ESSAYS ON MONETARY AND FISCAL POLICY By Andrea Pescatori
... are highly indebted I show that optimal monetary policy reaction (through interest rate) to inflationary pressure should be ‘milder’ than it is usually prescribed. The second chapter is based on the KM framework. This is a stronger type of credit market imperfection where households are not allowed ...
... are highly indebted I show that optimal monetary policy reaction (through interest rate) to inflationary pressure should be ‘milder’ than it is usually prescribed. The second chapter is based on the KM framework. This is a stronger type of credit market imperfection where households are not allowed ...
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... “that wage negotiations are annual and are evenly staggered across firms over the year” (p. 698) and points out that, although the inflation rate may still jump in response to a monetary disturbance, the size of such a jump is reduced by the fact that existing wages are not immediately reconsidered. ...
... “that wage negotiations are annual and are evenly staggered across firms over the year” (p. 698) and points out that, although the inflation rate may still jump in response to a monetary disturbance, the size of such a jump is reduced by the fact that existing wages are not immediately reconsidered. ...
For the large importing country, the imposition of the tariff causes a
... ©2012 The McGraw-Hill Companies, All Rights Reserved ...
... ©2012 The McGraw-Hill Companies, All Rights Reserved ...
Macroeconomics: an Introduction - Penn Economics
... 2. Proprietors’ Income: income of noncorporate business. 3. Rental Income: income that landlords receive from renting, including “imputed” rent less expenses on the house, such as depreciation. 4. Corporate Profits: income of corporations after payments to their workers and creditors. 5. Net interes ...
... 2. Proprietors’ Income: income of noncorporate business. 3. Rental Income: income that landlords receive from renting, including “imputed” rent less expenses on the house, such as depreciation. 4. Corporate Profits: income of corporations after payments to their workers and creditors. 5. Net interes ...
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... Questions to Prepare for Quiz 1. Determine the effect on Aggregate Demand. Identify the component of AD which is affected (C, I, G, X or M) and explain how it is affected. a) Prices in the US Increase (decrease) relative to prices abroad. b) The U.S. dollar becomes weaker (stronger) c) Home prices ...
... Questions to Prepare for Quiz 1. Determine the effect on Aggregate Demand. Identify the component of AD which is affected (C, I, G, X or M) and explain how it is affected. a) Prices in the US Increase (decrease) relative to prices abroad. b) The U.S. dollar becomes weaker (stronger) c) Home prices ...
Government Spending Effects in a Small Open Economy
... the closed economy. In their model, prices are staggered in domestic production but not in import sector. Monetary policy is executed to react to the domestic inflation. Following the essential features of the model of Galı́ and Monacelli (2005), Unalmis (2008) concludes that the fiscal policy rule( ...
... the closed economy. In their model, prices are staggered in domestic production but not in import sector. Monetary policy is executed to react to the domestic inflation. Following the essential features of the model of Galı́ and Monacelli (2005), Unalmis (2008) concludes that the fiscal policy rule( ...
1996-36
... significant change in the projections is apparent when highly inelastic export demand curves are adopted. These results are consistent with the economic performance of Singapore over recent years under the strong currency regime. The analysis thus supports the belief that Singapore is becoming to en ...
... significant change in the projections is apparent when highly inelastic export demand curves are adopted. These results are consistent with the economic performance of Singapore over recent years under the strong currency regime. The analysis thus supports the belief that Singapore is becoming to en ...
chapter overview - Amazon Web Services
... The aggregate expenditures model developed in Chapter 9 is a fixed price level model. Its focus is on changes in real GDP, not on changes in the price level. This chapter introduces a variable-price model in which it is possible to simultaneously analyze changes in real GDP and the price level. This ...
... The aggregate expenditures model developed in Chapter 9 is a fixed price level model. Its focus is on changes in real GDP, not on changes in the price level. This chapter introduces a variable-price model in which it is possible to simultaneously analyze changes in real GDP and the price level. This ...
Is it a Recessionary Gap or a fall in Potential Output?
... time, inflation rose dramatically, from 3 percent in 1973 to nearly 12 percent in 1975. What is the appropriate policy response in this sort of situation? It depends! The immediate cause of the episode was a tripling of the price of oil, from $3.56 to $11.16 a barrel. That’s a huge inflation shock. ...
... time, inflation rose dramatically, from 3 percent in 1973 to nearly 12 percent in 1975. What is the appropriate policy response in this sort of situation? It depends! The immediate cause of the episode was a tripling of the price of oil, from $3.56 to $11.16 a barrel. That’s a huge inflation shock. ...
