The Next Great Depression? Not Likely
... • The Big Risk that AIG never Expected with respect to Credit Default Swap • If AIG’s market value falls, CDS requires that they post collateral to prove that they can cover the CDS. – AIG was so big, no one ever thought that they would ever have to post collateral ...
... • The Big Risk that AIG never Expected with respect to Credit Default Swap • If AIG’s market value falls, CDS requires that they post collateral to prove that they can cover the CDS. – AIG was so big, no one ever thought that they would ever have to post collateral ...
NBER WORKING PAPER SERIES IMPORTED MATERIAlS PRICES, WAGE POLICY, AND MACROECONOMIC STABILIZATION
... value added. The fall in employment is mitigated if real wages can adjust downward in some fashion. However, the amount of adjustment required depends upon the production structure of the economy. Without detailed knowledge of that structure, an appropriate wage policy is difficult to formulate. Thi ...
... value added. The fall in employment is mitigated if real wages can adjust downward in some fashion. However, the amount of adjustment required depends upon the production structure of the economy. Without detailed knowledge of that structure, an appropriate wage policy is difficult to formulate. Thi ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... GDP PPPs, even for economies at similar levels of development (van Ark 1993; van Ark and Timmer 2001). Therefore PPP adjustments—taking account of differences in the structure of relative prices of R&D inputs and output across economies and industries—may be worth the considerable effort required for ...
... GDP PPPs, even for economies at similar levels of development (van Ark 1993; van Ark and Timmer 2001). Therefore PPP adjustments—taking account of differences in the structure of relative prices of R&D inputs and output across economies and industries—may be worth the considerable effort required for ...
Principles of Macroeconomics, Case/Fair/Oster, 10e
... Now used more narrowly, Keynesian sometimes refers to economists who advocate active government intervention in the macroeconomy. ...
... Now used more narrowly, Keynesian sometimes refers to economists who advocate active government intervention in the macroeconomy. ...
View/Open
... power of remuneration in the economy increased on average by 0.7% against 3.4% in 2003. The growth rate of social benefits also significantly decreased. At the same time, the significant increase in the incomes of employers and self-employed persons was noted, including people working in individual ...
... power of remuneration in the economy increased on average by 0.7% against 3.4% in 2003. The growth rate of social benefits also significantly decreased. At the same time, the significant increase in the incomes of employers and self-employed persons was noted, including people working in individual ...
THE KEYNESIAN CROSS Preliminaries Macro Dynamics Aggregate
... Keynes pointed out one elementary problem with this logic: namely, that the demand for labor curve depends on the output firms want to produce. And, in the aggregate, firms want to produce the output needed to meet aggregate demand. If wages fall, that means workers earn less - and workers are consu ...
... Keynes pointed out one elementary problem with this logic: namely, that the demand for labor curve depends on the output firms want to produce. And, in the aggregate, firms want to produce the output needed to meet aggregate demand. If wages fall, that means workers earn less - and workers are consu ...
capital theory, inflation and deflation: the austrians and monetary
... ell's theory of interest is necessary. The Austrian approach to capital is to see it not as a homogeneous store of productivity, but rather as a interconnected, intertemporal structure that is reflective of the plans of the various actors in an economic system. As Ludwig Lachmann (1978, pp. 2-3) has ...
... ell's theory of interest is necessary. The Austrian approach to capital is to see it not as a homogeneous store of productivity, but rather as a interconnected, intertemporal structure that is reflective of the plans of the various actors in an economic system. As Ludwig Lachmann (1978, pp. 2-3) has ...
On the Sources of Oil Price Fluctuations Deren ÜNALMIŞ
... much attention. Nordhaus (2007) and Segal (2007) propose that the main reason for a smaller impact of oil shocks is the change in the transmission mechanism which helps to impede oil prices feed through to core inflation, and therefore enables a less aggressive monetary policy. Blanchard and Gali (2 ...
... much attention. Nordhaus (2007) and Segal (2007) propose that the main reason for a smaller impact of oil shocks is the change in the transmission mechanism which helps to impede oil prices feed through to core inflation, and therefore enables a less aggressive monetary policy. Blanchard and Gali (2 ...
The Reversal of Large Stock Price Declines: The Case of Large Firms
... suggests that extreme movements in stock prices are followed by price movements in the opposite direction as investors realize they have overreacted, and that the greater the initial price movement, the greater the subsequent reversal. Since then, their work has inspired a large and controversial bo ...
... suggests that extreme movements in stock prices are followed by price movements in the opposite direction as investors realize they have overreacted, and that the greater the initial price movement, the greater the subsequent reversal. Since then, their work has inspired a large and controversial bo ...
Competitive General Equilibrium in an Economy where ∗ Augusto Nieto Barthaburu
... that in markets with a continuum of consumers even though the individual demand correspondence may not be convex valued, the aggregate demand correspondence will be. In the present paper we provide sufficient conditions for existence of competitive equilibrium with NE and indivisibilities combined. ...
