The Expected Federal Budget Surplus: How Much
... The accounting is more complicated because the interest income from the nonmarketable debt issued to trusts is accumulated in a separate account. Consequently, the government does not have to buy back the debt issued to the trusts until the accumulated interest income in these accounts is exhausted. ...
... The accounting is more complicated because the interest income from the nonmarketable debt issued to trusts is accumulated in a separate account. Consequently, the government does not have to buy back the debt issued to the trusts until the accumulated interest income in these accounts is exhausted. ...
The Coming Resolution of the European Crisis: An Update
... It is no coincidence that the euro design is as flawed as it has proven to be. The founding members of the common currency did not have the political will in the early 1990s to surrender their national control over vital areas of “deep sovereignty” like domestic banking sectors and fiscal policy. At ...
... It is no coincidence that the euro design is as flawed as it has proven to be. The founding members of the common currency did not have the political will in the early 1990s to surrender their national control over vital areas of “deep sovereignty” like domestic banking sectors and fiscal policy. At ...
MDG Strategy Analysis: Methods and an Agenda for Future Work
... special-case sectors (resource-based export sectors, regulated utilities) ...
... special-case sectors (resource-based export sectors, regulated utilities) ...
Effects of the Exchange Rate on Output and Price Level:Evidence
... denominated in dollars or in another strong foreign currency. If a country having large debt devalues its currency, then both residents and the government need more domestic currency to pay for the same amount of foreign debt. This reduces the net wealth and therefore aggregate expenditure. Another ...
... denominated in dollars or in another strong foreign currency. If a country having large debt devalues its currency, then both residents and the government need more domestic currency to pay for the same amount of foreign debt. This reduces the net wealth and therefore aggregate expenditure. Another ...
NBER WORKING PAPER SERIES GOLD STERILIZATION AND THE RECESSION OF 1937-38
... print gold certificates for the equivalent amount and deposit them in a Federal Reserve account to replenish its balance. The certificate would then become part of the monetary base and could be used to increase bank reserves. However, with sterilization, instead of replacing its withdrawn balance w ...
... print gold certificates for the equivalent amount and deposit them in a Federal Reserve account to replenish its balance. The certificate would then become part of the monetary base and could be used to increase bank reserves. However, with sterilization, instead of replacing its withdrawn balance w ...
The relevance of Keynes
... as well as the new classical—picture in its stress on the volatility of investment and the weakness of the rate of interest as an equilibrating mechanism. Without uncertainty, the collapse of investment that causes the economy to collapse would not happen, interest rates would automatically rebalanc ...
... as well as the new classical—picture in its stress on the volatility of investment and the weakness of the rate of interest as an equilibrating mechanism. Without uncertainty, the collapse of investment that causes the economy to collapse would not happen, interest rates would automatically rebalanc ...
One money, but many fiscal policies in Europe
... In the run up to European monetary union, a number of commentators have warned about negative consequences, occasionally drawing up rather dire scenarios. A group of four German academics sued against the introduction of Euro, and wrote a popular book about the ”Euro illusion”, Hankel et al. (2001), ...
... In the run up to European monetary union, a number of commentators have warned about negative consequences, occasionally drawing up rather dire scenarios. A group of four German academics sued against the introduction of Euro, and wrote a popular book about the ”Euro illusion”, Hankel et al. (2001), ...
Fiscal Policy in a Currency Union at the Zero Lower Bound ∗
... which has constrained monetary policy. Constraints on the use of monetary stabilization raises the possibility of alternative stabilization instruments including fiscal policy. Optimal fiscal stabilization may be complicated in a currency union subject to asymmetric shocks. First, when aggregate dem ...
... which has constrained monetary policy. Constraints on the use of monetary stabilization raises the possibility of alternative stabilization instruments including fiscal policy. Optimal fiscal stabilization may be complicated in a currency union subject to asymmetric shocks. First, when aggregate dem ...
