Long-Run and Short-Run Concerns: Growth, Productivity
... • Part of the reason for the upward trend in productivity is an increase in the amount of capital per worker. With more capital per worker, more output can be produced per year. • The other reason productivity has increased is that the quality of labor and capital has been increasing. ...
... • Part of the reason for the upward trend in productivity is an increase in the amount of capital per worker. With more capital per worker, more output can be produced per year. • The other reason productivity has increased is that the quality of labor and capital has been increasing. ...
2006 Prentice Hall Business Publishing Macroeconomics, 4/e
... Equilibrium in financial markets implies that, for a given real money supply, an increase in the level of income, which increases the demand for money, leads to an increase in the interest rate. An increase in the money supply shifts the LM curve down; a decrease in the money supply shifts the L ...
... Equilibrium in financial markets implies that, for a given real money supply, an increase in the level of income, which increases the demand for money, leads to an increase in the interest rate. An increase in the money supply shifts the LM curve down; a decrease in the money supply shifts the L ...
Evidence from the Classical Gold Standard
... Depression (1929-33), the recession of 1919-21, and may be the case in Japan today. In this paper we focus on the price level and growth experience of Canada and the United States, 1870-1913. Both countries adhered to the international gold standard, under which the world price level was determined ...
... Depression (1929-33), the recession of 1919-21, and may be the case in Japan today. In this paper we focus on the price level and growth experience of Canada and the United States, 1870-1913. Both countries adhered to the international gold standard, under which the world price level was determined ...
MONEY MARKET EQUILIBRIUM IN THE CZECH REPUBLIC
... The theoretical concept of equilibrium in the money market was defined on the basis of traditional economic theory. According to Krugman (2012) the money market is in equilibrium when the money supply in the economy is equal to the aggregate demand for money. Money supply in the economy is controlle ...
... The theoretical concept of equilibrium in the money market was defined on the basis of traditional economic theory. According to Krugman (2012) the money market is in equilibrium when the money supply in the economy is equal to the aggregate demand for money. Money supply in the economy is controlle ...
Economics II - RCCM Indore
... 2) It studies problems relating to employment and unemployment. It studies different factors determining the level of employment. 3) Determination of general price level is also studied under macro economics. Problems relating to inflation and deflation are an important component of macro economics. ...
... 2) It studies problems relating to employment and unemployment. It studies different factors determining the level of employment. 3) Determination of general price level is also studied under macro economics. Problems relating to inflation and deflation are an important component of macro economics. ...
Mankiw 6e PowerPoints
... changes as interest rate changes, as if the Fed has direct control over market interest rates. ...
... changes as interest rate changes, as if the Fed has direct control over market interest rates. ...
CHAPTER 21: Open-Economy Macroeconomics: The Balance of
... EQUILIBRIUM OUTPUT (INCOME) IN AN OPEN ECONOMY The Trade Feedback Effect trade feedback effect The tendency for an increase in the economic activity of one country to lead to a worldwide increase in economic activity, which then feeds back to that country. ...
... EQUILIBRIUM OUTPUT (INCOME) IN AN OPEN ECONOMY The Trade Feedback Effect trade feedback effect The tendency for an increase in the economic activity of one country to lead to a worldwide increase in economic activity, which then feeds back to that country. ...
CURRICULUM VITAE - Brookings Institution
... December 2010, pp. 277-330. “How Central Should the Central Bank Be?” Journal of Economic Literature, Mar. 2010, pp. 123-133. “The Squam Lake Report: Fifteen Economists in Search of Financial Reform,” Journal of Monetary Economics, October 2010 (Vol. 57, Issue 7), pp. 892-902. “Quantitative Easing: ...
... December 2010, pp. 277-330. “How Central Should the Central Bank Be?” Journal of Economic Literature, Mar. 2010, pp. 123-133. “The Squam Lake Report: Fifteen Economists in Search of Financial Reform,” Journal of Monetary Economics, October 2010 (Vol. 57, Issue 7), pp. 892-902. “Quantitative Easing: ...
Chapter 22
... So the demand for money is some percent (k) of income. For the nation, income means national income. As we saw with the quantity theory of money, national income equals Nominal GDP. This is the product of the price level (GDP Deflator) times the quantity produced (Real GDP). (With simple numbers, if ...
... So the demand for money is some percent (k) of income. For the nation, income means national income. As we saw with the quantity theory of money, national income equals Nominal GDP. This is the product of the price level (GDP Deflator) times the quantity produced (Real GDP). (With simple numbers, if ...
