Monetary Policy and Asset Prices: When Cleaning
... The economy exists for three periods. In period 1, asset prices are driven up. The model is sufficiently general that it applies for various assets. However, in light of the recent financial crisis and resultant literature, we will interpret asset prices in our model more specifically as housing pri ...
... The economy exists for three periods. In period 1, asset prices are driven up. The model is sufficiently general that it applies for various assets. However, in light of the recent financial crisis and resultant literature, we will interpret asset prices in our model more specifically as housing pri ...
chapter 6 - McGraw
... the very short run, we know the aggregate supply curve is horizontal; and in the long run, we know the aggregate supply curve is vertical. In this chapter we examine the dynamic adjustment process that carries us from the short run to the long run. We begin with an examination of the mechanics of th ...
... the very short run, we know the aggregate supply curve is horizontal; and in the long run, we know the aggregate supply curve is vertical. In this chapter we examine the dynamic adjustment process that carries us from the short run to the long run. We begin with an examination of the mechanics of th ...
The Impact of Oil Demand and Oil Supply Shocks on the Real Price
... 2. Using a new approach to identification, we show how the forward-looking element of the real price of oil can be identified with the help of data on crude oil inventories. 3. This allows us to shed light on the extent of speculation in oil markets since the late 1970s. 4. We provide for the first ...
... 2. Using a new approach to identification, we show how the forward-looking element of the real price of oil can be identified with the help of data on crude oil inventories. 3. This allows us to shed light on the extent of speculation in oil markets since the late 1970s. 4. We provide for the first ...
Power Relations and American Macroeconomic Policy, from .
... of workers was kept directly through repression and violence 6 . In the last paragraph of his article Kalecki said that if someday the capitalist countries could adapt their social and political institutions to the conditions of more or less permanent full employment and the consequent growth of the ...
... of workers was kept directly through repression and violence 6 . In the last paragraph of his article Kalecki said that if someday the capitalist countries could adapt their social and political institutions to the conditions of more or less permanent full employment and the consequent growth of the ...
1. Business cycles are: A) regular and predictable. B) irregular but
... 8. Aggregate supply is the relationship between the quantity of goods and services supplied and the: A) money supply. B) unemployment rate. C) interest rate. D) price level. 9. If the short‐run aggregate supply curve is horizontal, then changes in aggregate demand affect: A) level of output but not ...
... 8. Aggregate supply is the relationship between the quantity of goods and services supplied and the: A) money supply. B) unemployment rate. C) interest rate. D) price level. 9. If the short‐run aggregate supply curve is horizontal, then changes in aggregate demand affect: A) level of output but not ...
NBER WORKING PAPER SERIES FISCAL LIMITS AND MONETARY POLICY Eric M. Leeper
... governments might reverse those reforms. The fiscal limit, then, is not a single point: it is a probability distribution, a feature that carries important implications for thinking about fiscal sustainability.3 Intrinsic randomness in the economy will shift and alter the shape of the fiscal limit distr ...
... governments might reverse those reforms. The fiscal limit, then, is not a single point: it is a probability distribution, a feature that carries important implications for thinking about fiscal sustainability.3 Intrinsic randomness in the economy will shift and alter the shape of the fiscal limit distr ...
NBER WORKING PAPER SERIES AGGREGATE DEMAND AND SUPPLY Roger E. A. Farmer
... an interpretation of this diagram within the framework of a search theoretic model of the labor market. The current dominant interpretation of the General Theory is that of new-Keynesian economics which builds on Patinkin’s (1956) idea that the unemployment equilibrium of the General Theory can be i ...
... an interpretation of this diagram within the framework of a search theoretic model of the labor market. The current dominant interpretation of the General Theory is that of new-Keynesian economics which builds on Patinkin’s (1956) idea that the unemployment equilibrium of the General Theory can be i ...
Sec 4, Mod 16, 17 Aggregate Demand
... financial assets of the public. When the purchasing power of your money is reduced, it is called the REAL WEALTH EFFECT. It holds true for any asset of fixed dollar amount. ...
... financial assets of the public. When the purchasing power of your money is reduced, it is called the REAL WEALTH EFFECT. It holds true for any asset of fixed dollar amount. ...
(2011): DELFI: DNB`s Macroeconomic Policy Model of the Netherlands
... results demonstrate that labour demand (measured in full-time equivalent workers) increases proportionally with output and decreases with real product wages in the long run. The short-run dynamics show that the demand for labour becomes stronger when the price markup, output or labour supply increas ...
... results demonstrate that labour demand (measured in full-time equivalent workers) increases proportionally with output and decreases with real product wages in the long run. The short-run dynamics show that the demand for labour becomes stronger when the price markup, output or labour supply increas ...
This version: August 30, 2000 Forthcoming, Journal of Money, Credit
... actions.2 This paper aims to contribute to the debate on exchange-rate regimes by examining the implications of a macroeconomic model that incorporates some of these issues. In particular, the paper studies how dollarization (defined as a policy that credibly and permanently eliminates all fluctuati ...
... actions.2 This paper aims to contribute to the debate on exchange-rate regimes by examining the implications of a macroeconomic model that incorporates some of these issues. In particular, the paper studies how dollarization (defined as a policy that credibly and permanently eliminates all fluctuati ...
11-8 (Key Question) Suppose the Yukon Bank has the following
... (Key Question) Specify and explain the typical shapes of the marginal-benefit and marginalcost curves. How are these curves used to determine the optimal allocation of resources to a particular product? If current output is such that marginal cost exceeds marginal benefit, should more or fewer resou ...
... (Key Question) Specify and explain the typical shapes of the marginal-benefit and marginalcost curves. How are these curves used to determine the optimal allocation of resources to a particular product? If current output is such that marginal cost exceeds marginal benefit, should more or fewer resou ...
