Fiscal Stimulus in a Monetary Union: Evidence from U.S. Regions
... nominal interest rates are fixed at the zero lower bound, in which case the New Keynesian model generates large multipliers (Eggertsson, 2010; Christiano, Eichenbaum and Rebelo, 2011). We show that this is not the case. This simple intuition ignores a crucial dynamic aspect of price responses in a m ...
... nominal interest rates are fixed at the zero lower bound, in which case the New Keynesian model generates large multipliers (Eggertsson, 2010; Christiano, Eichenbaum and Rebelo, 2011). We show that this is not the case. This simple intuition ignores a crucial dynamic aspect of price responses in a m ...
Coyote Economist Economics Scholarships for Fall 2012 News.from.the.Department.of.Economics,.CSUSB
... One of those recessions lasted only 6 months; the recently ended recession lasted 3 times longer than that. In the eyes of many economists, the length and depth of Great Recession made it the worst economic situation the U.S. has faced since the Great Depression of the 1930s. Although the recession ...
... One of those recessions lasted only 6 months; the recently ended recession lasted 3 times longer than that. In the eyes of many economists, the length and depth of Great Recession made it the worst economic situation the U.S. has faced since the Great Depression of the 1930s. Although the recession ...
Modules 12 and 13 ~ Unemployment.notebook
... 4 reasons why structural unemployment always exists, explaining why the natural rate of unemployment isn't zero. 1) Efficiency wages ~ firm's pay people a little more than equilibrium wage rate to get a more loyal and stable work force. Reason why Surplus of labor exists: Labor is more expensive f ...
... 4 reasons why structural unemployment always exists, explaining why the natural rate of unemployment isn't zero. 1) Efficiency wages ~ firm's pay people a little more than equilibrium wage rate to get a more loyal and stable work force. Reason why Surplus of labor exists: Labor is more expensive f ...
Nominal GDP Targeting and the Taylor Rule on
... implications for the variance of the output gap and inflation under both a Taylor rule and a nominal GDP targeting rule in the context of a standard New Keynesian model. Contrary to much of the previous literature, we assume that the central bank has imperfect information about the output gap. We es ...
... implications for the variance of the output gap and inflation under both a Taylor rule and a nominal GDP targeting rule in the context of a standard New Keynesian model. Contrary to much of the previous literature, we assume that the central bank has imperfect information about the output gap. We es ...
8 - Weber State University
... C) wage contracts failed to specify in advance the wage increases necessary to keep up with inflation. D) All of the above. 15) The slope of the SP curve depends on A) how business changes its markups when output varies. B) whether the expansionary force in the economy is coming through monetary pol ...
... C) wage contracts failed to specify in advance the wage increases necessary to keep up with inflation. D) All of the above. 15) The slope of the SP curve depends on A) how business changes its markups when output varies. B) whether the expansionary force in the economy is coming through monetary pol ...
Government Spending Multiplier in Turkey June 2015
... can be observed in remarkable improvements in …scal indicators. For instance, General Government budget de…cit to GDP ratio gradually decreased from 11.8 percent in 2001 to 0.1 percent in 20057 . Similarly, EU-de…ned General Government debt stock to GDP ratio showed downward trend and reached 52.7 p ...
... can be observed in remarkable improvements in …scal indicators. For instance, General Government budget de…cit to GDP ratio gradually decreased from 11.8 percent in 2001 to 0.1 percent in 20057 . Similarly, EU-de…ned General Government debt stock to GDP ratio showed downward trend and reached 52.7 p ...
Chapter 10
... like a limousine, smoothing out the bumps, or like an amplifier, magnifying the fluctuations? These are the questions this chapter addresses. I. ...
... like a limousine, smoothing out the bumps, or like an amplifier, magnifying the fluctuations? These are the questions this chapter addresses. I. ...
Chapter 1: Introduction
... sticky-price equilibrium level of real GDP, as long as the central bank followed a policy of pegging the real interest rate to a fixed value. But what if the central bank does not follow a policy of pegging the interest rate at some target value? Or what if there is no central bank--as was the case ...
... sticky-price equilibrium level of real GDP, as long as the central bank followed a policy of pegging the real interest rate to a fixed value. But what if the central bank does not follow a policy of pegging the interest rate at some target value? Or what if there is no central bank--as was the case ...
