SUSTAINABILITY OF THE PUBLIC DEBT AND BUDGET DEFICIT
... where i is the average nominal interest rate on public sector debt, Π is the primary deficit (PSBR net of interest payments), a is the revaluation effect on existing debt (in Romania this is entirely due to the depreciation of the effective exchange rate of the Leu, since public debt is not sold, at ...
... where i is the average nominal interest rate on public sector debt, Π is the primary deficit (PSBR net of interest payments), a is the revaluation effect on existing debt (in Romania this is entirely due to the depreciation of the effective exchange rate of the Leu, since public debt is not sold, at ...
FINAL EXAM STUDY GUIDE
... 36) When you move upward from point A to point B on the SRPC above, you are also moving upward along the SRAS. For example, this occurs whenever AD shifts to the _____________, 37) The long run Phillips curve is drawn on the X-axis at what point? ______________ ...
... 36) When you move upward from point A to point B on the SRPC above, you are also moving upward along the SRAS. For example, this occurs whenever AD shifts to the _____________, 37) The long run Phillips curve is drawn on the X-axis at what point? ______________ ...
Chapter 1
... 4. The general public directly owns about 7% in the form of U.S. Savings Bonds or other treasury bonds and indirectly owns over 36% in banks, insurance companies, corporations etc., totaling almost half of the national debt. 5. All debt held by U.S. households, institutions and governments is called ...
... 4. The general public directly owns about 7% in the form of U.S. Savings Bonds or other treasury bonds and indirectly owns over 36% in banks, insurance companies, corporations etc., totaling almost half of the national debt. 5. All debt held by U.S. households, institutions and governments is called ...
Page 1 Econ 303: Intermediate Macroeconomics I Dr. Sauer Sample
... 17. If neither investment nor consumption depends on the interest rate, then the IS curve is ______ and ______ policy has no effect on output. A) vertical; monetary B) horizontal; monetary C) vertical; fiscal D) horizontal; fiscal 18. An increase in investment demand for any given level of income a ...
... 17. If neither investment nor consumption depends on the interest rate, then the IS curve is ______ and ______ policy has no effect on output. A) vertical; monetary B) horizontal; monetary C) vertical; fiscal D) horizontal; fiscal 18. An increase in investment demand for any given level of income a ...
balance of payments
... the economic disruption in Eastern Europe including the erstwhile USSR had begun to affect India's exports. A large number of Indian workers employed in Kuwait had to be airlifted to India and their remittances stopped. Foreign exchange reserves had already dwindled due to significant drawdown for ...
... the economic disruption in Eastern Europe including the erstwhile USSR had begun to affect India's exports. A large number of Indian workers employed in Kuwait had to be airlifted to India and their remittances stopped. Foreign exchange reserves had already dwindled due to significant drawdown for ...
Macro Ideas and Theories - Great Valley School District
... Economic Research has tracked the U.S. business cycle back to 1854. There are constraints to how far back in time the business cycle can be analyzed, primarily due to limited data, inaccuracy of data, and the infrequency of business cycles occurring prior to the mid-1850s.) The End of the Great Depr ...
... Economic Research has tracked the U.S. business cycle back to 1854. There are constraints to how far back in time the business cycle can be analyzed, primarily due to limited data, inaccuracy of data, and the infrequency of business cycles occurring prior to the mid-1850s.) The End of the Great Depr ...
A New Paradigm for Macroeconomic Policy Philip Arestis, University
... described as fiscal consolidation with numerical targets for budget deficits and monetary policy devoted to inflation targeting. This policy agenda, which to greater or lesser extent has been followed by many industrialized countries (and others), has close links with the ‘New Consensus Macroeconomi ...
... described as fiscal consolidation with numerical targets for budget deficits and monetary policy devoted to inflation targeting. This policy agenda, which to greater or lesser extent has been followed by many industrialized countries (and others), has close links with the ‘New Consensus Macroeconomi ...
Comments on - Center for Financial Studies
... 2. Non-linearities: Private sector behaviour • In the paper, agents are believed to respond in an unchanged manner in ‘good times’ as in ‘bad times’ but: • Behavior might change depending on e.g. the level of outstanding government debt (expectations private net wealth effects) • Importance of hi ...
... 2. Non-linearities: Private sector behaviour • In the paper, agents are believed to respond in an unchanged manner in ‘good times’ as in ‘bad times’ but: • Behavior might change depending on e.g. the level of outstanding government debt (expectations private net wealth effects) • Importance of hi ...
