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The impact of fiscal policy on the business cycle
The impact of fiscal policy on the business cycle

... effects will be outweighed by the impact on aggregate demand. For example, a cut in company tax would probably spur investment. This investment would lead to greater productive capital in the long term, but, in the short term, the investment will boost aggregate demand as capital is purchased and pu ...
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... The Long-Run Aggregate Supply or LRAS marks the level of full employment in the economy (analogous to PPC) Because input prices are completely flexible in the long-run, changes in price-level do not change firms’ real profits and therefore do not change firms’ level of output. This means that the LR ...
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... Public-private partnerships (PPPs) are contracts that private sector offers infrastructure assets and services that is traditionally been provided by government. PPPs can be attractive for both government and private sector. For the government, private financing can provide expansion of the infrastr ...
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... immediately (to I,) due to the liquidity effect. Rational investors realise that in the medium/long run output will rise, increasing the demand for money. The short term interest rate must thus be expected to rise over time. As a consequence the long interest rate does not fall by as much as the sh ...
ICG: The Rise of Private Debt as an Institutional Asset Class
ICG: The Rise of Private Debt as an Institutional Asset Class

... “The changing strategies of traditional institutional lenders in the wake of the recession continues to act as a drag on business expansion plans. This has spurred a rapid growth and increased interest in alternative forms of lending, with demand from Europe’s SMEs matched by a strong appetite from ...
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... interest rate rule; that is, it acts to make the real interest rate behave in a certain way as a function of macroeconomic variables such as inflation and output. This assumption is a vastly better description of how central banks behave than the assumption that they follow a money supply rule. 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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