This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... time series tend to grow over time, both variables must be scaled relative to gross domestic product (GDP). Henceforth, I will use BSUR to denote the ratio of the budget surplus to gross domestic product (also obtained from the OECD National Accounts), and CAS to denote the ratio of the current acco ...
... time series tend to grow over time, both variables must be scaled relative to gross domestic product (GDP). Henceforth, I will use BSUR to denote the ratio of the budget surplus to gross domestic product (also obtained from the OECD National Accounts), and CAS to denote the ratio of the current acco ...
Money and the Transmission Mechanism in the Optimizing IS
... It is true that Hicks’ (1937) original derivation of his “IS-LL” curves was under the assumption of fully rigid nominal wages, while even some modern textbook treatments (e.g. Auerbach and Kotlikoff, 1995, p. 314) give the impression that the derivation of IS and LM relations requires the assumptio ...
... It is true that Hicks’ (1937) original derivation of his “IS-LL” curves was under the assumption of fully rigid nominal wages, while even some modern textbook treatments (e.g. Auerbach and Kotlikoff, 1995, p. 314) give the impression that the derivation of IS and LM relations requires the assumptio ...
146s10_l16a.pdf
... Monetary policy: policy in which the central bank influences the supply of monetary assets Asset market responds very rapidly...goods market less so Fiscal policy: change G or T . Fiscal policy affects aggregates demand and output first Temporary policy changes are expected to be reversed in the nea ...
... Monetary policy: policy in which the central bank influences the supply of monetary assets Asset market responds very rapidly...goods market less so Fiscal policy: change G or T . Fiscal policy affects aggregates demand and output first Temporary policy changes are expected to be reversed in the nea ...
Public Debt and Post-Crisis Fiscal Policy in South Africa
... The result was for government spending to quickly outstrip revenue, causing the fiscal balance to turn to a deficit. This difference between spending and revenue was financed by the accumulation of public debt. From a public debt level of 26% of GDP in 2009, South Africa’s debt/GDP ratio rapidly in ...
... The result was for government spending to quickly outstrip revenue, causing the fiscal balance to turn to a deficit. This difference between spending and revenue was financed by the accumulation of public debt. From a public debt level of 26% of GDP in 2009, South Africa’s debt/GDP ratio rapidly in ...
On the determinants of firms` financial surpluses and deficits
... on the precautionary motive: firms accumulate financial assets in order to avoid being financially constrained in the future. In emerging countries firm surpluses have been sometime explained by credit constraints1, but also in industrial economies banks could not be able to reach all the segments o ...
... on the precautionary motive: firms accumulate financial assets in order to avoid being financially constrained in the future. In emerging countries firm surpluses have been sometime explained by credit constraints1, but also in industrial economies banks could not be able to reach all the segments o ...
Full Paper - Centre for Macroeconomics
... government starts to build up assets. Eventually it has enough assets that it can finance all its spending from the interest on those assets, and so taxes can be completely eliminated. Both these conclusions about the long run debt target appear rather extreme, and very different from each other. Ac ...
... government starts to build up assets. Eventually it has enough assets that it can finance all its spending from the interest on those assets, and so taxes can be completely eliminated. Both these conclusions about the long run debt target appear rather extreme, and very different from each other. Ac ...
Tilburg University Money, Fiscal Defecits and Government Debt in a
... The completing of the European Monetary Union (EMU) by 1999 with the establishment of an independent common central bank, the European Central Bank (ECB), that manages the common monetary policy has considerable economic, institutional and political consequences3. Concerning the economic consequence ...
... The completing of the European Monetary Union (EMU) by 1999 with the establishment of an independent common central bank, the European Central Bank (ECB), that manages the common monetary policy has considerable economic, institutional and political consequences3. Concerning the economic consequence ...
Comprehensive Assessment: Developments in Economic Activity
... As explained at the outset, the main transmission channel of QQE and "QQE with a Negative Interest Rate" is to push down real interest rates and thereby produce a positive impact on economic activity and prices (Chart 4 "Real Long-Term Interest Rates"). Changes in financial and economic indicators s ...
... As explained at the outset, the main transmission channel of QQE and "QQE with a Negative Interest Rate" is to push down real interest rates and thereby produce a positive impact on economic activity and prices (Chart 4 "Real Long-Term Interest Rates"). Changes in financial and economic indicators s ...
