Fiscal Year
... Problem with Fiscal Policy 1. It is unpopular to raise taxes or cut government spending. So, elected officials worried about re-election rarely do either. Ex. In 1984, Walter Mondale ran for president saying a slight tax increase would help equalize the U.S. economy. Ronald Regan defeated him in on ...
... Problem with Fiscal Policy 1. It is unpopular to raise taxes or cut government spending. So, elected officials worried about re-election rarely do either. Ex. In 1984, Walter Mondale ran for president saying a slight tax increase would help equalize the U.S. economy. Ronald Regan defeated him in on ...
Econ Unit 4 Notes - Phoenix Union High School District
... Discount and/ or Federal Funds rate banks raise their Prime rate which causes other rates(car, home loans, etc.) to increase. If the Fed decreases its rates banks do the same with their prime and other rates. ...
... Discount and/ or Federal Funds rate banks raise their Prime rate which causes other rates(car, home loans, etc.) to increase. If the Fed decreases its rates banks do the same with their prime and other rates. ...
Final Review Chapters 5-15
... Until the Depression, the dominant economic theory in developed nations was Classical This theory held that an economy would naturally tend toward FE GDP. This is also based on a very competitive economy. Classical economists prescribe that G=T, both are small relative to GDP, and Laissez-Faire (non ...
... Until the Depression, the dominant economic theory in developed nations was Classical This theory held that an economy would naturally tend toward FE GDP. This is also based on a very competitive economy. Classical economists prescribe that G=T, both are small relative to GDP, and Laissez-Faire (non ...
Macroeconomic instability
... • Wealth, income, power, status come from: • Having more to do. (“Getting the job done.”) • Not getting the job done. • “Fighting” unemployment is esp. rewarding: cut taxes and raise spending! • Appear to fight deficits; do so is political suicide. • “[M]arket fluctuations, in turn, provide rhetoric ...
... • Wealth, income, power, status come from: • Having more to do. (“Getting the job done.”) • Not getting the job done. • “Fighting” unemployment is esp. rewarding: cut taxes and raise spending! • Appear to fight deficits; do so is political suicide. • “[M]arket fluctuations, in turn, provide rhetoric ...
Macroeconomic Policy in an Open Economy
... fiscal policy – government changes spending and taxation. The reduction in taxation stimulates consumption spending. Increased government borrowing can affect the interest rate. monetary policy – central bank changes money supply and this affects interest rates which in turn affect investment and co ...
... fiscal policy – government changes spending and taxation. The reduction in taxation stimulates consumption spending. Increased government borrowing can affect the interest rate. monetary policy – central bank changes money supply and this affects interest rates which in turn affect investment and co ...
Modern macroeconomics: monetary policy
... The borrowed money is spent and deposited at another bank. The second bank’s reserves are now up $5,000 - it must keep 10% or $500 - it can then loan out $4,500 ($5,000 – $500) This process can be repeated at each step. 10% of the money is lost at each step The more that is required to be held in re ...
... The borrowed money is spent and deposited at another bank. The second bank’s reserves are now up $5,000 - it must keep 10% or $500 - it can then loan out $4,500 ($5,000 – $500) This process can be repeated at each step. 10% of the money is lost at each step The more that is required to be held in re ...
ECON 404: Lecture on Deflation
... • Removed government oversight and bank regulation but did not fix weaknesses of the old financial regime, including non-transparency, pervasive deposit guarantees, “no failure” policies regarding banks and limited failure in real sector (esp. large firms), public intermediation through postal savin ...
... • Removed government oversight and bank regulation but did not fix weaknesses of the old financial regime, including non-transparency, pervasive deposit guarantees, “no failure” policies regarding banks and limited failure in real sector (esp. large firms), public intermediation through postal savin ...
Monetary Economics after Wicksell
... • Money that wage earners spend in commodities market, as well as money spent in financial market on the purchase of securities, flows back to the firms, who can use it to repay bank debt. ...
... • Money that wage earners spend in commodities market, as well as money spent in financial market on the purchase of securities, flows back to the firms, who can use it to repay bank debt. ...
Argentina_en.pdf
... 2013,1 despite mounting tensions in the external sector, which resulted in a devaluation of the peso in January 2014. Combined with a steep rise in interest rates, this devaluation had a contractionary effect on economic activity, which fell by 0.2% year on year in the first quarter of 2014, and by ...
... 2013,1 despite mounting tensions in the external sector, which resulted in a devaluation of the peso in January 2014. Combined with a steep rise in interest rates, this devaluation had a contractionary effect on economic activity, which fell by 0.2% year on year in the first quarter of 2014, and by ...
Argentina_en.pdf
... quarter-on-quarter growth), the GDP growth rate in 2014 is expected to be about -0.2%. The growth projection for 2015, when the country’s treasury has large currency repayments falling due (over US$ 10 billion in total), depends heavily on whether access to international credit markets is restored, ...
... quarter-on-quarter growth), the GDP growth rate in 2014 is expected to be about -0.2%. The growth projection for 2015, when the country’s treasury has large currency repayments falling due (over US$ 10 billion in total), depends heavily on whether access to international credit markets is restored, ...
Session 5.3
... D. EA has also decreased dependence on the dollar in exchange rate management by maintaining the exchange rate relative to a “basket of currencies,” rather than the bilateral dollar – no country in LA has adopted a basket and all continue to peg to the dollar, which led to suffering when the dollar ...
