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International Adjustment and Interdependence
International Adjustment and Interdependence

... rate increases by more than the price level ...
PDF Download
PDF Download

... of insufficient tightening of fiscal policy in upswings are repeated, which will have grave consequences in the next downturn. We recommend that the current cyclical upswing be used for larger fiscal consolidation than is now occurring. ...
Extending Social security in East and South
Extending Social security in East and South

... • Achieving the right to social security demands the establishment of non-contributory (for example, taxfinanced) schemes, or other social assistance measures to provide support to those individuals and groups who are unable to make sufficient contributions for their own protection • Many other argu ...
Chapter 26 Class note SAVING, INVESTMENT, AND THE
Chapter 26 Class note SAVING, INVESTMENT, AND THE

... interest rate because the real rate reflects the true return to saving and the true cost of borrowing. Policy 1: Saving Incentives ...
Slide 1
Slide 1

... initiatives to attract youth into the agricultural value chain were introduced: the Agriculture Youth Development Initiative for SA (1998), YARD 2008) & Land Affairs YES of 2008. None of these initiatives managed to get institutionalized and therefore are not operational. Even the broadly acclaimed ...
AF09_AM2
AF09_AM2

...  Decline in fertility is accompanied by an increase in spending per child – especially human capital spending.  Human capital spending may provide a second mechanism for realizing 2nd demographic dividend  Support systems may evolve for exogenous reasons or as a consequence of population aging. ...
Question 1
Question 1

... For a small economy in a fixed exchange rate system that begins in period 0 at the long-run equilibrium point A, the government cuts net taxes moving the aggregate demand curve from its initial position AD to AD´ so that the economy is in short-run equilibrium in period 1 at point B. Assume the back ...
“Fiscal Policy” - PBworks
“Fiscal Policy” - PBworks

... Persistent budget deficits have long-run consequences because they lead to an increase in public debt. ...
QUIZ 2 14.02 Principles of Macroeconomics April 14, 2005 I. True/False (30 points)
QUIZ 2 14.02 Principles of Macroeconomics April 14, 2005 I. True/False (30 points)

... factored into prices before the jobs report arrived). Thus both the numerator and the denominator decreased in the PDV calculations, and the fact that stock prices rose on net means that the latter decrease was proportionately larger. IV. Long question - Investment Decision (25 points) Imagine that ...
Dynamic Globalization and Its Potentially Alarming Prospects for Low-Wage Workers
Dynamic Globalization and Its Potentially Alarming Prospects for Low-Wage Workers

... experiences a major increase in its relative endowment of low-skilled, and to a lesser extent, middle-skilled workers. These changes in relative world-wide factor endowments spell increasing wage-rate inequality. In 2005, our model’s base year, the wage, measured in efficiency units, of high-skille ...
Practice Problems for FE 486B – Thursday, February 2, 2012 1
Practice Problems for FE 486B – Thursday, February 2, 2012 1

... 6) Explain what happens in an asset-price bubble. Explain what happens in an asset-price crash. In an asset price bubble, something else other than a change in the interest rate or a change in the expected income of the asset causes the asset price to rise. In most cases, the asset price rises becau ...
An updated post-Keynesian alternative to the New consensus on
An updated post-Keynesian alternative to the New consensus on

... • Assume that the economy starts off from point A, shown in all quadrants of the Figure. In a ‘Minsky moment’, the risk spread τ rises considerably. As there is a rush towards liquidity and riskless assets, the prices of risky assets fall, and hence the interest rates on these assets rise. This is r ...
eee06-Weyerstrass2  3772754 en
eee06-Weyerstrass2 3772754 en

... investment and government transfer payments to private households, each in nominal terms, as well as the personal income tax rate and the social security contribution rate. With flexible exchange rates, the short-term interest rate can be used for discretionary policies in addition. The numerical re ...
Real Estate and Land Use
Real Estate and Land Use

... VN = f (D, Tp, TI, I, r, i) VN = Natural vacancy rate D = Change in demand (+, because landlords can reasonably expect higher returns from keeping the property off the market. TI = Income tax rate (+. Because tax shelter aspect of real estate  more office investment) Tp, I, r = Property tax, insu ...
The Macroeconomic Challenge of Aid Volatility
The Macroeconomic Challenge of Aid Volatility

... The Macroeconomic Challenge of Aid Volatility Andrew Berg Calvin McDonald ...
Lecture 2
Lecture 2

... of capital. In imperfect economies D(t) should be used to discount consumption costs and benefits, but the capital deployed in projects ought to be revalued so as to take account of the differences between D(t) and the various rates of return on investment. ...
FRBSF  L CONOMIC
FRBSF L CONOMIC

... output sensitivity to a short-term interest rate in Rudebusch (2002). If the Fed’s purchases reduced long rates by ½ to ¾ of a percentage point, the resulting stimulus would be very roughly equal to a 1½ to 3 percentage point cut in the funds rate. Assuming unconventional policy stimulus is maintain ...
Financial Sector Review Questions
Financial Sector Review Questions

... e. Forecasts for future corporate profits are gloomier than expected. ...
RTF 506.9 KB - Productivity Commission
RTF 506.9 KB - Productivity Commission

...  Increasing the scope of user pays, particularly for the better off. It may be easier to announce an increase in user prices that will be implemented a significant time away, because these higher costs will apply to a richer generation and people will be able to forecast and save for them.  Encour ...
portratportrait
portratportrait

... established financial company, SOREFI, closed its Mayotte branch in October 2011. However, other establishments operate directly from Réunion or mainland France without necessarily having a local branch. Despite a local economic situation which continued to be difficult in 2011, the banking and fina ...
Fiscal Redistribution in Latin America since the Nineteenth Century
Fiscal Redistribution in Latin America since the Nineteenth Century

... earlier  inequality  trends  in  Latin  America,  but  also  a  blossoming  of  research  on  the   sources  of  income  inequality  in  the  region  today,  lead  by  the  World  Bank  and  other   international  development  agencies.3 ...
PDF Download
PDF Download

... In 2014 the shadow economy amounted to 28 percent of the official GDP in Croatia (Schneider 2015). Out of 31 European countries, only Bulgaria and Romania have a larger shadow economy (see Figure 1). Key causes of the shadow economy are a high tax burden, low quality of state institutions and benefi ...
Economics 101
Economics 101

... 9. C. Selling securities will decrease the money supply. The amount is equal to -5/.16=-31.25. 10. A. A classic example of the time value of money. The promise will worth less than $2000. So B and E are incorrect. If the interest rate is higher, or the time to maturity is longer, the promise will wo ...
Clarification of PPP
Clarification of PPP

... GDP at purchaser’s prices is the sum of gross value added by all resident producers in the economy plus any product taxes and minus any subsidies not included in the value of the products. It is calculated without making deductions for depreciation of fabricated assets or for depletion and degradati ...
Quiz: Test Your Interest Rate Knowledge
Quiz: Test Your Interest Rate Knowledge

... (typically overnight) within the Federal Reserve System. Though the federal funds rate affects other interest rates, the Fed does not have direct control of consumer interest rates such as mortgage rates. 3. a. True. Raising rates theoretically slows economic activity. As a result, the Federal Reser ...
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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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