macroeconomics class review
... There are some important flaws in the Keynesian model as described by the following reasoning based on theories heavily influenced by neo-classical and classical economists. The main flaw is Keynes’s belief that wealth and production can be created and “multiplied” out of nothing, i.e. by artificial ...
... There are some important flaws in the Keynesian model as described by the following reasoning based on theories heavily influenced by neo-classical and classical economists. The main flaw is Keynes’s belief that wealth and production can be created and “multiplied” out of nothing, i.e. by artificial ...
NBER WORKING PAPER SERIES CONCEPTS AND MEASURES OF FEDERAL
... capital and durables) falls short of total government spending by a sufficient amount, government saving could be positive despite a deficit, e.g., there could be substantial net government investment. Indeed, in the world's second largest economy, Japan, which is also the largest supplier of capita ...
... capital and durables) falls short of total government spending by a sufficient amount, government saving could be positive despite a deficit, e.g., there could be substantial net government investment. Indeed, in the world's second largest economy, Japan, which is also the largest supplier of capita ...
The Liquidity Trap: Evidence from Japan
... less intensity than in the past. Although several explanations have been offered for this, none is more intriguing from the viewpoint of a central bank than the possibility that monetary policy had been largely ineffective because the Japanese economy had entered a “liquidity trap.”3 This paper prov ...
... less intensity than in the past. Although several explanations have been offered for this, none is more intriguing from the viewpoint of a central bank than the possibility that monetary policy had been largely ineffective because the Japanese economy had entered a “liquidity trap.”3 This paper prov ...
Overall effect: Y
... the theoretical material come to life and gets students to participate more actively in class. The IS/LM model is a perfect model for discussing the policy interventions surrounding the events of September, 2001. In both Canada and the U.S., monetary policy became quite expansionary, so interest rat ...
... the theoretical material come to life and gets students to participate more actively in class. The IS/LM model is a perfect model for discussing the policy interventions surrounding the events of September, 2001. In both Canada and the U.S., monetary policy became quite expansionary, so interest rat ...
Twin Deficits and Twin Decades
... Thus the total rate of national saving fell sharply in the 1980s. The question then became “What sector would bear the brunt of the crowding out?”: investment or the trade balance? Which prediction would prove correct: that of the Mundell-Fleming model under high capital mobility, or the Feldstein- ...
... Thus the total rate of national saving fell sharply in the 1980s. The question then became “What sector would bear the brunt of the crowding out?”: investment or the trade balance? Which prediction would prove correct: that of the Mundell-Fleming model under high capital mobility, or the Feldstein- ...
Chapter 15: Monetary Policy - the School of Economics and Finance
... in‡ation is low over the long-run, the Fed will have the ‡exibility it needs to lessen the impact of recessions. 2. High unemployment: Unemployed workers and underused factories and buildings reduce GDP below its potential level. Unemployment causes …nancial distress as well as some social problems. ...
... in‡ation is low over the long-run, the Fed will have the ‡exibility it needs to lessen the impact of recessions. 2. High unemployment: Unemployed workers and underused factories and buildings reduce GDP below its potential level. Unemployment causes …nancial distress as well as some social problems. ...
Chapter 15: Monetary Policy - the School of Economics and Finance
... in‡ation is low over the long-run, the Fed will have the ‡exibility it needs to lessen the impact of recessions. 2. High unemployment: Unemployed workers and underused factories and buildings reduce GDP below its potential level. Unemployment causes …nancial distress as well as some social problems. ...
... in‡ation is low over the long-run, the Fed will have the ‡exibility it needs to lessen the impact of recessions. 2. High unemployment: Unemployed workers and underused factories and buildings reduce GDP below its potential level. Unemployment causes …nancial distress as well as some social problems. ...
EU Economic governance: monitoring, prevention, correction
... the euro area. This Alert Mechanism Report (AMR) marks the first step in implementing the new surveillance procedure for the prevention and correction of macroeconomic imbalances (hereafter called the Macroeconomic Imbalance Procedure – MIP). This report also contains the final design of the scorebo ...
