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... were unforeseen is that at the beginning of the 1990s it was clear that virtually every aspect of the theory of international finance was open to question. The models of the 1970s and 1980s lacked explanatory power2. The dominant approach has been based upon Purchasing Power Parity (PPP), the quanti ...
... were unforeseen is that at the beginning of the 1990s it was clear that virtually every aspect of the theory of international finance was open to question. The models of the 1970s and 1980s lacked explanatory power2. The dominant approach has been based upon Purchasing Power Parity (PPP), the quanti ...
Information Kit on the Budget of Bangladesh
... The Finance Division receives estimates of expenditure from all the spending agencies (Ministries and Divisions) of the government and estimates of receipts. These estimates of receipts and expenditures reflect the following figures (i) actual expenditure of the previous year, (ii) last year’s budge ...
... The Finance Division receives estimates of expenditure from all the spending agencies (Ministries and Divisions) of the government and estimates of receipts. These estimates of receipts and expenditures reflect the following figures (i) actual expenditure of the previous year, (ii) last year’s budge ...
The long history of financial boom-bust cycles in Iceland1 Part I
... However, we find that macroeconomic variables, such as output, domestic demand, the trade deficit and, to a lesser extent, the real exchange rate, give a more robust warning signal. Our results also suggest an important role of contagion from global financial crises in most of these episodes, with f ...
... However, we find that macroeconomic variables, such as output, domestic demand, the trade deficit and, to a lesser extent, the real exchange rate, give a more robust warning signal. Our results also suggest an important role of contagion from global financial crises in most of these episodes, with f ...
portable document (.pdf) format
... The goal of this paper was to examine the interrelationships among certain economic indicators in Nigeria by using the concept of Granger causality tests developed by Granger(1969). We used sixteen VAR models to test for Pairwise Granger (non) causality among the economic indicators and the followin ...
... The goal of this paper was to examine the interrelationships among certain economic indicators in Nigeria by using the concept of Granger causality tests developed by Granger(1969). We used sixteen VAR models to test for Pairwise Granger (non) causality among the economic indicators and the followin ...
When is the Government Spending Multiplier Large?
... the output cost of being in the zero-bound state is also large. In such economies it can be socially optimal to substantially raise government spending in response to shocks that make the zero lower bound on the nominal interest rate binding. We begin by considering an economy with Calvo-style pric ...
... the output cost of being in the zero-bound state is also large. In such economies it can be socially optimal to substantially raise government spending in response to shocks that make the zero lower bound on the nominal interest rate binding. We begin by considering an economy with Calvo-style pric ...
Validity of Twin Deficit Hypothesis: Evidence from Asian Developing
... This paper aims to empirically test the validity of twin deficit hypothesis in 14 developing Asian countries. Advanced panel data models were estimated to investigate the extent of influences of government budget deficits on the countries' current account deficits covering 22 years from 1990 to 2012 ...
... This paper aims to empirically test the validity of twin deficit hypothesis in 14 developing Asian countries. Advanced panel data models were estimated to investigate the extent of influences of government budget deficits on the countries' current account deficits covering 22 years from 1990 to 2012 ...
Stephen J. Working OF INTEREST RATES
... Equation (la) is the IS curve, where the relevant interest rate is taken to be the long—term real rate. This reflects the fact that real expenditures include investment, which given adjustment costs depend upon the long—term real rate.3 Money market equilibrium is described by (ib), where the demand ...
... Equation (la) is the IS curve, where the relevant interest rate is taken to be the long—term real rate. This reflects the fact that real expenditures include investment, which given adjustment costs depend upon the long—term real rate.3 Money market equilibrium is described by (ib), where the demand ...
Christiano, Eichenbaum and Rebelo
... be much larger than one when the nominal interest rate does not respond to an increase in government spending. We develop this argument in a model in which the multiplier is quite modest if the nominal interest rate is governed by a Taylor rule. When such a rule is operative, the nominal interest ra ...
... be much larger than one when the nominal interest rate does not respond to an increase in government spending. We develop this argument in a model in which the multiplier is quite modest if the nominal interest rate is governed by a Taylor rule. When such a rule is operative, the nominal interest ra ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... insulates the economy; neither real income nor the price level need be affected. In the event of disturbances to supply, such as the oil price increases of the 1970s, the change is divided equiproportionately between an increase in the price level and a fall in output. For some countries, this is ro ...
... insulates the economy; neither real income nor the price level need be affected. In the event of disturbances to supply, such as the oil price increases of the 1970s, the change is divided equiproportionately between an increase in the price level and a fall in output. For some countries, this is ro ...
Bosnia and Herzegovina – Understanding Reform
... the decisive role played by the external actors in the econom ic management of the country by way of setting up economic policy and reform agendas (the High Representative is effectively the supreme authority), and providing financial and expert support for its implementation. The international comm ...
... the decisive role played by the external actors in the econom ic management of the country by way of setting up economic policy and reform agendas (the High Representative is effectively the supreme authority), and providing financial and expert support for its implementation. The international comm ...
Optimal fiscal and monetary policy action in a closed economy!
... imperfect competition, Calvo-type price …xities and wage rigidities. The model is solved numerically employing commonly used parameter values and …scal data from the euro area. The steady state solution of this model (called the status quo) serves as a point of departure to study the implications o ...
... imperfect competition, Calvo-type price …xities and wage rigidities. The model is solved numerically employing commonly used parameter values and …scal data from the euro area. The steady state solution of this model (called the status quo) serves as a point of departure to study the implications o ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... government spending probably lies somewhere between 0.8 and 1.5, but could be as low as 0.5 or as high as 2. Two of the key questions for deciding whether policymakers should use government spending for short-run stabilization policy are: (1) Can an increase in government spending stimulate the econ ...
