REAL%THEORY%OF%THE%PRICE%LEVEL% Background%
... government issues real—indexed for inflation—or nominal debt. Real debt is a claim on goods in the future, requiring the government to back the debt with resources obtained through taxes. If a government cannot raise sufficient resources to pay off the debt, it has no alternative but to default. Nom ...
... government issues real—indexed for inflation—or nominal debt. Real debt is a claim on goods in the future, requiring the government to back the debt with resources obtained through taxes. If a government cannot raise sufficient resources to pay off the debt, it has no alternative but to default. Nom ...
Civics Review powerpoint
... Real GDP – shows economy’s production after the distortions of price increases have been removed Eliminates impression that output has gone up when only prices have gone up ...
... Real GDP – shows economy’s production after the distortions of price increases have been removed Eliminates impression that output has gone up when only prices have gone up ...
Energy Economics – II Jeffrey Frankel Harpel Professor, Harvard
... • so money tightens & the currency appreciates when world prices of export commodities rise • accommodating the terms of trade -• not when prices of import commodities rise. ...
... • so money tightens & the currency appreciates when world prices of export commodities rise • accommodating the terms of trade -• not when prices of import commodities rise. ...
The aggregate demand curve
... 1. International effect as the price of American goods increases, Americans purchase relatively more foreign goods, exports fall, imports rise, GDP falls. 2. Asset effect the purchasing power of individuals (which is based on their wealth) falls. They are unable to buy as much so consumption falls. ...
... 1. International effect as the price of American goods increases, Americans purchase relatively more foreign goods, exports fall, imports rise, GDP falls. 2. Asset effect the purchasing power of individuals (which is based on their wealth) falls. They are unable to buy as much so consumption falls. ...
ECO 212 Principles of Macroeconomics List of Formulas
... BLS assumes the composition of the basket remains unchanged over time. 2. The inflation rate is the percentage change in price index from one year to the next. It is normally calculated using CPI. For example, the inflation in year t can be computed as: ...
... BLS assumes the composition of the basket remains unchanged over time. 2. The inflation rate is the percentage change in price index from one year to the next. It is normally calculated using CPI. For example, the inflation in year t can be computed as: ...
Debt, Deleveraging, and the liquidity trap: A Fisher‐Minsky‐Koo approach Gauti Eggertsson (NY Fed),
... This paper • Borrowing and lending in a stripped down model DSGE model. • Borrowing constraint of the same form as Bewley‐Ayagari‐ Hugget etc. • Explore an exogenous reduction in the debt limit. – Natural story for the crisis (temporary negative natural rate of interest) – Can’t accommodate this ...
... This paper • Borrowing and lending in a stripped down model DSGE model. • Borrowing constraint of the same form as Bewley‐Ayagari‐ Hugget etc. • Explore an exogenous reduction in the debt limit. – Natural story for the crisis (temporary negative natural rate of interest) – Can’t accommodate this ...
ECO 2142A Course outline May/June 2015
... academic fraud is liable to severe academic sanctions. For more information, students can refer to http://www.uottawa.ca/academic-regulations/academic-fraud.html . ...
... academic fraud is liable to severe academic sanctions. For more information, students can refer to http://www.uottawa.ca/academic-regulations/academic-fraud.html . ...
THE EURO PROJECT
... • Should it be backed by gold, reserves, future current account revenue, future tax revenue or nothing (fiat money)? • How much parallel currency to inject? • Which transactions should it be used for? • Should existing financial assets be redenominated? • Should foreign debt be redenominated? • What ...
... • Should it be backed by gold, reserves, future current account revenue, future tax revenue or nothing (fiat money)? • How much parallel currency to inject? • Which transactions should it be used for? • Should existing financial assets be redenominated? • Should foreign debt be redenominated? • What ...
final exam sample from s2005
... households would save everything and spend nothing. Furthermore, it means that fiscal policy has no effect on the economy since the government expenditure multiplier will be zero.” ...
... households would save everything and spend nothing. Furthermore, it means that fiscal policy has no effect on the economy since the government expenditure multiplier will be zero.” ...
Ch. 27
... Budget deficits in other countries 1. Bond finance hard 2. Deficit likely to lead to money creation and Budget deficits in U.S. 1. Large capital market, so can bond finance 2. Fed has choice whether to monetize deficit, but may be pressured to do so 3. Ricardian equivalence may mean no effect of b ...
... Budget deficits in other countries 1. Bond finance hard 2. Deficit likely to lead to money creation and Budget deficits in U.S. 1. Large capital market, so can bond finance 2. Fed has choice whether to monetize deficit, but may be pressured to do so 3. Ricardian equivalence may mean no effect of b ...
S 2 - Virginia`s Community Colleges
... Financial markets Markets where financial securities, such as stocks and bonds, are bought and sold. A financial security is a document—sometimes in electronic form—that states the terms under which funds pass from the buyer of the security—who is providing funds—to the seller. Stocks are financial ...
