Jeffrey research Michael Bruno Massachusetts Avenue
... Separate studies by the authors of this paper (Bruno, 1979, and Sachs, 1978) have dealt with aspects of these relationships in other OECD countries. • ...
... Separate studies by the authors of this paper (Bruno, 1979, and Sachs, 1978) have dealt with aspects of these relationships in other OECD countries. • ...
How Has Globalization Affected Inflation?
... The inflation performance has reflected policymakers’ increasing preference for low and stable inflation. This policy shift in part resulted from the earlier experience with high and variable inflation in both emerging markets and advanced economies. In the early 1980s, the perceived costs of double ...
... The inflation performance has reflected policymakers’ increasing preference for low and stable inflation. This policy shift in part resulted from the earlier experience with high and variable inflation in both emerging markets and advanced economies. In the early 1980s, the perceived costs of double ...
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... need to decide whether excessive monetary ease was a sufficient condition for the Japanese bubble (“if there is a sustained monetary ease, then a bubble occurs”), a necessary condition for the Japanese bubble (“if a bubble occurs, then there must have been prior monetary ease”), or both. The theoret ...
... need to decide whether excessive monetary ease was a sufficient condition for the Japanese bubble (“if there is a sustained monetary ease, then a bubble occurs”), a necessary condition for the Japanese bubble (“if a bubble occurs, then there must have been prior monetary ease”), or both. The theoret ...
GCE Economics Mark Scheme Unit 02 - The National
... skill can outweigh weakness in another. When using the Levels Mark Scheme the marker must identify where a particular skill is being demonstrated. The key to be used to identify the skill is given after the levels descriptions. The question-specific mark scheme summarises the information which could ...
... skill can outweigh weakness in another. When using the Levels Mark Scheme the marker must identify where a particular skill is being demonstrated. The key to be used to identify the skill is given after the levels descriptions. The question-specific mark scheme summarises the information which could ...
macronotes - Houston H. Stokes Page
... problems. Since the notes are distributed in WORD® 97 format, students can edit the notes. I. Fundamentals of Macroeconomics: Chapter 1 The Macroeconomy: Growth and Fluctuations Macroeconomics studies the aggregate economy - how and why the economy grows and fluctuates over time. Macro Theory provid ...
... problems. Since the notes are distributed in WORD® 97 format, students can edit the notes. I. Fundamentals of Macroeconomics: Chapter 1 The Macroeconomy: Growth and Fluctuations Macroeconomics studies the aggregate economy - how and why the economy grows and fluctuates over time. Macro Theory provid ...
On Fiscal Policy Effects and Mechanisms in Serbia
... However due to a regime change (inflation targeting introduction), many shocks in the data (with country going through a transition), and a short timeframe of available data, one can hardly link these movements to inflation, even though there is every reason to believe that the link exists. ...
... However due to a regime change (inflation targeting introduction), many shocks in the data (with country going through a transition), and a short timeframe of available data, one can hardly link these movements to inflation, even though there is every reason to believe that the link exists. ...
Uni Bayreuth
... As countries enter currency unions or fixed exchange rate regimes they give up their monetary independence. The costs of abandoning the monetary policy instrument are particularly high in the presence of asymmetric shocks and differences in the monetary policy transmission as has been comprehensivel ...
... As countries enter currency unions or fixed exchange rate regimes they give up their monetary independence. The costs of abandoning the monetary policy instrument are particularly high in the presence of asymmetric shocks and differences in the monetary policy transmission as has been comprehensivel ...
A Multi-sector Model of the Australian Economy Research Discussion
... the remainder of the paper, which shows the model in action. Section 5 provides an example of how the model can be used to construct a scenario involving an extended period of lower resource prices. Section 6 uses the model to uncover the sources of Australian business cycle fluctuations over recent ...
... the remainder of the paper, which shows the model in action. Section 5 provides an example of how the model can be used to construct a scenario involving an extended period of lower resource prices. Section 6 uses the model to uncover the sources of Australian business cycle fluctuations over recent ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... 7.1 Introduction When an economy slumps, policymakers typically stimulate demand by reducing short-term interest rates. Japan’s experience in the last decade has renewed interest in an old question: what to do when rates can’t be lowered. Weak demand has produced an output slump and deflation. But s ...
... 7.1 Introduction When an economy slumps, policymakers typically stimulate demand by reducing short-term interest rates. Japan’s experience in the last decade has renewed interest in an old question: what to do when rates can’t be lowered. Weak demand has produced an output slump and deflation. But s ...
The Information Content of Inflationary Expectations Derived from
... Nevertheless, in order to test the robustness of the results we will carry out the various tests with annual data as well. An alternative method (using quarterly data) is to use ordinary least squares but to modify the statistical tests.8 The standard modification involves the application of Newey-W ...
... Nevertheless, in order to test the robustness of the results we will carry out the various tests with annual data as well. An alternative method (using quarterly data) is to use ordinary least squares but to modify the statistical tests.8 The standard modification involves the application of Newey-W ...