Answers to Questions: Chapter 6
... deficit that remains after the effect of the business cycle is separated out. A structural deficit is the deficit that exists when the economy is at the natural level of output; it is identical to the natural employment deficit. The actual budget deficit is the deficit that exists given the actual t ...
... deficit that remains after the effect of the business cycle is separated out. A structural deficit is the deficit that exists when the economy is at the natural level of output; it is identical to the natural employment deficit. The actual budget deficit is the deficit that exists given the actual t ...
final review macro - Open Computing Facility
... 1. The closed-economy government spending multiplier is smaller than (1/(1-mpc)) if the Fed maintains a money supply target. Because when G goes up, PAE goes up, Y goes up due to the multiplier effect. But when Y goes up, Md goes up because the economy demands more money to spend their additional in ...
... 1. The closed-economy government spending multiplier is smaller than (1/(1-mpc)) if the Fed maintains a money supply target. Because when G goes up, PAE goes up, Y goes up due to the multiplier effect. But when Y goes up, Md goes up because the economy demands more money to spend their additional in ...
Policy Note THE FUTURE OF THE DOLLAR Has the Unthinkable Become Thinkable?
... economy. Underutilized capacity, combined with a high level of indebtedness in the U.S. corporate sector, implies that business investment will be depressed for a long time to come. Despite falling stock prices and contraction of business investment, a consumption boom has continued, kept alive by a ...
... economy. Underutilized capacity, combined with a high level of indebtedness in the U.S. corporate sector, implies that business investment will be depressed for a long time to come. Despite falling stock prices and contraction of business investment, a consumption boom has continued, kept alive by a ...
The Hayek-Keynes Debate Lessons for Current Business Cycle
... policy is to prevent that eventuality. Otherwise the self-reversing process will move the economy back toward equilibrium so that intervention would be unnecessary. In fact, ill-conceived intervention could intensify both the rate of unemployment and economic instability. One may wonder whether, acc ...
... policy is to prevent that eventuality. Otherwise the self-reversing process will move the economy back toward equilibrium so that intervention would be unnecessary. In fact, ill-conceived intervention could intensify both the rate of unemployment and economic instability. One may wonder whether, acc ...
Ch. 12 Student Ppt
... 1）Voluntary unemployment 2）Involuntary unemployment Voluntary unemployment exists whenever workers decide that real wages are not high enough to make work worthwhile. Involuntary unemployment is when someone wants to work at the current real wage rate but cannot find a job. Involuntary occurs wh ...
... 1）Voluntary unemployment 2）Involuntary unemployment Voluntary unemployment exists whenever workers decide that real wages are not high enough to make work worthwhile. Involuntary unemployment is when someone wants to work at the current real wage rate but cannot find a job. Involuntary occurs wh ...
Sample Final Exam, Spring 2013
... 50. A former Governor of the Bank of Canada argued that interest rates must be increased in order to reduce inflation, and this would ultimately result in lower interest rates. This apparent contradiction can be explained by noting that a) higher interest rates in the short run put downward pressure ...
... 50. A former Governor of the Bank of Canada argued that interest rates must be increased in order to reduce inflation, and this would ultimately result in lower interest rates. This apparent contradiction can be explained by noting that a) higher interest rates in the short run put downward pressure ...
Despite all this, the public sector could play an important role in
... main source of government income is in custom fees from oil and non-oil revenues. However, the price of oil has been in a continued decline, which results in reducing oil revenues. Furthermore, due to the minimal presence of the private sector where there is little commercial, industrial, and servic ...
... main source of government income is in custom fees from oil and non-oil revenues. However, the price of oil has been in a continued decline, which results in reducing oil revenues. Furthermore, due to the minimal presence of the private sector where there is little commercial, industrial, and servic ...
Efficacy of Stabilization Policies
... – Exports: X = X – nr • As interest rates rise, the dollar rises, and exports fall by n times the change in r. ...
... – Exports: X = X – nr • As interest rates rise, the dollar rises, and exports fall by n times the change in r. ...
national bank of romania
... Allows flexibility in dealing with real external shocks (including terms of trade shocks) External competitiveness is preserved, mitigating the consequences of an external demand contraction on the current account deficit and further on the real sector ...
... Allows flexibility in dealing with real external shocks (including terms of trade shocks) External competitiveness is preserved, mitigating the consequences of an external demand contraction on the current account deficit and further on the real sector ...
