Credit contractions and unemployment
... The peak effect occurs, on average, two years after the beginning of the decline in credit, and it does not quite vanish after four years. A credit contraction in a typical OECD country increases total unemployment rates by nearly 1% at the peak. The impact on young workers is even more pronounced, i ...
... The peak effect occurs, on average, two years after the beginning of the decline in credit, and it does not quite vanish after four years. A credit contraction in a typical OECD country increases total unemployment rates by nearly 1% at the peak. The impact on young workers is even more pronounced, i ...
European Economic Forecast Autumn 2013
... allowing domestic demand to replace net exports as the main driver of growth. Financial frictions weigh on investment ...
... allowing domestic demand to replace net exports as the main driver of growth. Financial frictions weigh on investment ...
Skyscraper Height and the Business Cycle
... We perform this analysis for the United States, Canada, China, and Hong Kong. We find that in all of these cases, real per capita GDP and height are cointegrated; and there is unidirectional causality from GDP to height. These findings lead us to the conclusions that (1) height is not a useful predi ...
... We perform this analysis for the United States, Canada, China, and Hong Kong. We find that in all of these cases, real per capita GDP and height are cointegrated; and there is unidirectional causality from GDP to height. These findings lead us to the conclusions that (1) height is not a useful predi ...
NATIONAL
... The inflation tax reduces private spending in the same way as an income tax in the usual IS equation. This assumption introduces a new channel through which inflation affects the economy. For example, incomes policies reduce the output loss from stabilization because lower government spending is off ...
... The inflation tax reduces private spending in the same way as an income tax in the usual IS equation. This assumption introduces a new channel through which inflation affects the economy. For example, incomes policies reduce the output loss from stabilization because lower government spending is off ...
Greek fiscal multipliers revisited Government spending
... The size of the automatic stabilizers (i.e., the output elasticity of government revenue and spending) is relatively small, meaning that the automatic offsets to an exogenous fiscal shock are limited. Domestic economic conditions are recessionary and the economy is far from its full employment equil ...
... The size of the automatic stabilizers (i.e., the output elasticity of government revenue and spending) is relatively small, meaning that the automatic offsets to an exogenous fiscal shock are limited. Domestic economic conditions are recessionary and the economy is far from its full employment equil ...
"Household Debt and Business Cycles Worldwide"
... First, household debt growth is indeed correlated with consumption booms. We find that a rise in the household debt to GDP ratio is contemporaneously correlated with a rise in the consumption share of output and a decline in the net export to output ratio. As mentioned above, the decline in net expo ...
... First, household debt growth is indeed correlated with consumption booms. We find that a rise in the household debt to GDP ratio is contemporaneously correlated with a rise in the consumption share of output and a decline in the net export to output ratio. As mentioned above, the decline in net expo ...
Chapter 3. Will It Hurt?
... contractionary impact. Consolidation is more painful when it relies primarily on tax hikes; this occurs largely because central banks typically provide less monetary stimulus during such episodes, particularly when they involve indirect tax hikes that raise inflation. Also, fiscal consolidation is m ...
... contractionary impact. Consolidation is more painful when it relies primarily on tax hikes; this occurs largely because central banks typically provide less monetary stimulus during such episodes, particularly when they involve indirect tax hikes that raise inflation. Also, fiscal consolidation is m ...
Household Debt and Business Cycles Worldwide
... First, household debt growth is indeed correlated with consumption booms. We find that a rise in the household debt to GDP ratio is contemporaneously correlated with a rise in the consumption share of output and a decline in the net export to output ratio. As mentioned above, the decline in net expo ...
... First, household debt growth is indeed correlated with consumption booms. We find that a rise in the household debt to GDP ratio is contemporaneously correlated with a rise in the consumption share of output and a decline in the net export to output ratio. As mentioned above, the decline in net expo ...
Unemployment-Inflation Relationship
... and excise taxes paid by the consumer are also included. Income taxes and investment items (like stocks, bonds, and life insurance) are not included. The CPI-U (all urban consumers) includes expenditures by urban wage earners and clerical workers, professional, managerial, and technical workers, the ...
