Saving, Investment, and the Financial System
... Our analysis: Increase in budget deficit causes fall in investment. The govt borrows to finance its deficit, leaving less funds available for investment. ...
... Our analysis: Increase in budget deficit causes fall in investment. The govt borrows to finance its deficit, leaving less funds available for investment. ...
24.3 Implementing Monetary Policy: Tools of the Fed
... political debate or a public announcement. It is also a rather powerful tool, as any given purchase or sale of securities usually has an ultimate impact on the money supply of several times the amount of the initial transaction. ...
... political debate or a public announcement. It is also a rather powerful tool, as any given purchase or sale of securities usually has an ultimate impact on the money supply of several times the amount of the initial transaction. ...
Study Guide for Williamson Intermediate Macroeconomics, First
... than the current period such as automobiles and furniture. Nondurables are goods that are consumed or "used up" within the period such as food. Services are non-tangible items such as haircuts and massages. Investment consists of fixed investment, residential investment, and inventory investment. Fi ...
... than the current period such as automobiles and furniture. Nondurables are goods that are consumed or "used up" within the period such as food. Services are non-tangible items such as haircuts and massages. Investment consists of fixed investment, residential investment, and inventory investment. Fi ...
Portugal: First Post-Program Monitoring Discussions--Staff
... past three years has been substantial, and the current account is now in surplus. Regained policy credibility and benign market conditions have facilitated the resumption of market access at declining yields. But private consumption is driving the recovery, while the necessary rebalancing of the eco ...
... past three years has been substantial, and the current account is now in surplus. Regained policy credibility and benign market conditions have facilitated the resumption of market access at declining yields. But private consumption is driving the recovery, while the necessary rebalancing of the eco ...
ch05
... than anticipated, firms raise their prices – when aggregate demand is higher than potential output, some industries may reach the limits of capacity ...
... than anticipated, firms raise their prices – when aggregate demand is higher than potential output, some industries may reach the limits of capacity ...
The Political Economy of Government Debt
... debate. The trade off between the rigidity of a rule and the lack of flexibility which these rules create. More flexible rules may be superior but harder to enforce because they have too many escape clauses. Finally, assuming that a rule would work, would a country adopt it? Or would political disto ...
... debate. The trade off between the rigidity of a rule and the lack of flexibility which these rules create. More flexible rules may be superior but harder to enforce because they have too many escape clauses. Finally, assuming that a rule would work, would a country adopt it? Or would political disto ...
Government Spending Effects in Low-income Countries
... open capital account—they can counteract an increase in external public debt by de-leveraging their foreign borrowing. In equilibrium, the total amount of external resource available may not increase much relative to the situation of a domestically financed spending increase. Thus, the mitigation of ...
... open capital account—they can counteract an increase in external public debt by de-leveraging their foreign borrowing. In equilibrium, the total amount of external resource available may not increase much relative to the situation of a domestically financed spending increase. Thus, the mitigation of ...
NBER WORKING PAPER SERIES Marco Battaglini Stephen Coate
... Interest earnings in excess of spending needs are rebated back to citizens via lump-sum transfers. The economic environment underlying our theory is similar to that in Aiyagari et al (2002).1 The only differences are (i) that we specify a stochastic value of public goods as opposed to a stochastic go ...
... Interest earnings in excess of spending needs are rebated back to citizens via lump-sum transfers. The economic environment underlying our theory is similar to that in Aiyagari et al (2002).1 The only differences are (i) that we specify a stochastic value of public goods as opposed to a stochastic go ...
CENTRAL BANK BALANCE SHEETS: - ECB Forum on Central Banking
... with periods of geopolitical or financial crisis. This explains the co-movement between the size of central bank balance sheets and public debt levels in the past century. The biggest of these crises, in terms of the impact on central bank balance sheets, were World War II and the global financial c ...
... with periods of geopolitical or financial crisis. This explains the co-movement between the size of central bank balance sheets and public debt levels in the past century. The biggest of these crises, in terms of the impact on central bank balance sheets, were World War II and the global financial c ...
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... "stable" economy, that is, one which has a positive marginal propensity to save. Mundell [24], however, argues that the adjustment process will be complete even in such cases because of the effect of induced changes in the money supply on expenditures and imports. The effects of monetary changes on ...
... "stable" economy, that is, one which has a positive marginal propensity to save. Mundell [24], however, argues that the adjustment process will be complete even in such cases because of the effect of induced changes in the money supply on expenditures and imports. The effects of monetary changes on ...
Exchange Rate Developments and Fundamentals in Four
... Romanias banking crisis lasted longer than Bulgarias, but was less severe. The new government that came to power in 1996 launched a structural reform program, which included the tightening of monetary policy, the liberalization of the official exchange rate and the acceleration of privatizations. ...
... Romanias banking crisis lasted longer than Bulgarias, but was less severe. The new government that came to power in 1996 launched a structural reform program, which included the tightening of monetary policy, the liberalization of the official exchange rate and the acceleration of privatizations. ...
The Political Economy of Government Debt
... debate. The trade off between the rigidity of a rule and the lack of flexibility which these rules create. More flexible rules may be superior but harder to enforce because they have too many escape clauses. Finally, assuming that a rule would work, would a country adopt it? Or would political disto ...
... debate. The trade off between the rigidity of a rule and the lack of flexibility which these rules create. More flexible rules may be superior but harder to enforce because they have too many escape clauses. Finally, assuming that a rule would work, would a country adopt it? Or would political disto ...
