This PDF is a selection from a published volume from... Bureau of Economic Research
... that the simple New Keynesian model may be misleading by emphasizing that demand-driven changes in output should be inflationary. As for the first inference, it is obviously possible to find parameters that will allow the volatility of inflation built from (1) to be similar to that observed in the d ...
... that the simple New Keynesian model may be misleading by emphasizing that demand-driven changes in output should be inflationary. As for the first inference, it is obviously possible to find parameters that will allow the volatility of inflation built from (1) to be similar to that observed in the d ...
Taxa Real de Câmbio, Mobilidade de Capitais e Mudança
... the rate of domestic price inflation and/or in the rate of international price inflation. Labor Unions can manage to set the rate of change of nominal wages at a level that is not only sufficient to keep real wages constant through time, but also high enough to incorporate productivity gains. In thi ...
... the rate of domestic price inflation and/or in the rate of international price inflation. Labor Unions can manage to set the rate of change of nominal wages at a level that is not only sufficient to keep real wages constant through time, but also high enough to incorporate productivity gains. In thi ...
targeting financial stability: macroprudential or monetary policy?
... and macroprudential policies have some effect in constraining credit growth and the two tend to be complements’ And yet others question whether monetary policy should have an explicit financial stability objective at all since small changes in monetary policy may not be effective in reducing the cri ...
... and macroprudential policies have some effect in constraining credit growth and the two tend to be complements’ And yet others question whether monetary policy should have an explicit financial stability objective at all since small changes in monetary policy may not be effective in reducing the cri ...
Lessons from a Century of Fed Policy
... actions might influence those expectations. Compounding the problem, enormous increases in short-term rates were required by the early 1980s to stabilize the economy. Stabilization policy became more difficult because the public could not predict what a given policy action implied for the future, an ...
... actions might influence those expectations. Compounding the problem, enormous increases in short-term rates were required by the early 1980s to stabilize the economy. Stabilization policy became more difficult because the public could not predict what a given policy action implied for the future, an ...
Understanding Non-Inflationary Demand Driven Business Cycles
... was very stable over the entire period and exhibited only a very small covariance with output. Such demand driven cycles are not in themselves puzzling, but the associated inflation patterns are if one adopts a New Keynesian perspective for interpreting the period. In particular, using a standard ca ...
... was very stable over the entire period and exhibited only a very small covariance with output. Such demand driven cycles are not in themselves puzzling, but the associated inflation patterns are if one adopts a New Keynesian perspective for interpreting the period. In particular, using a standard ca ...
Using Inflation to Erode the US Public Debt
... enough to reduce the ratio. This scenario requires a robust economic recovery from the financial crisis. Second, inflation can rise, eroding the real value of the debt held by creditors and the effective debt ratio. With foreign creditors holding a significant share of the dollar-denominated U.S. Fe ...
... enough to reduce the ratio. This scenario requires a robust economic recovery from the financial crisis. Second, inflation can rise, eroding the real value of the debt held by creditors and the effective debt ratio. With foreign creditors holding a significant share of the dollar-denominated U.S. Fe ...
macroeconomic policy - Faculty of Business and Economics Courses
... We will assume that our exports to the rest of world are exogenously given. So it is a constant amount (let’s call this amount g) during the time period under consideration. But how about our impr0ots from the rest of the world? Imports means purchases of consumer and Investment goods from the rest ...
... We will assume that our exports to the rest of world are exogenously given. So it is a constant amount (let’s call this amount g) during the time period under consideration. But how about our impr0ots from the rest of the world? Imports means purchases of consumer and Investment goods from the rest ...
Deflation: Determinants, Risks and Policy Options -- Findings
... gaps; repeated disappointments over the pace of global recovery; geopolitical uncertainties; and the impact on activity of higher oil prices. 2. This is the second time in the past five years that widespread concerns about deflation have come to the fore—the first being during and in the aftermath o ...
... gaps; repeated disappointments over the pace of global recovery; geopolitical uncertainties; and the impact on activity of higher oil prices. 2. This is the second time in the past five years that widespread concerns about deflation have come to the fore—the first being during and in the aftermath o ...
NBER WORKING PAPER SERIES Joshua Aizenman Nancy Marion
... enough to reduce the ratio. This scenario requires a robust economic recovery from the financial crisis. Second, inflation can rise, eroding the real value of the debt held by creditors and the effective debt ratio. With foreign creditors holding a significant share of the dollar-denominated U.S. Fe ...
... enough to reduce the ratio. This scenario requires a robust economic recovery from the financial crisis. Second, inflation can rise, eroding the real value of the debt held by creditors and the effective debt ratio. With foreign creditors holding a significant share of the dollar-denominated U.S. Fe ...
One money, but many fiscal policies in Europe
... Following the brief introductory section 2 on optimal fiscal and monetary policy, section 3 focusses on the free-riding issue, and shows how it arises in the bread-and-butter policy task of responding to business cycle shocks. It introduces a model of the interaction between one central bank and man ...
... Following the brief introductory section 2 on optimal fiscal and monetary policy, section 3 focusses on the free-riding issue, and shows how it arises in the bread-and-butter policy task of responding to business cycle shocks. It introduces a model of the interaction between one central bank and man ...
The escalation in world food prices and its implications for
... wake of the original international food crisis have influenced and modified its impact. The global financial crisis, and the ensuing global economic recession from mid- 2008 onwards, have shifted policy concerns in most countries away from rising food prices and towards falling levels of activity an ...