... the euro area. This Alert Mechanism Report (AMR) marks the first step in implementing the new surveillance procedure for the prevention and correction of macroeconomic imbalances (hereafter called the Macroeconomic Imbalance Procedure – MIP). This report also contains the final design of the scorebo ...
NBER WORKING PAPER SERIES OPTIMAL MONETARY GROWTH WITH ACCOMODATING FISCAL POLICY
... of monetary growth as part of a broader optimal macroeconomic policy package for such an economy. The framework we employ is one in which the behavioral relationships are derived from optimizing behavior on the part of private agents in the economy.' Optimal policy is then determined to maximize the ...
... of monetary growth as part of a broader optimal macroeconomic policy package for such an economy. The framework we employ is one in which the behavioral relationships are derived from optimizing behavior on the part of private agents in the economy.' Optimal policy is then determined to maximize the ...
Escaping from a Liquidity Trap and Deflation: The Foolproof Way
... back, when inflation was high, central banks would often promise low future inflation, but the private sector often paid little attention. Often, high inflation continued to rule. Similarly, if a central bank in a liquidity trap promises high inflation in the future, the private sector may doubt eit ...
... back, when inflation was high, central banks would often promise low future inflation, but the private sector often paid little attention. Often, high inflation continued to rule. Similarly, if a central bank in a liquidity trap promises high inflation in the future, the private sector may doubt eit ...
With appendices. - Harvard Kennedy School
... – Far from tiring of absorbing ever-greater levels of US treasury securities, global investors continue happily to lend at record-low interest rates (2008-): • The US enjoys safe-haven status; the $ enjoys “exorbitant privilege.” ...
... – Far from tiring of absorbing ever-greater levels of US treasury securities, global investors continue happily to lend at record-low interest rates (2008-): • The US enjoys safe-haven status; the $ enjoys “exorbitant privilege.” ...
Working Paper No. 315
... example, a rise in the profit margin would raise the long-run growth rate. On the other hand, given the normal profit rate, an increase in the social savings rate would also increase the growth rate. As will be demonstrated, this reliance on the social savings rate does not depend on the loanable fu ...
... example, a rise in the profit margin would raise the long-run growth rate. On the other hand, given the normal profit rate, an increase in the social savings rate would also increase the growth rate. As will be demonstrated, this reliance on the social savings rate does not depend on the loanable fu ...
Word
... 1 758.872 bn crowns. Nominal value of this gross consolidated debt of government institutions was compared to 2011 higher by 189.9 bn crowns, i.e. by 12.1 %. It represented a faster year-on-year growth compared to years 2010 (+11.7 %) and 2011 (+9.2 %). In the European context was then the relative ...
... 1 758.872 bn crowns. Nominal value of this gross consolidated debt of government institutions was compared to 2011 higher by 189.9 bn crowns, i.e. by 12.1 %. It represented a faster year-on-year growth compared to years 2010 (+11.7 %) and 2011 (+9.2 %). In the European context was then the relative ...
Republic of El Salvador
... Savings is defined as investment plus the current account surplus (deficit). Investment is defined as expenditure on capital goods, including plant, equipment, and housing, plus the change in inventories. Banks are other depository corporations other than the central bank, whose liabilities are incl ...
... Savings is defined as investment plus the current account surplus (deficit). Investment is defined as expenditure on capital goods, including plant, equipment, and housing, plus the change in inventories. Banks are other depository corporations other than the central bank, whose liabilities are incl ...
Document
... an increase in aggregate demand in two countries. Due to the inflation bias, the increase in demand resulted in higher inflation in both countries without increasing real output. 5. Optimal Currency Areas and Monetary Unions a. Optimal Currency Areas Recall that a group of countries that adopt a com ...
... an increase in aggregate demand in two countries. Due to the inflation bias, the increase in demand resulted in higher inflation in both countries without increasing real output. 5. Optimal Currency Areas and Monetary Unions a. Optimal Currency Areas Recall that a group of countries that adopt a com ...
