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lecture6_2006_hv
lecture6_2006_hv

... Inflation follows the money growth path, lagging behind at first but then overshooting on the way down. Inflation, however, is equal to the growth rate of money supply in the long-run The real interest rate becomes cyclic. At first it drops and then rises as P overshoots M! Investment follows a cycl ...
Merit Motives and Government Intervention
Merit Motives and Government Intervention

... and who reported no Railroad Retirement Income. For Medicare, we included all individuals 65 years of age and older. The series are weighted to reflect the population distribution of income and characteristics. Figure 1 suggests that these large programs cannot be binding for the rich, as they suppl ...
Indrani De - Quaffers.org
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... Overall ESG scores have a predictive & positive effect on subsequent total stock returns and ROE. The predictive ability is much stronger for ROE. But the different sub-scores have very different information content. The most meaningful sub scores were (a) Corporate Governance (b) Social score The l ...
Financing the Millennium Development Goals: The Philippines
Financing the Millennium Development Goals: The Philippines

... increase in the access to safe water and sanitation indicates that maintaining the current rate of progress is adequate to bring about the achievement of said goals by 2015. In contrast, Table 1 shows that the rate of progress required to meet the MDG targets with respect to under-5 malnutrition rat ...
What explains developments in business investment?
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... equilibrium level of around 10 percent when the explanatory variables are set equal to their average values. Other calculations based on theoretical relationships and historical averages indicate that the long-term equilibrium level of the investment share may be higher than 10 percent. Overall, thi ...
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n a flE EDICIVE I OF flhI'2ES1 Ra's

... between a number of suggested predictors. We test the ability of the alternative interest rate variables to predict nine different monthly measures of real macroeconomic activity, as well as the inflation rate. While many interest rate variables have been excellent predictors of the economy during t ...
Public Sector Stability and Balance of Payments Crises in Selected
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Public Sector Stability and Balance of Payments Crisis
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Monetary Policy Practice Questions
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... expense framework either. For the time being, the care allowance has been included in an additional item under the budget discipline sector Central Government. B. The budget discipline sector Social Security and Labour Market Policy refers to the total expenditure in that sector. This includes both ...
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The Recent Recession, the Current Recovery, and Stock Prices
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... include these adjustments. There are two published versions of S&P profits. The first is operating earnings, which are more or less the earnings from continuing operations and exclude the impact of cumulative accounting changes, discontinued operations, extraordinary items, and special items; the se ...
The Long-Run Performance of German Stock Mutual Funds
The Long-Run Performance of German Stock Mutual Funds

... is an important member of the latter group. In both groups shareholders obtain immediately or at the time when their income tax obligation is settled – this may be several months or even years later – a cash or quasi-cash payment (Körperschaftsteuergutschrift) which results from the fact that the co ...
Building the Aggregate Expenditures Model
Building the Aggregate Expenditures Model

... 51. Given the consumption schedule, it is possible to graph the relevant saving schedule by: A) subtracting the MPC from "one" at each level of income. B) subtracting investment from consumption at each level of GDP. C) plotting the horizontal differences between the consumption schedule and the 45- ...
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DOCX - World bank documents

... positions, and not so much the yearly salary increases. The nominal value of the wage bill since 2008 has increased by 29.3 percent, almost exactly the combined value of inflation over the same period (29.2 percent) – although the nominal increases were not even across all departments, since the arm ...
The Equilibrium Real Funds Rate: Past, Present and Future
The Equilibrium Real Funds Rate: Past, Present and Future

... where ...
Liquidity and Asset Prices
Liquidity and Asset Prices

... We show that the circulation of the liquid asset is essential for resource allocation—i.e., the economy is “monetary”—if each agent rarely has a productive investment opportunity, if investing agents can sell only a small fraction of capital, and if the income share of land is small relative to capi ...
MacroLab Documentation - BORA
MacroLab Documentation - BORA

... that the real-world counterparts to the components of the model—and their general relationships—should resemble the U.S. economy described in standard textbooks, whether in words or models. Suitable also means that the behavior generated endogenously by the model’s structure is more or less consiste ...
Crisis Prevention through Global Surveillance: A Task beyond the IMF
Crisis Prevention through Global Surveillance: A Task beyond the IMF

... Crisis Prevention through Global Surveillance: A Task beyond the IMF Swaminathan S. Anklesaria Aiyar In early 2008, the future of the International Monetary Fund was in doubt. The world was awash with dollars since the United States ran an enormous current account deficit, the mirror image of which ...
A Brookings Macroeconomic Forum DO BUDGET DEFICITS
A Brookings Macroeconomic Forum DO BUDGET DEFICITS

... private saving when public saving falls? If private saving rises by less than 100 percent of the decline in public saving, national saving has to fall and future national income has to fall. Whether interest rates rise or not is down around Point C, and it's an interesting question but it's not cent ...
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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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