The Quality of Money
... Austrian economists such as Mises (1953, chap. 1) and Rothbard (2004, pp. 189–93) have followed Carl Menger in their analysis of the origins of money. While Mises does not list the specific qualities that help a commodity to become money, Rothbard (2008, p. 6) mentions the “proper qualities of money ...
... Austrian economists such as Mises (1953, chap. 1) and Rothbard (2004, pp. 189–93) have followed Carl Menger in their analysis of the origins of money. While Mises does not list the specific qualities that help a commodity to become money, Rothbard (2008, p. 6) mentions the “proper qualities of money ...
MacroLab Documentation - BORA
... similar conclusions, and a suitable MacroLab model should do the same when its purpose is to convey the consensus view of macroeconomic principles to undergraduates. In addition, a very large variety of structure-behavior tests and extreme condition tests have been performed, and some will be illust ...
... similar conclusions, and a suitable MacroLab model should do the same when its purpose is to convey the consensus view of macroeconomic principles to undergraduates. In addition, a very large variety of structure-behavior tests and extreme condition tests have been performed, and some will be illust ...
CAPITAL FLOWS AND THEIR IMPLICATION FOR CENTRAL BANK
... reduced the magnitude of the appreciation/depreciation (in other words, the volatility), but have not fundamentally changed the trend of exchange rate movements. 1.2.2 Monetary policy Sterilization is used in several countries as the popular policy. This policy aims to mitigate inflationary pressure ...
... reduced the magnitude of the appreciation/depreciation (in other words, the volatility), but have not fundamentally changed the trend of exchange rate movements. 1.2.2 Monetary policy Sterilization is used in several countries as the popular policy. This policy aims to mitigate inflationary pressure ...
Real Fluctuations at the Zero Lower Bound
... where φd > 0 is a parameter.2 When the monetary authority is unconstrained by the zero lower bound, the policy rule in Equation (3) responds exactly as a simple Taylor (1993)-type policy rule. At the zero lower bound, however, the central bank continues to respond to the state of the economy by adju ...
... where φd > 0 is a parameter.2 When the monetary authority is unconstrained by the zero lower bound, the policy rule in Equation (3) responds exactly as a simple Taylor (1993)-type policy rule. At the zero lower bound, however, the central bank continues to respond to the state of the economy by adju ...
Chapter 10
... techniques for calculating the trends in inflation and output, find evidence that the price level is countercyclical. – Though the Great Depression appears to have been caused by a sequence of large, adverse aggregate demand shocks, Kydland and Prescott argue that since World War II, large adverse s ...
... techniques for calculating the trends in inflation and output, find evidence that the price level is countercyclical. – Though the Great Depression appears to have been caused by a sequence of large, adverse aggregate demand shocks, Kydland and Prescott argue that since World War II, large adverse s ...
Chapter 24 The Open Economy with Fixed Exchange Rates
... In this chapter we investigate the macroeconomic implications of international trade in goods and capital. We shall see that our AS-AD framework can be used to study the workings of the open economy, although the channels through which shocks are transmitted to output and inßation are somewhat differ ...
... In this chapter we investigate the macroeconomic implications of international trade in goods and capital. We shall see that our AS-AD framework can be used to study the workings of the open economy, although the channels through which shocks are transmitted to output and inßation are somewhat differ ...
Endogenous supply of fiat money
... enters the market is approached by the money supplier with a certain probability m, in which case he receives one unit of fiat money in exchange for one unit of his endowment good. The value of m is restricted to {mL , mH }, with 21 mL < mH < 1, and is determined by the money supplier in each period ...
... enters the market is approached by the money supplier with a certain probability m, in which case he receives one unit of fiat money in exchange for one unit of his endowment good. The value of m is restricted to {mL , mH }, with 21 mL < mH < 1, and is determined by the money supplier in each period ...
A small model of the UK economy - Office for Budget Responsibility
... There are a number of ways in which to develop a model of the economy, the suitability of which depends upon its intended use. The sorts of models produced by academic macroeconomists typically adhere strictly to the prescriptions of their microeconomic foundations. That is to say that, whether it’s ...
