Pure exchange economies
... Suppose that x ∗ is a Pareto e cient allocation and that preferences are non-satiated. Suppose further that a competitive equilibrium exists from the initial endowment ω = x ∗ and let it be given by (p 0 , x 0 ). Then in fact, (p 0 , x ∗ ) is a competitive equilibrium. ...
... Suppose that x ∗ is a Pareto e cient allocation and that preferences are non-satiated. Suppose further that a competitive equilibrium exists from the initial endowment ω = x ∗ and let it be given by (p 0 , x 0 ). Then in fact, (p 0 , x ∗ ) is a competitive equilibrium. ...
22 Appendix
... That is, the demand for output at a given price determines how much each firm is producing and selling. The fixed price level assumption has an important implication: If demand determines the quantity of output that each firm sells, then it is aggregate demand that determines the overall quantities ...
... That is, the demand for output at a given price determines how much each firm is producing and selling. The fixed price level assumption has an important implication: If demand determines the quantity of output that each firm sells, then it is aggregate demand that determines the overall quantities ...
$doc.title
... The advent of Bayesian techniques for estimating DSGE models offered the Reserve Bank the opportunity to move from a calibrated model to a model more strongly, and more formally, informed by the data. Computational power and estimation algorithms had also improved to the point that small- and medium ...
... The advent of Bayesian techniques for estimating DSGE models offered the Reserve Bank the opportunity to move from a calibrated model to a model more strongly, and more formally, informed by the data. Computational power and estimation algorithms had also improved to the point that small- and medium ...
esp01-molana 221832 en
... For example, price-setting firms could use rising unemployment as device to deter shirking. In this setting, macroeconomic policy interventions can produce unexpected consequences. For example, as Lindbeck (1992) points out: "In the context of a nonmarket-clearing labour market, it is certainly reas ...
... For example, price-setting firms could use rising unemployment as device to deter shirking. In this setting, macroeconomic policy interventions can produce unexpected consequences. For example, as Lindbeck (1992) points out: "In the context of a nonmarket-clearing labour market, it is certainly reas ...
Wireless Network Pricing Chapter 3: Economics
... independent of the quantity produced and sold by the firm. The above definition reflects the reality when the firm faces many competitors in the same market. Each firm’s production decision is unlikely to significantly change the total quantity available in the market, and thus will not significantl ...
... independent of the quantity produced and sold by the firm. The above definition reflects the reality when the firm faces many competitors in the same market. Each firm’s production decision is unlikely to significantly change the total quantity available in the market, and thus will not significantl ...
NBER WORKING PAPER SERIES LESSONS FROM THE DEBT-DEFLATION THEORY OF SUDDEN STOPS
... Sudden Stops are strikingly different. At the time that output experiences Great-Depression-size declines, the current account takes an abrupt jump up and domestic absorption plummets. Just when the dominant paradigms predict that agents need capital markets the most, agents cannot borrow at all. A ...
... Sudden Stops are strikingly different. At the time that output experiences Great-Depression-size declines, the current account takes an abrupt jump up and domestic absorption plummets. Just when the dominant paradigms predict that agents need capital markets the most, agents cannot borrow at all. A ...
Quiz 1 - solutions
... ____ 18. Dave, a student who knits ski caps with tassels and sells them on the Quad, sells the same number of caps this year as last year, but at 20 percent higher prices. a. He must be better off than last year because his income is higher. b. We do not have enough information to tell whether he is ...
... ____ 18. Dave, a student who knits ski caps with tassels and sells them on the Quad, sells the same number of caps this year as last year, but at 20 percent higher prices. a. He must be better off than last year because his income is higher. b. We do not have enough information to tell whether he is ...
Mankiw: Brief Principles of Macroeconomics, Second Edition
... rate but a positive inflation rate. If the AD had shifted to the left, inflation would have fallen, but unemployment would have risen. ...
... rate but a positive inflation rate. If the AD had shifted to the left, inflation would have fallen, but unemployment would have risen. ...
Chapter 26
... exchange are relatively constant. Given this assumption, changes in the money supply yield proportionate changes in the price level. ...
... exchange are relatively constant. Given this assumption, changes in the money supply yield proportionate changes in the price level. ...
Chapter 14: Monetary Policy - the School of Economics and Finance
... during 1979–1981, when it averaged more than 10 percent. After 1992 the inflation rate was usually less than 4 percent, until increases in oil prices pushed it above 5 percent during summer 2008. The effects of the recession caused several months of deflation—a falling price level—during early 2009. ...
... during 1979–1981, when it averaged more than 10 percent. After 1992 the inflation rate was usually less than 4 percent, until increases in oil prices pushed it above 5 percent during summer 2008. The effects of the recession caused several months of deflation—a falling price level—during early 2009. ...
English title
... • Now some people are actually once again suggesting that IT is too tight, and that central banks need to „commit to irresponsibility“ to overcome the ZLB / deflation threat. • Price level targeting or nominal GDP level targeting have been suggested as alternatives. • No country has actually adopted ...
