Globak Slack and Domestic Inflation Rates: A
... are both assigned significant posterior probabilities. Overall, mainly through the effect on domestic demand, global output can still affect domestic inflation rates. From the variance decomposition, shocks to global conditions account for a large share of output fluctuations in France, Germany, Can ...
... are both assigned significant posterior probabilities. Overall, mainly through the effect on domestic demand, global output can still affect domestic inflation rates. From the variance decomposition, shocks to global conditions account for a large share of output fluctuations in France, Germany, Can ...
NBER WORKING PAPER SERIES THE OPEN ECONOMY: IMPLICATIONS FOR FISCAL Stanley Fischer
... reductions in imports of semi—finished goods and exports of agricultural goods following the tariff, suggesting that the fact that bank failures in 1930 and 1931 were concentrated in agricultural regions was in part a consequence of the ...
... reductions in imports of semi—finished goods and exports of agricultural goods following the tariff, suggesting that the fact that bank failures in 1930 and 1931 were concentrated in agricultural regions was in part a consequence of the ...
THE MULTIPLIER EFFECT A FORMULA FOR THE SPENDING
... Suppose, for instance, that the government increases expenditure on a form of government-provided capital, such as roads. Roads are used by private businesses to make deliveries to their customers; an increase in the quantity of roads increases these businesses’ productivity. Hence, when the governm ...
... Suppose, for instance, that the government increases expenditure on a form of government-provided capital, such as roads. Roads are used by private businesses to make deliveries to their customers; an increase in the quantity of roads increases these businesses’ productivity. Hence, when the governm ...
CH 7 PDF
... • The functions of money – Unit of account • Money is basic unit for measuring economic value • Simplifies comparisons of prices, wages, and incomes • The unit-of-account function is closely linked with the mediumof-exchange function • Countries with very high inflation may use a different unit of a ...
... • The functions of money – Unit of account • Money is basic unit for measuring economic value • Simplifies comparisons of prices, wages, and incomes • The unit-of-account function is closely linked with the mediumof-exchange function • Countries with very high inflation may use a different unit of a ...
Chapter7 - QC Economics
... – A quantity measured over time, such as the income you make per year, or the number of individuals fired every month ...
... – A quantity measured over time, such as the income you make per year, or the number of individuals fired every month ...
Chapter 11 Money and Monetary Policy
... large and growing, relative to the size of government expenditures, the fresh bills may just be absorbed into circulation without much effect. But if the economy is stagnant or staggering, and expenditures are large, there will soon be a classical situation of inflation caused by "too much money cha ...
... large and growing, relative to the size of government expenditures, the fresh bills may just be absorbed into circulation without much effect. But if the economy is stagnant or staggering, and expenditures are large, there will soon be a classical situation of inflation caused by "too much money cha ...
Document
... If C , or MPC, or t, or I , or G , or NX or M equilibrium Y increases. “The AD-curve in the PY diagram shifts out”. If P equilibrium Y : Movement along the “AD-curve in the PY-diagram”. ...
... If C , or MPC, or t, or I , or G , or NX or M equilibrium Y increases. “The AD-curve in the PY diagram shifts out”. If P equilibrium Y : Movement along the “AD-curve in the PY-diagram”. ...
Sample
... income. We can measure GDP by adding up the total expenditures of households and firms, foreign households and firms, and the government on goods and services produced in the United States. Firms use factors of production to produce goods and services. A factor of production is any input used to pro ...
... income. We can measure GDP by adding up the total expenditures of households and firms, foreign households and firms, and the government on goods and services produced in the United States. Firms use factors of production to produce goods and services. A factor of production is any input used to pro ...
CHAPTER 8 THE ANATOMY OF INFLATION AND
... rate in the labour force and it is important to stress that this is not necessarily undesirable; it may simply reflect a higher degree of labour mobility. It is also important to distinguish between frictional and cyclical unemployment. Demand management policies can reduce cyclical unemployment, bu ...
... rate in the labour force and it is important to stress that this is not necessarily undesirable; it may simply reflect a higher degree of labour mobility. It is also important to distinguish between frictional and cyclical unemployment. Demand management policies can reduce cyclical unemployment, bu ...
FREE Sample Here - We can offer most test bank and
... with measuring inflation. A brief discussion of the usefulness and shortcomings of these different measures of inflation should point out why the price indexes do not always change at the same rate even though their rates of change over long time spans tend to be fairly similar. The PPI measures pri ...
