Unemployment and Inflation, Part 3 Agenda Inflation and the triangle
... Reduces the real money supply, Shifts the LM curve to the left, Raises the real interest rate, Reduces interest-sensitive spending, and Reduces output and employment. ...
... Reduces the real money supply, Shifts the LM curve to the left, Raises the real interest rate, Reduces interest-sensitive spending, and Reduces output and employment. ...
NBER WORKING PAPER SERIES STABILIZATION POLICIES IN OPEN ECONOMIES Richard C. Marston
... Turnovsky, Charles Wyplosz and the two discussants of the paper, Richard Cooper and Mohsin Khan, and other participants at a Princeton University Conference in May 1982 for their helpful corn— rients on an earlier draft. Jean—Francois Dreyfus provided excellent research assistance. Financial support ...
... Turnovsky, Charles Wyplosz and the two discussants of the paper, Richard Cooper and Mohsin Khan, and other participants at a Princeton University Conference in May 1982 for their helpful corn— rients on an earlier draft. Jean—Francois Dreyfus provided excellent research assistance. Financial support ...
Clearing Up the Fiscal Multiplier Morass Eric M. Leeper Nora Traum
... Each individual firm i produces with a Cobb-Douglas technology, yt (i) = At kt (i)α lt (i)1−α , where α ∈ [0, 1]. There are no fixed costs of production, as in Del Negro, Schorfheide, Smets, and Wouters (2004). Firms face perfectly competitive factor markets for capital and labor. Cost minimization im ...
... Each individual firm i produces with a Cobb-Douglas technology, yt (i) = At kt (i)α lt (i)1−α , where α ∈ [0, 1]. There are no fixed costs of production, as in Del Negro, Schorfheide, Smets, and Wouters (2004). Firms face perfectly competitive factor markets for capital and labor. Cost minimization im ...
Oil Prices and Consumer Spending
... oil price increases and decreases may have a negative effect on GDP growth if oil price effects work primarily through allocative channels.5 Of course, oil price increases may affect aggregate spending through other widely known channels. For instance, because oil price increases lead to income tran ...
... oil price increases and decreases may have a negative effect on GDP growth if oil price effects work primarily through allocative channels.5 Of course, oil price increases may affect aggregate spending through other widely known channels. For instance, because oil price increases lead to income tran ...
Stealth-trading: Which traders` trades move stock prices?
... The audit file seeks to provide a detailed description of each trade, including price, time, volume, and identities of the participants. The focus of this study is the initiating trader of a transaction and the impact of that trade on price. Initiating trades are, almost always, market orders. Yet, t ...
... The audit file seeks to provide a detailed description of each trade, including price, time, volume, and identities of the participants. The focus of this study is the initiating trader of a transaction and the impact of that trade on price. Initiating trades are, almost always, market orders. Yet, t ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: NBER Macroeconomics Annual 1986, Volume 1
... 1970s, the stage was set for the monetarist version of which particular financial aggregates should be manipulated—how, when, and by whom. The basic message of monetarism is that if the economy concentrates on achieving price stability by rigidly controlling the "supply of money," at worst there may ...
... 1970s, the stage was set for the monetarist version of which particular financial aggregates should be manipulated—how, when, and by whom. The basic message of monetarism is that if the economy concentrates on achieving price stability by rigidly controlling the "supply of money," at worst there may ...
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... C) It was the first time that deficits were accompanied by very high rates of inflation. D) It was the first time that deficits diverted funds from other productive uses, such as investment in modern equipment. Answer: B Diff: 1 Topic: Section: 1.1 Question Status: Previous Edition 34) Critics of th ...
... C) It was the first time that deficits were accompanied by very high rates of inflation. D) It was the first time that deficits diverted funds from other productive uses, such as investment in modern equipment. Answer: B Diff: 1 Topic: Section: 1.1 Question Status: Previous Edition 34) Critics of th ...
Synchronization risk and delayed arbitrage
... currencies in the foreign exchange market are often known to be under/overvalued over many years, but arbitrageurs are afraid to trade on this mispricing too early. The objective of this paper is to provide a rationale for why this type of mispricing can persist even when professional arbitrageurs a ...
... currencies in the foreign exchange market are often known to be under/overvalued over many years, but arbitrageurs are afraid to trade on this mispricing too early. The objective of this paper is to provide a rationale for why this type of mispricing can persist even when professional arbitrageurs a ...
NBER WORKING PAPER SERIES HOW DO MONETARY AND FISCAL POLICY
... equation (27). If prices are flexible, DPt = 1 and aggregate output is maximized for a given labor input; if prices are sticky, DPt > 1, and output will be less for a given labor input. 2.A.4. Monetary and Fiscal P ...
... equation (27). If prices are flexible, DPt = 1 and aggregate output is maximized for a given labor input; if prices are sticky, DPt > 1, and output will be less for a given labor input. 2.A.4. Monetary and Fiscal P ...
ppt
... aggregate price level—a higher aggregate price level reduces the purchasing power of households’ wealth and reduces consumer spending. The second is the interest rate effect of a change in the aggregate price level—a higher aggregate price level reduces the purchasing power of households’ and firms’ ...
