Economic Outlook Presentation to Workers’ Compensation Trust
... Tax cuts to the rich more likely to be saved, not spent or invested. Tax cuts don’t have big effect on those too poor to pay many taxes. Unmet needs in Energy, Environment, Health, and Education: good reasons to spend. ...
... Tax cuts to the rich more likely to be saved, not spent or invested. Tax cuts don’t have big effect on those too poor to pay many taxes. Unmet needs in Energy, Environment, Health, and Education: good reasons to spend. ...
ch07lecture
... In principle, the GDP deflator is not subject to the biases of the CPI because it uses the basket of goods and services produced in the current year and the preceding year. In practice, the GDP deflator suffers from some of the CPI’s problems because the Commerce Department does not directly measure ...
... In principle, the GDP deflator is not subject to the biases of the CPI because it uses the basket of goods and services produced in the current year and the preceding year. In practice, the GDP deflator suffers from some of the CPI’s problems because the Commerce Department does not directly measure ...
Government Maturity Structure Shocks Alexandre Corhay Howard Kung Gonzalo Morales
... We thank Ravi Bansal, Francesco Bianchi, and Urban Jermann for helpful comments. ...
... We thank Ravi Bansal, Francesco Bianchi, and Urban Jermann for helpful comments. ...
Entrepreneurship and the Business Cycle
... periods as a result of positive technology shocks and higher capital prices. Hence, the number of solvent entrepreneurs would then be countercyclical. Furthermore, the bankruptcy probability is the same across entrepreneurs, independent of their net worth. However, the authors point this out as one ...
... periods as a result of positive technology shocks and higher capital prices. Hence, the number of solvent entrepreneurs would then be countercyclical. Furthermore, the bankruptcy probability is the same across entrepreneurs, independent of their net worth. However, the authors point this out as one ...
I Balanced Budget Legislation for Manitoba: Principles and Prospects I. I
... hardly draconian. Infrastructure spending increased by $625 million in an effort to stimulate an estimated 10,000 jobs and the government fulfilled its promise to eliminate the final 1% of the small-business tax. Selinger’s rationale was clear: “Times may be tight but this is not the time to stop in ...
... hardly draconian. Infrastructure spending increased by $625 million in an effort to stimulate an estimated 10,000 jobs and the government fulfilled its promise to eliminate the final 1% of the small-business tax. Selinger’s rationale was clear: “Times may be tight but this is not the time to stop in ...
MS Word - of Planning Commission
... rapidly, though somewhat unevenly, during the seventies and by l983-1984 it had reached 24 per cent. This is a very high rate compared with rates compared with rates achieved in other low income developing countries. In fact it is comparable with investment rates achieved in the middle income develo ...
... rapidly, though somewhat unevenly, during the seventies and by l983-1984 it had reached 24 per cent. This is a very high rate compared with rates compared with rates achieved in other low income developing countries. In fact it is comparable with investment rates achieved in the middle income develo ...
The Threat Is Real: Labor-Market Competition
... date (but see Sniderman et al. 2004). Secondly, and perhaps most importantly, empirical studies have typically used very poor measures of individuals’ exposure to LMC. As pointed out above, in the vast majority of empirical studies, objective individual-level estimates for realistic competition boil ...
... date (but see Sniderman et al. 2004). Secondly, and perhaps most importantly, empirical studies have typically used very poor measures of individuals’ exposure to LMC. As pointed out above, in the vast majority of empirical studies, objective individual-level estimates for realistic competition boil ...
Monetary Policy in Japan Since the Late 1980s
... policy coordination’’ after the Plaza Accord of 1985, the BOJ was pushed to keep a low interest rate. Second, market instability caused by the US stock market crash in October 1987 kept the BOJ from tightening policy in late 1987. Third, in 1988, the domestic political requirements pushed the BOJ to ...
... policy coordination’’ after the Plaza Accord of 1985, the BOJ was pushed to keep a low interest rate. Second, market instability caused by the US stock market crash in October 1987 kept the BOJ from tightening policy in late 1987. Third, in 1988, the domestic political requirements pushed the BOJ to ...
Surprising Similarities: Recent Monetary Regimes of Small Economies Andrew K. Rose
... through this period of time (see Figure 1). While the number of inflation targeters is considerably smaller than those in other regimes, they are, on average, larger and richer. In 2011, inflation targeting countries represented some 20 percent of global output.14 By way of contrast, the more numero ...
... through this period of time (see Figure 1). While the number of inflation targeters is considerably smaller than those in other regimes, they are, on average, larger and richer. In 2011, inflation targeting countries represented some 20 percent of global output.14 By way of contrast, the more numero ...
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 ...
