NBER WORKING PAPER SERIES CAN SEVERE FISCAL CONTRACTIONS BE EXPANSIONARY?
... about fiscal policy is more appropriate —— i.e how often the contractionary effect of a fiscal consolidation prevails on its expansionary expectational effect. This paper brings new evidence to bear on this issue drawing on. the European exercise in fiscal rectitude of the 1980s, and focusing, in pa ...
... about fiscal policy is more appropriate —— i.e how often the contractionary effect of a fiscal consolidation prevails on its expansionary expectational effect. This paper brings new evidence to bear on this issue drawing on. the European exercise in fiscal rectitude of the 1980s, and focusing, in pa ...
The Effects of Macroeconomic Aggregates on Fertility Decisions
... decisions cannot be captured only by the effects of female employment or participation in the labor market. Mounting national debt and deficits are considered less desirable for giving new births. The unwillingness of some people to “pass on the debt to our children” is well reflected in the results ...
... decisions cannot be captured only by the effects of female employment or participation in the labor market. Mounting national debt and deficits are considered less desirable for giving new births. The unwillingness of some people to “pass on the debt to our children” is well reflected in the results ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... surplus is the standard one that it adjusts for the impact of economic activity on receipts and expenditures. Because of this adjustment, the high-employment surplus can differentiate fiscal actions taken deliberately in response to recessions from those that occur automatically. The high-employment ...
... surplus is the standard one that it adjusts for the impact of economic activity on receipts and expenditures. Because of this adjustment, the high-employment surplus can differentiate fiscal actions taken deliberately in response to recessions from those that occur automatically. The high-employment ...
... recourse to *Department of Economics, M.I.T., and Research Associate, National Bureau of Economic Research. This is a revised version of a paper with a similar title presented at the American Economic Association meetings, December 1982. I am indebted to Robert Gordon for comments, and the National ...
economic theory in transition
... the 1980 elections via the perspective of Keynesian economic theorem. The main objective of the thesis is to analyze the perceived failure of Keynesianism during stagflation through practical policy and evaluate the policy connection to the economic theory paradigm shift that occurred in the late 19 ...
... the 1980 elections via the perspective of Keynesian economic theorem. The main objective of the thesis is to analyze the perceived failure of Keynesianism during stagflation through practical policy and evaluate the policy connection to the economic theory paradigm shift that occurred in the late 19 ...
Monetary Policy - Macmillan Learning
... holding money fell. The last two rows of Table 15-2 summarize this comparison: they give the differences between the interest rates on demand deposits and on currency and the interest rate on CDs. These differences—the opportunity cost of holding money rather than interest-bearing assets—declined sh ...
... holding money fell. The last two rows of Table 15-2 summarize this comparison: they give the differences between the interest rates on demand deposits and on currency and the interest rate on CDs. These differences—the opportunity cost of holding money rather than interest-bearing assets—declined sh ...
2. The Sacrifice Ratio - Hal-SHS
... manner an estimate of the sacrifice ratio for each disinflation. These estimates range from below 0 to about 3.5%, with an average close to 1.4% (i.e. much lower than previous estimates)3. Ball's approach to constructing sacrifice ratios has generated many refinements and applications4, but this epi ...
... manner an estimate of the sacrifice ratio for each disinflation. These estimates range from below 0 to about 3.5%, with an average close to 1.4% (i.e. much lower than previous estimates)3. Ball's approach to constructing sacrifice ratios has generated many refinements and applications4, but this epi ...
the effect of interest rate and inflation rate
... 1.1.3 Exchange Rates According to Mishkin, (2008), The exchange rate of the currency in which a portfolio holds the bulk of its investments determines that portfolio's real return. A declining exchange rate obviously decreases the purchasing power of income and capital gains derived from any returns ...
... 1.1.3 Exchange Rates According to Mishkin, (2008), The exchange rate of the currency in which a portfolio holds the bulk of its investments determines that portfolio's real return. A declining exchange rate obviously decreases the purchasing power of income and capital gains derived from any returns ...
CHAPTER IX THEORIES OP INFLATION There are seven important
... of consumer goods represented by Y - (G+I) is increased by the rise in the price level and thereby the demand for consumer goods and the supply of consumer goods are made equal to each other and there is created an equilibrium ...
... of consumer goods represented by Y - (G+I) is increased by the rise in the price level and thereby the demand for consumer goods and the supply of consumer goods are made equal to each other and there is created an equilibrium ...
Evaluating the Classification of Economic Activity into Recessions and Expansions June 2010
... (CFNAI), provide accurate signals about the current state of the business cycle. Lastly, we investigate the detection of future turning points using the components of the Conference Board’s Index of Leading Indicators (ILI). Here we find that it makes little sense to construct a unique index to pre ...