Chapter 15 Review
... c. the idea of achieving market equilibrium. d. a significant role for government in the running of the economy. An example of an automatic stabilizer is a. taxes. c. interest rates. b. inflation. d. U.S. savings bonds. Supporters of supply-side economics believe that a. government should be used as ...
... c. the idea of achieving market equilibrium. d. a significant role for government in the running of the economy. An example of an automatic stabilizer is a. taxes. c. interest rates. b. inflation. d. U.S. savings bonds. Supporters of supply-side economics believe that a. government should be used as ...
economics-q.b-with answers
... Ans13. Under perfect competition – Price is constant implying AR is constant, then MR should also be constant. (AR being equal to MR) Under Monopoly – When AR is decreasing, MR should also be decreasing faster than AR. Downward sloping MR curve is below the downward sloping AR curve. Accordingly MR< ...
... Ans13. Under perfect competition – Price is constant implying AR is constant, then MR should also be constant. (AR being equal to MR) Under Monopoly – When AR is decreasing, MR should also be decreasing faster than AR. Downward sloping MR curve is below the downward sloping AR curve. Accordingly MR< ...
Valuation effects and sustainability of current account
... today will be offset by equally (in present value terms) large trade surpluses in some future period. A more demanding criterion is sustainability, which adds the idea that policies remain constant for the indefinite future. Thus, an external position is sustainable if, under the assumption that poli ...
... today will be offset by equally (in present value terms) large trade surpluses in some future period. A more demanding criterion is sustainability, which adds the idea that policies remain constant for the indefinite future. Thus, an external position is sustainable if, under the assumption that poli ...
PDF
... I. Political Liberalization, Stabilization and Adjustment, and the State There are two aspects of the emerging world order which open the door to increased domestic conflicts of influence over the state, with the associated wastage of resources. The first is in the political realm. Before the collap ...
... I. Political Liberalization, Stabilization and Adjustment, and the State There are two aspects of the emerging world order which open the door to increased domestic conflicts of influence over the state, with the associated wastage of resources. The first is in the political realm. Before the collap ...
The sustainability of fiscal policy in Italy: a long
... several key issues that are not well highlighted by examining the level of public debt. First, since the early years of the new Italian kingdom the public debt has absorbed much of GDP, with a debtto-GDP ratio amounting to 40% in 1862 due to the high level of pre-Unification debt among Italy’s state ...
... several key issues that are not well highlighted by examining the level of public debt. First, since the early years of the new Italian kingdom the public debt has absorbed much of GDP, with a debtto-GDP ratio amounting to 40% in 1862 due to the high level of pre-Unification debt among Italy’s state ...
Economic Report - Central Bank of Bahrain
... format in the Publications and Data section at http://www.cbb.gov.bh. ...
... format in the Publications and Data section at http://www.cbb.gov.bh. ...
NBER WORKING PAPER SERIES NOMINAL VERSUS INDEXED DEBT: A QUANTITATIVE HORSE RACE
... economy experiments suggest that the optimal amount of nominal debt is zero both for U.S. and Brazil. That is, for any amount of nominal debt, the inflation costs more than offset the benefits from tax smoothing. Our quantitative results, consequently, are at odds with the empirical evidence since, ...
... economy experiments suggest that the optimal amount of nominal debt is zero both for U.S. and Brazil. That is, for any amount of nominal debt, the inflation costs more than offset the benefits from tax smoothing. Our quantitative results, consequently, are at odds with the empirical evidence since, ...
The impact of government policy on macroeconomic variables: A
... societies and the export marketing was hundled largely through parastatal marketing boards, with the exception of private tea and sisal estates. Financial liberalization measures put an end to the financial repression experienced since the early 197Os, which had been characterized by negative real i ...
... societies and the export marketing was hundled largely through parastatal marketing boards, with the exception of private tea and sisal estates. Financial liberalization measures put an end to the financial repression experienced since the early 197Os, which had been characterized by negative real i ...
Policy Trade-o¤s and International Spillover E¤ects at the Zero Bound Alex Haberis
... economy in response to global shocks? The …nancial crisis of 2007-2008 and the subsequent “Great Recession” led central banks around the world to lower nominal interest rates to close to zero. Given the international nature of the crisis this question concerning the role of openness and internationa ...
