Reassessing Discretionary Fiscal Policy
... in the AD curve would bring about changes in inflation—with the IA line rising— until real GDP returned to potential GDP. At this point it is important to distinguish between discretionary changes in taxes and spending—for example, the legislative and executive actions proposed by Presidents Bush an ...
... in the AD curve would bring about changes in inflation—with the IA line rising— until real GDP returned to potential GDP. At this point it is important to distinguish between discretionary changes in taxes and spending—for example, the legislative and executive actions proposed by Presidents Bush an ...
Robrt J. Gordon Working 1050 OF EVENTS AND
... acceptance of monetarism owes much to the coincidence in 1968 of an unexpected acceleration in inflation together with the failure of the tax surcharge enacted in that year. Similarly, the increased degree of inertia evident in the behavior of inflation from 1954 on helped win ready acceptance for t ...
... acceptance of monetarism owes much to the coincidence in 1968 of an unexpected acceleration in inflation together with the failure of the tax surcharge enacted in that year. Similarly, the increased degree of inertia evident in the behavior of inflation from 1954 on helped win ready acceptance for t ...
Chapter 18 - The Citadel
... Let’s Create Our Own Work As the U.S. economy began its recovery in 2002, many people who had been unemployed started their own businesses. If the economy is resilient and flexible, then people can find a means to generate an income, even if they are doing something a bit different from what the ...
... Let’s Create Our Own Work As the U.S. economy began its recovery in 2002, many people who had been unemployed started their own businesses. If the economy is resilient and flexible, then people can find a means to generate an income, even if they are doing something a bit different from what the ...
Nudging the Fed Toward a Rules-Based Policy
... policy transmission mechanisms. 3. Monetary policy can be highly effective in reviving a weak economy even if short-term rates are already near zero [Mishkin ...
... policy transmission mechanisms. 3. Monetary policy can be highly effective in reviving a weak economy even if short-term rates are already near zero [Mishkin ...
Economic Effects of Successful Sports Franchises on Local Economies
... one of the contestants and the playoff lead up to championships may be prolonged or may not ...
... one of the contestants and the playoff lead up to championships may be prolonged or may not ...
princ-ch23-presentation
... A. Debbie spends $200 to buy her husband dinner at the finest restaurant in Boston. B. Sarah spends $1800 on a new laptop to use in her publishing business. The laptop was built in China. C. Jane spends $1200 on a computer to use in her editing business. She got last year’s model on sale for a great ...
... A. Debbie spends $200 to buy her husband dinner at the finest restaurant in Boston. B. Sarah spends $1800 on a new laptop to use in her publishing business. The laptop was built in China. C. Jane spends $1200 on a computer to use in her editing business. She got last year’s model on sale for a great ...
The Political Economy of Keynesian Demand Management
... treatment of personal finances to further scrutiny, there is a case to be made that ...
... treatment of personal finances to further scrutiny, there is a case to be made that ...
Student_Chapter 15 Lecture Notes
... 15.3 UNEMPLOYMENT AND FULL EMPLOYMENT The key reason why there is always some unemployment is because the labor market is constantly churning. New jobs are created and old jobs die; and some people move into the labor force and some move out of it. This churning creates unemployment. We distinguish ...
... 15.3 UNEMPLOYMENT AND FULL EMPLOYMENT The key reason why there is always some unemployment is because the labor market is constantly churning. New jobs are created and old jobs die; and some people move into the labor force and some move out of it. This churning creates unemployment. We distinguish ...
Chapter 8 - Faculty Personal Web Page
... 2 Main Methods of Measuring GDP (cont'd) Deriving GDP by the expenditure approach b. Gross Private Domestic Investment (I) • The creation of capital goods, such as factories and machines, that can yield production and hence consumption in the future – Also included: changes in business inventorie ...
... 2 Main Methods of Measuring GDP (cont'd) Deriving GDP by the expenditure approach b. Gross Private Domestic Investment (I) • The creation of capital goods, such as factories and machines, that can yield production and hence consumption in the future – Also included: changes in business inventorie ...
Chapter 8 - Faculty Personal Web Page
... GDP’s limitations Excludes non-market production Excludes non-reported (illegal) market production It is not necessarily a good measure of the well-being of a nation. GDP is a measure of the value of production in ...
... GDP’s limitations Excludes non-market production Excludes non-reported (illegal) market production It is not necessarily a good measure of the well-being of a nation. GDP is a measure of the value of production in ...
Chapter 25 - Aggregate Demand and Aggregate Supply
... An Example: The Great Depression • U.S. economy collapsed far more seriously during 1929 through 1933—the onset of the Great Depression—than it did at any other time • What do we know about demand shocks that caused Great Depression? – Fall of 1929, bubble of optimism burst – Stock market crashed, ...
... An Example: The Great Depression • U.S. economy collapsed far more seriously during 1929 through 1933—the onset of the Great Depression—than it did at any other time • What do we know about demand shocks that caused Great Depression? – Fall of 1929, bubble of optimism burst – Stock market crashed, ...
WIKILEAKS
... The key to understanding the nature of stagflation is the natural rate of unemployment. That is the lowest rate of unemployment consistent with a stable rate of inflation. Below that rate, inflation tends to accelerate. In the view of the natural rate model, unemployment and inflation rates may be r ...
... The key to understanding the nature of stagflation is the natural rate of unemployment. That is the lowest rate of unemployment consistent with a stable rate of inflation. Below that rate, inflation tends to accelerate. In the view of the natural rate model, unemployment and inflation rates may be r ...
