Questions
... 1. Long-run aggregate supply is the level of real GDP supplied at full employment. Because this level of real GDP, potential GDP, is independent of the price level, the long-run aggregate supply curve is vertical. Potential real GDP is attained when prices of resources, such as the money wage rate, ...
... 1. Long-run aggregate supply is the level of real GDP supplied at full employment. Because this level of real GDP, potential GDP, is independent of the price level, the long-run aggregate supply curve is vertical. Potential real GDP is attained when prices of resources, such as the money wage rate, ...
Can global economic conditions explain low New Zealand inflation? AN2015/03
... Consequently, the Bank uses economic forecasts to guide policy decisions. It is inevitable, however, that there will be differences between forecasts and how the economy actually evolves. The economy is affected by a range of factors that often cannot be foreseen, such as recent significant falls in ...
... Consequently, the Bank uses economic forecasts to guide policy decisions. It is inevitable, however, that there will be differences between forecasts and how the economy actually evolves. The economy is affected by a range of factors that often cannot be foreseen, such as recent significant falls in ...
PDF file
... VAR with short-run and long-run restrictions in order to identify the structural shocks. We learn that variations in output were due mostly to shocks to productivity. (Unexpected) changes in the intensity of immigration play a signiÞcant role in explaining the variation of labor supply and contribut ...
... VAR with short-run and long-run restrictions in order to identify the structural shocks. We learn that variations in output were due mostly to shocks to productivity. (Unexpected) changes in the intensity of immigration play a signiÞcant role in explaining the variation of labor supply and contribut ...
Aggregate Demand and Aggregate Supply
... real interest rate raises aggregate demand. A decline in saving might occur if consumers expect an increase in expected future income or if they feel confident about the future conditions—raising consumption, C. Taxes may also play a role in the behavior of consumers and affect aggregate demand. Som ...
... real interest rate raises aggregate demand. A decline in saving might occur if consumers expect an increase in expected future income or if they feel confident about the future conditions—raising consumption, C. Taxes may also play a role in the behavior of consumers and affect aggregate demand. Som ...
NBER WORKING PAPER SERIES INFLATION, TAX RULES, AND THE STOCK MARKET
... where the sUbscript n indicates that this is a net return and the subscript i indicates that this is the net return for institutional investors. lTO see more easily that this is true, it is useful to think about the corresponding aggregates. Let K be total capital and B=bK be the corresponding aggre ...
... where the sUbscript n indicates that this is a net return and the subscript i indicates that this is the net return for institutional investors. lTO see more easily that this is true, it is useful to think about the corresponding aggregates. Let K be total capital and B=bK be the corresponding aggre ...
M o n e t a r y ... Contents 1 December 2003
... The Reserve Bank has decided to leave the Official Cash Rate unchanged at 5.0 per cent. However, in saying that, small increases in the OCR may be required over the year ahead to ensure that inflation remains comfortably within the target range over the medium term. New Zealand’s economy has continu ...
... The Reserve Bank has decided to leave the Official Cash Rate unchanged at 5.0 per cent. However, in saying that, small increases in the OCR may be required over the year ahead to ensure that inflation remains comfortably within the target range over the medium term. New Zealand’s economy has continu ...
What Explains Inflation in China?
... Figure 1 Inflation in China in Different Measures ........................................................................................ 8 Figure 2 Evolution of Inflation 1981-1997 ................................................................................................. 10 Figure 3 Evoluti ...
... Figure 1 Inflation in China in Different Measures ........................................................................................ 8 Figure 2 Evolution of Inflation 1981-1997 ................................................................................................. 10 Figure 3 Evoluti ...
Using the Term Structure of Interest Rates for Monetary Policy
... policy in the form of a higher path of short rates pursued by the central bank? The yield curve contains information of use to monetary policymakers, but it needs to be interpreted in light of judicious subsidiary “identifying” conditions, together with other data on the economy. Some circumstances ...
