Fiscal Policy
... What Could We have Done Better? • Stimulus not large enough • Poorly timed, nearly too late • Too many tax cuts, not enough spending, temporary tax cuts don’t have a large impact on aggregate demand • Better targeting of tax cuts to increase the impact • Too afraid of “make work” programs, i.e. too ...
... What Could We have Done Better? • Stimulus not large enough • Poorly timed, nearly too late • Too many tax cuts, not enough spending, temporary tax cuts don’t have a large impact on aggregate demand • Better targeting of tax cuts to increase the impact • Too afraid of “make work” programs, i.e. too ...
Working Paper No. 385 Macroeconomic Policies of the Economic
... some recovery expected in 2004. A similar pattern is evident in the cases of the U.S. economy and Britain (where the situation does not appear to be as bad). However, it is the U.S. growth rate expected at 3.4 and 3.6 percent in 2003 and 2004 respectively, against the euro area's 1.0 and 2.3 percent ...
... some recovery expected in 2004. A similar pattern is evident in the cases of the U.S. economy and Britain (where the situation does not appear to be as bad). However, it is the U.S. growth rate expected at 3.4 and 3.6 percent in 2003 and 2004 respectively, against the euro area's 1.0 and 2.3 percent ...
5.ThieuHutNSNN
... future taxes for lower current taxes, and thus, – budget deficits affect the timing of taxes, but not their magnitude. • New Classical economists argue that when debt is substituted for taxes: – people save the increased income so they will be able to pay the higher future taxes, thus, – the budget ...
... future taxes for lower current taxes, and thus, – budget deficits affect the timing of taxes, but not their magnitude. • New Classical economists argue that when debt is substituted for taxes: – people save the increased income so they will be able to pay the higher future taxes, thus, – the budget ...
economics notes – topic 3: economic issues
... Australia’s economic growth rates are usually well below those of newly-industrialising economies such as China, India and Vietnam – this is because high-income nations such as Australia already make widespread use of machines/updated technology and thus radical improvements in labour/capital prod ...
... Australia’s economic growth rates are usually well below those of newly-industrialising economies such as China, India and Vietnam – this is because high-income nations such as Australia already make widespread use of machines/updated technology and thus radical improvements in labour/capital prod ...
An Analysis of the Fiscal Stance of the New Zealand Government
... determine if the inflation adjusted structural budget imbalance has a greater impact on short-term business cycles than the nominal structural imbalance. Movements in real economic activity in New Zealand can be positively related to the inflation adjusted structural budget deficit. This is illustra ...
... determine if the inflation adjusted structural budget imbalance has a greater impact on short-term business cycles than the nominal structural imbalance. Movements in real economic activity in New Zealand can be positively related to the inflation adjusted structural budget deficit. This is illustra ...
7CHAPTER Macroeconomic Measurements, Part II: GDP and Real
... Real GDP is used to compare output in one country with that in another. Two special problems arise in making these comparisons. Real GDP of one country must be converted into the same currency units as the real GDP of the other country, so an exchange rate must be used. The same prices should be use ...
... Real GDP is used to compare output in one country with that in another. Two special problems arise in making these comparisons. Real GDP of one country must be converted into the same currency units as the real GDP of the other country, so an exchange rate must be used. The same prices should be use ...
Fiscal Divergence and Business Cycle Synchronization
... paper): Industrial Production (IP) is available at annual, quarterly and monthly frequency • Calculate CC using three frequencies • CC based on annual frequency, in principle, should have much larger variance than the other two it should show up in results ...
... paper): Industrial Production (IP) is available at annual, quarterly and monthly frequency • Calculate CC using three frequencies • CC based on annual frequency, in principle, should have much larger variance than the other two it should show up in results ...
PDF Download
... see whether the dispersion of GDP per employee distribution decreased over time (σ-convergence).1 Figure 3.1 shows the EU27 regions where the horizontal axis shows the productivity level in 1991 and the vertical axis represents subsequent average growth over a 20 year period. The figure also indicat ...