13.1 money and the interest rate
... The Real Economy Real factors that are independent of the price level determine potential GDP and the natural unemployment rate. Investment demand and saving supply determine the amount of investment, the real interest rate and, along with population growth, human capital growth, and technological ...
... The Real Economy Real factors that are independent of the price level determine potential GDP and the natural unemployment rate. Investment demand and saving supply determine the amount of investment, the real interest rate and, along with population growth, human capital growth, and technological ...
Giancarlo Bertocco Money as an institution of capitalism. On the
... function of money as a means of exchange assumes importance, while in a capitalist economy the non neutrality of money is based on his store of wealth function.4 By specifying this function of money Keynes, in the General Theory, highlights the monetary nature of the interest rate and shows that th ...
... function of money as a means of exchange assumes importance, while in a capitalist economy the non neutrality of money is based on his store of wealth function.4 By specifying this function of money Keynes, in the General Theory, highlights the monetary nature of the interest rate and shows that th ...
Real GDP, Nominal GDP, Money Supply, Velocity of Money, Inflation
... Theory of Money or simply the Quantity Theory of Money (Ruffin,1938). The Quantity Theory is antecedent to important modern Macroeconomic theories. It is especially useful because it provides a powerful though simplified view of how the macro economy or an economy works (Ruffin, 1938). The basic mes ...
... Theory of Money or simply the Quantity Theory of Money (Ruffin,1938). The Quantity Theory is antecedent to important modern Macroeconomic theories. It is especially useful because it provides a powerful though simplified view of how the macro economy or an economy works (Ruffin, 1938). The basic mes ...
2. Medium term economic policy
... In its drive for the overall goal to reach sustainable economic growth and establish favourable conditions for a steady improvement in the living standards of the population, Lithuania is currently in the process of completing the transformation of its economy into a competitive market economy. Lith ...
... In its drive for the overall goal to reach sustainable economic growth and establish favourable conditions for a steady improvement in the living standards of the population, Lithuania is currently in the process of completing the transformation of its economy into a competitive market economy. Lith ...
Managing Indonesia`s Government Debt
... for the expected cost of reducing risk….” Ireland: “….contain the level and volatility of annual fiscal debt service costs, contain the government’s exposure to risk…..” ...
... for the expected cost of reducing risk….” Ireland: “….contain the level and volatility of annual fiscal debt service costs, contain the government’s exposure to risk…..” ...
Making Nonprofit Satellite Account: Japanese Experience
... Project (JHCNP) is a unique private initiative, and has produced statistics on nonprofit sector for well over 30 countries including Japan since 1990s. At the new phase of the project, they call on national statistical offices to prepare a “satellite account” on the nonprofit sector and philanthro ...
... Project (JHCNP) is a unique private initiative, and has produced statistics on nonprofit sector for well over 30 countries including Japan since 1990s. At the new phase of the project, they call on national statistical offices to prepare a “satellite account” on the nonprofit sector and philanthro ...
Mankiw 6e PowerPoints
... in the domestic industries that produce those products, but destroy jobs in export-producing sectors. ...
... in the domestic industries that produce those products, but destroy jobs in export-producing sectors. ...
Mankiw 6e PowerPoints
... in the domestic industries that produce those products, but destroy jobs in export-producing sectors. ...
... in the domestic industries that produce those products, but destroy jobs in export-producing sectors. ...
NBER WORKING PAPER SERIES IS-LM AND MONETARISM Michael D. Bordo Anna J. Schwartz
... model, however, are implicit since he never directly stated what they were. The General Theory simply did not express his own conception of how the macroeconomy functioned. His description of the features of the economy that he regarded as crucial was expressed in a language that was not consistent ...
... model, however, are implicit since he never directly stated what they were. The General Theory simply did not express his own conception of how the macroeconomy functioned. His description of the features of the economy that he regarded as crucial was expressed in a language that was not consistent ...