Ch24
... Chapter 24 Money and Inflation 1. "There are frequently years when the inflation rate is high and yet money growth is quite low. Therefore, the statement that inflation is a monetary phenomenon cannot be correct." Comment. 2. Why do economists focus on historical episodes of hyperinflation to decide ...
... Chapter 24 Money and Inflation 1. "There are frequently years when the inflation rate is high and yet money growth is quite low. Therefore, the statement that inflation is a monetary phenomenon cannot be correct." Comment. 2. Why do economists focus on historical episodes of hyperinflation to decide ...
An AGE model for forecasting energy demand
... the estimation of energy demand. It is built on the Spanish symmetric Input-Output Table for 2005, it is tested for the period 2005 to 2008 and it is applied for forecasting energy demand for the years 2009 to 2012 in different scenarios. We consider 19 industries; the first four for energy sources, ...
... the estimation of energy demand. It is built on the Spanish symmetric Input-Output Table for 2005, it is tested for the period 2005 to 2008 and it is applied for forecasting energy demand for the years 2009 to 2012 in different scenarios. We consider 19 industries; the first four for energy sources, ...
Value Theory, the Transformation Problem and Crisis Theory
... produces value and surplus value. Constant capital, in contrast, can only transfer its existing value to the commodities it helps produce. Suppose one branch of production employees $50 of constant capital—depreciation of machines and raw and auxiliary material—and $50 for wages to produce an indivi ...
... produces value and surplus value. Constant capital, in contrast, can only transfer its existing value to the commodities it helps produce. Suppose one branch of production employees $50 of constant capital—depreciation of machines and raw and auxiliary material—and $50 for wages to produce an indivi ...
The Theory of Unconventional Monetary Policy
... Because dynamic monetary models always have multiple equilibria we must take a stand on what selects an equilibrium. Multiplicity occurs in dynamic models because there is more than one possible future price. A decision maker, placed in an environment where many different things can happen, must tak ...
... Because dynamic monetary models always have multiple equilibria we must take a stand on what selects an equilibrium. Multiplicity occurs in dynamic models because there is more than one possible future price. A decision maker, placed in an environment where many different things can happen, must tak ...
The effect of asset price volatility on fiscal policy outcomes
... policy in a positive and significant manner. Higher residential property price volatility leads to more volatile government spending and, thus, to more volatile discretionary fiscal policy stance. Equity price volatility affects the volatility of the fiscal policy stance primarily via the government ...
... policy in a positive and significant manner. Higher residential property price volatility leads to more volatile government spending and, thus, to more volatile discretionary fiscal policy stance. Equity price volatility affects the volatility of the fiscal policy stance primarily via the government ...
The low inflation
... The low inflation – should we be worried and can we do anything about it? Those of you who follow the debate on monetary policy will probably not be surprised that the theme of my speech today is the low rate of inflation. This is the most important question for monetary policy right now. Over the ...
... The low inflation – should we be worried and can we do anything about it? Those of you who follow the debate on monetary policy will probably not be surprised that the theme of my speech today is the low rate of inflation. This is the most important question for monetary policy right now. Over the ...
REAL AND TERMS INDEXATION RULES FOR AN OPEN ECONOMY
... (proportionally to u) and indirectly (through the resulting unanticipated rise in the domestic price.). With full indexation, the change in output is even larger, since Indexation prevents the rise in the domestic price from dampening the direct effect of the disturbance on output. Thus indexation i ...
... (proportionally to u) and indirectly (through the resulting unanticipated rise in the domestic price.). With full indexation, the change in output is even larger, since Indexation prevents the rise in the domestic price from dampening the direct effect of the disturbance on output. Thus indexation i ...
FOR PARTICIPANTS ONLY REFERENCE DOCUMENT DDR/20 April 9, 2001
... source of information is the DANE Building Census conducted in seven (7) metropolitan areas which account for 80%, more or less, of all building activity in the country. For the remaining urban structures (20%), a simulation model is used to estimate the main variables for calculating production. Th ...