... economy in response to global shocks? The …nancial crisis of 2007-2008 and the subsequent “Great Recession” led central banks around the world to lower nominal interest rates to close to zero. Given the international nature of the crisis this question concerning the role of openness and internationa ...
Real-time Taylor rules and the federal funds futures market
... forecast errors tended to be slightly larger over this small number of observations. However, the Taylor rule has at least one advantage over the futures market participants, and possibly two.10 First, the Taylor rule uses a measure of the output gap which is computed from a regression of the logari ...
... forecast errors tended to be slightly larger over this small number of observations. However, the Taylor rule has at least one advantage over the futures market participants, and possibly two.10 First, the Taylor rule uses a measure of the output gap which is computed from a regression of the logari ...
NBER WORKING PAPER SERIES THE CONDUCT OF DOMESTIC ICY Robert J. Gordon
... set of basic constraints that limit the set of outcomes that it can achieve. These include constraints on aggregate supply behavior that determine how a given path of nominal income growth will be divided between inflation and output growth, as well as "velocity" constraints that influence the path ...
... set of basic constraints that limit the set of outcomes that it can achieve. These include constraints on aggregate supply behavior that determine how a given path of nominal income growth will be divided between inflation and output growth, as well as "velocity" constraints that influence the path ...
Economics of Money, Banking, and Fin. Markets, 10e, Global Edition
... B) the costs of higher inflation in terms of the distortions it produces in the economy are high. C) it is more difficult to stabilize the inflation rate at a higher targeting level. D) all of the above. Answer: D Ques Status: New AACSB: Reflective thinking skills 3) The "Greenspan doctrine" - centr ...
... B) the costs of higher inflation in terms of the distortions it produces in the economy are high. C) it is more difficult to stabilize the inflation rate at a higher targeting level. D) all of the above. Answer: D Ques Status: New AACSB: Reflective thinking skills 3) The "Greenspan doctrine" - centr ...
** Macroeconomic Stability of Centralized and Decentralized Exchange: Anthropological Data ** This paper revisits an anthropological and historical data set I used years ago, and tests implications about macro-economic stability. It is a companion piece to the "Reciprocal Networks" piece mentioned in the previous section.
... their respective rates of investment to build up inventories, and δS and δM are their respective rates of time discounting. This is a static representation, and does not account for how the wealth terms (W) may change or differ. It can be shown (Stodder 1995a) that the major constraint on iS and iM ...
... their respective rates of investment to build up inventories, and δS and δM are their respective rates of time discounting. This is a static representation, and does not account for how the wealth terms (W) may change or differ. It can be shown (Stodder 1995a) that the major constraint on iS and iM ...
Economic Developments in Portuguese
... cent), which amounted to around 13 per cent of GDP (compared with 30.1 per cent in 2013). This second consecutive year of twin deficits clearly illustrates the exposure of fiscal and external accounts to oil price fluctuations, as had been evidenced in 2009, in the wake of a similar (although shorte ...
... cent), which amounted to around 13 per cent of GDP (compared with 30.1 per cent in 2013). This second consecutive year of twin deficits clearly illustrates the exposure of fiscal and external accounts to oil price fluctuations, as had been evidenced in 2009, in the wake of a similar (although shorte ...
Testing the Validity of the Triplet Deficit Hypothesis for Turkey
... will become more expensive, imports will become cheaper. As a result, net exports will decrease and a current account deficit will be experienced (Froyen, 1999: 396). Economists who hold the traditional view explain this relationship as the ‘twin deficit hypothesis’. The second approach is the ‘Rica ...
... will become more expensive, imports will become cheaper. As a result, net exports will decrease and a current account deficit will be experienced (Froyen, 1999: 396). Economists who hold the traditional view explain this relationship as the ‘twin deficit hypothesis’. The second approach is the ‘Rica ...
The Economic Consequences Of Rising U.S. Government Debt
... the budget. If this revenue were excluded, the average primary deficit would be 1.4% instead of 1.2% of GDP—a minor change. 12 These findings do not preclude an insurance role for nominal debt. Nominal debt helps to reduce changes in debt/GDP by exploiting the negative correlation between inflation ...
... the budget. If this revenue were excluded, the average primary deficit would be 1.4% instead of 1.2% of GDP—a minor change. 12 These findings do not preclude an insurance role for nominal debt. Nominal debt helps to reduce changes in debt/GDP by exploiting the negative correlation between inflation ...