NBER WORKING PAPER SERIES ON THE GENERAL RELATIVITY OF FISCAL LANGUAGE
... where Y-js is a 1 x M x (V-1) vector of net supplies of firms other than j in state s, ϕ − js is a 1 x H x (V-1) vector of state-s endowment demands of firms other than j, Xs references the 1 x M x K vector of goods demanded by agents 1 through K in state s, Zs references the 1 x M vector of goods d ...
... where Y-js is a 1 x M x (V-1) vector of net supplies of firms other than j in state s, ϕ − js is a 1 x H x (V-1) vector of state-s endowment demands of firms other than j, Xs references the 1 x M x K vector of goods demanded by agents 1 through K in state s, Zs references the 1 x M vector of goods d ...
Lecture on Chapter 12 – National Income Accounting and the
... Nations buy and sell goods, services, and assets of various types. The BOP accounts keep track of both payments to foreigners and receipts from foreigners. a) Accounting rules Rule 1: A transaction resulting in a payment to foreigners is as a debit and given a negative sign. Example: an American buy ...
... Nations buy and sell goods, services, and assets of various types. The BOP accounts keep track of both payments to foreigners and receipts from foreigners. a) Accounting rules Rule 1: A transaction resulting in a payment to foreigners is as a debit and given a negative sign. Example: an American buy ...
Japan`s Approach to Monetary Policy
... The need to inject large amounts of liquidity into the econosons behind the Bank of Japan’s increasing reliance on my under extraordinary circumstances likely explains the Bank of repos for its short-term provision (absorption) of funds. Japan’s heavy reliance on outright purchase of bills in its ma ...
... The need to inject large amounts of liquidity into the econosons behind the Bank of Japan’s increasing reliance on my under extraordinary circumstances likely explains the Bank of repos for its short-term provision (absorption) of funds. Japan’s heavy reliance on outright purchase of bills in its ma ...
Chapter Eighteen
... – District banks are owned by commercial banks that are members of the Federal Reserve system – Main function is to regulate the nation’s money supply by controlling bank reserves requirements, regulating the discount rate, and running open-market operations ...
... – District banks are owned by commercial banks that are members of the Federal Reserve system – Main function is to regulate the nation’s money supply by controlling bank reserves requirements, regulating the discount rate, and running open-market operations ...
Bill of Rights in Action 32:3 - Constitutional Rights Foundation
... structure projects to build, repair, or modernize such determine the risk of financial products like MBSs. But things as roads, bridges, and hospitals. they carelessly assigned top ratings to most subprime MBS bundles, dangerously misleading investors who The fiscal stimulus started the economic rec ...
... structure projects to build, repair, or modernize such determine the risk of financial products like MBSs. But things as roads, bridges, and hospitals. they carelessly assigned top ratings to most subprime MBS bundles, dangerously misleading investors who The fiscal stimulus started the economic rec ...
ppt - Harvard University
... that can accommodate terms of trade shocks Longstanding textbook wisdom: For a country subject to big terms of trade shocks, the exchange rate should be able to accommodate them. When the $ price of commodities is: ...
... that can accommodate terms of trade shocks Longstanding textbook wisdom: For a country subject to big terms of trade shocks, the exchange rate should be able to accommodate them. When the $ price of commodities is: ...
Issues related to forecasting framework and the medium term
... ¾ Periodic recalibration of the parameters whenever new empirical evidence emerges: parameters for the behavioral equations (maximum once a year), others parameters (more often, depending on the relative size of the gap variables or on expert opinion regarding the speed of adjustment to long run equ ...
... ¾ Periodic recalibration of the parameters whenever new empirical evidence emerges: parameters for the behavioral equations (maximum once a year), others parameters (more often, depending on the relative size of the gap variables or on expert opinion regarding the speed of adjustment to long run equ ...
Robert E. Cumby Working POLICY UIDER
... interest rate must be lower at E" than at E. With real output unchanged, assets-market equilibrium requires that a lower domestic interest rate be accompanied by a larger monetary base. The long-run reserve loss following an open-market purchase is therefore less than one for one. ...
... interest rate must be lower at E" than at E. With real output unchanged, assets-market equilibrium requires that a lower domestic interest rate be accompanied by a larger monetary base. The long-run reserve loss following an open-market purchase is therefore less than one for one. ...