... and excise taxes paid by the consumer are also included. Income taxes and investment items (like stocks, bonds, and life insurance) are not included. The CPI-U (all urban consumers) includes expenditures by urban wage earners and clerical workers, professional, managerial, and technical workers, the ...
GDP Weighting in Asset Allocation
... Hence, a global GDP weighted index tends to overweight certain countries relative to their economic weight. These countries may include those that are less mature, may not be completely liberalized, and may have a high relative proportion of state-owned or privately held companies. As shown in Exhib ...
... Hence, a global GDP weighted index tends to overweight certain countries relative to their economic weight. These countries may include those that are less mature, may not be completely liberalized, and may have a high relative proportion of state-owned or privately held companies. As shown in Exhib ...
European Economic Forecast Spring 2014
... is noticeable. The improved economic outlook encompasses the vulnerable euro-area Member States, where the impact of the crisis and adjustment needs had been the strongest. However, challenges and vulnerabilities remain and require continued monitoring and policy action. Moreover, support from the e ...
... is noticeable. The improved economic outlook encompasses the vulnerable euro-area Member States, where the impact of the crisis and adjustment needs had been the strongest. However, challenges and vulnerabilities remain and require continued monitoring and policy action. Moreover, support from the e ...
here.
... changed over time, and how it might change going forward. Two recent publications from government throw light on this issue. The 2011 Public Expenditure Statistical Analyses Command Paper, published in July by the Treasury, shows how spending has changed by function over time, and gives some indicat ...
... changed over time, and how it might change going forward. Two recent publications from government throw light on this issue. The 2011 Public Expenditure Statistical Analyses Command Paper, published in July by the Treasury, shows how spending has changed by function over time, and gives some indicat ...
Document
... The Income and Expenditure Multiplier Suppose autonomous spending decreases $10 and mpc is 0.8 First decrease in spending is $10 Leads to a decrease in output of $10 Second decrease in spending is $8 Third decrease is $6.40, etc. Sum of the decreases in spending ...
... The Income and Expenditure Multiplier Suppose autonomous spending decreases $10 and mpc is 0.8 First decrease in spending is $10 Leads to a decrease in output of $10 Second decrease in spending is $8 Third decrease is $6.40, etc. Sum of the decreases in spending ...
guns, butter, leon keyserling, the afl-cio, and the - The Keep
... Keyserling’s plan brazenly dismissed all limits. There need be no necessary business cycle; inflation was not to be feared; nor was there to be concern about waste or inefficiency. To most economists, s ...
... Keyserling’s plan brazenly dismissed all limits. There need be no necessary business cycle; inflation was not to be feared; nor was there to be concern about waste or inefficiency. To most economists, s ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: American Economic Policy in the 1980s
... 1980s. This is combined with an effort to interpret the effects that monetary policy was having on the evolution of the economy and to assess critically the conduct of that policy. The interpretative effort is based not on a formally specified, statistically estimated econometric model, but rather o ...
... 1980s. This is combined with an effort to interpret the effects that monetary policy was having on the evolution of the economy and to assess critically the conduct of that policy. The interpretative effort is based not on a formally specified, statistically estimated econometric model, but rather o ...
Changes in Inventory Managment and the Business Cycle
... 1970, This suggests that the JIT philosophy has made major inroads into U.S. manufacturing. Bechter and Stanley (1992) find empirical evidence of improved inventory control along with faster speeds of adjustment to desired inventory levels. Prima facie evidence of the success in reducing manufacturi ...
... 1970, This suggests that the JIT philosophy has made major inroads into U.S. manufacturing. Bechter and Stanley (1992) find empirical evidence of improved inventory control along with faster speeds of adjustment to desired inventory levels. Prima facie evidence of the success in reducing manufacturi ...