What has Happened to Monetarism? An Investigation into the
... rejecting the idea that velocity might be some "natural constant," an overstatement of the quantity theory which had contributed to its downfall, Friedman (1956, 21) refers to the "extraordinary empirical stability and regularity" of income velocity--when properly specified as a stable function of c ...
... rejecting the idea that velocity might be some "natural constant," an overstatement of the quantity theory which had contributed to its downfall, Friedman (1956, 21) refers to the "extraordinary empirical stability and regularity" of income velocity--when properly specified as a stable function of c ...
Young-Sun`s papar on fiscal reform
... At the same time, however, we are faced with various risk factors that can adversely affect the government finance. The aging population and the technological catch-up with the advanced economies imply a much slower economic growth in the decades ahead. While the revenue growth slows down, the deman ...
... At the same time, however, we are faced with various risk factors that can adversely affect the government finance. The aging population and the technological catch-up with the advanced economies imply a much slower economic growth in the decades ahead. While the revenue growth slows down, the deman ...
the new keynesian framework for a small open economy with
... Lopez-Salido (2001, 2005)). Because of the nature of the forward-looking agents in this model, anticipated policy actions will have an in‡uence on current outcomes and it is considered immune to the Lucas critique. Moreover, NK framework is a very ‡exible tool, capable of including in the basic mode ...
... Lopez-Salido (2001, 2005)). Because of the nature of the forward-looking agents in this model, anticipated policy actions will have an in‡uence on current outcomes and it is considered immune to the Lucas critique. Moreover, NK framework is a very ‡exible tool, capable of including in the basic mode ...
A Separate Debt Management Office
... management authority is a step removed from the political process of budget making and generally would not succumb to the political pressure to trade-off long term debt management goals with short-run budget goals (Alesina, Prati and Tabellini, 1990). A separation of these policies was expected to a ...
... management authority is a step removed from the political process of budget making and generally would not succumb to the political pressure to trade-off long term debt management goals with short-run budget goals (Alesina, Prati and Tabellini, 1990). A separation of these policies was expected to a ...
MODELING GOVERNMENT EXTERNAL DEBT
... and economic growth (Avramovic, 1964); the impact of exports, imports and debt services burden on demand for external debt (Alun, 1992). More specific studies on Indonesian external debt discuss some topics such as: the negative relationship between the foreign debt and deficit in current account (P ...
... and economic growth (Avramovic, 1964); the impact of exports, imports and debt services burden on demand for external debt (Alun, 1992). More specific studies on Indonesian external debt discuss some topics such as: the negative relationship between the foreign debt and deficit in current account (P ...
M F L
... due to the creation of NSSF in 1999-2000 and issue of securities for the outstanding balances. Aggregate fiscal liabilities, however, remained unaffected by this accounting change. In 2000-01, fiscal liabilities of the Union Government increased by ...
... due to the creation of NSSF in 1999-2000 and issue of securities for the outstanding balances. Aggregate fiscal liabilities, however, remained unaffected by this accounting change. In 2000-01, fiscal liabilities of the Union Government increased by ...
Politics, Surpluses, Deficits, and Debt Chapter 12
... Both short- and long-term economic frameworks would recommend cutting the national debt. Instead of doing so, government looked at ways to spend the surplus, either by cutting taxes or by increasing spending. ...
... Both short- and long-term economic frameworks would recommend cutting the national debt. Instead of doing so, government looked at ways to spend the surplus, either by cutting taxes or by increasing spending. ...
The effects of government debt market financialization
... The impossibility principle (Wyplosz, 2007) refers to the unforeseen nature of debt sustainability and therefore the unfeasibility of assessing it with certainty, because it is based on guesses about a country’s future solvency and labour and economic policies. The IMF’s own definition, on which th ...
... The impossibility principle (Wyplosz, 2007) refers to the unforeseen nature of debt sustainability and therefore the unfeasibility of assessing it with certainty, because it is based on guesses about a country’s future solvency and labour and economic policies. The IMF’s own definition, on which th ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... central banks. In this way the Scandinavian countries maintained a close monetary association during the gold standard era. Finally, comprehensive monthly data covering the Riksbank and the complete commercial banking system are available from the early 1870s. The data make possible a detailed exami ...
... central banks. In this way the Scandinavian countries maintained a close monetary association during the gold standard era. Finally, comprehensive monthly data covering the Riksbank and the complete commercial banking system are available from the early 1870s. The data make possible a detailed exami ...
The Implications of Macroprudential Policies for International Policy
... For example, expectations of higher income or wealth raise current consumption, and a risk premium can be added to reflect default risk. It is on these New Keynesian and real business cycle foundations that economists have constructed Dynamic Stochastic General Equilibrium (DSGE) models that are the ...
... For example, expectations of higher income or wealth raise current consumption, and a risk premium can be added to reflect default risk. It is on these New Keynesian and real business cycle foundations that economists have constructed Dynamic Stochastic General Equilibrium (DSGE) models that are the ...
Chapter 27 The Phillips Curve and Expectations Theory 1. The
... b. Incorrect. Expansionary policy can reduce unemployment in the short run. c. Incorrect. Expansionary policy increases the inflation rate. d. Incorrect. Answer a. is correct. 12. "Preannounced, stable policies to achieve a low and constant money supply growth and a balanced federal budget are there ...
... b. Incorrect. Expansionary policy can reduce unemployment in the short run. c. Incorrect. Expansionary policy increases the inflation rate. d. Incorrect. Answer a. is correct. 12. "Preannounced, stable policies to achieve a low and constant money supply growth and a balanced federal budget are there ...