MacroeconoMics for a Modern econoMy
... (at present output) – the sum of its payroll costs plus turnover costs. In terms of a later construct, the “wage curve” is lowered by firms’ underestimating what will be the going wage at their competitors.10 Such a lowering of the wage curve serves to lower firms’ cost curves, thus to lower the pr ...
... (at present output) – the sum of its payroll costs plus turnover costs. In terms of a later construct, the “wage curve” is lowered by firms’ underestimating what will be the going wage at their competitors.10 Such a lowering of the wage curve serves to lower firms’ cost curves, thus to lower the pr ...
NBER WORKING PAPER SERIES INTERNATIONAL BALANCE OF PAYMENTS FINANCING AND Willem H. Buiter
... likely to fall if it is adopted as an international reserve, why are other countries' central banks willing to hold this currency as a reserve if they perceive this effect? and (iv) What are the costs and benefits of becoming a reserve issuer and a reserve holder? Our purpose ifl this paper is to de ...
... likely to fall if it is adopted as an international reserve, why are other countries' central banks willing to hold this currency as a reserve if they perceive this effect? and (iv) What are the costs and benefits of becoming a reserve issuer and a reserve holder? Our purpose ifl this paper is to de ...
Factors Influencing Relative Price of Goods and Services Sectors in
... Peach, Rich and Antoniades (2004), Esteve, Gil-Pareja, Martinez-Serrano and Llorca-Vivero (2006) ...
... Peach, Rich and Antoniades (2004), Esteve, Gil-Pareja, Martinez-Serrano and Llorca-Vivero (2006) ...
Ecuador`s New Deal - The Center for Economic and Policy Research
... Overall, it appears that the Correa government’s sweeping financial reforms have been successful, not only in achieving their intended goals but in aiding macroeconomic stability, growth, employment, and very significant improvements on a range of economic and social indicators. What is most remarka ...
... Overall, it appears that the Correa government’s sweeping financial reforms have been successful, not only in achieving their intended goals but in aiding macroeconomic stability, growth, employment, and very significant improvements on a range of economic and social indicators. What is most remarka ...
The elephant in the room — Bond yields?
... Treasury bond yields. That is, for the first time in this recovery, the messages coming from within the bond market itself seem conflicted. Lower Treasury bond yields seem to suggest rising anxieties surrounding economic growth and deflation whereas tighter corporate bond yield spreads simultaneousl ...
... Treasury bond yields. That is, for the first time in this recovery, the messages coming from within the bond market itself seem conflicted. Lower Treasury bond yields seem to suggest rising anxieties surrounding economic growth and deflation whereas tighter corporate bond yield spreads simultaneousl ...
NBER WORKING PAPER SERIES HAS GLOBALIZATION CHANGED INFLATION? Laurence M. Ball
... Many observers suggest that the "globalization" of the U.S. economy has changed the behavior of inflation. This essay examines this idea, focusing on several questions: (1) Has globalization reduced the long-run level of inflation? (2) Has it affected the structure of inflation dynamics, as captured ...
... Many observers suggest that the "globalization" of the U.S. economy has changed the behavior of inflation. This essay examines this idea, focusing on several questions: (1) Has globalization reduced the long-run level of inflation? (2) Has it affected the structure of inflation dynamics, as captured ...
1 - Whitman People
... The unemployment rate can temporarily be above the full-employment rate of unemployment if there has been some type of random, unpredictable shock. This will be only a temporary phenomenon because firms, on average, set marketclearing wages and prices. Thus, unemployment will not persist for long. D ...
... The unemployment rate can temporarily be above the full-employment rate of unemployment if there has been some type of random, unpredictable shock. This will be only a temporary phenomenon because firms, on average, set marketclearing wages and prices. Thus, unemployment will not persist for long. D ...
Principles of Economics Third Edition by Fred Gottheil
... Time Line on Equilibrium, Inflation, and Unemployment • During the second half of the 1980s, the economy was performing about as well as it ever had in the last quarter century. • Tax reforms, ready credit, leveraged buyouts, a commercial real estate boom, and optimistic expectations contributed to ...
... Time Line on Equilibrium, Inflation, and Unemployment • During the second half of the 1980s, the economy was performing about as well as it ever had in the last quarter century. • Tax reforms, ready credit, leveraged buyouts, a commercial real estate boom, and optimistic expectations contributed to ...
NBER WORKING PAPER SERIES FIXED EXCHANGE RATES, INFLATION AND MACROECONOMIC DISCIPLINE Sebastian Edwards
... holds in Guatemala and Honduras. We then use modern time series techniques on quarterly data for 1957-1983 to further investigate this issue. We find that when these more powerful tests are applied it is possible to reject the relative version of PPP for both Central American nations. Section III tr ...
... holds in Guatemala and Honduras. We then use modern time series techniques on quarterly data for 1957-1983 to further investigate this issue. We find that when these more powerful tests are applied it is possible to reject the relative version of PPP for both Central American nations. Section III tr ...