Chapter 36 MC — Five Debates Over Macroeconomic Policy
... 21. The principal reason that monetary policy has lags is that it takes a long time for a. changes in the interest rate to change aggregate demand. b. changes in the money supply to change interest rates. c. the Fed to make changes in policy. d. None of the above is correct. ANS: A PTS: 1 DIF: 1 REF ...
... 21. The principal reason that monetary policy has lags is that it takes a long time for a. changes in the interest rate to change aggregate demand. b. changes in the money supply to change interest rates. c. the Fed to make changes in policy. d. None of the above is correct. ANS: A PTS: 1 DIF: 1 REF ...
Multiple-choice questions to accompany
... But don't shoot the CPI - whether bringing good news or bad, it's the best messenger we've got." During a typical inflation a) the CPI rises by less than the cost of living b) the CPI rises by more than the cost of living c) the CPI and the cost of living rise by the same amount d) there is no consi ...
... But don't shoot the CPI - whether bringing good news or bad, it's the best messenger we've got." During a typical inflation a) the CPI rises by less than the cost of living b) the CPI rises by more than the cost of living c) the CPI and the cost of living rise by the same amount d) there is no consi ...
Sample Chapter 13
... stock of wealth. Disposable income (after-tax income) in the United States is nearly $9 trillion annually, and consumers spend a large portion of it. Even though there was a mild recession in 2001, disposable income and consumption spending were both greater in July 2002 than in March 2000. Second, ...
... stock of wealth. Disposable income (after-tax income) in the United States is nearly $9 trillion annually, and consumers spend a large portion of it. Even though there was a mild recession in 2001, disposable income and consumption spending were both greater in July 2002 than in March 2000. Second, ...
Keynes`s Approach to Full Employment
... in the face of depressed expectation, Keynes argued, may prove to be like “pushing on a string.” This would make monetary policy futile, especially when interest rates are already very low. Secondly, boosting the marginal efficiency of capital (or profit expectations) also has its limitations becaus ...
... in the face of depressed expectation, Keynes argued, may prove to be like “pushing on a string.” This would make monetary policy futile, especially when interest rates are already very low. Secondly, boosting the marginal efficiency of capital (or profit expectations) also has its limitations becaus ...
World Economic Outlook: Crisis and Recovery, April 2009
... Prospects Even with determined steps to return the financial sector to health and continued use of macroeconomic policy levers to support aggregate demand, global activity is projected to contract by 1.3 percent in 2009. This represents the deepest post–World War II recession by far. Moreover, the d ...
... Prospects Even with determined steps to return the financial sector to health and continued use of macroeconomic policy levers to support aggregate demand, global activity is projected to contract by 1.3 percent in 2009. This represents the deepest post–World War II recession by far. Moreover, the d ...
IB Economics SL Unit 2: Macroeconomics
... Injec6ons-‐ Is spending that is not dependent on the current level of income. Money that is received by firms that does not come directly from the households. An example of injecQons is investment sp ...
... Injec6ons-‐ Is spending that is not dependent on the current level of income. Money that is received by firms that does not come directly from the households. An example of injecQons is investment sp ...
6MONITORING CYCLES, JOBS, AND THE PRICE LEVEL*
... expansion begins. B) lower turning point of a business cycle when a recession begins. C) upper turning point of a business cycle when an expansion begins. D) upper turning point of a business cycle when a recession begins. Answer: A Topic: Business Cycle Skill: Recognition ...
... expansion begins. B) lower turning point of a business cycle when a recession begins. C) upper turning point of a business cycle when an expansion begins. D) upper turning point of a business cycle when a recession begins. Answer: A Topic: Business Cycle Skill: Recognition ...
Labour reallocation and productivity dynamics: financial causes, real
... employment growth. A large literature examines the relationship between reallocations and the business cycle to tease out causality (see for instance Baily et al (2001) or Foster et al (2014)). More recently, a growing number of studies have begun to consider the effect of credit booms on such reall ...
... employment growth. A large literature examines the relationship between reallocations and the business cycle to tease out causality (see for instance Baily et al (2001) or Foster et al (2014)). More recently, a growing number of studies have begun to consider the effect of credit booms on such reall ...