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The Effects of Labor and Product Market Reforms
The Effects of Labor and Product Market Reforms

... 0.6 and 0.3 percent, respectively, while no significant average impact of major reforms of employment protection legislation for regular workers could be identified. Second, reforms typically take time to pay off. For example, the positive impact of product market reform becomes statistically signif ...
Deputy Minister of Finance speech
Deputy Minister of Finance speech

... Of course, complexities underlie these simple statistics, but they do cast a powerful picture. The level of household debt as a percentage of household disposable income now stands at 68%. The access and usage of credit continues to grow, despite warnings by the Reserve Bank Governor that households ...
A Simulation of Counter-cyclical Intervention
A Simulation of Counter-cyclical Intervention

... inflationary episodes of the business cycle typically last longer. However, they will also note that because they are looking at a relatively short time frame the random variation of each simulation is significant and so these general rules are not always experienced. Once students are familiar with ...
1133962068_375204
1133962068_375204

... Exhibit 4: Shifts in Aggregate Demand and Aggregate Supply What might cause the aggregate demand curve in panel a of Exhibit 4 to shift to the right? • Increases in government spending, increases in incomes, and optimistic expectations could all cause the aggregate demand curve to shift to the righ ...
Chapter 6
Chapter 6

... The SAS curve shifts leftward. The price level rises and real GDP decreases until it has returned to potential GDP. ...
Output Response to Government Spending: Evidence from New International Military Spending Data
Output Response to Government Spending: Evidence from New International Military Spending Data

... employment of a magnitude unseen since the early 1930s’ Great Depression. During this episode, policymakers found themselves in an environment that required an immediate, bold response and that was poorly explained by the dominant economic theories of the time. Fiscal policy, among other measures, w ...
spd04 Marinheiro1-k  225550 en
spd04 Marinheiro1-k 225550 en

... decrease  in  public  revenues  and  an  automatic  increase  in  social  spending  (mostly  unemployment  compensation).  However,  for  fiscal  policy  to  be  sustainable,  i.e.  to  avoid  excessive  debt  accumulation,  the  budget  balance  needs  to  improve  when  the  economy  is  growing.  ...
Impact of Global Economic Developments on
Impact of Global Economic Developments on

... cost of goods and services sold locally increase thus forcing consumers to even spend less. In Nigeria, the drop in oil prices triggered capital outflows and then a loss in value of the Naira. This meant imported goods and services recorded a hike in prices. ...
a dual mandate for the federal reserve: the pursuit of price stability
a dual mandate for the federal reserve: the pursuit of price stability

... In 1966 and 1967 monetary policy sought to prevent the economy from overheating. President Lyndon Johnson, despite warnings about incipient inflation, was unwilling to restrict fiscal policy. Finally, in 1968 he agreed to a temporary tax increase, which did little to reduce total spending or inflati ...
iv. the size and role of automatic fiscal stabilisers
iv. the size and role of automatic fiscal stabilisers

... influence on economic activity. When this occurs, the negative effect on private spending operates to diminish or even to reverse the supportive effects of automatic fiscal stabilisers. Such confidence effects are not incorporated in INTERLINK and, therefore, not reflected in the results reported in ...
Does investment call the tune? Empirical evidence and
Does investment call the tune? Empirical evidence and

... investment and the lack of effective demand with unsold goods that characterizes recessions. Some authors who support the profit-squeeze hypothesis also seem to hold underconsumptionist views, since they deemphasize the role of investment in business cycles by claiming that, with a “relatively weak ...
Final consumption expenditure in Albania
Final consumption expenditure in Albania

... From the coefficients we can see that there is a positive relationship between GDP per capita and final consumption expenditure, the dependent variable. For each unit increase in GDP per capita there is an increase in final consumption expenditure by 1879288 units. It has a negative relationship bet ...
Volume 36, Issue 4
Volume 36, Issue 4

... Our estimates of LRDGDP,INF are larger than the significant ones available, for instance, in Bullard and Keating (1995), namely those for Austria, Germany, Finland and the UK. However, it is also true that from the early sixties to 1992 - their observation period - inflation yearly rates ranged from ...
MEASURING GDP AND ECONOMIC GROWTH
MEASURING GDP AND ECONOMIC GROWTH