Leveraged Bubbles
... varieties of asset price bubbles and the damage they might wreak on the economy. This paper aims to close this gap by studying the nexus between credit, asset prices, and economic outcomes in advanced economies since 1870. We use a dataset that spans the near universe of advanced economies in the er ...
... varieties of asset price bubbles and the damage they might wreak on the economy. This paper aims to close this gap by studying the nexus between credit, asset prices, and economic outcomes in advanced economies since 1870. We use a dataset that spans the near universe of advanced economies in the er ...
The Relationship between Openness and Inflation in NIEs and the G7
... period averaged cross-section data. It is clear that a country’s openness or inflation may vary dramatically during a certain period. To represent a country’s characteristics by period averaged indexes may not reflect the actual phenomenon. Moreover, traditionally, researchers use the share of impor ...
... period averaged cross-section data. It is clear that a country’s openness or inflation may vary dramatically during a certain period. To represent a country’s characteristics by period averaged indexes may not reflect the actual phenomenon. Moreover, traditionally, researchers use the share of impor ...
Leveraged Bubbles
... [O]ver-investment and over-speculation are often important; but they would have far less serious results were they not conducted with borrowed money. – Irving Fisher, “The Debt-Deflation Theory of Great Depressions,” 1933 All of us knew there was a bubble. But a bubble in and of itself doesn’t give ...
... [O]ver-investment and over-speculation are often important; but they would have far less serious results were they not conducted with borrowed money. – Irving Fisher, “The Debt-Deflation Theory of Great Depressions,” 1933 All of us knew there was a bubble. But a bubble in and of itself doesn’t give ...
Reconciling Hayek s and Keynes views of recessions
... phase near its steady state. When the economy is far from its steady-state level of capital, demand for capital is very strong and unemployment risk is therefore minimal. In contrast, when there is excessive capital, we show that reduced labor demand shows up at least in part as increased unemployme ...
... phase near its steady state. When the economy is far from its steady-state level of capital, demand for capital is very strong and unemployment risk is therefore minimal. In contrast, when there is excessive capital, we show that reduced labor demand shows up at least in part as increased unemployme ...
This PDF is a selection from a published volume
... is a frequent phenomenon of such markets: the inflation rate of nontradables is permanently higher than that of tradables, which results in long-run real appreciation of the CPI-based real exchange rate. This phenomenon was documented by Ito, Isard, and Symansky (1997) for the case of Japan and some ...
... is a frequent phenomenon of such markets: the inflation rate of nontradables is permanently higher than that of tradables, which results in long-run real appreciation of the CPI-based real exchange rate. This phenomenon was documented by Ito, Isard, and Symansky (1997) for the case of Japan and some ...
Investment Hangover and the Great Recessionâ
... since the Great Depression. Real GDP per capita declined from more than $49,000 in 2007 (in 2009 dollars) to less than $47,000 in 2009, and surpassed its pre-recession level only in 2013. The civilian employment ratio, which stood at about 63% in January 2008, fell below 58% by January 2010, and rem ...
... since the Great Depression. Real GDP per capita declined from more than $49,000 in 2007 (in 2009 dollars) to less than $47,000 in 2009, and surpassed its pre-recession level only in 2013. The civilian employment ratio, which stood at about 63% in January 2008, fell below 58% by January 2010, and rem ...
Fiscal Stimulus and Potential Inflationary Risks
... debt. As highlighted by Cochrane (2009) in the context of the US, “...If the debt corresponds to good quality assets, that’s easy...If the new debt was spent or given away, we’re in more trouble. If the debt will be paid off by higher future tax rates, the economy can be set up for a decade or more ...
... debt. As highlighted by Cochrane (2009) in the context of the US, “...If the debt corresponds to good quality assets, that’s easy...If the new debt was spent or given away, we’re in more trouble. If the debt will be paid off by higher future tax rates, the economy can be set up for a decade or more ...
2011:2 What is the natural interest rate?
... cost or return is determined by the real interest rate. The real interest rate corresponds approximately to the nominal interest rate minus the inflation that is expected to occur during the period which the money was lent. As prices of goods and services in general change fairly infrequently, infla ...
... cost or return is determined by the real interest rate. The real interest rate corresponds approximately to the nominal interest rate minus the inflation that is expected to occur during the period which the money was lent. As prices of goods and services in general change fairly infrequently, infla ...
Early 1980s recession
The early 1980s recession describes the severe global economic recession affecting much of the developed world in the late 1970s and early 1980s. The United States and Japan exited the recession relatively early, but high unemployment would continue to affect other OECD nations through to at least 1985. Long-term effects of the recession contributed to the Latin American debt crisis, the savings and loans crisis in the United States, and a general adoption of neoliberal economic policies throughout the 1980s and 1990s.