AN INCOME REDISTRIBUTION THEORY OF INFLATION AND
... unemployment, separately or together. We assume — and our theory is built on this assumption — that both inflation and unemployment redistribute income in an unegalitarian way. They do this by themselves along their course, and we shall show that they also accelerate themselves through this income r ...
... unemployment, separately or together. We assume — and our theory is built on this assumption — that both inflation and unemployment redistribute income in an unegalitarian way. They do this by themselves along their course, and we shall show that they also accelerate themselves through this income r ...
CHAPTER OVERVIEW
... policy) is likely to move the attached object to its desired destination, pushing on a string is not. ...
... policy) is likely to move the attached object to its desired destination, pushing on a string is not. ...
the paper - Brookings Institution
... 1. Under our view of current policy, the deficit falls to 2.4 percent in 2015 before rising to 4.2 percent by 2025.4 Also, note that the underlying economic projection assumes that the economy returns almost all the way to full employment by the end of 2017 and remains close to full employment throu ...
... 1. Under our view of current policy, the deficit falls to 2.4 percent in 2015 before rising to 4.2 percent by 2025.4 Also, note that the underlying economic projection assumes that the economy returns almost all the way to full employment by the end of 2017 and remains close to full employment throu ...
Is it a Recessionary Gap or a fall in Potential Output?
... retrospect we know that, as oil prices rose, the productive capacity of the economy fell. But at the time, policymakers didn’t realize that. Instead, they thought lower output reflected a recessionary gap. As a result, inflation went higher and stayed there for longer than it should have. We can use ...
... retrospect we know that, as oil prices rose, the productive capacity of the economy fell. But at the time, policymakers didn’t realize that. Instead, they thought lower output reflected a recessionary gap. As a result, inflation went higher and stayed there for longer than it should have. We can use ...
GDP chpt 10 - Cobb Learning
... A. Debbie spends $200 to buy her husband dinner at the finest restaurant in Boston. B. Sarah spends $1800 on a new laptop to use in her publishing business. The laptop was built in China. C. Jane spends $1200 on a computer to use in her editing business. She got last year’s model on sale for a great ...
... A. Debbie spends $200 to buy her husband dinner at the finest restaurant in Boston. B. Sarah spends $1800 on a new laptop to use in her publishing business. The laptop was built in China. C. Jane spends $1200 on a computer to use in her editing business. She got last year’s model on sale for a great ...
The U.S. Economy in the 1990s: A Neoliberal Success Story?
... A process of neoliberal restructuring has been going on in many parts of the world in recent decades. The belief that domestic and international liberalization, privatization, and cutbacks in public spending are the route to economic success is firmly lodged, despite the absence of supporting eviden ...
... A process of neoliberal restructuring has been going on in many parts of the world in recent decades. The belief that domestic and international liberalization, privatization, and cutbacks in public spending are the route to economic success is firmly lodged, despite the absence of supporting eviden ...
PP - Chapter 05
... same job, GDP would have been higher, even though the amount of output would have been identical. Why is this? Does this make sense? ...
... same job, GDP would have been higher, even though the amount of output would have been identical. Why is this? Does this make sense? ...
NBK Kuwait
... averaged 10% in the first 10 months of 2013, up from a 7% average in 2012 and consistent with decent growth in the broader economy. (Chart 19.) Growth in the more volatile short-term measure, M1, has been much stronger – helped by the low interest rate environment. Private sector deposit growth has ...
... averaged 10% in the first 10 months of 2013, up from a 7% average in 2012 and consistent with decent growth in the broader economy. (Chart 19.) Growth in the more volatile short-term measure, M1, has been much stronger – helped by the low interest rate environment. Private sector deposit growth has ...
Chapter 3 Business Cycle Measurement
... 36) A reverse Phillips Curve would consist of a A) positive relationship between deviations from trend in real and nominal interest rates. B) negative relationship between deviations from trend in real and nominal interest rates. C) positive relationship between deviations from trend in the level of ...
... 36) A reverse Phillips Curve would consist of a A) positive relationship between deviations from trend in real and nominal interest rates. B) negative relationship between deviations from trend in real and nominal interest rates. C) positive relationship between deviations from trend in the level of ...
IMF Macroeconomic Impact of Fiscal Policy In This Issue
... rate policy on sovereign bond spreads. They show that an overvalued real exchange rate significantly increases sover eign spreads, with the size of this effect being greater under a fixed exchange rate regime. During crisis periods, how ever, this result is reversed, with a free-floating regime le ...
... rate policy on sovereign bond spreads. They show that an overvalued real exchange rate significantly increases sover eign spreads, with the size of this effect being greater under a fixed exchange rate regime. During crisis periods, how ever, this result is reversed, with a free-floating regime le ...
By Habits or Choice? Discretionary Spending in the Oecd 1. GOALS
... • Empirically, the absence or the presence of less stringent obligations should not only imply a lower persistence but also a higher volatility relative to more automatic types of spending • We consider the volatility and persistence of each spending variable by taking cyclical variables (HP-filter) ...
... • Empirically, the absence or the presence of less stringent obligations should not only imply a lower persistence but also a higher volatility relative to more automatic types of spending • We consider the volatility and persistence of each spending variable by taking cyclical variables (HP-filter) ...
The Classical View
... decline in a nation’s aggregate supply, which destabilizes the economy by simultaneously causing cost-push inflation and recession. ...
... decline in a nation’s aggregate supply, which destabilizes the economy by simultaneously causing cost-push inflation and recession. ...