NBER WORKING PAPER SERIES SOME ESTIMATES FOR OECD COUNTRIES
... and economically signiÞcant effects of Þscal imbalances on long-term interest rates. In our preferred speciÞcation, a one percentage point increase of the primary deÞcit-to-GDP ratio is associated with a 10-basis-point rise in the nominal interest rate on 10-year government bonds. The increase is lar ...
... and economically signiÞcant effects of Þscal imbalances on long-term interest rates. In our preferred speciÞcation, a one percentage point increase of the primary deÞcit-to-GDP ratio is associated with a 10-basis-point rise in the nominal interest rate on 10-year government bonds. The increase is lar ...
OSP9: Fiscal policy 1971-1979
... Broadly, fiscal stance in this period was ‘neutral’, that is it neither served by itself to stimulate or to relax demand. To respond to the inflationary pressure induced by the oil shock, fiscal policy was tighter in 1974 and 1975. In March 1976 rising unemployment encouraged a more relaxed fiscal p ...
... Broadly, fiscal stance in this period was ‘neutral’, that is it neither served by itself to stimulate or to relax demand. To respond to the inflationary pressure induced by the oil shock, fiscal policy was tighter in 1974 and 1975. In March 1976 rising unemployment encouraged a more relaxed fiscal p ...
A Arthur Burns and Inflation Robert L. Hetzel
... incomplete. It does not explain why inflation was low in the 1950s. Presumably the state of economics was not more enlightened in the ’50s than in the ’70s. Also, experience in itself does not make people wise. Economists need to examine and learn from historical experience to avoid repetition of mi ...
... incomplete. It does not explain why inflation was low in the 1950s. Presumably the state of economics was not more enlightened in the ’50s than in the ’70s. Also, experience in itself does not make people wise. Economists need to examine and learn from historical experience to avoid repetition of mi ...
British monetary and fiscal policy in the 1930s
... pation of economists and policy-makers. In Britain, as in the US, the government budget deficit deteriorated very substantially between 2007 and 2009 (by some 8 per cent of GDP), with the greater part of this due to fiscal deterioration rather than the cost of bank support (Holland et al., 2010, Fig ...
... pation of economists and policy-makers. In Britain, as in the US, the government budget deficit deteriorated very substantially between 2007 and 2009 (by some 8 per cent of GDP), with the greater part of this due to fiscal deterioration rather than the cost of bank support (Holland et al., 2010, Fig ...
PDF - Federal Reserve Bank of San Francisco
... with sticky prices and replicate the flexible-price equilibrium. However, such a policy of price stability cannot ensure efficient outcomes in the labor market. Because monetary policy can affect the incentive to post vacancies when prices are sticky but not when prices are flexible, we find that the p ...
... with sticky prices and replicate the flexible-price equilibrium. However, such a policy of price stability cannot ensure efficient outcomes in the labor market. Because monetary policy can affect the incentive to post vacancies when prices are sticky but not when prices are flexible, we find that the p ...
Check for Understanding - Delaware Department of Education
... savings declines if the interest rate received does not stay ahead of the inflation rate. A person with a fixed income, such as a retiree or welfare recipient, loses purchasing power. A creditor loses because he is being paid back in dollars that will buy less than when he lent the money. On the oth ...
... savings declines if the interest rate received does not stay ahead of the inflation rate. A person with a fixed income, such as a retiree or welfare recipient, loses purchasing power. A creditor loses because he is being paid back in dollars that will buy less than when he lent the money. On the oth ...
Unemployment and Inflation
... Menu Costs are the costs of updating prices due to inflation. In Germany 1920s restaurants sometimes changed the prices on their menus several times each day. Menu costs were coined to reflect the costly inputs such as labor, paper, and printing services used by restaurants whose menus had to be con ...
... Menu Costs are the costs of updating prices due to inflation. In Germany 1920s restaurants sometimes changed the prices on their menus several times each day. Menu costs were coined to reflect the costly inputs such as labor, paper, and printing services used by restaurants whose menus had to be con ...
BIS Working Papers Asset prices, financial and monetary stability: exploring the nexus
... safeguards in the financial sphere, in the form of prudential regulation and supervision, might be sufficient to prevent financial distress. In practice, however, they may be less than fully satisfactory. If the imbalances are large enough, the end-result could be a severe recession coupled with pri ...
... safeguards in the financial sphere, in the form of prudential regulation and supervision, might be sufficient to prevent financial distress. In practice, however, they may be less than fully satisfactory. If the imbalances are large enough, the end-result could be a severe recession coupled with pri ...