FREE Sample Here - We can offer most test bank and
... Full file at http://TestbanksCafe.eu/Test-Bank-for-Macroeconomics-2nd-Edition-Hubbar 27) Explain which of the following goods and services are included and which are not included in U.S. GDP: a. Jacinda buys termite spray at her local Home Depot. b. Jacinda uses the termite spray she purchased at h ...
... Full file at http://TestbanksCafe.eu/Test-Bank-for-Macroeconomics-2nd-Edition-Hubbar 27) Explain which of the following goods and services are included and which are not included in U.S. GDP: a. Jacinda buys termite spray at her local Home Depot. b. Jacinda uses the termite spray she purchased at h ...
Fiscal Rules for Ireland - Irish Fiscal Advisory Council
... share of GDP increased by 75 per cent and 54 per cent, respectively, during 2000-2009. The boost to spending was in large part based on expectations of sustained revenue buoyancy, which had spiked due to unsustainable construction and real estate activity. Despite some tightening of the stance from ...
... share of GDP increased by 75 per cent and 54 per cent, respectively, during 2000-2009. The boost to spending was in large part based on expectations of sustained revenue buoyancy, which had spiked due to unsustainable construction and real estate activity. Despite some tightening of the stance from ...
GDP: Measuring Total Production and Income
... While microeconomics is the study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices, macroeconomics is the study of the economy as a whole. This includes such topics as economic growth, business cycles, the inflation ra ...
... While microeconomics is the study of how households and firms make choices, how they interact in markets, and how the government attempts to influence their choices, macroeconomics is the study of the economy as a whole. This includes such topics as economic growth, business cycles, the inflation ra ...
THE MULTIPLIER EFFECT A FORMULA FOR THE SPENDING
... The multiplier effect seems to suggest that when the government buys $20 billion of planes from Boeing, the resulting expansion in aggregate demand is necessarily larger than $20 billion. Yet another effect is working in the opposite direction. While an increase in government purchases stimulates th ...
... The multiplier effect seems to suggest that when the government buys $20 billion of planes from Boeing, the resulting expansion in aggregate demand is necessarily larger than $20 billion. Yet another effect is working in the opposite direction. While an increase in government purchases stimulates th ...
The Cost of the Crisis
... recession officially ended in June 2009, growth has averaged around 2%, which is low by historical standards (and inflated by extraordinary monetary policies by the Fed). And, every time the economy seems on the verge of beginning a sustained recovery, it falls back again. For example, GDP actually ...
... recession officially ended in June 2009, growth has averaged around 2%, which is low by historical standards (and inflated by extraordinary monetary policies by the Fed). And, every time the economy seems on the verge of beginning a sustained recovery, it falls back again. For example, GDP actually ...
Identifying Government Spending Shocks: It`s All in the Timing
... function is available annually only since 1959. The category of education, public order (which includes police, courts and prisons), and transportation expenditures has increased from 30 percent of total government spending to around 50 percent. The standard VAR approach includes shocks to this typ ...
... function is available annually only since 1959. The category of education, public order (which includes police, courts and prisons), and transportation expenditures has increased from 30 percent of total government spending to around 50 percent. The standard VAR approach includes shocks to this typ ...
Real Stock Returns, Volatility and Real Economic Activity: Evidence From Nigeria:
... in the United States became prominently visible in September 2008 with the failure, merger, or conservatorship of several large United States-based financial firms exposed to packaged subprime loans and credit default swaps issued to insure these loans and their issuers. On September 7, 2008, the Un ...
... in the United States became prominently visible in September 2008 with the failure, merger, or conservatorship of several large United States-based financial firms exposed to packaged subprime loans and credit default swaps issued to insure these loans and their issuers. On September 7, 2008, the Un ...
Questions to Measuring a Nation`s Income
... d. How rapidly is GDP currently increasing? 3. We would expect a macroeconomist, as opposed to a microeconomist, to be particularly interested in a. explaining how economic changes affect prices of particular goods. b. devising policies to deal with market failures such as externalities and market p ...
... d. How rapidly is GDP currently increasing? 3. We would expect a macroeconomist, as opposed to a microeconomist, to be particularly interested in a. explaining how economic changes affect prices of particular goods. b. devising policies to deal with market failures such as externalities and market p ...
Fiscal Policy and the Current Account
... of real government consumption to GDP. Indeed, this measure will also be used in the panel VAR section of this paper. On the whole, these studies have generally found evidence consistent with a small negative impact of fiscal expansions on the current account balance, except in large economies (like ...