... Financial markets Markets where financial securities, such as stocks and bonds, are bought and sold. A financial security is a document—sometimes in electronic form—that states the terms under which funds pass from the buyer of the security—who is providing funds—to the seller. Stocks are financial ...
The Great Depression of Finland 1990-1993
... • Dogmatic reliance on fixed exchane rate policy against market sentiment and fundamentals • Deflationary policy seen as the only viable option: high interest rates, shrinking aggregate demand – proposals to monetary/fiscal stimulus were rejected by g’ment & CB • Decision makers: crime & punishment ...
... • Dogmatic reliance on fixed exchane rate policy against market sentiment and fundamentals • Deflationary policy seen as the only viable option: high interest rates, shrinking aggregate demand – proposals to monetary/fiscal stimulus were rejected by g’ment & CB • Decision makers: crime & punishment ...
Macro2 Problem #3key
... 0.9 in this module. Explain why the two results are different. The two results are different because crowding out. The increase in government spending started to increase real GDP. However, as real income rose so did the demand for money, and with a constant real money supply interest rates, real an ...
... 0.9 in this module. Explain why the two results are different. The two results are different because crowding out. The increase in government spending started to increase real GDP. However, as real income rose so did the demand for money, and with a constant real money supply interest rates, real an ...
Chapter 3
... The Greek/EU Debt Crisis • The EU established exchange rate stability and financial integration with the adoption of the euro but each country gave up monetary independence. • However, each country still controls its own fiscal policy and sovereign debt is denominated in euros and thus impacts the ...
... The Greek/EU Debt Crisis • The EU established exchange rate stability and financial integration with the adoption of the euro but each country gave up monetary independence. • However, each country still controls its own fiscal policy and sovereign debt is denominated in euros and thus impacts the ...
PDF
... A more commonly suggested means of reducing the incentive for large foreign capital inflows is for the U.S. government to increase net public saving by reducing its large budget deficit. In terms of the symbols used above, a reduction in government spending or an increase in taxes would imply a smal ...
... A more commonly suggested means of reducing the incentive for large foreign capital inflows is for the U.S. government to increase net public saving by reducing its large budget deficit. In terms of the symbols used above, a reduction in government spending or an increase in taxes would imply a smal ...
Lecture_Ch15 - Princeton High School
... Macroeconomic equilibrium occurs when aggregate supply equals aggregate demand. Fiscal policy is the use of government spending and taxation to pursue economic growth, full employment, and price stability. ...
... Macroeconomic equilibrium occurs when aggregate supply equals aggregate demand. Fiscal policy is the use of government spending and taxation to pursue economic growth, full employment, and price stability. ...
Document
... invest in the areas in which there is the greatest need for the production of a good or service due to the risk of the potential of losing their own money on ventures that have less likelihood of ...
... invest in the areas in which there is the greatest need for the production of a good or service due to the risk of the potential of losing their own money on ventures that have less likelihood of ...
Slide 1
... 3. Higher debt forces higher taxes or crowds out other spending 4. Efficiency impacts of higher debt: - Higher debt means higher interest payments - These require taxes, and this has a “dead-weight loss” 5. Debt is irrelevant. Only spending matters (Barro’s Ricardian theory) 6. High debt can lead to ...
... 3. Higher debt forces higher taxes or crowds out other spending 4. Efficiency impacts of higher debt: - Higher debt means higher interest payments - These require taxes, and this has a “dead-weight loss” 5. Debt is irrelevant. Only spending matters (Barro’s Ricardian theory) 6. High debt can lead to ...
WorksheetFiscalPolic..
... $ _______________ which will be _________% of projected total government expenditures. ...
... $ _______________ which will be _________% of projected total government expenditures. ...
Thomas Piketty Academic year 2013-2014
... • The Great Recession = GDP fall of about 5% in all major developed economies in 2008-2010 = the biggest world recession since WW2 (usually recessions involve -1%/-2% output contractions at most, or simply a lower positive growth, and they do not happen everywhere at the same time) • ≠ The Great De ...
... • The Great Recession = GDP fall of about 5% in all major developed economies in 2008-2010 = the biggest world recession since WW2 (usually recessions involve -1%/-2% output contractions at most, or simply a lower positive growth, and they do not happen everywhere at the same time) • ≠ The Great De ...
FRBSF E L
... mortgage interest rates. Although that is unlikely to reverse, other factors driving this sector should improve, and I remain cautiously optimistic about the outlook for housing over the next few years. One source of the as-yet unrealized demand for housing is the number of adults living with their ...
... mortgage interest rates. Although that is unlikely to reverse, other factors driving this sector should improve, and I remain cautiously optimistic about the outlook for housing over the next few years. One source of the as-yet unrealized demand for housing is the number of adults living with their ...