upward shifts in the ( ...
... If AS and AD in an economy intersect at a point a, and after a rightward shift in AD and a leftward shift in AS, the new equilibrium obtains at a g which is vertically above point a, does this necessarily imply that the long-run AS curve is vertical? It would only be so if the upward shifts in the ( ...
INSTITUTE OF ACTUARIES OF INDIA EXAMINATIONS 18 November 2013
... A. as the money supply is decreased, the interest rate will increase, and rate will rise, causing Indian exports to fall and Indian imports to rise B. as the money supply is decreased, the interest rate will increase, and rate will rise, causing Indian exports to rise and Indian imports to fall C. a ...
... A. as the money supply is decreased, the interest rate will increase, and rate will rise, causing Indian exports to fall and Indian imports to rise B. as the money supply is decreased, the interest rate will increase, and rate will rise, causing Indian exports to rise and Indian imports to fall C. a ...
NBER WORKING PAPER SERIES LIQUIDITY TRAPS: AN INTEREST-RATE-BASED EXIT STRATEGY Stephanie Schmitt-Grohé
... the United States and other developed countries seems to suggest that zero nominal interest rates are not doing much to push expected inflation or aggregate demand higher. The central premise of this paper is that the reversal of sign in the relationship between interest rates and expected inflatio ...
... the United States and other developed countries seems to suggest that zero nominal interest rates are not doing much to push expected inflation or aggregate demand higher. The central premise of this paper is that the reversal of sign in the relationship between interest rates and expected inflatio ...
Dangers of Deflation - Asian Development Bank
... aggregate supply increases due to factors that lower costs of production, it is possible for declining prices to be accompanied by strong economic growth. This is particularly true when technological innovation boosts productivity faster than prices are falling, so that profit margins are not negati ...
... aggregate supply increases due to factors that lower costs of production, it is possible for declining prices to be accompanied by strong economic growth. This is particularly true when technological innovation boosts productivity faster than prices are falling, so that profit margins are not negati ...
Case Study: Keynesians in the White House
... Since exports and imports are such a small portion of the U.S. GDP, the Mundell-Fleming exchange rate effect is not very important either. ...
... Since exports and imports are such a small portion of the U.S. GDP, the Mundell-Fleming exchange rate effect is not very important either. ...
PP--Fiscal Policy - Tamalpais Union High School District
... #2: What did the classical economists believe about the economy? ...
... #2: What did the classical economists believe about the economy? ...
Inflation Report February 2005
... (a) Measured as the effective rate less the repo rate. The effective rate measures the average rate paid to households on their outstanding bank deposits. (b) Also includes cash ISAs. (c) Weighted average of time and sight deposit rates. ...
... (a) Measured as the effective rate less the repo rate. The effective rate measures the average rate paid to households on their outstanding bank deposits. (b) Also includes cash ISAs. (c) Weighted average of time and sight deposit rates. ...
Investment Basics: Inflation – Its Causes and Impacts
... debtors as debtors pay back loans with less valuable dollars. If there is considerable uncertainty surrounding inflation, creditors will require higher rates and make fewer loans, which will result in lower real economic growth. ...
... debtors as debtors pay back loans with less valuable dollars. If there is considerable uncertainty surrounding inflation, creditors will require higher rates and make fewer loans, which will result in lower real economic growth. ...
Monetary Policy Statement - National Reserve Bank of Tonga
... exacerbated by the declining global oil price which saw the IMF revise GDP growth downwards for both 2015 and 2016 as the Eurozone is a major exporter of oil. China’s economic growth continues to slow down and is estimated to be at its slowest pace in six years, albeit comparatively high at approxim ...
... exacerbated by the declining global oil price which saw the IMF revise GDP growth downwards for both 2015 and 2016 as the Eurozone is a major exporter of oil. China’s economic growth continues to slow down and is estimated to be at its slowest pace in six years, albeit comparatively high at approxim ...
Government - cloudfront.net
... A) It refers to a discretionary policy that is triggered when actual output is not equal to potential output to improve the economy’s performance. B) It refers to a stabilization program that keeps inflation in check automatically. C) It refers to any government program that tends to reduce fluctuat ...
... A) It refers to a discretionary policy that is triggered when actual output is not equal to potential output to improve the economy’s performance. B) It refers to a stabilization program that keeps inflation in check automatically. C) It refers to any government program that tends to reduce fluctuat ...
Pegged exchange rate
... environment are signs of a strong economy, not a weak one. A trade deficit (or surplus) is an aggregate that reflects the voluntary choices of individuals and businesses. In contrast with a budget deficit, no legal entity is responsible for the trade deficit. The trade deficits of the U.S. during th ...
... environment are signs of a strong economy, not a weak one. A trade deficit (or surplus) is an aggregate that reflects the voluntary choices of individuals and businesses. In contrast with a budget deficit, no legal entity is responsible for the trade deficit. The trade deficits of the U.S. during th ...
Document
... This chapter considers balance-of-payments adjustments under fixed exchange rates. Because persistent balanceof-payments disequilibria tends to have adverse economic consequences, there exists a need for adjustment. The chapter notes that balance-of-payments adjustment can be classified as automatic ...
... This chapter considers balance-of-payments adjustments under fixed exchange rates. Because persistent balanceof-payments disequilibria tends to have adverse economic consequences, there exists a need for adjustment. The chapter notes that balance-of-payments adjustment can be classified as automatic ...
THE STRENGTHENING OF THE LOTI AGAINST MAJOR
... Theoretical and Empirical Evidence of Factors Affecting the Rand Theoretically, changes in exchange rates are broadly driven by the law of one price, the relative productivity growth rate and the interest rate or Fisher effect. The law of one price states that, in the absence of trade frictions, com ...
... Theoretical and Empirical Evidence of Factors Affecting the Rand Theoretically, changes in exchange rates are broadly driven by the law of one price, the relative productivity growth rate and the interest rate or Fisher effect. The law of one price states that, in the absence of trade frictions, com ...
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.