AP Macro 4-6 Unit Summary
... The reserve requirement (reserve ratio) is the percent of deposits that banks must hold in reserve (the percent they can NOT loan out) • When the FED increases the money supply it increases the amount of money held in bank deposits. • As banks keeps some of the money in reserve and loans out their e ...
... The reserve requirement (reserve ratio) is the percent of deposits that banks must hold in reserve (the percent they can NOT loan out) • When the FED increases the money supply it increases the amount of money held in bank deposits. • As banks keeps some of the money in reserve and loans out their e ...
Fourth Edition
... Suppose that you have received an income tax refund check from the U.S. government. You are not sure what to do with the money, so you ask your two roommates for advice. One roommate tells you that if you want to help the economy, you should save all the money because a country’s economic growth dep ...
... Suppose that you have received an income tax refund check from the U.S. government. You are not sure what to do with the money, so you ask your two roommates for advice. One roommate tells you that if you want to help the economy, you should save all the money because a country’s economic growth dep ...
28.1 money and the interest rate
... Increased uncertainty also misallocates resources. Instead of concentrating on the activities at which they have a comparative advantage, people find it more profitable to search for ways of avoiding the losses that inflation inflicts. Gains and losses occur because of unpredictable changes in the v ...
... Increased uncertainty also misallocates resources. Instead of concentrating on the activities at which they have a comparative advantage, people find it more profitable to search for ways of avoiding the losses that inflation inflicts. Gains and losses occur because of unpredictable changes in the v ...
new
... – About 2.5% per year from 1949 to 1973 – 1.1% per year from 1973 to 1995 – 2.0% per year from 1995 to 2005 • In analyzing macroeconomic data during the past year, you have discovered that average labor productivity fell, but total output increased. What was most likely to have caused this? A) There ...
... – About 2.5% per year from 1949 to 1973 – 1.1% per year from 1973 to 1995 – 2.0% per year from 1995 to 2005 • In analyzing macroeconomic data during the past year, you have discovered that average labor productivity fell, but total output increased. What was most likely to have caused this? A) There ...
Lecture 11: Macro: Government Policy
... like pushing on a string--it is easier to slow down economy – Also, decision to invest depends on more than just interest rate – And indirect effect may take a long time to kick in ...
... like pushing on a string--it is easier to slow down economy – Also, decision to invest depends on more than just interest rate – And indirect effect may take a long time to kick in ...
PEOPLE IN ECONOMICS: The $787 Billion Question - Finance
... with the goal of convincing both Congress and the public that aggressive stimulus was necessary. A proposed roughly $800 billion stimulus would prevent unemployment from rising above 8 percent, Romer and Bernstein wrote—whereas without it, unemployment would hit 9.1 percent. When unemployment ended ...
... with the goal of convincing both Congress and the public that aggressive stimulus was necessary. A proposed roughly $800 billion stimulus would prevent unemployment from rising above 8 percent, Romer and Bernstein wrote—whereas without it, unemployment would hit 9.1 percent. When unemployment ended ...
Not That `70s Show: Why Stagflation Is Unlikely
... Note: t denotes the start of the sharp acceleration of consumer prices until 1989. The spread is calculated as the difference between UK ten‐year gilt yields and average yields on German government bonds with a maturity greater than three years. t b d ith t it t th th Source: Bloomberg, IMF Inter ...
... Note: t denotes the start of the sharp acceleration of consumer prices until 1989. The spread is calculated as the difference between UK ten‐year gilt yields and average yields on German government bonds with a maturity greater than three years. t b d ith t it t th th Source: Bloomberg, IMF Inter ...
section home - The Cambridge-INET Institute
... interest rate. If the news is sufficiently bad, the interest rate is pushed to zero and nominal spending plummets. In a Walrasian goods market, a fall in demand causes a decline in the price level. Provided that nominal wages are downwardly rigid, falling prices reduce profits, discourage hiring, an ...
... interest rate. If the news is sufficiently bad, the interest rate is pushed to zero and nominal spending plummets. In a Walrasian goods market, a fall in demand causes a decline in the price level. Provided that nominal wages are downwardly rigid, falling prices reduce profits, discourage hiring, an ...
UK BUSINESS CONFIDENCE MONITOR Q1 2009 North West Summary Report
... Demand in the economy is contracting and firms are shedding jobs as a result. Claimantcount unemployment rose by 213,000 in Q4 2008. Through 2009 we anticipate the rise in unemployment will be severe; the claimant count could almost double to reach 2.1m by the end of 2009. The latest UK Business Con ...
... Demand in the economy is contracting and firms are shedding jobs as a result. Claimantcount unemployment rose by 213,000 in Q4 2008. Through 2009 we anticipate the rise in unemployment will be severe; the claimant count could almost double to reach 2.1m by the end of 2009. The latest UK Business Con ...
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.