The sustainability of public finances lies at the core of sound
... of currency crisis being systematically linked to the size of hidden deficits for Malaysia, Indonesia, Korea, Philippines and Thailand. This is particularly important considering that all of these countries exhibited either small budget deficits or surpluses. ...
... of currency crisis being systematically linked to the size of hidden deficits for Malaysia, Indonesia, Korea, Philippines and Thailand. This is particularly important considering that all of these countries exhibited either small budget deficits or surpluses. ...
Debt Overhangs: Past and Present
... about the tentative nature of economic expansion argue that the risks from elevated richcountry government indebtedness are wildly overblown, except of course for impecunious borrowers in the Eurozone periphery such as Greece. After all, market real interest rates for the very largest economies are ...
... about the tentative nature of economic expansion argue that the risks from elevated richcountry government indebtedness are wildly overblown, except of course for impecunious borrowers in the Eurozone periphery such as Greece. After all, market real interest rates for the very largest economies are ...
The End of the Great Depression 1939‐41: VAR Insight on Policy Contributions and Fiscal Multipliers
... Depression last so long?” is perhaps the second most important topic in domestic macroeconomic history next to “Why did the Great Depression Happen?” A determination of what factor or combination of factors ended the Depression can be turned on its head to suggest which alternative policies coul ...
... Depression last so long?” is perhaps the second most important topic in domestic macroeconomic history next to “Why did the Great Depression Happen?” A determination of what factor or combination of factors ended the Depression can be turned on its head to suggest which alternative policies coul ...
Foundations of Economics, 3e (Bade/Parkin)
... B) unemployed; fully employed C) contracted; expanded D) overused; underused E) fully employed; underused Answer: D Topic: Business cycle Skill: Level 2: Using definitions Objective: Checkpoint 29.1 Author: DMC ...
... B) unemployed; fully employed C) contracted; expanded D) overused; underused E) fully employed; underused Answer: D Topic: Business cycle Skill: Level 2: Using definitions Objective: Checkpoint 29.1 Author: DMC ...
GDP and the Standard of Living
... information about wages, rents, interest, and profits that would allow a separate calculation of total income, but you don’t need to make that calculation. 2c. GDP. GDP can be measured either as total income or as total expenditure. So GDP is $60 billion. Additional Practice Problem 5.1a Last year c ...
... information about wages, rents, interest, and profits that would allow a separate calculation of total income, but you don’t need to make that calculation. 2c. GDP. GDP can be measured either as total income or as total expenditure. So GDP is $60 billion. Additional Practice Problem 5.1a Last year c ...
GDP and the Standard of Living
... information about wages, rents, interest, and profits that would allow a separate calculation of total income, but you don’t need to make that calculation. 2c. GDP. GDP can be measured either as total income or as total expenditure. So GDP is $60 billion. Additional Practice Problem 20.1a Last year ...
... information about wages, rents, interest, and profits that would allow a separate calculation of total income, but you don’t need to make that calculation. 2c. GDP. GDP can be measured either as total income or as total expenditure. So GDP is $60 billion. Additional Practice Problem 20.1a Last year ...
ETT Chapter 13
... goods and services demanded by all people in the economy. • Aggregate demand is related to the price level or the average of all prices as measured by a price index. • If the price level goes down, a larger quantity of real domestic output is ...
... goods and services demanded by all people in the economy. • Aggregate demand is related to the price level or the average of all prices as measured by a price index. • If the price level goes down, a larger quantity of real domestic output is ...
Fiscal Cyclicality and EMU* Agustin S. Benetrix, IIIS, Trinity College Dublin
... in 2002, these authors were unable to differentiate between the impact of the Maastricht Treaty and EMU membership. Fatás and Mihov (2010) report country-by-country estimates of the impact of EMU on the cyclical behaviour of fiscal policy for each member of the euro area in the 1970-2007 period. I ...
... in 2002, these authors were unable to differentiate between the impact of the Maastricht Treaty and EMU membership. Fatás and Mihov (2010) report country-by-country estimates of the impact of EMU on the cyclical behaviour of fiscal policy for each member of the euro area in the 1970-2007 period. I ...