Consumption and Saving Behavior Under Strict and Partial Rationing
... (1) does not typically appear since there is an implicit assumption that X I Q. That is, the quantities demanded are less than or equal to the goods supplied. It is reasonable to omit this pure quantity constraint in developed countries where excess production capacities and aggregate supply are vir ...
... (1) does not typically appear since there is an implicit assumption that X I Q. That is, the quantities demanded are less than or equal to the goods supplied. It is reasonable to omit this pure quantity constraint in developed countries where excess production capacities and aggregate supply are vir ...
What Do We Know (And Not Know) About Potential Output?
... that potential output is the “maximum production without inflationary pressure” (Okun, 1970, p. 133)—that is, the level of output at which there is no pressure for inflation to either increase or decrease. In most, if not all, macroeconomic models, the second (flexible price) definition converges in ...
... that potential output is the “maximum production without inflationary pressure” (Okun, 1970, p. 133)—that is, the level of output at which there is no pressure for inflation to either increase or decrease. In most, if not all, macroeconomic models, the second (flexible price) definition converges in ...
NBER WORKING PAPER SERIES OPTIMAL FISCAL AND MONETARY POLICY EXPANDED VERSION
... known from the work of Judd (2002) that in the presence of imperfect competition in product markets optimal taxation calls for a subsidy on capital of a magnitude approximately equal to the markup of prices over marginal cost. However, our results suggest that the optimal capital subsidy is much lar ...
... known from the work of Judd (2002) that in the presence of imperfect competition in product markets optimal taxation calls for a subsidy on capital of a magnitude approximately equal to the markup of prices over marginal cost. However, our results suggest that the optimal capital subsidy is much lar ...
NBER WORKING PAPER SERIES INTERNATIONAL COMPARISONS OF R&D EXPENDITURE:
... output PPPs and 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 considera ...
... output PPPs and 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 considera ...
Chapter 7 Gross Domestic Product and Measurements of Output
... (a) GDP Chain Price Index/Deflator = (Nominal GDP/ Real GDP) * 100 (b) Example: If we knew that prices rose by 6.5% from the base year what would the real GDP be in this example given nominal GDP = 12.7 Trillion? GDP Chain Price Index/Deflator = (Nominal GDP/ Real GDP) 1.065 = 12.7 / X X = 12.7 ...
... (a) GDP Chain Price Index/Deflator = (Nominal GDP/ Real GDP) * 100 (b) Example: If we knew that prices rose by 6.5% from the base year what would the real GDP be in this example given nominal GDP = 12.7 Trillion? GDP Chain Price Index/Deflator = (Nominal GDP/ Real GDP) 1.065 = 12.7 / X X = 12.7 ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Money in Historical Perspective
... favor a legislated monetary rule that would limit the growth rate of money, for a given definition, to three percent per annum.’ The evidence provided by Friedman and his associates also utilized statistical and qualitative historical data. Unlike Warburton, who expressed the data as deviations from ...
... favor a legislated monetary rule that would limit the growth rate of money, for a given definition, to three percent per annum.’ The evidence provided by Friedman and his associates also utilized statistical and qualitative historical data. Unlike Warburton, who expressed the data as deviations from ...
GwartPPT014 - Crawfordsworld
... When decision makers fully anticipate the effects of a monetary expansion, the expansion does not alter real output even in the short-run. Suppliers, including resource suppliers, build the expected price rise into their decisions. The anticipated inflation leads to a rise in nominal costs (includin ...
... When decision makers fully anticipate the effects of a monetary expansion, the expansion does not alter real output even in the short-run. Suppliers, including resource suppliers, build the expected price rise into their decisions. The anticipated inflation leads to a rise in nominal costs (includin ...
Essentials of Economics, Krugman Wells Olney
... A key insight into macroeconomics is that in the short run—a time period consisting of several years but typically less than a decade—the combined effect of individual decisions can have effects that are very different from what any one individual intended, effects that are sometimes perverse. The b ...
... A key insight into macroeconomics is that in the short run—a time period consisting of several years but typically less than a decade—the combined effect of individual decisions can have effects that are very different from what any one individual intended, effects that are sometimes perverse. The b ...
Do crude oil price changes affect economic growth of
... These countries economically and culturally have some common features. They are developing and net oil importing countries. India is emerging as an industrialized country. The energy requirements of these countries are largely fulfilled through crude oil imports. They are active members of SAARC (So ...
... These countries economically and culturally have some common features. They are developing and net oil importing countries. India is emerging as an industrialized country. The energy requirements of these countries are largely fulfilled through crude oil imports. They are active members of SAARC (So ...
