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Wage Increases, Transfers, and the Socially Determined Income
Wage Increases, Transfers, and the Socially Determined Income

... of GDP via fiscal (broadly progressive) and financial (regressive) channels. A third major flow over time has been a ten percentage point increase in the GDP share of the top 1%. A simulation model is used to illustrate how “reasonable” modifications to tax/transfer programs and increasing low wages ...
Fundamental Determinants of the Effects of Fiscal Policy
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... consumption (but, inelastic labor supply); As a result, consumption declines more than growth, interest rates decline, investment boom, higher capital-labor ratio, and substantial improvement in current account balance and net foreign asset position. ...
Economic Policy in the Open Economy Under Fixed Exchange Rates
Economic Policy in the Open Economy Under Fixed Exchange Rates

... of the BP Curve – The slope of the BP curve depends on how responsive short-term private capital flows are to changes in the interest rate. – Points to the right of the BP curve represent BOP deficits, triggering an increase in i, which would cause an increase in capital inflows. – If capital inflow ...
Impact on Public Sector Finances
Impact on Public Sector Finances

... and National Non-Domestic Rates, to be deducted from the assessment of tax obligations. This is different to ESA95 where, for these specific taxes, tax is recorded based on the expected amount of tax which would be collected with a corresponding capital transfer back to households and private sector ...
The Great Austerity War: James Crotty
The Great Austerity War: James Crotty

... To understand the kind of political economy that today's right-wing coalition wants to achieve in the US, consider the boom of the second half of the 1920s. In that era there was little regulation of business, very low taxes on business and rich households, a crippled union movement, a powerful fina ...
Chapter 8 PPT
Chapter 8 PPT

... stock to a limited a number of people is known as a closely held corporation. These owners rarely trade their stock. Ex: Simplot › A publicly held corporation, has many shareholders that buy and sell their stock on the open (financial) markets. › Government owned corporation- Post Office ...
Public debt, Finite Horizons in NGM
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... See appendix to Ch. 3. In 2-period version, individuals work, receive wages, consume, and save in period 1; receive asset income and consume in period 2. May also pay taxes in period 1 and receive social security in period 2. Economy goes on forever (no end of world). Individuals have finite horizon ...
Six of one, half a dozen of the other
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Recommending a Strategy
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CHAPTER 23: The Art of Central Banking: Targets, Instruments and
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... she had intended to remain employed until retirement. Therefore, one can successfully introduce an appropriate amount of discount by using the actual work history of the employee, which already factors in this likelihood, and one need address the discount explicitly only when there is little or no w ...
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Redesigning social security, for the 2020s
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... expanded and this will pay for itself over decades through benefit savings, but even very high levels of new supply will not reduce the need for more housing benefit spending in the 2020s. Most recent proposals for reform of working-age social security have focused on the short term and therefore as ...
KW2_Ch13_FINAL
KW2_Ch13_FINAL

... 3. Fiscal policy has a multiplier effect on the economy, the size of which depends upon the fiscal policy. Except in the case of lumpsum taxes, taxes reduce the size of the multiplier. Expansionary fiscal policy leads to an increase in real GDP, while contractionary fiscal policy leads to a reductio ...
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... target of 7%. We also estimate the maximum net benefit when banks meet the Basel III longterm liquidity requirements. Our estimated permanent net benefit is larger than the average estimates of the BCBS. This significant marginal benenfit suggests that UK banks need to increase their reliance on com ...
Pinnacle Academ y
Pinnacle Academ y

... LIBOR for first reset period is 5.75%. A 3-year interest rate cap with a face value of $250 million and a strike price of 7% is available for a premium of 3.75%. Calculate effective cost of the capped loan for the following LIBOR on the next 5 rollover dates: 5.5%, 6%, 6.25%, 6.5% and 6.75%. Fixed i ...
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Country report on Bulgaria - European Commission

... to a reduction in gross external debt, mitigating risks. However, the negative level of the net external position remains rather high and the increasing financing needs of the government create some new risks. ...
Documento Carlos Machicado Inesad Bolivia.pdf
Documento Carlos Machicado Inesad Bolivia.pdf

... the new international financial system, established from a set of new financial instruments systematically integrated: the securitization and credit deregulation, computerization of money circulation, financial globalization, financial derivatives, new speculative investment funds, among others. All ...
Four Fund Accounting Essentials
Four Fund Accounting Essentials

... Basis Factor: takes the average balance for each fund and allocates pool earnings to that fund based on the realized gain, unrealized gain, dividend and interest and investment expense. Averaging Factor: typically uses the average daily balance of each participating fund over the period the fund is ...
Expansionary fiscal policy
Expansionary fiscal policy

... 3. Fiscal policy has a multiplier effect on the economy, the size of which depends upon the fiscal policy. Except in the case of lumpsum taxes, taxes reduce the size of the multiplier. Expansionary fiscal policy leads to an increase in real GDP, while contractionary fiscal policy leads to a reductio ...
2 THE REAL ECONOMY
2 THE REAL ECONOMY

... rating. Any losses from the set of underlying mortgage loans were to be borne by the holders of the riskier lower-rated tranches. The low risk of the best tranches was conditional on a low default correlation for the underlying subprime mortgages, which, given their similar characteristics and the a ...
Slide Set 5
Slide Set 5

... In terms of consumption, we all strive to achieve a “comfort zone”. Once we achieve that or are closer to it we do not need to increase our consumption as much with our income as we had done at lower levels of income. ...
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Pensions crisis

The pensions crisis is a predicted difficulty in paying for corporate, state, and federal pensions in the United States and Europe, due to a difference between pension obligations and the resources set aside to fund them. Shifting demographics are causing a lower ratio of workers per retiree; contributing factors include retirees living longer (increasing the relative number of retirees), and lower birth rates (decreasing the relative number of workers, especially relative to the Post-WW2 Baby Boom). There is significant debate regarding the magnitude and importance of the problem, as well as the solutions.For example, as of 2008, the estimates for the underfunding of U.S. states' pension programs range from $1 trillion using the discount rate of 8% to $3.23 trillion using U.S. Treasury bond yields as the discount rate. The present value of unfunded obligations under Social Security as of August 2010 was approximately $5.4 trillion. In other words, this amount would have to be set aside today such that the principal and interest would cover the program's shortfall between tax revenues and payouts over the next 75 years.Some economists question the concept of funding, and, therefore underfunding. Storing funds by governments, in the form of fiat currencies, is the functional equivalent of storing a collection of their own IOUs. They will be equally inflationary to newly written ones when they do come to be used.Reform ideas are in three primary categories: a) Addressing the worker-retiree ratio, via raising the retirement age, employment policy and immigration policy; b) Reducing obligations via shifting from defined benefit to defined contribution pension types and reducing future payment amounts (by, for example, adjusting the formula that determines the level of benefits); and c) Increasing resources to fund pensions via increasing contribution rates and raising taxes.
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