... government spending probably lies somewhere between 0.8 and 1.5, but could be as low as 0.5 or as high as 2. Two of the key questions for deciding whether policymakers should use government spending for short-run stabilization policy are: (1) Can an increase in government spending stimulate the econ ...
How Friedman and Schwartz became monetarists
... which fiscal policy would be used to generate changes in the money supply with the aim of stabilizing output at full employment. He believed that the economy is inherently unstable because of endogenous movements in money supply under a fractional-reserve banking system. In her work, Anna Schwartz d ...
... which fiscal policy would be used to generate changes in the money supply with the aim of stabilizing output at full employment. He believed that the economy is inherently unstable because of endogenous movements in money supply under a fractional-reserve banking system. In her work, Anna Schwartz d ...
Optimal fiscal and monetary policy action in a closed economy!
... of them to real economic activity. It is nevertheless believed that the use of …scal policy is more complex and controversial than the use of monetary policy (see e.g. Leeper, 2010). The debate over the use of …scal policy has been intensi…ed since 2009 when most European governments embarked on the ...
... of them to real economic activity. It is nevertheless believed that the use of …scal policy is more complex and controversial than the use of monetary policy (see e.g. Leeper, 2010). The debate over the use of …scal policy has been intensi…ed since 2009 when most European governments embarked on the ...
Political Credit Cycles: Myth or Reality?
... occurrences of political credit cycles in financially open economies, and also less frequent occurrences of electoral cycles in monetary and fiscal policy. In order to elaborate these two competing views, we test the extent to which financial openness affects the likelihood of incumbents to engage i ...
... occurrences of political credit cycles in financially open economies, and also less frequent occurrences of electoral cycles in monetary and fiscal policy. In order to elaborate these two competing views, we test the extent to which financial openness affects the likelihood of incumbents to engage i ...
Public Policy and Private Investment in Pakistan
... resources and an increase in input prices. Alternatively, investment could respond more rapidly in situations of excess capacity. It is, therefore, not entirely clear what effect, on average, cyclical factors can be expected to have on the change in private investment. The effect of the availability ...
... resources and an increase in input prices. Alternatively, investment could respond more rapidly in situations of excess capacity. It is, therefore, not entirely clear what effect, on average, cyclical factors can be expected to have on the change in private investment. The effect of the availability ...
Fiscal consolidation and its cross
... forming a currency union. An international asset market allows private agents across countries to borrow from, or lend to, each other and the same market allows national governments to sell their bonds to foreign private agents. Regarding macroeconomic policy, being in a monetary union, there is a s ...
... forming a currency union. An international asset market allows private agents across countries to borrow from, or lend to, each other and the same market allows national governments to sell their bonds to foreign private agents. Regarding macroeconomic policy, being in a monetary union, there is a s ...
global economies, regulatory failure, and loose money
... madness” in daring to imagine that “a tiny fishing nation” could be “a global financial power.”21 A new Icelandic government, now led by the social-democratic Social Alliance (Icelandic: Samfylking) and the LeftGreen Movement (Icelandic: Vinstrihreyfingin- grænt frambod), initiated efforts to join t ...
... madness” in daring to imagine that “a tiny fishing nation” could be “a global financial power.”21 A new Icelandic government, now led by the social-democratic Social Alliance (Icelandic: Samfylking) and the LeftGreen Movement (Icelandic: Vinstrihreyfingin- grænt frambod), initiated efforts to join t ...
NBER WORKING PAPER SERIES AND THE REAL EXCHANGE RATE
... the increase in consumption, fails to account for the observed real depreciation of the exchange rate that follows an increase in public consumption. Within this framework, an increase in government purchases produces an expansion in aggregate demand that drives interest rates up. In turn, the eleva ...
... the increase in consumption, fails to account for the observed real depreciation of the exchange rate that follows an increase in public consumption. Within this framework, an increase in government purchases produces an expansion in aggregate demand that drives interest rates up. In turn, the eleva ...
1 M.A.PART - I ECONOMIC PAPER
... saving or borrowed income on consumption because they must eat in order to live. When income increases in the economy to the extent of Rs. 70 crores, but it is not enough to meet the consumption expenditure of Rs. 80 crores (negative saving). When both income and consumption expenditure are equal Rs ...
... saving or borrowed income on consumption because they must eat in order to live. When income increases in the economy to the extent of Rs. 70 crores, but it is not enough to meet the consumption expenditure of Rs. 80 crores (negative saving). When both income and consumption expenditure are equal Rs ...
The 3-Equation New Keynesian Model — a Graphical
... and output pairs faced by the central bank. The only points on the curve with inflation below 4% are to the left of B, i.e. with lower output and hence higher unemployment. With Phillips curves like this, disinflation will always be costly. This result comes from the assumption that last period’s in ...
... and output pairs faced by the central bank. The only points on the curve with inflation below 4% are to the left of B, i.e. with lower output and hence higher unemployment. With Phillips curves like this, disinflation will always be costly. This result comes from the assumption that last period’s in ...
Brian Olden (IMF)
... • High debt levels are associated with lower investment and slower growth • They are also associated with higher macroeconomic volatility, perhaps because capacity to respond to future shocks is constrained • Implications of having so many high debt countries at once are uncertain, and market respon ...
... • High debt levels are associated with lower investment and slower growth • They are also associated with higher macroeconomic volatility, perhaps because capacity to respond to future shocks is constrained • Implications of having so many high debt countries at once are uncertain, and market respon ...