... There are a number of ways in which to develop a model of the economy, the suitability of which depends upon its intended use. The sorts of models produced by academic macroeconomists typically adhere strictly to the prescriptions of their microeconomic foundations. That is to say that, whether it’s ...
Research Paper Research Paper - Federal Reserve Bank of Dallas
... about tastes and technology when the capital stock is held fixed. The standard analysis is extended to include an examination of the effects of changes in public sector employment. The introduction of public sector employment means that we must be careful in choosing between alternative empirical me ...
... about tastes and technology when the capital stock is held fixed. The standard analysis is extended to include an examination of the effects of changes in public sector employment. The introduction of public sector employment means that we must be careful in choosing between alternative empirical me ...
The National Debt: Who Bears Its Burden?
... When evaluating the burden of the national debt, the gross debt must first be divided into two parts: debt held by the public (including the Federal Reserve), shown in Figure 1, and the amount held in accounts called federal trust funds, the principal one being for social security.3 Because trust fu ...
... When evaluating the burden of the national debt, the gross debt must first be divided into two parts: debt held by the public (including the Federal Reserve), shown in Figure 1, and the amount held in accounts called federal trust funds, the principal one being for social security.3 Because trust fu ...
1. Business cycles are: A) regular and predictable. B) irregular but
... D) price level. 9. If the short‐run aggregate supply curve is horizontal, then changes in aggregate demand affect: A) level of output but not prices. B) prices but not level of output. C) both prices and level of output. D) neither prices nor level of output. 10. If the short‐run aggregate supply cu ...
... D) price level. 9. If the short‐run aggregate supply curve is horizontal, then changes in aggregate demand affect: A) level of output but not prices. B) prices but not level of output. C) both prices and level of output. D) neither prices nor level of output. 10. If the short‐run aggregate supply cu ...
NBER WORKING PAPER SERIES AN EVALUATION OF THEORY AND EVIDENCE B. Douglas Bernheim
... When this occurs, children nay well help to support their parents, in which case Ricardian equivalence still prevails for policies that do not alter the pattern of linkages (see Carmichael [1982], or Bernheim and ...
... When this occurs, children nay well help to support their parents, in which case Ricardian equivalence still prevails for policies that do not alter the pattern of linkages (see Carmichael [1982], or Bernheim and ...
Fiscal Rigor or Rigor Mortis - European Union Center of California
... and Stability Pact fiscal criteria are discussed and possibilities that the operation of the Excessive Deficit Procedures (EDP) of the Stability Pact could actually increase rather than reduce the pressures on the ECB are considered. Section VI concludes. The Need for a Political Economy Perspectiv ...
... and Stability Pact fiscal criteria are discussed and possibilities that the operation of the Excessive Deficit Procedures (EDP) of the Stability Pact could actually increase rather than reduce the pressures on the ECB are considered. Section VI concludes. The Need for a Political Economy Perspectiv ...
Some Tools for Public Sector Debt Analysis
... in another country. The degree of exposure to various market risks (for example, interest rate risk or rollover risk) is also a critical consideration in assessing debt sustainability (see Box 9.2). Thus, DSAs provide valuable inputs for macroeconomic policy design but cannot, in isolation, determi ...
... in another country. The degree of exposure to various market risks (for example, interest rate risk or rollover risk) is also a critical consideration in assessing debt sustainability (see Box 9.2). Thus, DSAs provide valuable inputs for macroeconomic policy design but cannot, in isolation, determi ...
NBER WORKING PAPER SERIES PERCEPTIONS AND MISPERCEPTIONS OF FISCAL INFLATION
... increase demands on government expenditures in coming decades. It is widely perceived that fiscal policy is inflationary if and only if it leads the central bank to print new currency to monetize deficits. Monetization can be inflationary. But it is a misperception that this is the only channel for ...
... increase demands on government expenditures in coming decades. It is widely perceived that fiscal policy is inflationary if and only if it leads the central bank to print new currency to monetize deficits. Monetization can be inflationary. But it is a misperception that this is the only channel for ...