... To assess the state of the economy and to make big decisions about business expansion, firms use forecasts of GDP. What exactly is GDP? How do we use GDP to tell us how rapidly our economy is expanding or whether our economy is in a recession? How do we take the effects of inflation out of GDP to re ...
Chapter 14: Explanations of Consumer Spending
Chapter 14: Explanations of Consumer Spending

... checks, helping to prevent the economy from going into recession. This event is harder to analyze. The tax cut is a permanent change. The rebate check would be cancelled when people calculate their income taxes the following year (they would get less of a refund or would have to pay more to the gove ...
Systematic Errors in Growth Expectations over the Business Cycle
Systematic Errors in Growth Expectations over the Business Cycle

... The literature on forecast evaluation has a long tradition of analyzing whether macroeconomic forecasts are ex-ante unbiased. Since Mincer and Zarnowitz (1969) and Holden and Peel (1990), there have been numerous studies that analyze whether, for instance, growth or inflation expectations published ...
Chapter 8
Chapter 8

... (K, L), still rises for fixed values of K and L. The marginal product of capital, MPK, and the interest rate, i, also rise as before. The intertemporal-substitution effect from the higher i still motivates households to reduce current consumption, C, and raise current real saving. ...
On the Use of High-Frequency Economic Information to Anticipate
On the Use of High-Frequency Economic Information to Anticipate

... components, we compute their 3-month averages in order to get quarterly series, and then we regress the quarterly GDP on its associated quarterly components. This will generate an equation to estimate the quarterly GDP as a function of quarterly indicators. Given that the principal components repres ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER Macroeconomics Annual 2007, Volume 22
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER Macroeconomics Annual 2007, Volume 22

... procyclical and second, in firm-level evidence by Berman et al. (2007). Using ...
O`Sullivan Sheffrin Peres 6e
O`Sullivan Sheffrin Peres 6e

... • If we used Wal-Mart’s sales to compare it to a country, it would have a GDP similar to that of Belgium, which is ranked 28th in the world. • However, using the more appropriate measure of value added, WalMart’s size is closer to Bulgaria, ranked 56th in the world. ...
Measuring GDP and
Measuring GDP and

... capital that results from wear and tear and obsolescence. Gross investment is the total amount spent on purchases of new capital and on replacing depreciated capital. Net investment is the increase in the value of the firm’s ...
Activist Fiscal Policy to Stabilize Economic Activity
Activist Fiscal Policy to Stabilize Economic Activity

... First, there was concern that the policies, although adopted in February 2009, would be implemented only gradually, with much of the impact coming after the recession was over and the recovery underway. While the concern about policy lags is one of the standard criticisms of countercyclical fiscal p ...
Review - November / December 1998
Review - November / December 1998

... help the government finance its debt stimulated monetary growth. What followed were substantial increases in inflation. Nevertheless, even in wartime, there is reason to think that the Fed could have kept a damper on inflation. When federal deficits rose in the 1980s, but the rate of monetary growth ...
Aggregate Demand
Aggregate Demand

... The Monetarist View A monetarist is a macroeconomist who believes that the economy is self-regulating and that it will normally operate at full employment, provided that monetary policy is not erratic and that the pace of money growth is kept steady. The term “monetarist” was coined by an outstandin ...
The CBR Macro-Economic Model of the UK Economy
The CBR Macro-Economic Model of the UK Economy

... might reasonably have expected that Bank of England forecasters for instance would have had insights into the fragility of the UK banking sector. Moreover, almost all UK models then over-predicted the post-2009 recovery. They also under-predicted inflation, which rose to over 5% in the midst of rec ...
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Recession

In economics, a recession is a business cycle contraction. It is a general slowdown in economic activity. Macroeconomic indicators such as GDP (gross domestic product), investment spending, capacity utilization, household income, business profits, and inflation fall, while bankruptcies and the unemployment rate rise.Recessions generally occur when there is a widespread drop in spending (an adverse demand shock). This may be triggered by various events, such as a financial crisis, an external trade shock, an adverse supply shock or the bursting of an economic bubble. Governments usually respond to recessions by adopting expansionary macroeconomic policies, such as increasing money supply, increasing government spending and decreasing taxation.
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