Scylla and Charybdis: Navigating a Liquidity Trap
... The Great Japanese Recession of 1995-2005 was less severe than our country’s Great Depression. Average Japanese inflation was -0.2% and real GDP remained relatively steady compared to the steep evisceration of household and corporate balance sheets. The Japanese learned painfully that traditional mo ...
... The Great Japanese Recession of 1995-2005 was less severe than our country’s Great Depression. Average Japanese inflation was -0.2% and real GDP remained relatively steady compared to the steep evisceration of household and corporate balance sheets. The Japanese learned painfully that traditional mo ...
Krugman`s Chapter 24 PPT
... CHAPTER 24 Tracking the Macroeconomy PowerPoint® Slides by Can Erbil © 2005 Worth Publishers, all rights reserved ...
... CHAPTER 24 Tracking the Macroeconomy PowerPoint® Slides by Can Erbil © 2005 Worth Publishers, all rights reserved ...
ECON 521 Special Topics in Economic Policy
... Goal Two: The Inflation Rate • Inflation Rate is the growth or percentage change in the overall price level. • Inflation rate measures the price level (P), through: -- Consumer Price Index (CPI) -- GDP Deflator • Inflation Rate = Percentage Change in (P) • Inflation erodes the purchasing power of m ...
... Goal Two: The Inflation Rate • Inflation Rate is the growth or percentage change in the overall price level. • Inflation rate measures the price level (P), through: -- Consumer Price Index (CPI) -- GDP Deflator • Inflation Rate = Percentage Change in (P) • Inflation erodes the purchasing power of m ...
What We Hope To Accomplish
... Consumers (refer to expenditure of consumers as “consumption”) Businesses (refer to expenditure of firms as “investment”) Governments (refer to expenditures of governments as “government spending”) Foreign Sector (refer to expenditures of foreign sector as “exports”) ...
... Consumers (refer to expenditure of consumers as “consumption”) Businesses (refer to expenditure of firms as “investment”) Governments (refer to expenditures of governments as “government spending”) Foreign Sector (refer to expenditures of foreign sector as “exports”) ...
Theory versus Reality
... • In 1946 Congress committed the government to macro stability. – In 1978 Congress set goals of 4% unemployment, 3% inflation, and 4% economic growth. – The reality is that government has difficulty making fine-tuning adjustments to meet these conflicting ...
... • In 1946 Congress committed the government to macro stability. – In 1978 Congress set goals of 4% unemployment, 3% inflation, and 4% economic growth. – The reality is that government has difficulty making fine-tuning adjustments to meet these conflicting ...
Remedy for Economic Crisis: Spending or Austerity
... Might be not the best policy choice, as the euphoria of the “boom and boost” period could have easily resulted in the wrong investment decisions and therefore in the misallocation of resources ...
... Might be not the best policy choice, as the euphoria of the “boom and boost” period could have easily resulted in the wrong investment decisions and therefore in the misallocation of resources ...
December Edition - Crawford School of Public Policy
... Update. Presentations will include constitutional and electoral reform in the Pacific, the seasonal workers’ program, and challenges to aid in the Pacific. An economic survey of ...
... Update. Presentations will include constitutional and electoral reform in the Pacific, the seasonal workers’ program, and challenges to aid in the Pacific. An economic survey of ...
After the banking crisis: what now? Monetary, fiscal and
... • The banks have not increased lending to the private sector much. Instead they have rebuilt their balance sheets. QE has solved the liquidity crisis but not the underlying problem of risk. • It has been argued that bank reserve and interest rate policy may be decoupled especially if reserves receiv ...
... • The banks have not increased lending to the private sector much. Instead they have rebuilt their balance sheets. QE has solved the liquidity crisis but not the underlying problem of risk. • It has been argued that bank reserve and interest rate policy may be decoupled especially if reserves receiv ...
Introduction to Macroeconomics
... variables that captures the economy’s performance. The good news is there are many such variables: GDP, inflation, and unemployment being the most widely discussed. The bad news is these variables can at times appear to be telling different stories about the economy's performance. It is not unusual ...
... variables that captures the economy’s performance. The good news is there are many such variables: GDP, inflation, and unemployment being the most widely discussed. The bad news is these variables can at times appear to be telling different stories about the economy's performance. It is not unusual ...
Chapter 12
... they will spend if they believe times are good, they will save if they believe bad times are coming – Spending means banks have less capital, economy will expand now but contract later – High savings provides capital for future economic growth ...
... they will spend if they believe times are good, they will save if they believe bad times are coming – Spending means banks have less capital, economy will expand now but contract later – High savings provides capital for future economic growth ...
Korea`s Public Finance and its Role in the
... protection is increasing rapidly, and is expected to increase further in coming years. • Stabilization: The prudent management of fiscal policy contributed to a sound budgetary position and a low debt-toGDP ratio. – But the short-term stabilization has been limited due to the small sizes of tax reve ...
... protection is increasing rapidly, and is expected to increase further in coming years. • Stabilization: The prudent management of fiscal policy contributed to a sound budgetary position and a low debt-toGDP ratio. – But the short-term stabilization has been limited due to the small sizes of tax reve ...
Real World Applications from an Economist`s Perspective
... Aren’t recessions caused by government policies? o Sometimes recessions can be caused by government policies; for example, if the government is attempting to reduce inflation. However, recessions can be caused by things outside the government’s control. A massive increase in oil prices would cause a ...