... aggregate price level—a higher aggregate price level reduces the purchasing power of households’ wealth and reduces consumer spending. The second is the interest rate effect of a change in the aggregate price level—a higher aggregate price level reduces the purchasing power of households’ and firms’ ...
inflation modeling for the sudan 1970-2002
... internationally traded goods. Increases in import prices tend to raise the consumer’s and wholesale price indices of importing country. This tendency is realized if these increases do not cause offsetting decreases in the prices of other goods and services. The rise of national price levels and its ...
... internationally traded goods. Increases in import prices tend to raise the consumer’s and wholesale price indices of importing country. This tendency is realized if these increases do not cause offsetting decreases in the prices of other goods and services. The rise of national price levels and its ...
Practice Papers
... An increase in unemployment allowance raises the unemployment rate. If an additional lump-sum charge is imposed per taxi trip, the number of short-distance trips will fall by a smaller percentage than the number of long-distance trips. ...
... An increase in unemployment allowance raises the unemployment rate. If an additional lump-sum charge is imposed per taxi trip, the number of short-distance trips will fall by a smaller percentage than the number of long-distance trips. ...
Chapter 8 Aggregate Demand and Aggregate Supply
... The Ranges of AS • Keynesian Range • Large amounts of unemployment make it so that increases in aggregate demand have no affect on wages or prices. ...
... The Ranges of AS • Keynesian Range • Large amounts of unemployment make it so that increases in aggregate demand have no affect on wages or prices. ...
PDF
... some weighted average between product originating from domestic or foreign sources. After the introduction of country of origin labeling, consumers can make a choice about foreign or domestic products based on differences in the perceived probability of damages. In aggregate such change could not re ...
... some weighted average between product originating from domestic or foreign sources. After the introduction of country of origin labeling, consumers can make a choice about foreign or domestic products based on differences in the perceived probability of damages. In aggregate such change could not re ...
Aggregate Demand II: Applying the IS–LM Model
... Once again, to tell the story that explains the economy’s adjustment from point A to point B, we rely on the building blocks of the IS–LM model—the Keynesian cross and the theory of liquidity preference. This time, we begin with the money market, where the monetary-policy action occurs. When the Fed ...
... Once again, to tell the story that explains the economy’s adjustment from point A to point B, we rely on the building blocks of the IS–LM model—the Keynesian cross and the theory of liquidity preference. This time, we begin with the money market, where the monetary-policy action occurs. When the Fed ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... equal, would tend to result in rather stable inflation, but the additional elements can cause inflation to move and often to move sharply. The cyclical factor is quite obvious; it is simply demand inflation or the cooling down of inflation due to slack in activity and employment. But it is worthwhil ...
... equal, would tend to result in rather stable inflation, but the additional elements can cause inflation to move and often to move sharply. The cyclical factor is quite obvious; it is simply demand inflation or the cooling down of inflation due to slack in activity and employment. But it is worthwhil ...
The Impact of a Reduced Rate of VAT on Restaurants 3
... confirms the hypothesis that foreign travel demand to Spain is a luxury. The estimated price elasticity is -0.30. This suggests that this demand is price inelastic. To explore the possibility that prices have not only an instantaneous effect but also that past prices affect current tourist flows, th ...
... confirms the hypothesis that foreign travel demand to Spain is a luxury. The estimated price elasticity is -0.30. This suggests that this demand is price inelastic. To explore the possibility that prices have not only an instantaneous effect but also that past prices affect current tourist flows, th ...
NBER WORKING PAPER SERIES ENDOGENOUS ENTRY, PRODUCT VARIETY, AND BUSINESS CYCLES
... familiar C.E.S. form of Dixit and Stiglitz (1977), frictionless price adjustment results in constant markups. If preferences take the translog form proposed by Feenstra (2003), demand-side pricing complementarities arise that result in time-varying markups. To keep the setup simple, we do not model ...
... familiar C.E.S. form of Dixit and Stiglitz (1977), frictionless price adjustment results in constant markups. If preferences take the translog form proposed by Feenstra (2003), demand-side pricing complementarities arise that result in time-varying markups. To keep the setup simple, we do not model ...
The postbellum deflation and its lessons for today
... is harmful, but also deflation that arises from a surge in aggregate supply and is consistent with robust economic growth. Deflation, therefore, can come in both malign and benign forms. This paper builds on these findings by examining the U.S. experience with deflation during the postbellum period ...
... is harmful, but also deflation that arises from a surge in aggregate supply and is consistent with robust economic growth. Deflation, therefore, can come in both malign and benign forms. This paper builds on these findings by examining the U.S. experience with deflation during the postbellum period ...
Long-Run and Short-Run Concerns: Growth, Productivity
... during inflations. People therefore hold less cash and need to stop at the bank more often. • People are not fully informed about price changes and may make mistakes that lead to a misallocation of resources. ...
... during inflations. People therefore hold less cash and need to stop at the bank more often. • People are not fully informed about price changes and may make mistakes that lead to a misallocation of resources. ...