Aggregate Supply and Aggregate Demand
... A decrease in taxes causes aggregate demand to increase. An increase in transfer payments also increases aggregate demand. Both these changes in fiscal policy increase households’ disposable income. ...
... A decrease in taxes causes aggregate demand to increase. An increase in transfer payments also increases aggregate demand. Both these changes in fiscal policy increase households’ disposable income. ...
Economic Fluctuations, Unemployment, and Inflation (15th ed.)
... measured by a price index such as the GDP deflator or the consumer price index. • Inflation is generally measured at an annual rate. • When inflation is high, the year-to-year changes in the inflation rate are nearly always highly variable, making them difficult to predict. ...
... measured by a price index such as the GDP deflator or the consumer price index. • Inflation is generally measured at an annual rate. • When inflation is high, the year-to-year changes in the inflation rate are nearly always highly variable, making them difficult to predict. ...
DP2006/01 Phillips curve forecasting in a small open economy Troy Matheson March 2006
... prices that are, at least in part, determined in world markets. Non-tradable goods and services, on the other hand, have prices that can be characterised as being determined domestically. Tradable and non-tradable prices have been shown to display different time series properties (De Gregorio et al ...
... prices that are, at least in part, determined in world markets. Non-tradable goods and services, on the other hand, have prices that can be characterised as being determined domestically. Tradable and non-tradable prices have been shown to display different time series properties (De Gregorio et al ...
Aggregate demand and aggregate supply
... – Expected price level increases and the SRAS curve shifts to the left (up) – i.e. SRAS curve depends on sticky wages, sticky prices and misperceptions. Since these are all set based on expectations of prices, when price expectations change the SRAS shifts – In the short run expectations are fixed a ...
... – Expected price level increases and the SRAS curve shifts to the left (up) – i.e. SRAS curve depends on sticky wages, sticky prices and misperceptions. Since these are all set based on expectations of prices, when price expectations change the SRAS shifts – In the short run expectations are fixed a ...
Multiple Choice
... c. The aggregate supply curve will shift upward until it intersects the aggregate demand curve at a price level of 140 and real GDP of $5.5 trillion. d. The aggregate demand curve will shift right until it intersects the aggregate supply curve at a price level of 140 and real GDP of $7.5 trillion. e ...
... c. The aggregate supply curve will shift upward until it intersects the aggregate demand curve at a price level of 140 and real GDP of $5.5 trillion. d. The aggregate demand curve will shift right until it intersects the aggregate supply curve at a price level of 140 and real GDP of $7.5 trillion. e ...
the impact of fiscal policy on the output and inflation
... policy may also affect the supply side that is more long-term, through increased economic capacity. In the macroeconomic stability management, fiscal policy will interact with monetary policy. Keynes stated that there is a significant influence of fiscal policy on the economy. Prior toKeynes, a gove ...
... policy may also affect the supply side that is more long-term, through increased economic capacity. In the macroeconomic stability management, fiscal policy will interact with monetary policy. Keynes stated that there is a significant influence of fiscal policy on the economy. Prior toKeynes, a gove ...
Minutes of the Federal Open Market Committee June 18–19, 2013
... prices and continued lackluster economic growth contributed to a decline in foreign inflation. Staff Review of the Financial Situation Financial markets were volatile during the intermeeting period as investors reacted to incoming economic data and Federal Reserve communications. Information about t ...
... prices and continued lackluster economic growth contributed to a decline in foreign inflation. Staff Review of the Financial Situation Financial markets were volatile during the intermeeting period as investors reacted to incoming economic data and Federal Reserve communications. Information about t ...
1999 South-Western College Publishing
... 1970’s Phillips Curve Instead of one Phillips curve, there was a set of Phillips curves ©1999 South-Western College Publishing ...
... 1970’s Phillips Curve Instead of one Phillips curve, there was a set of Phillips curves ©1999 South-Western College Publishing ...
NBER WORKING PAPER SERIES BACKWARD-LOOKING INTEREST-RATE RULES, INTEREST-RATE SMOOTHING, AND MACROECONOMIC INSTABILITY
... Some recent theoretical evaluations of monetary policy rules that favor backward-looking behavior on the part of the central bank have restricted attention to models in which variations in the nominal interest rate affect real variables solely through their effect on aggregate demand. Other studies ...
... Some recent theoretical evaluations of monetary policy rules that favor backward-looking behavior on the part of the central bank have restricted attention to models in which variations in the nominal interest rate affect real variables solely through their effect on aggregate demand. Other studies ...
The Economics of the Government Budget
... misleading,for there are lags in the process of adaptationof money demand to inflation. In the very short run of a few days or weeks, the government can almost always increase its revenue by printingmoney more rapidly. But the longer a process of high inflationcontinues,the more the demand for real ...
... misleading,for there are lags in the process of adaptationof money demand to inflation. In the very short run of a few days or weeks, the government can almost always increase its revenue by printingmoney more rapidly. But the longer a process of high inflationcontinues,the more the demand for real ...
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.