What are the Effects of Fiscal Policy Shocks
... financed by corresponding cuts of expenditure or by corresponding increases in government debt? These questions are of key importance to the science of economics and the practice of policy alike. This paper aims at answering these questions by proposing and applying a new method of identifying fisca ...
... financed by corresponding cuts of expenditure or by corresponding increases in government debt? These questions are of key importance to the science of economics and the practice of policy alike. This paper aims at answering these questions by proposing and applying a new method of identifying fisca ...
this working paper in PDF format
... We focus on a variable of interest that is informative on the state of the business cycle. In particular, we focus on real GDP following Stock and Watson (1999, p. 15), who note that: “although the business cycle technically is ...
... We focus on a variable of interest that is informative on the state of the business cycle. In particular, we focus on real GDP following Stock and Watson (1999, p. 15), who note that: “although the business cycle technically is ...
lecture6_2006_hv
... Trade deficit increases in the short-run because the increase in real exports is less than the increase in real imports (based upon values of alphas!) Real GDP shoots above the base case value, so that there is a boom in the economy in the short-run. In the long-run, once the prices adjust completel ...
... Trade deficit increases in the short-run because the increase in real exports is less than the increase in real imports (based upon values of alphas!) Real GDP shoots above the base case value, so that there is a boom in the economy in the short-run. In the long-run, once the prices adjust completel ...
"Great Inflation" Lessons for Monetary Policy
... silver, which had for centuries provided a strong nominal anchor and thus stabilised inflation expectations: “In earlier periods before roughly 1965, the monetary regime guaranteed some long-run stability in monetary growth, and therefore in long-term inflation, which in turn restricted the effects ...
... silver, which had for centuries provided a strong nominal anchor and thus stabilised inflation expectations: “In earlier periods before roughly 1965, the monetary regime guaranteed some long-run stability in monetary growth, and therefore in long-term inflation, which in turn restricted the effects ...
Firm Dynamics, Persistent Effects of Entry Conditions, and Business
... I begin by assessing whether the average size of businesses that begin operations during expansions (“expansionary startups”) differs from that of businesses that begin operations in recessions (“recessionary startups”). I estimate these effects using a model that decomposes longitudinal outcomes into ...
... I begin by assessing whether the average size of businesses that begin operations during expansions (“expansionary startups”) differs from that of businesses that begin operations in recessions (“recessionary startups”). I estimate these effects using a model that decomposes longitudinal outcomes into ...
oecd economic outlook
... imbalances would continue indefinitely without prompting market-driven adjustment, which could turn unpleasant. Energy prices have risen to high levels in a context of strong demand, limited spare capacity and geopolitical risks and could be driven up substantially further by supply disruptions. Lon ...
... imbalances would continue indefinitely without prompting market-driven adjustment, which could turn unpleasant. Energy prices have risen to high levels in a context of strong demand, limited spare capacity and geopolitical risks and could be driven up substantially further by supply disruptions. Lon ...
keynesian and new(keynesian models: the impact of military
... that purchases consumption goods (divided in spending for military and non-military sectors), raises (lump-sum and income) taxes and issues nominal debt. Finally, we include a monetary authority, which sets its policy instrument, the nominal interest rate. We estimate the theoretical model with a Ba ...
... that purchases consumption goods (divided in spending for military and non-military sectors), raises (lump-sum and income) taxes and issues nominal debt. Finally, we include a monetary authority, which sets its policy instrument, the nominal interest rate. We estimate the theoretical model with a Ba ...
The Reconnection Agenda
... focused on econ 101 dynamic flow charts and more on the insight of the renowned economist Mike Tyson: “everyone’s got a plan, until they get punched.” The US economy had been punched big time by an imploding housing bubble inflated by “innovative finance” and excessive leverage (borrowing), which is ...
... focused on econ 101 dynamic flow charts and more on the insight of the renowned economist Mike Tyson: “everyone’s got a plan, until they get punched.” The US economy had been punched big time by an imploding housing bubble inflated by “innovative finance” and excessive leverage (borrowing), which is ...