... policy in the form of a higher path of short rates pursued by the central bank? The yield curve contains information of use to monetary policymakers, but it needs to be interpreted in light of judicious subsidiary “identifying” conditions, together with other data on the economy. Some circumstances ...
Abstract for AEA Meetings 1997 - American Economic Association
... Downward adjustment in factor prices with excess supplies of the factors may be hindered by institutional constraints and contractual obligations. Over any year, however, many factor contracts will expire, and depending on the current condition of the economy, the factor prices stipulated in new con ...
... Downward adjustment in factor prices with excess supplies of the factors may be hindered by institutional constraints and contractual obligations. Over any year, however, many factor contracts will expire, and depending on the current condition of the economy, the factor prices stipulated in new con ...
Monetary Policy Statement March 2016
... 3.4 percent per annum over the next three years. This is lower than projected in December, and has been revised down successively over the past two years, reflecting weaker-than-expected economic data (figure 2.1). Financial market pricing and volatility would suggest an even more pessimistic view o ...
... 3.4 percent per annum over the next three years. This is lower than projected in December, and has been revised down successively over the past two years, reflecting weaker-than-expected economic data (figure 2.1). Financial market pricing and volatility would suggest an even more pessimistic view o ...
Inflation differentials in the euro area during the last decade
... Eπit+1 is the Consensus Economics forecast for inflation for the next calendar year from its December survey, outputgapit denotes the cyclical component of GDP (extracted using the Hodrick-Prescott filter with data since the start of Eurostat’s annual GDP time series), riskpremiumit denotes the dist ...
... Eπit+1 is the Consensus Economics forecast for inflation for the next calendar year from its December survey, outputgapit denotes the cyclical component of GDP (extracted using the Hodrick-Prescott filter with data since the start of Eurostat’s annual GDP time series), riskpremiumit denotes the dist ...
ppt
... • What happened to the deflation? The basic answer is that since World War II economic fluctuations have taken place around a long-run inflationary trend. Before the war, it was common for prices to fall during recessions, but since then negative demand shocks have been reflected in a decline in t ...
... • What happened to the deflation? The basic answer is that since World War II economic fluctuations have taken place around a long-run inflationary trend. Before the war, it was common for prices to fall during recessions, but since then negative demand shocks have been reflected in a decline in t ...
“Inflation-Maintenance” Theory of Securities Fraud Liability
... assume that the inflation was due to misrepresentations. As the Court explained, “[a]rtificial inflation is not necessarily fraud-induced, for a falsehood can exist in the market (and thereby cause artificial inflation) for reasons unrelated to fraudulent conduct.”6 Because Nye did not determine the ...
... assume that the inflation was due to misrepresentations. As the Court explained, “[a]rtificial inflation is not necessarily fraud-induced, for a falsehood can exist in the market (and thereby cause artificial inflation) for reasons unrelated to fraudulent conduct.”6 Because Nye did not determine the ...
Inflation and Economic Growth in India – An Empirical Analysis
... Earlier works (for example, Tun Wai, 1959) failed to establish any meaningful relationship between inflation and economic growth. A more recent work by Paul, Kearney and Chowdhury (1997) involving 70 countries (of which 48 are developing economies) for the period 1960-1989 found no causal relationsh ...
... Earlier works (for example, Tun Wai, 1959) failed to establish any meaningful relationship between inflation and economic growth. A more recent work by Paul, Kearney and Chowdhury (1997) involving 70 countries (of which 48 are developing economies) for the period 1960-1989 found no causal relationsh ...
Inflation, Debt, and Default
... Consistent with the data, our model predicts that borrowing costs fall as the covariance of inflation and consumption growth increases. During normal times, relative to its countercyclical counterpart, the procyclical inflation economy sustains similar levels of debt, exhibits higher default risk, ...
... Consistent with the data, our model predicts that borrowing costs fall as the covariance of inflation and consumption growth increases. During normal times, relative to its countercyclical counterpart, the procyclical inflation economy sustains similar levels of debt, exhibits higher default risk, ...