... see whether the dispersion of GDP per employee distribution decreased over time (σ-convergence).1 Figure 3.1 shows the EU27 regions where the horizontal axis shows the productivity level in 1991 and the vertical axis represents subsequent average growth over a 20 year period. The figure also indicat ...
Chapter 1
... • For non-economists, an investment normally refers to the purchase of common stocks or bonds • For economists, investment spending refers to the purchase of physical assets, such as new machines or new houses—purchases that add to GDP ...
... • For non-economists, an investment normally refers to the purchase of common stocks or bonds • For economists, investment spending refers to the purchase of physical assets, such as new machines or new houses—purchases that add to GDP ...
An evaluation of real GDP forecasts: 1996–2001
... longer-run trends—or potential GDP growth—provide shocks that hit the economy and of the responses of an important anchor for projections more than a couhouseholds and businesses to those events. Forecasters ple quarters out. As just noted, this characterization do not have this luxury. By their ver ...
... longer-run trends—or potential GDP growth—provide shocks that hit the economy and of the responses of an important anchor for projections more than a couhouseholds and businesses to those events. Forecasters ple quarters out. As just noted, this characterization do not have this luxury. By their ver ...
Macroeconomics, 6e (Abel et al.) Chapter 8 Business Cycles 8.1
... 14) The idea that the business cycle is recurrent means that A) declines in economic activity tend to be followed by further declines, and growth in economic activity tends to be followed by more growth. B) the standard pattern of contraction-trough-expansion-peak occurs again and again in in ...
... 14) The idea that the business cycle is recurrent means that A) declines in economic activity tend to be followed by further declines, and growth in economic activity tends to be followed by more growth. B) the standard pattern of contraction-trough-expansion-peak occurs again and again in in ...
Escaping from a Liquidity Trap and Deflation: The Foolproof Way
... Japan lowered the interest rate to zero and kept it there from February 1999 to August 2000, and again from March 2001 until now. From March 2001, after long indecisiveness, it also attempted a so-called “quantitative easing,” a substantial expansion of the monetary base. During two years up to the ...
... Japan lowered the interest rate to zero and kept it there from February 1999 to August 2000, and again from March 2001 until now. From March 2001, after long indecisiveness, it also attempted a so-called “quantitative easing,” a substantial expansion of the monetary base. During two years up to the ...
1 - Alexander Mosesov`s
... With respect to this book, microeconomist would look into the demand and supply of economics text-books, structures of their product and factor markets, individual consumption and production decisions, resources in use, production costs and profits. Macroeconomist though would not bother with such d ...
... With respect to this book, microeconomist would look into the demand and supply of economics text-books, structures of their product and factor markets, individual consumption and production decisions, resources in use, production costs and profits. Macroeconomist though would not bother with such d ...
Fiscal Policy in an Unemployment Crisis
... effect on output. The reason is that increased production costs put upward pressure on (expected) inflation, which thereby lowers the real interest rate (e.g. Eggertsson (2012)). Wieland (2014) uses two natural experiments to test this prediction. Despite the fact that a negative supply shock indeed ...
... effect on output. The reason is that increased production costs put upward pressure on (expected) inflation, which thereby lowers the real interest rate (e.g. Eggertsson (2012)). Wieland (2014) uses two natural experiments to test this prediction. Despite the fact that a negative supply shock indeed ...
4. Supply and Demand Developments
... compared to the outlook presented in the October Inflation Report. The growth did not slow down in this quarter, while domestic demand remained almost flat and imports continued to tumble. Exports experienced a quarterly increase in the third quarter, thus the net external demand has contributed pos ...
... compared to the outlook presented in the October Inflation Report. The growth did not slow down in this quarter, while domestic demand remained almost flat and imports continued to tumble. Exports experienced a quarterly increase in the third quarter, thus the net external demand has contributed pos ...
Inflation Dynamics During and After the Zero Lower Bound Introduction
... Experiment 1. In our first experiment we ask the following question: what would have happened in the U.S., had the Fed targeted a 4% inflation rate throughout our sample? The results are depicted in Figure 4 of the handout. The solid black lines correspond to the actual data. We consider two alterna ...