Parkin-Bade Chapter 21
... The Price Level, Inflation and Deflation Substitution Bias The market basket of goods used in calculating the price index is fixed and does not take into account substitutions that consumers make away from goods whose relative prices rise. As the structure of retailing changes, people switch to buy ...
... The Price Level, Inflation and Deflation Substitution Bias The market basket of goods used in calculating the price index is fixed and does not take into account substitutions that consumers make away from goods whose relative prices rise. As the structure of retailing changes, people switch to buy ...
Combining Monetary and Fiscal Policy in an SVAR for a Small Open
... short-run restrictions for structural identi cation over long-run restrictions. In this paper, we combine monetary and scal policy within an SVAR and use short-run restrictions. We also account for the announcement eects of scal policy. Fiscal and monetary policies interact with each other and sh ...
... short-run restrictions for structural identi cation over long-run restrictions. In this paper, we combine monetary and scal policy within an SVAR and use short-run restrictions. We also account for the announcement eects of scal policy. Fiscal and monetary policies interact with each other and sh ...
Inflation Scares and Forecast-Based Monetary Policy
... greatly simplify the analysis. But what if agents are, in fact, less than perfectly certain of the structure of the model, its time invariance, or simply the values of the model parameters? Once imperfect knowledge is acknowledged, the tight mechanical link from economic outcomes to the expectations ...
... greatly simplify the analysis. But what if agents are, in fact, less than perfectly certain of the structure of the model, its time invariance, or simply the values of the model parameters? Once imperfect knowledge is acknowledged, the tight mechanical link from economic outcomes to the expectations ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... Throughout 1952, transactions were gradually shifted from lower to higher rates (i.e., from rate A to rate B, and from the latter to rate C), until in early 1953 the large majority of transactions were conducted at rate C. In April 1953 a still higher rate, IL 1.800 per dollar, was added. The rate w ...
... Throughout 1952, transactions were gradually shifted from lower to higher rates (i.e., from rate A to rate B, and from the latter to rate C), until in early 1953 the large majority of transactions were conducted at rate C. In April 1953 a still higher rate, IL 1.800 per dollar, was added. The rate w ...
NBER WORKING PAPER SERIES MONETARY POLICY AND ASSET PRICES:
... of models, variants of which are presented in Friedman and Schwartz (1963b), Tobin (1969), and Brunner and Meltzer (1973), introduce a broader range of assets into the traditional Keynesian liquidity mechanism. In these models, central bank operations that increase liquidity will cause the prices of ...
... of models, variants of which are presented in Friedman and Schwartz (1963b), Tobin (1969), and Brunner and Meltzer (1973), introduce a broader range of assets into the traditional Keynesian liquidity mechanism. In these models, central bank operations that increase liquidity will cause the prices of ...
eee06-Nuti 3872134 en
... countries out of eight represent 90% of the central eastern European new members population and an even higher proportion of their joint income. All the other Maastricht conditions for EMU membership are either satisfied by the new members or are well within reach. We have already noted that the deb ...
... countries out of eight represent 90% of the central eastern European new members population and an even higher proportion of their joint income. All the other Maastricht conditions for EMU membership are either satisfied by the new members or are well within reach. We have already noted that the deb ...
Objectives for Chapter 23: The Basic Theory of Monetarism Chapter
... would not matter much if you hold an extra part of your wealth in the form of money in your checking account. And if interest rates are unusually low, you might expect them to rise soon. As you saw in Chapter 7, if interest rates do indeed rise, the prices of securities will fall. Therefore, you mig ...
... would not matter much if you hold an extra part of your wealth in the form of money in your checking account. And if interest rates are unusually low, you might expect them to rise soon. As you saw in Chapter 7, if interest rates do indeed rise, the prices of securities will fall. Therefore, you mig ...
Chapter Six: What Europe Should Do: Getting Macroeconomics
... economics agenda because it required some governments to cut their deficits in 2003 (and will again in 2004)—even during a period of economic weakness. There is general agreement that constraints should be placed on member countries’ fiscal policies so that excessive deficits in one or more countrie ...
... economics agenda because it required some governments to cut their deficits in 2003 (and will again in 2004)—even during a period of economic weakness. There is general agreement that constraints should be placed on member countries’ fiscal policies so that excessive deficits in one or more countrie ...
13.2 aggregate demand
... the same. Other things remaining the same, • When the price level rises, the quantity of real GDP demanded decreases. • When the price level falls, the quantity of real GDP demanded increases. ...
... the same. Other things remaining the same, • When the price level rises, the quantity of real GDP demanded decreases. • When the price level falls, the quantity of real GDP demanded increases. ...
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.