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Demographic Changes and Macroeconomic Performance
Demographic Changes and Macroeconomic Performance

... Third, we may need to consider the so-called “spending wave” hypothesis (Chart 10). For one reason, the Japanese asset price bubble was caused by Japanese baby boomers who experienced their peak spending years, particularly, for mortgages. bubble period, they indeed actively purchased their homes. ...
135 Fiscal policy in a monetary union from the perspective of the
135 Fiscal policy in a monetary union from the perspective of the

... to almost any small economic entity with independent fiscal authorities in any monetary union. Therefore, our conclusions have the valor of universality – they can be applied not only to existing monetary unions, but also to those that seized to exist, or will be born in the future. One of the first ...
Y * 1
Y * 1

...  NNP = Net National Income + indirect taxes (sales-like “excise” taxes collected before any private sector unit calculates its income).  Indirect taxes = sales-like “excise” taxes collected before any private sector unit calculates its income.  Income = Earnings of all types: wages, rent, interes ...
1. All of the following would tend to make actual deposit creation
1. All of the following would tend to make actual deposit creation

... 37. When monetary authorities seek to stop a sustained inflation, they seek to remove the inflationary gap by a. shifting the SRAS curve upward. b. shifting the SRAS curve downward. c. increasing the outward shift of the AD curve. d. stopping the outward shift of the AD curve. e. taking no action an ...
Aggregate Demand - Los Angeles Harbor College
Aggregate Demand - Los Angeles Harbor College

... Crowding out effect: Crowding out effect is quite important because it can completely erase fiscal policy's intention to correct the market. As the government tried to spend more to correct the recessionary gap in our economy, they compete with private sector for resources and goods and services. As ...
Working With Our Basic Aggregate Demand / Supply Model
Working With Our Basic Aggregate Demand / Supply Model

... In an open economy, higher interest rates attract capital from abroad. As foreigners buy more dollars to buy U.S. bonds and other financial assets, the dollar appreciates. In turn, the appreciation of the dollar causes net exports to fall. Thus, as a result of increased budget deficits, higher inter ...
Chapter 15: Government Debt and Budget Deficits
Chapter 15: Government Debt and Budget Deficits

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Open Economy
Open Economy

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appendix to chapter 26
appendix to chapter 26

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dividend stock investments in a rising interest rate environment
dividend stock investments in a rising interest rate environment

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Monetary Policy Effects
Monetary Policy Effects

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Aaron Barbour
Aaron Barbour

... [email protected] www.community-links.org ...
FINDING RELATIVE VALUE OPPORTUNITIES IN FIXED INCOME
FINDING RELATIVE VALUE OPPORTUNITIES IN FIXED INCOME

Happy News from the Dismal Science: Reassessing Japanese
Happy News from the Dismal Science: Reassessing Japanese

... levels in Japan have almost no impact on long-run sustainability calculations and that the “right” long-run tax level simply depends on one’s forecast of the “right” long-run expenditure level. As a result of this, the monetization or reduction of today’s debt level would not have much impact on the ...
Pensions, Savings and Housing: A Life
Pensions, Savings and Housing: A Life

... one, so that the degree of intertemporal substitution in response to relative ‘price’ changes induced by policy changes is expected to be less than that obtained by the present model. The representative household chooses values of c1 , c2 and cH to maximise utility, subject to a lifetime budget cons ...
Aggregate Expenditure
Aggregate Expenditure

... It is a way to measure the total GDP or Gross Domestic Product (A measure of the level of economic activity). It is defined as the value of planned goods and services produced in an economy. GDP is calculated by the formula C + I + G + NX  C = Consumption Expenditure (Also written as CE) ...
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Economics Practice Test 5
Economics Practice Test 5

... China has surpassed the United States as the largest economy in the world. A) True B) False ...
Chapter 6 International Investment and Financing Decisions
Chapter 6 International Investment and Financing Decisions

... Example 7 ABC plc is considering whether to establish a subsidiary in the USA, at a cost of $2,400,000. This would be represented by non-current assets of $2,000,000 and working capital of $400,000. The subsidiary would produce a product which would achieve annual sales of $1,600,000 and incur cash ...
1.4 Stakes and Stakeholders
1.4 Stakes and Stakeholders

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AP Macro Unit 4 Notes - Phoenix Union High School District
AP Macro Unit 4 Notes - Phoenix Union High School District

... What is the problem with the economy? Recession! How do you know this? Unemployment is at a very high rate, higher than it’s normal range of 3-5%. The economy is also shrinking, since the RGDP is negative. ...
The Growing Role of Alternative Investments
The Growing Role of Alternative Investments

... view preexisting portfolio holdings, unlike when they invest in public equities. Committees instead must rely on a manager’s past success in allocating capital for similar private equity closed-end funds. Hedge funds pursue a wide range of strategies and, thus, have a broad range of risk and return ...
DIVISION OF FINANCIAL INSTITUTIONS
DIVISION OF FINANCIAL INSTITUTIONS

... Total liabilities reflected in column (B) of Form OFR-U-53 are calculated by subtracting accrued expenses and amounts due and other liabilities to related offices from Total Liabilities. ...
University of Provence - University of North Florida
University of Provence - University of North Florida

... income attributed to an investment divided by the average book value of the assets • AAR Rule – an investment is acceptable if the AAR exceeds a specified target level • Deficiencies – ignores time value of money; accounting income not necessarily related to cash flow; accounting return may not be r ...
GEBA MAX - at www.GEBA.com.
GEBA MAX - at www.GEBA.com.

... During the withdrawal charge period, the annuity’s cash withdrawal value may be less than the principal allocation. Interest credited daily. Interest rate(s) in subsequent years may be less. The initial interest rate credited to the 3- and 5-year extended guaranteed periods will be lower than that c ...
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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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