... source of information is the DANE Building Census conducted in seven (7) metropolitan areas which account for 80%, more or less, of all building activity in the country. For the remaining urban structures (20%), a simulation model is used to estimate the main variables for calculating production. Th ...
The New IS-LM Model: Language, Logic, and Limits
... While the initial IS-LM model did not determine how the price level evolved through time, the addition of a price equation—or a wage/price block that featured a Phillips (1958) curve—made it possible to explore the implications for inflation.1 The simultaneous occurrence of high inflation and high u ...
... While the initial IS-LM model did not determine how the price level evolved through time, the addition of a price equation—or a wage/price block that featured a Phillips (1958) curve—made it possible to explore the implications for inflation.1 The simultaneous occurrence of high inflation and high u ...
Aggregate Demand and Aggregate Supply
... and a larger quantity of nonmoney assets, the real interest rate must rise. A higher real interest rate on nonmoney assets increases the opportunity cost of holding money, so the public is willing to hold the lower level of real money balances. 3. The rise in real interest rates makes firms less wil ...
... and a larger quantity of nonmoney assets, the real interest rate must rise. A higher real interest rate on nonmoney assets increases the opportunity cost of holding money, so the public is willing to hold the lower level of real money balances. 3. The rise in real interest rates makes firms less wil ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... continued to grow during the period, supported by somewhat low interest rates. The recent hike in oil price thus might be viewed as endogenous movements along with the developments of strong oil market demands (or world economy), rather than exogenous movements stemming from supply-side contractions ...
... continued to grow during the period, supported by somewhat low interest rates. The recent hike in oil price thus might be viewed as endogenous movements along with the developments of strong oil market demands (or world economy), rather than exogenous movements stemming from supply-side contractions ...
AP Macro - Sect. 4 PP no bkgd
... Shifts of Aggregate Supply: Short-Run As the short-run supply curve shifts it leads to a new equilibrium price level and output level - Shift Right = ag price level decrease and GDP increase - Shift Left = ag price level increase and GDP decrease Stagflation The combination of inflation (rising pri ...
... Shifts of Aggregate Supply: Short-Run As the short-run supply curve shifts it leads to a new equilibrium price level and output level - Shift Right = ag price level decrease and GDP increase - Shift Left = ag price level increase and GDP decrease Stagflation The combination of inflation (rising pri ...
Document
... The Aggregate Demand Curve •The Price Level and the Money Market •Deriving the Aggregate Demand Curve •Understanding the AD Curve •Movements Along the AD Curve •Shifts of the AD Curve © 2001 South-Western, a division of Thomson Learning ...
... The Aggregate Demand Curve •The Price Level and the Money Market •Deriving the Aggregate Demand Curve •Understanding the AD Curve •Movements Along the AD Curve •Shifts of the AD Curve © 2001 South-Western, a division of Thomson Learning ...
View/Open
... poverty and for improved levels of living for the entire population. Since agricultural exports constitute 40 percent of the value of all exports, increased agricultural productivity is also vital for improvement of the Philippines' international trading position-a critical matter, in view of the Ph ...
... poverty and for improved levels of living for the entire population. Since agricultural exports constitute 40 percent of the value of all exports, increased agricultural productivity is also vital for improvement of the Philippines' international trading position-a critical matter, in view of the Ph ...
NBER WORKING PAPER SERIES THE ROLES OF MONETARY, FINANCIAL AND
... increase in lump-sum taxes, L, will reduce real income unless, 'given the government's real spending program, money- and bond-financed deficits are exactly equivalent to explicit lump-sum taxation. ...
... increase in lump-sum taxes, L, will reduce real income unless, 'given the government's real spending program, money- and bond-financed deficits are exactly equivalent to explicit lump-sum taxation. ...
Slides
... practice (e.g. changes in trade shares are not only driven by changes in variable trade costs) ...
... practice (e.g. changes in trade shares are not only driven by changes in variable trade costs) ...
Quantitative Easing in Joseph`s Egypt with Keynesian Producers
... appropriately chosen, the unique equilibrium implements the flexible-price allocation. However, this criterion eliminates a continuum of other less desirable equilibria merely because they induce the monetary authority to drive the economy into the zero lower bound permanently. Aruoba, Cuba-Borda, a ...
