ECON 3080-004 Intermediate Macroeconomic Theory
... implications, whether they be fiscal policies, monetary policies, or policies of other types. As I see it, we are concerned with understanding how policy makers can make society a better place for us to live and work. Thus, without neglecting theory, I plan to place great emphasis on policy with the ...
... implications, whether they be fiscal policies, monetary policies, or policies of other types. As I see it, we are concerned with understanding how policy makers can make society a better place for us to live and work. Thus, without neglecting theory, I plan to place great emphasis on policy with the ...
Goods and Financial Markets1: IS-LM
... • Goal: link the goods and the financial markets into a more general model that will determine the equilibrium Y and the equilibrium i in the economy in the short run (with fixed prices) • The goods market will be represented by the IS curve (standing for investment-savings) • The financial markets ...
... • Goal: link the goods and the financial markets into a more general model that will determine the equilibrium Y and the equilibrium i in the economy in the short run (with fixed prices) • The goods market will be represented by the IS curve (standing for investment-savings) • The financial markets ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Inflation, Tax Rules, and Capital Formation
... Real capital stock, 144 Tax Reduction Act of 1975, 120 Real money balances, desired, 46, 88 "Ten-to-one-rule," 132 Real interest rates: and capital inten- Tobin, J., 17-18, 28-29, 37, 61-62, 82, sity, 34; effect on consumer credit, ...
... Real capital stock, 144 Tax Reduction Act of 1975, 120 Real money balances, desired, 46, 88 "Ten-to-one-rule," 132 Real interest rates: and capital inten- Tobin, J., 17-18, 28-29, 37, 61-62, 82, sity, 34; effect on consumer credit, ...
Inflation
... In this case there are two interests rates: Nominal interest rate- which is the interest rate expressed in money terms. The nominal interest rate is basically the growth rate of your money Real interest rate- which is the nominal interest rate minus the rate of inflation, so: Once Nominal interest r ...
... In this case there are two interests rates: Nominal interest rate- which is the interest rate expressed in money terms. The nominal interest rate is basically the growth rate of your money Real interest rate- which is the nominal interest rate minus the rate of inflation, so: Once Nominal interest r ...
The Relative Strength of Fiscal and Monetary Policy in Saudi Arabia
... In the early 1960s Milton Friedman and David Meiselman< 1> undertook a series of statistical comparisons of several simple forms of Keynesian and Quantity Theory models. While their results came under sharp criticism<2>, their results clearly demonstrated that in the United States at least, money ra ...
... In the early 1960s Milton Friedman and David Meiselman< 1> undertook a series of statistical comparisons of several simple forms of Keynesian and Quantity Theory models. While their results came under sharp criticism<2>, their results clearly demonstrated that in the United States at least, money ra ...
Macro2 Problem #3key
... of interest, which encourages even more private spending. The increase in private demand increases the actual inflation rate and that in turn increases inflationary expectations next time around. That means income, demand, and inflation will keep rising (and unemployment will keep falling) as long a ...
... of interest, which encourages even more private spending. The increase in private demand increases the actual inflation rate and that in turn increases inflationary expectations next time around. That means income, demand, and inflation will keep rising (and unemployment will keep falling) as long a ...
Understanding why Inflation is not always bad
... The lesson is a conceptual representation and may not include several nuances that are associated and vital. The purpose of this lesson is to clarify the basics of the concept so that readers at large can relate and thereby take more interest in the product / concept. In a nutshell, Professor Simply ...
... The lesson is a conceptual representation and may not include several nuances that are associated and vital. The purpose of this lesson is to clarify the basics of the concept so that readers at large can relate and thereby take more interest in the product / concept. In a nutshell, Professor Simply ...
Three Items for the Macroeconomic Agenda
... Macroeconomics is still dominated by the image of the Ricardian farm: constant returns when both land and labor can be varied; smoothly diminishing returns when labor is varied, land held constant. Increasing returns have finally come onto the theoretical agenda in the recently burgeoning literature ...
... Macroeconomics is still dominated by the image of the Ricardian farm: constant returns when both land and labor can be varied; smoothly diminishing returns when labor is varied, land held constant. Increasing returns have finally come onto the theoretical agenda in the recently burgeoning literature ...
Modern macroeconomics: monetary policy
... • Sharp declines in the growth rate of the money supply, such as those of 1968-1969, 1973-1974, 1977-1978, 1988-1991, and 1999-2000 have generally preceded reductions in real GDP and recessions (indicated by shading). • Conversely, periods of sharp acceleration in the growth rate of the money supply ...
... • Sharp declines in the growth rate of the money supply, such as those of 1968-1969, 1973-1974, 1977-1978, 1988-1991, and 1999-2000 have generally preceded reductions in real GDP and recessions (indicated by shading). • Conversely, periods of sharp acceleration in the growth rate of the money supply ...