... D. EA has also decreased dependence on the dollar in exchange rate management by maintaining the exchange rate relative to a “basket of currencies,” rather than the bilateral dollar – no country in LA has adopted a basket and all continue to peg to the dollar, which led to suffering when the dollar ...
Macroeconomics IV: The National Budget Constraint
... Governments and countries face budget constraints just as do households and firms. Consolidating households and firms budget constraints gives the budget constraint of the private sector. Assets are held by firms on behalf of households. That is, firms are a veil: they provide their owners or shareh ...
... Governments and countries face budget constraints just as do households and firms. Consolidating households and firms budget constraints gives the budget constraint of the private sector. Assets are held by firms on behalf of households. That is, firms are a veil: they provide their owners or shareh ...
Classical – Neoclassical Economics
... • Interest and Prices, 1924: Cumulative process in full-employment economy using bank money … Say’s Law holds real GDP steady i = market rate of interest set by banks…credit and Ms adjust to Md at market rate i r = “normal” rate of interest—keeps P steady = “natural rate” = return on capital I/Y = ...
... • Interest and Prices, 1924: Cumulative process in full-employment economy using bank money … Say’s Law holds real GDP steady i = market rate of interest set by banks…credit and Ms adjust to Md at market rate i r = “normal” rate of interest—keeps P steady = “natural rate” = return on capital I/Y = ...
AP JEOPARDY!
... ________ account flows describe payments that cross borders to pay for financial assets such as bank accounts, bonds, and stock. ...
... ________ account flows describe payments that cross borders to pay for financial assets such as bank accounts, bonds, and stock. ...
Bill Tupman University of Exeter
... Areas requiring study • KGB methods of funding agents and operations: shell companies? • Non hard currency trade with developing countries: Asian bankers as middlemen; hawala and chitty style? • Exchange of prostitutes for goods. Standard measure of exchange? • Drugs as currency ...
... Areas requiring study • KGB methods of funding agents and operations: shell companies? • Non hard currency trade with developing countries: Asian bankers as middlemen; hawala and chitty style? • Exchange of prostitutes for goods. Standard measure of exchange? • Drugs as currency ...
Slide 1
... • If private sector saving compensates for public sector deficit then there is no alteration in national saving in response to public debt. • There is no crowding out between public and private sector. • This does not hold when private agents face inter generational borrowing-lending constraint or i ...
... • If private sector saving compensates for public sector deficit then there is no alteration in national saving in response to public debt. • There is no crowding out between public and private sector. • This does not hold when private agents face inter generational borrowing-lending constraint or i ...
Guyana_en.pdf
... government expenditure. While government revenue increased thanks to the expansion of economic activities, this was not sufficient to offset the expenditure, and government ran a fiscal deficit, which was financed by new borrowings from domestic and external sources. The government has had difficult ...
... government expenditure. While government revenue increased thanks to the expansion of economic activities, this was not sufficient to offset the expenditure, and government ran a fiscal deficit, which was financed by new borrowings from domestic and external sources. The government has had difficult ...
College of Business Administration
... Q2 Expenditure switching policies affect: A Exports B Imports C Income D All of the above E Only a and b is true D Q3 Monetary policy involves changes in A. change in government spending C change in interest rates B. change in taxes D changes in subsidies C Q4 The IS curve refers to the combinations ...
... Q2 Expenditure switching policies affect: A Exports B Imports C Income D All of the above E Only a and b is true D Q3 Monetary policy involves changes in A. change in government spending C change in interest rates B. change in taxes D changes in subsidies C Q4 The IS curve refers to the combinations ...
Your Money and the Federal Reserve System
... amountsand,moreimportant,thesupplyof coins isIimitedtothe metals available.With coins,the money supply depends on random forces such as silverand gold discoveriesratherthan on the needs of commerce,industry,and agricultural production.Thus,moneydeveloped two newrequirements—ithad to be easyto carrya ...
... amountsand,moreimportant,thesupplyof coins isIimitedtothe metals available.With coins,the money supply depends on random forces such as silverand gold discoveriesratherthan on the needs of commerce,industry,and agricultural production.Thus,moneydeveloped two newrequirements—ithad to be easyto carrya ...
The stock-flow consistent approach
... This principle is attributed to Copeland (1949). Any change in the sources of funds of a sector must be compensated by at least one change in the uses of funds of the same sector. But any transaction must have a counterparty. Therefore the above two changes must be accompanied by at least two change ...
... This principle is attributed to Copeland (1949). Any change in the sources of funds of a sector must be compensated by at least one change in the uses of funds of the same sector. But any transaction must have a counterparty. Therefore the above two changes must be accompanied by at least two change ...
American Government Unit Chapter 16: Financing Government
... employment, price stability, and economic growth Full employment – enough jobs for people who want them Price stability – stable long-term growth of the economy – small inflation or deflation Inflation – general increase in all prices Deflation – general decrease in all prices (can’t pay off loans) ...
... employment, price stability, and economic growth Full employment – enough jobs for people who want them Price stability – stable long-term growth of the economy – small inflation or deflation Inflation – general increase in all prices Deflation – general decrease in all prices (can’t pay off loans) ...