GDP and the Standard of Living
... How does your standard of living compare with that of your parents when they were your age? Who is better off: you or a college student in Beijing, China? We defined the standard of living in Chapter 1 (p. 4) as the level of consumption of goods and services that people enjoy, on the average, measur ...
... How does your standard of living compare with that of your parents when they were your age? Who is better off: you or a college student in Beijing, China? We defined the standard of living in Chapter 1 (p. 4) as the level of consumption of goods and services that people enjoy, on the average, measur ...
Combining Monetary and Fiscal Policy in an SVAR for a Small Open
... fects, or scal foresight or anticipation.5 In contrast to monetary policy changes, changes to discretionary scal spending or new tax rules and rates must rst be legislated by parliament before they can take eect. In addition, once a new scal policy is approved, it often takes a considerable amo ...
... fects, or scal foresight or anticipation.5 In contrast to monetary policy changes, changes to discretionary scal spending or new tax rules and rates must rst be legislated by parliament before they can take eect. In addition, once a new scal policy is approved, it often takes a considerable amo ...
Credit Spreads and the Severity of Financial Crises Arvind Krishnamurthy Tyler Muir
... that surprises coupled with high fragility can lead to crises. High credit growth, following on Jorda et al. (2010), is one way to measure fragility. Thus we have two cases. A crisis as de…ned in the literature, i;t > , is a case where fragility is high and there a large surprise. In other cases, wh ...
... that surprises coupled with high fragility can lead to crises. High credit growth, following on Jorda et al. (2010), is one way to measure fragility. Thus we have two cases. A crisis as de…ned in the literature, i;t > , is a case where fragility is high and there a large surprise. In other cases, wh ...
Does high public debt consistently stifle economic growth? A critique
... figures are clearly the most relevant to ongoing US and European policy debates. The more recent data are also the most reliable, since they entailed much less splicing together of data by RR from multiple sources that frequently used different statistical methodologies. We examine the results repor ...
... figures are clearly the most relevant to ongoing US and European policy debates. The more recent data are also the most reliable, since they entailed much less splicing together of data by RR from multiple sources that frequently used different statistical methodologies. We examine the results repor ...
Economics of Money, Banking, and Fin. Markets, 10e (Mishkin
... A) Money or the money supply is defined as Federal Reserve notes. B) The average price of goods and services in an economy is called the aggregate price level. C) The inflation rate is measured as the rate of change in the federal government budget deficit. D) The aggregate price level is measured a ...
... A) Money or the money supply is defined as Federal Reserve notes. B) The average price of goods and services in an economy is called the aggregate price level. C) The inflation rate is measured as the rate of change in the federal government budget deficit. D) The aggregate price level is measured a ...
pressures and priorities
... Shifts in the level and structure of public spending in the UK have also been driven by political choices. Between 1997 and 2010, total public spending rose by an average of 3.4 per cent a year in real terms, compared to an average of 1.6 per cent a year between 1979 and 1997. During these periods, ...
... Shifts in the level and structure of public spending in the UK have also been driven by political choices. Between 1997 and 2010, total public spending rose by an average of 3.4 per cent a year in real terms, compared to an average of 1.6 per cent a year between 1979 and 1997. During these periods, ...
What is Economics? 1 Chapter 13 expenditure multipliers: The
... IV. The Multiplier and the Price Level A. In the equilibrium expenditure model, the price level remains constant. But real firms don’t hold their prices constant for long. When they have an unplanned change in inventories, they change production and prices. And the price level changes when firms cha ...
... IV. The Multiplier and the Price Level A. In the equilibrium expenditure model, the price level remains constant. But real firms don’t hold their prices constant for long. When they have an unplanned change in inventories, they change production and prices. And the price level changes when firms cha ...
The End of the Great Depression: VAR Insight on the Roles of
... This paper examines the recovery of the United States from the Great Depression of the 1930s, a topic that has been intensely debated by economists in recent decades. A newly created quarterly dataset of real GDP components, the GDP Deflator and potential real GDP allows the paper to take a fres ...
... This paper examines the recovery of the United States from the Great Depression of the 1930s, a topic that has been intensely debated by economists in recent decades. A newly created quarterly dataset of real GDP components, the GDP Deflator and potential real GDP allows the paper to take a fres ...