Price Indexes and the Inflation Rate
... Purchasing Power Inflation can erode purchasing power. In an inflationary economy, a dollar will not buy the same number of goods that it did in years past. ...
... Purchasing Power Inflation can erode purchasing power. In an inflationary economy, a dollar will not buy the same number of goods that it did in years past. ...
IOSR Journal of Business and Management (IOSRJBM)
... period 1862-1957. The result of the tests confirmed the existence of an inflation-unemployment trade-off. The discovery is strengthened by the fact that movement in the money wages could be explained by the level and changes of unemployment, an argument in favour of the Philips curve is the extensio ...
... period 1862-1957. The result of the tests confirmed the existence of an inflation-unemployment trade-off. The discovery is strengthened by the fact that movement in the money wages could be explained by the level and changes of unemployment, an argument in favour of the Philips curve is the extensio ...
Presentation to Town Hall Los Angeles Los Angeles, CA
... GDP in the range of 1½ to 3½ percent, and reduced the unemployment rate by ½ to 1 percentage point. That is a very considerable effect. It’s important to remember how dire conditions were in late 2008 and early 2009, and how rapidly the situation was deteriorating. The economic environment at that ...
... GDP in the range of 1½ to 3½ percent, and reduced the unemployment rate by ½ to 1 percentage point. That is a very considerable effect. It’s important to remember how dire conditions were in late 2008 and early 2009, and how rapidly the situation was deteriorating. The economic environment at that ...
Fiscal Year
... 1. It is unpopular to raise taxes or cut government spending. So, elected officials worried about re-election rarely do either. Ex. In 1984, Walter Mondale ran for president saying a slight tax increase would help equalize the U.S. economy. Ronald Regan defeated him in one of the biggest landslides ...
... 1. It is unpopular to raise taxes or cut government spending. So, elected officials worried about re-election rarely do either. Ex. In 1984, Walter Mondale ran for president saying a slight tax increase would help equalize the U.S. economy. Ronald Regan defeated him in one of the biggest landslides ...
b. - phoenix
... d. an output level that is indeterminate from this information because aggregate demand is not given. 3- ) What determines the slope of the aggregate supply curve is a. how much more the economy can produce without any change in the price level. b. how fast the output level changes after a technolog ...
... d. an output level that is indeterminate from this information because aggregate demand is not given. 3- ) What determines the slope of the aggregate supply curve is a. how much more the economy can produce without any change in the price level. b. how fast the output level changes after a technolog ...
b. - phoenix
... d. an output level that is indeterminate from this information because aggregate demand is not given. 3- ) What determines the slope of the aggregate supply curve is a. how much more the economy can produce without any change in the price level. b. how fast the output level changes after a technolog ...
... d. an output level that is indeterminate from this information because aggregate demand is not given. 3- ) What determines the slope of the aggregate supply curve is a. how much more the economy can produce without any change in the price level. b. how fast the output level changes after a technolog ...
The Sources of the Recession in Canada: 1989
... increase relative to potential output over the four year period.11 However, the consequences of this policy would involve larger deficits and a higher debt/GDP ratio at the end of the period. Since containment of the growth of the debt was an explicit objective of federal fiscal policy,12 we also co ...
... increase relative to potential output over the four year period.11 However, the consequences of this policy would involve larger deficits and a higher debt/GDP ratio at the end of the period. Since containment of the growth of the debt was an explicit objective of federal fiscal policy,12 we also co ...
Lecture XIII
... Lecture), r is real return on other assets, πe is expected inflation, u represents individual tastes, preferences and other factors • Demand of money is higher – the higher is wealth – the lower is yield on other asset – the lower is expected inflation and vice versa ...
... Lecture), r is real return on other assets, πe is expected inflation, u represents individual tastes, preferences and other factors • Demand of money is higher – the higher is wealth – the lower is yield on other asset – the lower is expected inflation and vice versa ...
The Savings Rate in Argentina and the Solow Growth Model
... indicates ahead of time that they are targeting higher interest rates so as to reduce inflation, and this announcement is credible, people will adjust their expectations. In this way, disinflation need not result in drastic loss of GDP and higher unemployment. The Central Bank of Argentina is still ...
... indicates ahead of time that they are targeting higher interest rates so as to reduce inflation, and this announcement is credible, people will adjust their expectations. In this way, disinflation need not result in drastic loss of GDP and higher unemployment. The Central Bank of Argentina is still ...
ECON 102 Tutorial: Week 20
... An economy is in a liquidity trap if money demand is perfectly elastic with respect to interest rate changes, i.e. the money demand curve is horizontal. • Even if the whole money demand is not horizontal it might be for a certain range of interest rates. For example, the money demand curve could be ...
... An economy is in a liquidity trap if money demand is perfectly elastic with respect to interest rate changes, i.e. the money demand curve is horizontal. • Even if the whole money demand is not horizontal it might be for a certain range of interest rates. For example, the money demand curve could be ...
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.