... with measuring inflation. A brief discussion of the usefulness and shortcomings of these different measures of inflation should point out why the price indexes do not always change at the same rate even though their rates of change over long time spans tend to be fairly similar. The PPI measures pri ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... and supply shocks are treated as Wold-causally prior to the third shock). We considered several candidates for x, and found logged government current expenditure (in second differences) to be suitable. In this case we found that the long-run trade-off was marginally insignificant, giving rise to a c ...
... and supply shocks are treated as Wold-causally prior to the third shock). We considered several candidates for x, and found logged government current expenditure (in second differences) to be suitable. In this case we found that the long-run trade-off was marginally insignificant, giving rise to a c ...
View/Open
... In the side of the economic approaches, one way to calculate the output gap is to use an aggregate production function. Another measure is calculated by the Congressional Budget Office (CBO, 1995) using a large-scale multi-sector growth model. There also are efforts in merging statistical and econom ...
... In the side of the economic approaches, one way to calculate the output gap is to use an aggregate production function. Another measure is calculated by the Congressional Budget Office (CBO, 1995) using a large-scale multi-sector growth model. There also are efforts in merging statistical and econom ...
NBER WORKING PAPER SERIES AND BUDGET DEFICITS, TAX
... 1983 were unusually strong and were accompanied by better inflation performance than would have been expected on the basis of experience in past recoveries. Our evidence contradicts the popular view that the recovery was the result of a consumer boom financed by reductions in the personal income tax ...
... 1983 were unusually strong and were accompanied by better inflation performance than would have been expected on the basis of experience in past recoveries. Our evidence contradicts the popular view that the recovery was the result of a consumer boom financed by reductions in the personal income tax ...
NBER WORKING PAPER SERIES RECONCILING POLICY DECISIONS AND DATA OUTCOMES
... very marked rise in costs resulting mainly from the fast rise in money wages…” (EPR, January 1971, p. 6.) “A higher level of pay settlements was much the most important factor in the faster rise of costs and prices during 1970…” (EPR, May 1971, p. 5.) ...
... very marked rise in costs resulting mainly from the fast rise in money wages…” (EPR, January 1971, p. 6.) “A higher level of pay settlements was much the most important factor in the faster rise of costs and prices during 1970…” (EPR, May 1971, p. 5.) ...
If a certain combination of goods or services lies outside the
... Contractionary b. Expansionary No change c. Expansionary Contractionary d. Expansionary Expansionary e. Contractionary Expansionary 41. In one year, spending on consumption, investment, and government purchases was equal to 103 percent of a country’s gross domestic product. This would be possible o ...
... Contractionary b. Expansionary No change c. Expansionary Contractionary d. Expansionary Expansionary e. Contractionary Expansionary 41. In one year, spending on consumption, investment, and government purchases was equal to 103 percent of a country’s gross domestic product. This would be possible o ...
INFLATION IN VIETNAM
... 2007 (except the year 1995), inflation was well controlled under 10%. Moreover, while some other Asian countries suffered the increasing inflation rate due to the Asian financial crisis in 1997, Vietnam’s inflation was not affected significantly (Vinh, 2007).The government control of the economy and ...
... 2007 (except the year 1995), inflation was well controlled under 10%. Moreover, while some other Asian countries suffered the increasing inflation rate due to the Asian financial crisis in 1997, Vietnam’s inflation was not affected significantly (Vinh, 2007).The government control of the economy and ...
Inflation
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time. The opposite of inflation is deflation.Inflation affects an economy in various ways, both positive and negative. Negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future.Inflation also has positive effects: Fundamentally, inflation gives everyone an incentive to spend and invest, because if they don't, their money will be worth less in the future. This increase in spending and investment can benefit the economy. However it may also lead to sub-optimal use of resources. Inflation reduces the real burden of debt, both public and private. If you have a fixed-rate mortgage on your house, your salary is likely to increase over time due to wage inflation, but your mortgage payment will stay the same. Over time, your mortgage payment will become a smaller percentage of your earnings, which means that you will have more money to spend. Inflation keeps nominal interest rates above zero, so that central banks can reduce interest rates, when necessary, to stimulate the economy. Inflation reduces unemployment to the extent that unemployment is caused by nominal wage rigidity. When demand for labor falls but nominal wages do not, as typically occurs during a recession, the supply and demand for labor cannot reach equilibrium, and unemployment results. By reducing the real value of a given nominal wage, inflation increases the demand for labor, and therefore reduces unemployment.Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. However, money supply growth does not necessarily cause inflation. Some economists maintain that under the conditions of a liquidity trap, large monetary injections are like ""pushing on a string"". Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities. However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.Today, most economists favor a low and steady rate of inflation. Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy. The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.