... Experiment 1. In our first experiment we ask the following question: what would have happened in the U.S., had the Fed targeted a 4% inflation rate throughout our sample? The results are depicted in Figure 4 of the handout. The solid black lines correspond to the actual data. We consider two alterna ...
Answers to Homework #4
... The equilibrium level of investment spending can be found by using the initial demand for loanable funds curve that does not include the government deficit and the new equilibrium interest rate. Thus, 4.25 = 10 – (1/100)(I) or I = $575. The equilibrium level of private savings can be found by using ...
... The equilibrium level of investment spending can be found by using the initial demand for loanable funds curve that does not include the government deficit and the new equilibrium interest rate. Thus, 4.25 = 10 – (1/100)(I) or I = $575. The equilibrium level of private savings can be found by using ...
introduction to macroeconomics e202
... a. Labor force - those employed or unemployed who are willing, able and searching for work; the labor force is about 50% of the total population. b. Part-time employment - those who do not have 40 hours of work (or equivalent) available to them, at 6 million U.S. workers were involuntarily part-time ...
... a. Labor force - those employed or unemployed who are willing, able and searching for work; the labor force is about 50% of the total population. b. Part-time employment - those who do not have 40 hours of work (or equivalent) available to them, at 6 million U.S. workers were involuntarily part-time ...
Time-Varying Causality between Research Output and Economic Growth in US
... instability in an economy; fact that may result in misleading results. Hence testing for instabilities is of paramount importance in an ever-changing world. Against this backdrop, the objective of this paper is to investigate the relationship between knowledge (research output) and economic growth i ...
... instability in an economy; fact that may result in misleading results. Hence testing for instabilities is of paramount importance in an ever-changing world. Against this backdrop, the objective of this paper is to investigate the relationship between knowledge (research output) and economic growth i ...
Chapter 10:
... Using these relationships, the chapter then derives the open economy Keynesian-Cross diagram in the incomeexpenditure plane for a given interest rate. Chapter 10 also introduces the Keynesian IS-LM-BP model, which will be employed in the next several chapters on open economy macroeconomics and polic ...
... Using these relationships, the chapter then derives the open economy Keynesian-Cross diagram in the incomeexpenditure plane for a given interest rate. Chapter 10 also introduces the Keynesian IS-LM-BP model, which will be employed in the next several chapters on open economy macroeconomics and polic ...
Inflation Cycles
... At its peak, in 1980, the misery index hit 22. At its lowest, in 1953, the misery index was 3. ...
... At its peak, in 1980, the misery index hit 22. At its lowest, in 1953, the misery index was 3. ...
Nominal Rigidities and the Effects of Government Spending Shocks
... A number of New Neoclassical Synthesis models have been developed in order to account for this evidence. Gali’, Lopez-Salido and Valles (2004) build a model with sticky prices and rule of thumb consumers (i.e. consumers who each period spend their entire labor income without borrowing or saving) and ...
... A number of New Neoclassical Synthesis models have been developed in order to account for this evidence. Gali’, Lopez-Salido and Valles (2004) build a model with sticky prices and rule of thumb consumers (i.e. consumers who each period spend their entire labor income without borrowing or saving) and ...
Sunspots, GDP and the stock market
... Science-based decision-making tools enjoy objectivity and are particularly useful in situations where human bias can play an important role. But defending the idea that stock-market growth correlates to GDP growth does not need scientific support; after all, they both reflect fundamental aspects of ...
... Science-based decision-making tools enjoy objectivity and are particularly useful in situations where human bias can play an important role. But defending the idea that stock-market growth correlates to GDP growth does not need scientific support; after all, they both reflect fundamental aspects of ...
NBER WORKING PAPER SERIES GLOBAL REAL ESTATE MARKETS - William N. Goetzmann
... significantly correlated to stock returns and to changes in GDP. In his in-depth analysis of the international real estate slump of the 1990's, Renaud (1997) considers the degree to which unique events in the late 1980's may have led to the correlated change in real estate prices and the global econ ...
... significantly correlated to stock returns and to changes in GDP. In his in-depth analysis of the international real estate slump of the 1990's, Renaud (1997) considers the degree to which unique events in the late 1980's may have led to the correlated change in real estate prices and the global econ ...