Chapter 18 PPT
... to redeem their dollar assets before the gold ran out. This problem is similar to what any central bank may face when it tries to maintain a fixed exchange rate. If markets perceive that the central bank does not have enough official international reserve assets to maintain a fixed rate, a balan ...
... to redeem their dollar assets before the gold ran out. This problem is similar to what any central bank may face when it tries to maintain a fixed exchange rate. If markets perceive that the central bank does not have enough official international reserve assets to maintain a fixed rate, a balan ...
The United Kingdom`s quantitative easing policy
... that inflation expectations remain well anchored to the target, asset purchases could help to support spending. More generally, policy announcements on asset purchases might contain ‘news’ about the underlying state of the economy, for example if agents relied on central bank analysis to inform thei ...
... that inflation expectations remain well anchored to the target, asset purchases could help to support spending. More generally, policy announcements on asset purchases might contain ‘news’ about the underlying state of the economy, for example if agents relied on central bank analysis to inform thei ...
Chapters 13 14 15
... reached a certain level. The widespread use of fiat money created the possibility of hyperinflation as governments often tended to print larger amounts of money to finance their expenses. Inflation results where such an increase in money supply occurs without regard for the actual market demand. Rat ...
... reached a certain level. The widespread use of fiat money created the possibility of hyperinflation as governments often tended to print larger amounts of money to finance their expenses. Inflation results where such an increase in money supply occurs without regard for the actual market demand. Rat ...
AP Macro Reading Questions Unit V Inflation, Unemployment and
... What type of inflation is controlled by a contractionary fiscal policy? 615 Explain how a built-in stablilizer works. 618 (PF3b) Define the following terms. Use the text book’s glossary for these. a) Progressive taxes: b) Proportional taxes: c) Regressive taxes: PF3c Explain how an increase in the s ...
... What type of inflation is controlled by a contractionary fiscal policy? 615 Explain how a built-in stablilizer works. 618 (PF3b) Define the following terms. Use the text book’s glossary for these. a) Progressive taxes: b) Proportional taxes: c) Regressive taxes: PF3c Explain how an increase in the s ...
Document
... regarding the achievement of economic and monetary union. The latest Commission and ECB regular Convergence Reports were adopted in December 20061. Denmark and the United Kingdom have not expressed their wish to adopt the single currency. Therefore, this convergence assessment covers the following t ...
... regarding the achievement of economic and monetary union. The latest Commission and ECB regular Convergence Reports were adopted in December 20061. Denmark and the United Kingdom have not expressed their wish to adopt the single currency. Therefore, this convergence assessment covers the following t ...
The Phillips Curve and US Monetary Policy
... September 1979 just one month before the Fed adopted its new operating procedures:10 There is a very strong possibility of recession on the one side. We’ve had that possibility for almost six months now and we still have the unemployment rate at a level that some consider to be the natural rate. I d ...
... September 1979 just one month before the Fed adopted its new operating procedures:10 There is a very strong possibility of recession on the one side. We’ve had that possibility for almost six months now and we still have the unemployment rate at a level that some consider to be the natural rate. I d ...
EC 102
... The money supply in Freedonia is $200 billion. Nominal GDP is $800 billion and real GDP is $400 billion. The central bank of Freedonia has instituted a policy of zero inflation. Assuming that velocity is stable, if real GDP grows by 10 percent this year, how will the central bank of Freedonia change ...
... The money supply in Freedonia is $200 billion. Nominal GDP is $800 billion and real GDP is $400 billion. The central bank of Freedonia has instituted a policy of zero inflation. Assuming that velocity is stable, if real GDP grows by 10 percent this year, how will the central bank of Freedonia change ...
CH 10 - REVIEW QUESTIONS 1. The short
... A) regular and predictable. B) irregular but predictable. C) regular but unpredictable. D) irregular and unpredictable. 35. All of the following are suggested by the results of Alan Blinder's survey of firms except: A) there is only one theory of price stickiness. B) coordinating wage and price sett ...
... A) regular and predictable. B) irregular but predictable. C) regular but unpredictable. D) irregular and unpredictable. 35. All of the following are suggested by the results of Alan Blinder's survey of firms except: A) there is only one theory of price stickiness. B) coordinating wage and price sett ...
CPI
... In this chapter, look for the answers to these questions: What is the Consumer Price Index (CPI)? How is it calculated? What’s it used for? ...
... In this chapter, look for the answers to these questions: What is the Consumer Price Index (CPI)? How is it calculated? What’s it used for? ...
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.