... of real government consumption to GDP. Indeed, this measure will also be used in the panel VAR section of this paper. On the whole, these studies have generally found evidence consistent with a small negative impact of fiscal expansions on the current account balance, except in large economies (like ...
The impact of high and growing government debt - ECB
... debt turning point suggest that the negative growth effect of high debt may start already from levels of around 70-80% of GDP, which calls for even more prudent indebtedness policies. We also find evidence that the annual change of the public debt ratio and the budget deficitto-GDP ratio are negativ ...
... debt turning point suggest that the negative growth effect of high debt may start already from levels of around 70-80% of GDP, which calls for even more prudent indebtedness policies. We also find evidence that the annual change of the public debt ratio and the budget deficitto-GDP ratio are negativ ...
Federal contracts, income, output
... In the fiscal year 2016, the US federal government awarded a total of $409,229,751,215 in contracts above a $3,000 threshold. These contracts financed essential public goods and services required for the economy to operate and for society to function. They were granted to firms located all over the ...
... In the fiscal year 2016, the US federal government awarded a total of $409,229,751,215 in contracts above a $3,000 threshold. These contracts financed essential public goods and services required for the economy to operate and for society to function. They were granted to firms located all over the ...
- TestbankU
... 10) Pamela's bakery produces 500 loaves of bread in a given year. Pamela pays $100 for flour and yeast, pays $600 in wages, pays $50 in interest on an existing loan, and pays $100 in taxes to the government. One of Pamela's bread slicing machines, which cost $75 each, wears out over the course of t ...
... 10) Pamela's bakery produces 500 loaves of bread in a given year. Pamela pays $100 for flour and yeast, pays $600 in wages, pays $50 in interest on an existing loan, and pays $100 in taxes to the government. One of Pamela's bread slicing machines, which cost $75 each, wears out over the course of t ...
"Fiscal Stimulus in a Monetary Union: Evidence from U.S. Regions"
... This approach faces the challenge that large wars are relatively infrequent. Another challenge is confounding variation associated with tax increases, price controls, patriotism, and other macroeconomic shocks.2 The second main approach used to identify the multiplier is the structural VAR approach ...
... This approach faces the challenge that large wars are relatively infrequent. Another challenge is confounding variation associated with tax increases, price controls, patriotism, and other macroeconomic shocks.2 The second main approach used to identify the multiplier is the structural VAR approach ...
The Changing Dynamics of the Global Business Cycle
... Sources: Heston, Summers, and Aten (2006); Maddison (2007); United Nations, Population Prospects: The 2004 Revision Population database; World Bank, World Development Indicators database (2007); and IMF staff calculations. 1 See Appendix 5.1 for information on country group composition. 2 Growth of ...
... Sources: Heston, Summers, and Aten (2006); Maddison (2007); United Nations, Population Prospects: The 2004 Revision Population database; World Bank, World Development Indicators database (2007); and IMF staff calculations. 1 See Appendix 5.1 for information on country group composition. 2 Growth of ...
Sample
... 20) If a Canadian firm opens a production facility in the United States, the profits from this production facility received by the Canadian owners of the firm in exchange for the factors of production they supply will be included in the A) gross domestic product of Canada. B) gross national product ...
... 20) If a Canadian firm opens a production facility in the United States, the profits from this production facility received by the Canadian owners of the firm in exchange for the factors of production they supply will be included in the A) gross domestic product of Canada. B) gross national product ...
Fiscal Expansions and Adjustments in OECD Countries by Alberto
... We find that large fiscal expansions typically are biased towards increases in expenditure, while large fiscal adjustments on average rely more on tax increases. However, we find a large and fundamental difference between fiscal adjustments that lead to permanent improvements in the fiscal balance a ...
... We find that large fiscal expansions typically are biased towards increases in expenditure, while large fiscal adjustments on average rely more on tax increases. However, we find a large and fundamental difference between fiscal adjustments that lead to permanent improvements in the fiscal balance a ...
SW Report - South African Savings Institute
... fiscal deficits pose significant risks to the outlook and can be negative for savings. The impact of monetary policy on savings is unpredictable. When lowering policy rates economic activity could be stimulated leading to increased incomes and savings. If interest rates are kept at levels that are t ...
... fiscal deficits pose significant risks to the outlook and can be negative for savings. The impact of monetary policy on savings is unpredictable. When lowering policy rates economic activity could be stimulated leading to increased incomes and savings. If interest rates are kept at levels that are t ...