... • Now some people are actually once again suggesting that IT is too tight, and that central banks need to „commit to irresponsibility“ to overcome the ZLB / deflation threat. • Price level targeting or nominal GDP level targeting have been suggested as alternatives. • No country has actually adopted ...
del06 tirelli 2762910 en
... economies), and again to maintain analytical tractability they neglect capital accumulation and non-ricardian consumers. The closest contribution to our approach is Ferrero (2005), who extends the Benigno-Woodford analysis to a two-country DSGE framework with a monetary union. Ferrero also allows fo ...
... economies), and again to maintain analytical tractability they neglect capital accumulation and non-ricardian consumers. The closest contribution to our approach is Ferrero (2005), who extends the Benigno-Woodford analysis to a two-country DSGE framework with a monetary union. Ferrero also allows fo ...
The Urban-Rural Differences of Inflation in China
... factors determining the price index differences, the paper found that prior to 1995, policy changes have been the major factor. Afterwards, factors such as urban‐rural retail sales of consumer goods, degree of urbanization, and fixed asset investment can explain ...
... factors determining the price index differences, the paper found that prior to 1995, policy changes have been the major factor. Afterwards, factors such as urban‐rural retail sales of consumer goods, degree of urbanization, and fixed asset investment can explain ...
(AS) Curve
... • aggregate supply The total supply of all goods and services in an economy. • aggregate supply (A S) curve A graph that shows the relationship between the aggregate quantity of output supplied by all firms in an economy and the overall price level. • It is better thought of as a “price/output respo ...
... • aggregate supply The total supply of all goods and services in an economy. • aggregate supply (A S) curve A graph that shows the relationship between the aggregate quantity of output supplied by all firms in an economy and the overall price level. • It is better thought of as a “price/output respo ...
How Big is China? - Center For International Data
... national-currency GDP into dollars using market exchange rates, because market fluctuations and government controls render those exchange rates entirely unsuitable for such a task. Instead, a major international project known as the International Comparisons Program (ICP), with participation by the ...
... national-currency GDP into dollars using market exchange rates, because market fluctuations and government controls render those exchange rates entirely unsuitable for such a task. Instead, a major international project known as the International Comparisons Program (ICP), with participation by the ...
The Economics of Housing Bubbles
... forward looking and identifying an economic cause of bubbles. By identifying an economic cause it also directs us to policy choices that would prevent future bubbles. Most people agree with the majority of economists, that there is no such thing as a housing bubble—housing prices, they say, “never g ...
... forward looking and identifying an economic cause of bubbles. By identifying an economic cause it also directs us to policy choices that would prevent future bubbles. Most people agree with the majority of economists, that there is no such thing as a housing bubble—housing prices, they say, “never g ...
Parkin-Bade Chapter 28
... and the price level rises. “stagflation” (higher prices, less output) ...
... and the price level rises. “stagflation” (higher prices, less output) ...
The Price of Capital - Harvard Business School
... considerable variation by region (see Table A1). The average grade (on an A-D scale, A being best) for surveyed countries in Africa and the Middle East is D, for Western Europe B+. Many countries have not been part of benchmark surveys for as many as 30 years, and substantial methodological differe ...
... considerable variation by region (see Table A1). The average grade (on an A-D scale, A being best) for surveyed countries in Africa and the Middle East is D, for Western Europe B+. Many countries have not been part of benchmark surveys for as many as 30 years, and substantial methodological differe ...
CFO11e_ch29
... whether the labor market is working well. The economy is dynamic and at any given time some industries are expanding and some are contracting. A positive unemployment rate as measured by the government does not necessarily indicate that the labor market is working poorly. The measured unemployment r ...
... whether the labor market is working well. The economy is dynamic and at any given time some industries are expanding and some are contracting. A positive unemployment rate as measured by the government does not necessarily indicate that the labor market is working poorly. The measured unemployment r ...
unemployment
... The Lucas Critique • But are the responses of the economy predictable? • Policies are often based on models of the economy, which in turn reflect historical experience. • New policies change the economic “rules” and often those historical relationships. • Because of this, they affect economic behav ...
... The Lucas Critique • But are the responses of the economy predictable? • Policies are often based on models of the economy, which in turn reflect historical experience. • New policies change the economic “rules” and often those historical relationships. • Because of this, they affect economic behav ...
Phillips Curve
... Look at our new equilibrium point on the AD/AS graph (red dot). At this new equilibrium point If AD increased or decreased it would do so at an inflation rate HIGHER relative to the previous Equilibrium point at ANY point on the new SRAS curve. On the Phillips Curve graph NOW at any unemployment rat ...
... Look at our new equilibrium point on the AD/AS graph (red dot). At this new equilibrium point If AD increased or decreased it would do so at an inflation rate HIGHER relative to the previous Equilibrium point at ANY point on the new SRAS curve. On the Phillips Curve graph NOW at any unemployment rat ...