... wake of the original international food crisis have influenced and modified its impact. The global financial crisis, and the ensuing global economic recession from mid- 2008 onwards, have shifted policy concerns in most countries away from rising food prices and towards falling levels of activity an ...
chapter 11
... A) growth rate of money demand = growth rate of money supply. B) growth rate of money supply = growth rate of nominal GDP. C) growth rate of money supply = growth rate of real GDP. D) growth rate of currency in circulation = growth rate of the price level Answer: B Difficulty: Easy AACSB: Analytical ...
... A) growth rate of money demand = growth rate of money supply. B) growth rate of money supply = growth rate of nominal GDP. C) growth rate of money supply = growth rate of real GDP. D) growth rate of currency in circulation = growth rate of the price level Answer: B Difficulty: Easy AACSB: Analytical ...
Animal Spirits and the International Transmission of Business Cycles
... Following De Grauwe (2012), we use a simple behavioural macroeconomic model and we extend it to two countries that trade with each other. The basic structure of this behavioural model ...
... Following De Grauwe (2012), we use a simple behavioural macroeconomic model and we extend it to two countries that trade with each other. The basic structure of this behavioural model ...
Henrike Michaelis und Sebastian Watzka: Are there Differences in
... Having these macroeconomic and monetary developments in mind we next present our identification strategy based on the reasonable assumption that the BoJ since 1995 did not conduct its monetary policy through the call rate anymore - which was constrained by the ZLB - but by changing the reserve holdi ...
... Having these macroeconomic and monetary developments in mind we next present our identification strategy based on the reasonable assumption that the BoJ since 1995 did not conduct its monetary policy through the call rate anymore - which was constrained by the ZLB - but by changing the reserve holdi ...
Term 2 Week 6 to 9 - Singapore A Level Notes
... full employment and healthy BOP. Consider some of the difficulties in its attempts to meet them simultaneously. A government’s macroeconomic objectives are economic growth, low inflation, full employment and healthy BOP. Which of these aims do you consider most significant for Singapore and why? Dis ...
... full employment and healthy BOP. Consider some of the difficulties in its attempts to meet them simultaneously. A government’s macroeconomic objectives are economic growth, low inflation, full employment and healthy BOP. Which of these aims do you consider most significant for Singapore and why? Dis ...
Fiscal policy, pricing frictions and monetary accommodation
... Our work differs from the existing studies along a number of other dimensions. First, rather than focusing on consumption and investment responses, we study the dynamics of the real wage, real interest rate and the labor wedge since, in theory, this provides the most reliable information on the ques ...
... Our work differs from the existing studies along a number of other dimensions. First, rather than focusing on consumption and investment responses, we study the dynamics of the real wage, real interest rate and the labor wedge since, in theory, this provides the most reliable information on the ques ...
NBER WORKING PAPER SERIES PERCEPTIONS AND MISPERCEPTIONS OF FISCAL INFLATION
... Regime F posits different policies that align closely to actual behavior in many countries recently. Suppose that higher deficits do not create higher expected surpluses and that central banks either peg short-term nominal interest rates or raise them only weakly with inflation. Because a tax cut today ...
... Regime F posits different policies that align closely to actual behavior in many countries recently. Suppose that higher deficits do not create higher expected surpluses and that central banks either peg short-term nominal interest rates or raise them only weakly with inflation. Because a tax cut today ...
Woodford and Wicksell: a Cashless Economy or a Moneyless
... If we take for granted the Wicksellian definition of Economics as a practical science, it should, then, be quite natural to make the bridge between theory and practice. Unfortunately, most of the time a gap emerges between academics and policymakers. Goodhart (2005) for instance -in his survey of th ...
... If we take for granted the Wicksellian definition of Economics as a practical science, it should, then, be quite natural to make the bridge between theory and practice. Unfortunately, most of the time a gap emerges between academics and policymakers. Goodhart (2005) for instance -in his survey of th ...
Vo l u m e 6 5 ... C o n t e n t s
... In this article we summarise the recent economic literature on the relationship between inflation and growth, to assess what inflation target might be most consistent with the fastest pace of sustainable economic growth. One conclusion is that the relationship between inflation and growth seems to b ...
... In this article we summarise the recent economic literature on the relationship between inflation and growth, to assess what inflation target might be most consistent with the fastest pace of sustainable economic growth. One conclusion is that the relationship between inflation and growth seems to b ...
Monetary Policy report
... The financial markets have recently been affected by the currency turbulence in emerging markets. However, it is mainly countries with large current account deficits, funded by short-term capital flows that have been hit, although stock markets in developed economies have also been affected. No majo ...
... The financial markets have recently been affected by the currency turbulence in emerging markets. However, it is mainly countries with large current account deficits, funded by short-term capital flows that have been hit, although stock markets in developed economies have also been affected. No majo ...
Vol. 17, No. 2, December 2010
... saving ratios.1 Also, food comprises a large part of the average consumption basket and the economies depend on oil imports, making these countries vulnerable to terms of trade and other supply shocks. The region initiated liberalizing reforms in the 1990s. The reforms brought on shocks to the econo ...
... saving ratios.1 Also, food comprises a large part of the average consumption basket and the economies depend on oil imports, making these countries vulnerable to terms of trade and other supply shocks. The region initiated liberalizing reforms in the 1990s. The reforms brought on shocks to the econo ...
FISCAL AND MONETARY POLICY INTERACTIONS: A GAME
... Palavras-chave: Política Fiscal e Monetária, Teoria dos Jogos, Equilíbrio de Nash, Equilíbrio de Stackelberg, Cooperação, Brasil. ...
... Palavras-chave: Política Fiscal e Monetária, Teoria dos Jogos, Equilíbrio de Nash, Equilíbrio de Stackelberg, Cooperação, Brasil. ...