Macrohonours Lecture 10 - Lecture Notes
... • The US govt promote home ownership – Clinton administration stated aim to “add as many as 8 million new families to America’s home ownership rolls by the year 2000” • Rajan in 2010 showed how such policies helped to sustain AD in the US economy following the bursting of the dotcom bubble in 2000, ...
... • The US govt promote home ownership – Clinton administration stated aim to “add as many as 8 million new families to America’s home ownership rolls by the year 2000” • Rajan in 2010 showed how such policies helped to sustain AD in the US economy following the bursting of the dotcom bubble in 2000, ...
Chapters 26-28
... Possibly, the announcement itself would be enough to change the behavior of workers and firms. Understanding that the new Chair would fight unemployment even at the cost of inflation, they would expect higher inflation in the future. People would build higher inflation into their contracts and the P ...
... Possibly, the announcement itself would be enough to change the behavior of workers and firms. Understanding that the new Chair would fight unemployment even at the cost of inflation, they would expect higher inflation in the future. People would build higher inflation into their contracts and the P ...
Slide 1
... the bottom, because that is where the tire is flat” (Solow, 2000). • "It takes a heap of Harberger triangles to fill an Okun's gap.” (Tobin, 1977) ...
... the bottom, because that is where the tire is flat” (Solow, 2000). • "It takes a heap of Harberger triangles to fill an Okun's gap.” (Tobin, 1977) ...
AAE/IS 373 Class 4 Economic growth
... Second oil price shock 1979-80. Global recession; high real interest rates on new and existing debt Global commodity price slump mid-1980s. Export revenues collapse for resource-dependent economies. Debt servicing crises and recessions (1985). Collapse of inwardoriented strategies. Plaza Accor ...
... Second oil price shock 1979-80. Global recession; high real interest rates on new and existing debt Global commodity price slump mid-1980s. Export revenues collapse for resource-dependent economies. Debt servicing crises and recessions (1985). Collapse of inwardoriented strategies. Plaza Accor ...
The Federal Reserve must prolong the party
... (as surely it will). Would that work or might the Fed find itself “pushing on a string”, as the Bank of Japan did so painfully in the 1990s and early 2000s? A good guess is that the policy would work. But if it did not, there would be only two ways out: a huge fiscal expansion in the US or a huge re ...
... (as surely it will). Would that work or might the Fed find itself “pushing on a string”, as the Bank of Japan did so painfully in the 1990s and early 2000s? A good guess is that the policy would work. But if it did not, there would be only two ways out: a huge fiscal expansion in the US or a huge re ...
Monetary policy review powerpoint
... happens to P, GDP, and unemployment? While at full employment, the FED sells bonds on the open market. ...
... happens to P, GDP, and unemployment? While at full employment, the FED sells bonds on the open market. ...
economic policymaking
... If tax allocations are higher…it’s a surplus (it did happen in ’99!) If expenses are higher. . .it’s a deficit which is then added to the national debt and you get a shortfall in the trillions …and it takes far too much of the current budget just to pay interest on the debt! ...
... If tax allocations are higher…it’s a surplus (it did happen in ’99!) If expenses are higher. . .it’s a deficit which is then added to the national debt and you get a shortfall in the trillions …and it takes far too much of the current budget just to pay interest on the debt! ...
Chapter 14 Unemployment and Its Natural Rate
... looking for work and report that they are no longer in the labour force, when in fact, they would be willing to work ...
... looking for work and report that they are no longer in the labour force, when in fact, they would be willing to work ...
9708 November 2012 Paper 21 Mark Scheme
... Exports may fall, imports may rise and the current balance may worsen. International confidence in the currency may fall reducing investment and the financial flow may become adverse. There will be less demand for and increased supply of the currency and it may depreciate. A low rate of inflation ma ...
... Exports may fall, imports may rise and the current balance may worsen. International confidence in the currency may fall reducing investment and the financial flow may become adverse. There will be less demand for and increased supply of the currency and it may depreciate. A low rate of inflation ma ...
Unit 4 Review
... Progressive Tax System – tax whose average tax rate increases as taxpayer’s income increases and decreases as the income decreases Proportional Tax System – tax whose average tax rate remains constant as taxpayer’s income increases or decreases Regressive Tax System – tax whose average tax rate decr ...
... Progressive Tax System – tax whose average tax rate increases as taxpayer’s income increases and decreases as the income decreases Proportional Tax System – tax whose average tax rate remains constant as taxpayer’s income increases or decreases Regressive Tax System – tax whose average tax rate decr ...