... appropriately chosen, the unique equilibrium implements the flexible-price allocation. However, this criterion eliminates a continuum of other less desirable equilibria merely because they induce the monetary authority to drive the economy into the zero lower bound permanently. Aruoba, Cuba-Borda, a ...
How high is the natural rate of unemployment in Hong Kong? (A
... unemployment. A system of simultaneous equations is developed to explain aggregate wage and price setting behavior, whilst also taking into account the supply side factors as well as the structural aspects in Hong Kong’s labour market. The use of simultaneous equation system has the merit that the n ...
... unemployment. A system of simultaneous equations is developed to explain aggregate wage and price setting behavior, whilst also taking into account the supply side factors as well as the structural aspects in Hong Kong’s labour market. The use of simultaneous equation system has the merit that the n ...
Anderson, Hazlitt, and the Quantity Theory of Money
... the quantity theory and an acceptance of the concept of value as an absolute quantity."4 In a series of short but brilliant articles that appeared under the auspices of the Chase Manhattan Bank, Anderson exposed and crushed the fallacies of Fisherian "quantity theory" and the incipient doctrines of ...
... the quantity theory and an acceptance of the concept of value as an absolute quantity."4 In a series of short but brilliant articles that appeared under the auspices of the Chase Manhattan Bank, Anderson exposed and crushed the fallacies of Fisherian "quantity theory" and the incipient doctrines of ...
FRBSF E L CONOMIC ETTER
... Figure 1 plots productivity growth over the last 50 years based on calculations by the Bureau of Labor Statistics of multifactor productivity (MFP) for the nonfarm business sector, which “… measures the changes in output per unit of combined inputs.” Like most other such constructs, this measure ill ...
... Figure 1 plots productivity growth over the last 50 years based on calculations by the Bureau of Labor Statistics of multifactor productivity (MFP) for the nonfarm business sector, which “… measures the changes in output per unit of combined inputs.” Like most other such constructs, this measure ill ...
Abenomics: An update - Brookings Institution
... Iterating on (1) and (2) until convergence, we can determine what combinations of long-run actual inflation (µ) and degree of adaptiveness (λ) can rationalize the market and professional long-run inflation forecasts. In figure 3(a), we show the implied 10-year inflation forecasts for combinations of ...
... Iterating on (1) and (2) until convergence, we can determine what combinations of long-run actual inflation (µ) and degree of adaptiveness (λ) can rationalize the market and professional long-run inflation forecasts. In figure 3(a), we show the implied 10-year inflation forecasts for combinations of ...
Lecture7b More on competitiveness
... • During the 1990s relative ULC in common currency declined, signifying gains in cost competitiveness. • Since 2002, increase in ULC in common currency has been around 25% economy-wide • An alternative measure of relative competitiveness to the real HCI deflated by Consumer Price Index ...
... • During the 1990s relative ULC in common currency declined, signifying gains in cost competitiveness. • Since 2002, increase in ULC in common currency has been around 25% economy-wide • An alternative measure of relative competitiveness to the real HCI deflated by Consumer Price Index ...
Ch13
... Inflation is likely to occur when Y > Y*. To control inflation, the Fed must keep Y from exceeding Y*. The Fed should lower the AD curve when Y>Y*. The Fed can reduce autonomous expenditure by raising the interest rate. ...
... Inflation is likely to occur when Y > Y*. To control inflation, the Fed must keep Y from exceeding Y*. The Fed should lower the AD curve when Y>Y*. The Fed can reduce autonomous expenditure by raising the interest rate. ...
NBER WORKING PAPER SERIES MARKETS Rahul Anand
... ABSTRACT In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating the flexible price equilibrium. In this paper, we develop a two-sector two-good closed economy new Keynesian model to study the optimal choice of price index in markets with ...
... ABSTRACT In models with complete markets, targeting core inflation enables monetary policy to maximize welfare by replicating the flexible price equilibrium. In this paper, we develop a two-sector two-good closed economy new Keynesian model to study the optimal choice of price index in markets with ...