... Aren’t recessions caused by government policies? o Sometimes recessions can be caused by government policies; for example, if the government is attempting to reduce inflation. However, recessions can be caused by things outside the government’s control. A massive increase in oil prices would cause a ...
Economic Activity
... Bond - A security issued by a corporation or public body and usually carrying a fixed rate of interest and a set date, called the bond's maturity, for redemption of the principal ...
... Bond - A security issued by a corporation or public body and usually carrying a fixed rate of interest and a set date, called the bond's maturity, for redemption of the principal ...
Fiscal Policy - Economics @ Tallis
... Budget deficits and surpluses • Budget deficit when spending exceeds revenue. Can be eliminated by cutting spending and/or increasing taxes. A deficit is financed through PSNCR • Budget surplus when revenue exceeds spending. This results in a PSDR which pays back previous borrowing • Could also be ...
... Budget deficits and surpluses • Budget deficit when spending exceeds revenue. Can be eliminated by cutting spending and/or increasing taxes. A deficit is financed through PSNCR • Budget surplus when revenue exceeds spending. This results in a PSDR which pays back previous borrowing • Could also be ...
Fiscal Policy Notes
... recession? – More people qualify for government benefits like food stamps in a recession. – They get more money to spend from the government • This increases aggregate demand and helps the economy ...
... recession? – More people qualify for government benefits like food stamps in a recession. – They get more money to spend from the government • This increases aggregate demand and helps the economy ...
External Environment (Unit 1.5)
... Urban districts tend to have higher levels of employment than remote rural areas. Structural Demand for products produced in a particular industry continually declines, the industry therefore suffers from structural and long-term changes. Cyclical or demand deficient (most severe) Affects ever ...
... Urban districts tend to have higher levels of employment than remote rural areas. Structural Demand for products produced in a particular industry continually declines, the industry therefore suffers from structural and long-term changes. Cyclical or demand deficient (most severe) Affects ever ...
Keynesian economics
... People hold money because (a) they expect the prices of stocks and bonds to fall in the near future, (b) are reluctant to hold only assets that tend to swing widely in value, and (c) believe that transaction costs are higher than any expected returns from investment in stocks/bonds. ...
... People hold money because (a) they expect the prices of stocks and bonds to fall in the near future, (b) are reluctant to hold only assets that tend to swing widely in value, and (c) believe that transaction costs are higher than any expected returns from investment in stocks/bonds. ...
The Role of the Interest Rate Channel of
... the assumption that price and wages are rigid, then led to an increase in real long-term interest rates. ...
... the assumption that price and wages are rigid, then led to an increase in real long-term interest rates. ...
ECON366 - KONSTANTINOS KANELLOPOULOS
... “Real per-capita GDP is a good measure of economic welfare.” Real GDP per capita is an imperfect measure of economic welfare as it does not include non-market activities which affect well being, such as the value of household services, volunteer work, the loss of natural wilderness areas resulting f ...
... “Real per-capita GDP is a good measure of economic welfare.” Real GDP per capita is an imperfect measure of economic welfare as it does not include non-market activities which affect well being, such as the value of household services, volunteer work, the loss of natural wilderness areas resulting f ...
International Trade and Equilibrium Output
... • Like consumption and gross investment, net exports also add to GDP or total output. • Exports create Canadian jobs and income. • For a closed economy, AE = C + Ig • For an open economy, AE = C + Ig + Xn ...
... • Like consumption and gross investment, net exports also add to GDP or total output. • Exports create Canadian jobs and income. • For a closed economy, AE = C + Ig • For an open economy, AE = C + Ig + Xn ...
Answer Key - McGraw-Hill Education Canada
... rate is above the equilibrium rate. This would normally cause the wage rate to drop and for the surplus of labour to disappear as firms hire more workers. But since this is not happening, it must be because the unemployed workers are refusing to work at lower wages. If this is so, then that must be ...
... rate is above the equilibrium rate. This would normally cause the wage rate to drop and for the surplus of labour to disappear as firms hire more workers. But since this is not happening, it must be because the unemployed workers are refusing to work at lower wages. If this is so, then that must be ...
BUSINESS CONFIDENCE IN Q3 2011 fig. 2 fig. 1 – DETAILED RESPONSES
... previous quarter and down 13.4 points on a year ago. The Confidence Index stands at its lowest level since Q3 2009, when economic output was still contracting. Though in part some fall in the Confidence Index is expected following the post-recession bounce-back, the most recent decline in the index ...
... previous quarter and down 13.4 points on a year ago. The Confidence Index stands at its lowest level since Q3 2009, when economic output was still contracting. Though in part some fall in the Confidence Index is expected following the post-recession bounce-back, the most recent decline in the index ...
Gross domestic product overstates recession
... The difference between the real term of GDP and real GDP can be considerable at times. For example, real GDP in 2000 rose by 3.2% but the real term of GDP by only 1.6%. That is, after all, a difference of 1.6 percentage points, caused by steep rises in raw materials and import prices. Sadly, real GD ...
... The difference between the real term of GDP and real GDP can be considerable at times. For example, real GDP in 2000 rose by 3.2% but the real term of GDP by only 1.6%. That is, after all, a difference of 1.6 percentage points, caused by steep rises in raw materials and import prices. Sadly, real GD ...
Principles of Economics, Case and Fair,9e
... taxes and spending. monetary policy The tools used by the Federal Reserve to control the quantity of money, which in turn affects interest rates. ...
... taxes and spending. monetary policy The tools used by the Federal Reserve to control the quantity of money, which in turn affects interest rates. ...