2. A More Realistic Aggregate Demand
... upward sloping short-run aggregate supply curves is justified on the basis that many factor prices, especially wages, are set by either explicit or implicit contracts in the short run. If it is also assumed that output prices are usually more flexible than input prices, and that price expectations h ...
... upward sloping short-run aggregate supply curves is justified on the basis that many factor prices, especially wages, are set by either explicit or implicit contracts in the short run. If it is also assumed that output prices are usually more flexible than input prices, and that price expectations h ...
The Power of Forward Guidance Revisited
... why output responds in this way, it is important to consider that the shock changes the relative price of consumption between quarters 20 and 21 (since it is the real interest rate in quarter 20 that changes), but leaves the relative price of consumption for any two dates before quarter 20 and any t ...
... why output responds in this way, it is important to consider that the shock changes the relative price of consumption between quarters 20 and 21 (since it is the real interest rate in quarter 20 that changes), but leaves the relative price of consumption for any two dates before quarter 20 and any t ...
Course Outline Word Document | AS/A level
... and in extreme case render them unable to operate at all. Use of used cars (lemons) and private health insurance as examples. Common goods: Absence of property rights – where assets do not have clearly defined owners then a price cannot be established and they will be over-used. Tragedy of the Commo ...
... and in extreme case render them unable to operate at all. Use of used cars (lemons) and private health insurance as examples. Common goods: Absence of property rights – where assets do not have clearly defined owners then a price cannot be established and they will be over-used. Tragedy of the Commo ...
Chapter 4
... Curve for Bonds (continued) If firms become pessimistic about the profits they could earn from investing in physical capital, the supply curve for bonds will shift to the left. As a result, the equilibrium price increases and the equilibrium quantity of bonds decreases. ...
... Curve for Bonds (continued) If firms become pessimistic about the profits they could earn from investing in physical capital, the supply curve for bonds will shift to the left. As a result, the equilibrium price increases and the equilibrium quantity of bonds decreases. ...
Interest Rate Channel in Indonesia during Inflation - UvA-DARE
... channel, asset prices channel, and expectation channel. Most central banks usually choose interest rate as their policy instrument. Changes in the policy rate will first have effects on changes in short-term interest rates and then will be followed by changes in the deposit and loan rates. Eventuall ...
... channel, asset prices channel, and expectation channel. Most central banks usually choose interest rate as their policy instrument. Changes in the policy rate will first have effects on changes in short-term interest rates and then will be followed by changes in the deposit and loan rates. Eventuall ...
The Wizard Test Maker
... Based on the above diagram, which of the following could cause a shift from point A to point B? (A) Increase is demand for Francs (B) Decreased political stability in France (C) Expectations that the Franc will appreciate (D) A relative increase in interest rates in France (E) Increase in relative l ...
... Based on the above diagram, which of the following could cause a shift from point A to point B? (A) Increase is demand for Francs (B) Decreased political stability in France (C) Expectations that the Franc will appreciate (D) A relative increase in interest rates in France (E) Increase in relative l ...
2. I E D
... activity followed a sluggish course in the first quarter of the year, which persisted into the second quarter of the year. This sluggish course by global economic activity was mainly driven by the negative growth performance of emerging economies, while the ongoing stagnation in the Euro Area and th ...
... activity followed a sluggish course in the first quarter of the year, which persisted into the second quarter of the year. This sluggish course by global economic activity was mainly driven by the negative growth performance of emerging economies, while the ongoing stagnation in the Euro Area and th ...
24729 33 c33 p737-776
... be nominal (by the standard meaning of “nearly insignificant”). The things that people really care about—whether they have a job, how many goods and services they can afford, and so on—would be exactly the same. This classical view is sometimes described by the saying, “Money is a veil.” That is, no ...
... be nominal (by the standard meaning of “nearly insignificant”). The things that people really care about—whether they have a job, how many goods and services they can afford, and so on—would be exactly the same. This classical view is sometimes described by the saying, “Money is a veil.” That is, no ...