INDIAN MACRO ECONOMETRIC MODELS ON MONETARY
... the monetary sector considering demand for money and supply of money specifications in various models. The fiscal sector is disaggreagted into government expenditure, government revenue and budget deficit and analysed in section 3. Movements in prices captured in these models follow either monetaris ...
... the monetary sector considering demand for money and supply of money specifications in various models. The fiscal sector is disaggreagted into government expenditure, government revenue and budget deficit and analysed in section 3. Movements in prices captured in these models follow either monetaris ...
Board of Governors of the Federal Reserve System Number 825 January 2005
... effect. Moreover, a labor tax rate cut that is scaled to induce a deterioration of the fiscal balance of about 1 percentage point of GDP (about the same as the government spending shock) also generates a trade balance deterioration of less than 0.2 percentage point of GDP. Our small estimates of the ...
... effect. Moreover, a labor tax rate cut that is scaled to induce a deterioration of the fiscal balance of about 1 percentage point of GDP (about the same as the government spending shock) also generates a trade balance deterioration of less than 0.2 percentage point of GDP. Our small estimates of the ...
Teaching note
... Was the 2002 tax cut a good idea? The Job Creation and Worker Assistance Act of 2002 was the second of the three tax cutting bills cutting proposed by the administration of George W. Bush. It became law on March 9, 2002. The biggest tax cut in the bill was an accelerated depreciation provision. This ...
... Was the 2002 tax cut a good idea? The Job Creation and Worker Assistance Act of 2002 was the second of the three tax cutting bills cutting proposed by the administration of George W. Bush. It became law on March 9, 2002. The biggest tax cut in the bill was an accelerated depreciation provision. This ...
does consumer price index represent the actual rate of inflation?
... Creditors lose and debtors gain if the lender does not anticipate inflation correctly. For those who borrow, this is similar to getting an interest-free loan. ...
... Creditors lose and debtors gain if the lender does not anticipate inflation correctly. For those who borrow, this is similar to getting an interest-free loan. ...
Homework #5
... top of the homework (legibly). Make sure you write your name as it appears on your ID so that you can receive the correct grade. Late homework will not be accepted so make plans ahead of time. Please show your work. Good luck! Please realize that you are essentially creating “your brand” when you su ...
... top of the homework (legibly). Make sure you write your name as it appears on your ID so that you can receive the correct grade. Late homework will not be accepted so make plans ahead of time. Please show your work. Good luck! Please realize that you are essentially creating “your brand” when you su ...
Document
... e) If output is 4000 calculate the change in inventories. Given your answer for the change in inventories, how would firms react to this change in inventories? f) If investment increase from 500 to 800 (a 300 increase in investment). Recalculate the entire table and find the new equilibrium value of ...
... e) If output is 4000 calculate the change in inventories. Given your answer for the change in inventories, how would firms react to this change in inventories? f) If investment increase from 500 to 800 (a 300 increase in investment). Recalculate the entire table and find the new equilibrium value of ...
DEPARTMENT OF ECONOMICS WORKING PAPER SERIES
... where At is total factor productivity at time t, and Lkt (i) is total labor employed by firm i in sector k. This implies that the production of one good requires 1/At units of labor, and the marginal cost of production is Wt /At . Since each sector can be characterized in the same way, in what follo ...
... where At is total factor productivity at time t, and Lkt (i) is total labor employed by firm i in sector k. This implies that the production of one good requires 1/At units of labor, and the marginal cost of production is Wt /At . Since each sector can be characterized in the same way, in what follo ...
macroeconomics class review
... The Keynesian model is based on the belief that consumption demand drives the economy and that a shortfall in this demand causes recessions and depressions. If we can find ways to stimulate consumption, we will solve the problem. Keynes invented a concept called the marginal propensity to consume (M ...
... The Keynesian model is based on the belief that consumption demand drives the economy and that a shortfall in this demand causes recessions and depressions. If we can find ways to stimulate consumption, we will solve the problem. Keynes invented a concept called the marginal propensity to consume (M ...
NBER WORKING PAPER SERIES Alejandro Justiniano
... Abstract. Not in an estimated DSGE model of the US economy, once we account for the fact that most of the high-frequency volatility in wages appears to be due to noise, rather than to variation in workers’preferences or market power. ...
... Abstract. Not in an estimated DSGE model of the US economy, once we account for the fact that most of the high-frequency volatility in wages appears to be due to noise, rather than to variation in workers’preferences or market power. ...
Fiscal Policy in an Unemployment Crisis
... and a purely temporary shock subdues any internal propagation. The negative effect on output is small and short-lived, and the fiscal multiplier equals one.6 These results contrast with those in this paper, in which even a transitory demand shock can lead to a deep and prolonged recession, and a lar ...
... and a purely temporary shock subdues any internal propagation. The negative effect on output is small and short-lived, and the fiscal multiplier equals one.6 These results contrast with those in this paper, in which even a transitory demand shock can lead to a deep and prolonged recession, and a lar ...
Wages, Profits, and Macroeconomic Adjustment: A Comparative Study
... OECD economies,describingthe sharedas well as the specificfeatures of the patterns.The tables that follow focus mainlyon four subperiods: 1962-69, 1969-73, 1973-75, and 1975-78. The 1962-69 periodserves as a benchmark;in that period,the rate of growthof productwageswas almostidenticalto that of prod ...
... OECD economies,describingthe sharedas well as the specificfeatures of the patterns.The tables that follow focus mainlyon four subperiods: 1962-69, 1969-73, 1973-75, and 1975-78. The 1962-69 periodserves as a benchmark;in that period,the rate of growthof productwageswas almostidenticalto that of prod ...