... that in markets with a continuum of consumers even though the individual demand correspondence may not be convex valued, the aggregate demand correspondence will be. In the present paper we provide sufficient conditions for existence of competitive equilibrium with NE and indivisibilities combined. ...
Presentation by Liqing Zhang, Zhigang Huang
... institutions borrowed from abroad. The growth rate of short-term borrowing related normal trade and direct investment is relative stable. So, abnormal fluctuation of short-term borrowing mainly reflects hot money flows. This abnormal flows rose after the Crisis. The growth rate of short-term borrowi ...
... institutions borrowed from abroad. The growth rate of short-term borrowing related normal trade and direct investment is relative stable. So, abnormal fluctuation of short-term borrowing mainly reflects hot money flows. This abnormal flows rose after the Crisis. The growth rate of short-term borrowi ...
29.3 aggregate demand
... An increase in expected future income increases the amount of consumption goods that people plan to buy today and increases aggregate demand. An increase in expected future inflation increases aggregate demand today because people decide to buy more goods and services before their prices rise. An in ...
... An increase in expected future income increases the amount of consumption goods that people plan to buy today and increases aggregate demand. An increase in expected future inflation increases aggregate demand today because people decide to buy more goods and services before their prices rise. An in ...
Chapter 2
... • Why do countries trade with one another? • What specific benefits can countries obtain through international trade? • Which country produces which good(s)? • Why do countries export and import certain goods? • At what prices do countries exchange exports and imports? • How does international trad ...
... • Why do countries trade with one another? • What specific benefits can countries obtain through international trade? • Which country produces which good(s)? • Why do countries export and import certain goods? • At what prices do countries exchange exports and imports? • How does international trad ...
Determinants of Inflation in Nigeria: An Empirical Analysis
... The maintenance of price stability is one of the macroeconomic challenges facing the Nigerian government in our economic history. This elusive factor is known and referred to as inflation in our economic history and this is defined by economists as a continuous rise in prices. By definition, inflati ...
... The maintenance of price stability is one of the macroeconomic challenges facing the Nigerian government in our economic history. This elusive factor is known and referred to as inflation in our economic history and this is defined by economists as a continuous rise in prices. By definition, inflati ...
The Phillips Curve
... • BOX 18.2 indicates that -- Phillips curve holds in the 1950s and 1960s, but break down in the 1970s and 1980s. --However, the new-Keynesian wage equation is robust in each of the sample periods. • This comes from the fact that Phillips curve is conditional on constant expected inflation. E ...
... • BOX 18.2 indicates that -- Phillips curve holds in the 1950s and 1960s, but break down in the 1970s and 1980s. --However, the new-Keynesian wage equation is robust in each of the sample periods. • This comes from the fact that Phillips curve is conditional on constant expected inflation. E ...
NBER WORKING PAPER SERIES WAGES AND THE Mark Bus Yongsung Chang
... In our model the labor market clears, despite short-run wage stickiness, thanks to fluctuations in market effort. Consequently, the model's predictions for fluctuations in hours and output depend not only on the conventional elasticity of labor supply, but also ...
... In our model the labor market clears, despite short-run wage stickiness, thanks to fluctuations in market effort. Consequently, the model's predictions for fluctuations in hours and output depend not only on the conventional elasticity of labor supply, but also ...
Private sector expectations for inflation and economic activity in the
... Indicators of longer-term inflation expectations Longer-term inflation expectations remained stable at 1.9% for the 13th consecutive round of the SPF. This is in line with the recently published Euro Zone Barometer estimate and 0.1 percentage point lower than the three-month old Consensus Economics ...
... Indicators of longer-term inflation expectations Longer-term inflation expectations remained stable at 1.9% for the 13th consecutive round of the SPF. This is in line with the recently published Euro Zone Barometer estimate and 0.1 percentage point lower than the three-month old Consensus Economics ...
the impact of fiscal policy on inflation in nigeria
... situations where aggregate demand for goods and services exceed aggregate supply, thereby leading to a general rise in price levels (Gbanador 2007). Usually the shortages create competition on the side of demand for the few available products leading to some kind of informal bidding for available it ...
... situations where aggregate demand for goods and services exceed aggregate supply, thereby leading to a general rise in price levels (Gbanador 2007). Usually the shortages create competition on the side of demand for the few available products leading to some kind of informal bidding for available it ...
Multiple Choice
... d. the interest a person could have earned by holding other forms of wealth instead e. zero, because opportunity costs only apply to real assets, goods and services ...
... d. the interest a person could have earned by holding other forms of wealth instead e. zero, because opportunity costs only apply to real assets, goods and services ...
Kazakhstan - The Real Currency and Growth Challenge for Commodity Producing Countries
... Their results indicate that changes in oil prices have significant effects on movements in the real exchange rate, particularly, oil price increase leads to appreciation of the real exchange rate. They also provide a plausible explanation of this result. According to Kutan and Wyzan (2005) an increa ...
... Their results indicate that changes in oil prices have significant effects on movements in the real exchange rate, particularly, oil price increase leads to appreciation of the real exchange rate. They also provide a plausible explanation of this result. According to Kutan and Wyzan (2005) an increa ...