Brazil_en.pdf
... October 2010, base money grew by 20.3% and the means of payment rose by 18.6%. Both outpaced the percentage changes posted in 2009 (12.6% and 12%, respectively). Available credit was up substantially (19.6%) as of September compared with September 2009. To October 2010 credit for companies rose by 1 ...
... October 2010, base money grew by 20.3% and the means of payment rose by 18.6%. Both outpaced the percentage changes posted in 2009 (12.6% and 12%, respectively). Available credit was up substantially (19.6%) as of September compared with September 2009. To October 2010 credit for companies rose by 1 ...
Economic Integration
... – European banks perform not only traditional banking but also stock brokerage and merchant banking, such as stock sales, risk-sharing. The financial system is not divided into investment banks, commercial banks, and stockbrokers. – Advantages of bank financing: • Banks examine business risks carefu ...
... – European banks perform not only traditional banking but also stock brokerage and merchant banking, such as stock sales, risk-sharing. The financial system is not divided into investment banks, commercial banks, and stockbrokers. – Advantages of bank financing: • Banks examine business risks carefu ...
Hearing on the Troubled Asset Relief Program (TARP)
... The original idea of the TARP was to provide a high volume of funding to purchase assets from financial institutions. This would provide price discovery in an illiquid market and move depressed assets to the larger and more long-term balance sheet of the Federal government. Prior to the final passag ...
... The original idea of the TARP was to provide a high volume of funding to purchase assets from financial institutions. This would provide price discovery in an illiquid market and move depressed assets to the larger and more long-term balance sheet of the Federal government. Prior to the final passag ...
Time for a Rate Hike
... According to the futures market, there is a 38% chance the Federal Reserve raises rates when it meets in mid-March. If the Fed were to stand by what it has said the past several years, the odds should be much higher. But the market is used to the Fed finding reasons to put off justified rate hikes. ...
... According to the futures market, there is a 38% chance the Federal Reserve raises rates when it meets in mid-March. If the Fed were to stand by what it has said the past several years, the odds should be much higher. But the market is used to the Fed finding reasons to put off justified rate hikes. ...
Unemployed
... in the short-run, the economy will move to equilibrium at A and there will be unemployment of AF. Of which EF will be voluntary and AE will be involuntary (ie Keynesian). If labour demand remains at LD’, the new equilibrium when wages and prices have fully adjusted ...
... in the short-run, the economy will move to equilibrium at A and there will be unemployment of AF. Of which EF will be voluntary and AE will be involuntary (ie Keynesian). If labour demand remains at LD’, the new equilibrium when wages and prices have fully adjusted ...
Monetary Policy PowerPoint
... • advises Congress and President on economic policy Supervising member banks “banking systems watchdog” • monitors loans and investments and reviews bank records of reserves • regulates bank mergers Regulating the Money Supply—amount of money circulating in the economy • Dollars—printed by Bureau of ...
... • advises Congress and President on economic policy Supervising member banks “banking systems watchdog” • monitors loans and investments and reviews bank records of reserves • regulates bank mergers Regulating the Money Supply—amount of money circulating in the economy • Dollars—printed by Bureau of ...
14.02 Principles of Macroeconomics Fall 2005 Quiz 2 Solutions
... 14.02 Principles of Macroeconomics Fall 2005 Quiz 2 Solutions Short Questions (30/100 points) Please state whether the following two statements are TRUE or FALSE with a short explanation (3 or 4 lines). Each question counts 6/100 points. 1. The arbitrage law holds comparing nominal returns, but it d ...
... 14.02 Principles of Macroeconomics Fall 2005 Quiz 2 Solutions Short Questions (30/100 points) Please state whether the following two statements are TRUE or FALSE with a short explanation (3 or 4 lines). Each question counts 6/100 points. 1. The arbitrage law holds comparing nominal returns, but it d ...
Monetary Policy and the Interest Rate
... “to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets.” • This was a reversal of previous policy. Previously the Fed had generally been raising rates, not reducing them, out of concern that inflation might become a ...
... “to help forestall some of the adverse effects on the broader economy that might otherwise arise from the disruptions in financial markets.” • This was a reversal of previous policy. Previously the Fed had generally been raising rates, not reducing them, out of concern that inflation might become a ...
Inflation Report May 2005
... horizon is extended, indicating the increasing uncertainty about outcomes. See the box on pages 48–49 of the May 2002 Inflation Report for a fuller description of the fan chart and what it represents. The dotted line is drawn at the two-year point. ...
... horizon is extended, indicating the increasing uncertainty about outcomes. See the box on pages 48–49 of the May 2002 Inflation Report for a fuller description of the fan chart and what it represents. The dotted line is drawn at the two-year point. ...
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.