... (CFNAI), provide accurate signals about the current state of the business cycle. Lastly, we investigate the detection of future turning points using the components of the Conference Board’s Index of Leading Indicators (ILI). Here we find that it makes little sense to construct a unique index to pre ...
medo para poupar e medo de poupar - explicando trajetórias
... consumption behavior detected at the level of individual decision-making that do not disappear at the aggregate level of the market. More precisely, we focus on three anomalies of intertemporal choice in the Brazilian macroeconomic life: (a) increasing private savings in the highly inflationary econ ...
... consumption behavior detected at the level of individual decision-making that do not disappear at the aggregate level of the market. More precisely, we focus on three anomalies of intertemporal choice in the Brazilian macroeconomic life: (a) increasing private savings in the highly inflationary econ ...
Inflation and Economic Growth in India – An Empirical Analysis
... universal, but appear only over the ―threshold‖ level of inflation. Nevertheless, there is the growing concern in developed countries; particularly in the EMU area that excessively low inflation threshold may hurt economic growth. It is argued that the developed countries do have very well developed ...
... universal, but appear only over the ―threshold‖ level of inflation. Nevertheless, there is the growing concern in developed countries; particularly in the EMU area that excessively low inflation threshold may hurt economic growth. It is argued that the developed countries do have very well developed ...
Fiscal Policy: Coping with Inflation and Unemployment
... to buy a pair of shoes. At the end of the loan period, you repay the bank $105. Had you waited until this year to buy the shoes, with inflation at 10 percent, it would have cost you $110. Gottheil - Principles of Economics, 4e © 2005 Thomson ...
... to buy a pair of shoes. At the end of the loan period, you repay the bank $105. Had you waited until this year to buy the shoes, with inflation at 10 percent, it would have cost you $110. Gottheil - Principles of Economics, 4e © 2005 Thomson ...
NBER WORKING PAPER SERIES THEORIES OF WAGE RIGIDITY Joseph E. Stiglitz
... companies. Arnott, Hosios, and Stiglitz (1983) provide a brief discussion; noting the central problems of moral hazard (to be discussed below), they observe that the employer has an informational advantage over other potential suppliers of insurance. Similarly the standard implicit contract models d ...
... companies. Arnott, Hosios, and Stiglitz (1983) provide a brief discussion; noting the central problems of moral hazard (to be discussed below), they observe that the employer has an informational advantage over other potential suppliers of insurance. Similarly the standard implicit contract models d ...
Administration Estimates Michigan Economic and Revenue Outlook FY 2008-09 and FY 2009-10
... The sharp housing market downturn and concomitant home price declines -- along with a worsening economy and jobs market -- have had serious repercussions. Recent state actions to help homeowners avoid foreclosure pushed down the share of homes entering foreclosure between 2008Q2 and 2008Q3. However, ...
... The sharp housing market downturn and concomitant home price declines -- along with a worsening economy and jobs market -- have had serious repercussions. Recent state actions to help homeowners avoid foreclosure pushed down the share of homes entering foreclosure between 2008Q2 and 2008Q3. However, ...
Do Budget Deficits Crowd out Private Investment? An
... In 2007 there was an increase in the budget surplus to 0.7% of GDP but on the other hand interest rates on 0-3 year bonds increased significantly to 10.56% and those on government bonds of 10 years and above increased to 8.29%. The rise in interest rates contradicted with the economic activities as ...
... In 2007 there was an increase in the budget surplus to 0.7% of GDP but on the other hand interest rates on 0-3 year bonds increased significantly to 10.56% and those on government bonds of 10 years and above increased to 8.29%. The rise in interest rates contradicted with the economic activities as ...
Chapter 2: Review of Literature
... left with no option, asked its central bank to meet government payment obligations. When the German Central Bank printed and circulated billions and billions of paper currency, the general price level raised a billion-fold. In recent times, the excess supply of money caused demand-pull inflation in ...
... left with no option, asked its central bank to meet government payment obligations. When the German Central Bank printed and circulated billions and billions of paper currency, the general price level raised a billion-fold. In recent times, the excess supply of money caused demand-pull inflation in ...
MERCATUS GRADUATE POLICY ESSAY
... Mainly, the Fed‘s reliance on easy monetary policy has increased private-sector debt by artificially reducing interest rates below equilibrium levels. However, as we will see, these manipulated interest rates understate actual loan risk, which implies ―malinvestment‖ and subsequent future loan fail ...
... Mainly, the Fed‘s reliance on easy monetary policy has increased private-sector debt by artificially reducing interest rates below equilibrium levels. However, as we will see, these manipulated interest rates understate actual loan risk, which implies ―malinvestment‖ and subsequent future loan fail ...
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.