The Zero Lower Bound and Endogenous Uncertainty
... happening in the economy. An increase in uncertainty occurs as the short-term nominal interest rate approaches its ZLB due to the restriction the constraint places on the ability of the central bank to stabilize the economy. In our model, the ZLB arises in states where the discount factor or technol ...
... happening in the economy. An increase in uncertainty occurs as the short-term nominal interest rate approaches its ZLB due to the restriction the constraint places on the ability of the central bank to stabilize the economy. In our model, the ZLB arises in states where the discount factor or technol ...
Introduction to Macroeconomics TOPIC 1: Introduction, definitions
... Another macro variable often examined: the inflation rate. The inflation rate is the rate at which the price level increases. Why is it important to look at the inflation rate? In periods of inflation, not all wages rise proportionally. Some rise as much, some less, some much less, (few more!). Ther ...
... Another macro variable often examined: the inflation rate. The inflation rate is the rate at which the price level increases. Why is it important to look at the inflation rate? In periods of inflation, not all wages rise proportionally. Some rise as much, some less, some much less, (few more!). Ther ...
Free Full Text ( Final Version , 817kb )
... leaders have identified inflation as the top priority of 2011. According to the Financial Times, inflation in China moderated slightly in April 2011 but remained stubbornly high at 5.3%, which was above Beijing’s full-year target of 4%. A little bit higher than 5% probably cannot lead to severe soci ...
... leaders have identified inflation as the top priority of 2011. According to the Financial Times, inflation in China moderated slightly in April 2011 but remained stubbornly high at 5.3%, which was above Beijing’s full-year target of 4%. A little bit higher than 5% probably cannot lead to severe soci ...
When are the Effects of Fiscal Policy Uncertainty Large?
... I show that an increase in short-run fiscal policy uncertainty causes large and adverse effects on the economy. The driving force behind this result is that the response of the economy to a change in fiscal policy is not symmetric if the ZLB binds. Consider uncertainty about government spending. In ...
... I show that an increase in short-run fiscal policy uncertainty causes large and adverse effects on the economy. The driving force behind this result is that the response of the economy to a change in fiscal policy is not symmetric if the ZLB binds. Consider uncertainty about government spending. In ...
This PDF is a selection from a published volume from
... different as well. Then we consider a second sample that refers to a recent period, which includes Asian, Brazilian, and Russian crises: 1997 to mid-2002, which we refer to as a fixed sample. In this case, some countries are inflation targeters in the whole sample, whereas others are just in part of ...
... different as well. Then we consider a second sample that refers to a recent period, which includes Asian, Brazilian, and Russian crises: 1997 to mid-2002, which we refer to as a fixed sample. In this case, some countries are inflation targeters in the whole sample, whereas others are just in part of ...
Fiscal Volatility Shocks and Economic Activity
... was little consensus among policymakers about the fiscal mix and timing going forward.2 In this paper, we investigate whether this increased uncertainty about fiscal policy has a detrimental impact on economic activity (following the literature, we use the term “uncertainty” as shorthand for what wo ...
... was little consensus among policymakers about the fiscal mix and timing going forward.2 In this paper, we investigate whether this increased uncertainty about fiscal policy has a detrimental impact on economic activity (following the literature, we use the term “uncertainty” as shorthand for what wo ...
Drifting Inflation Targets and Stagflation
... coincided with NBER recessions. There were two inflationary peaks during this time: in 1974 at 10.9 percent, and in 1980 at 9.9 percent. Both inflation peaks coincided with negative real GDP growth. Thus, 1974 and 1980 were clearly stagflationary years: the economy was not only stagnant but was in f ...
... coincided with NBER recessions. There were two inflationary peaks during this time: in 1974 at 10.9 percent, and in 1980 at 9.9 percent. Both inflation peaks coincided with negative real GDP growth. Thus, 1974 and 1980 were clearly stagflationary years: the economy was not only stagnant but was in f ...
Targeting Nominal GDP or Prices: Expectation Dynamics and the Interest Rate
... or avoiding the ZLB constraint.1 The long-standing Japanese experience of persistently very low inflation and occasional deflation took place nearly concurrently with the rise of inflation targeting as the most common, “best practice” monetary policy since the early 1990’s. The ongoing economic cris ...
... or avoiding the ZLB constraint.1 The long-standing Japanese experience of persistently very low inflation and occasional deflation took place nearly concurrently with the rise of inflation targeting as the most common, “best practice” monetary policy since the early 1990’s. The ongoing economic cris ...
Corrected Paper (May 6, 2015)
... that assist individuals with severe impairments. Social Security Disability Insurance (DI), the focus of this paper, is a contributory social insurance program that replaces lost wages of people with significant work histories. Supplemental Security Income (SSI) is a means-tested program that provid ...
... that assist individuals with severe impairments. Social Security Disability Insurance (DI), the focus of this paper, is a contributory social insurance program that replaces lost wages of people with significant work histories. Supplemental Security Income (SSI) is a means-tested program that provid ...
Inflation, Its Causes and Cures
... fallen more than elsewhere must reduce their prices. (If they produce a better quality product at the same price, this is equivalent to a fall in price but may not find sufficient expression in the indices.) If they fail to reduce their prices, demand for their products will not increase and since o ...
... fallen more than elsewhere must reduce their prices. (If they produce a better quality product at the same price, this is equivalent to a fall in price but may not find sufficient expression in the indices.) If they fail to reduce their prices, demand for their products will not increase and since o ...
Section 4: The national and international economy
... The objectives of government economy policy 1 The current account contains the flows of income into and out of an economy relating to foreign trade and the returns on factors of production located outside their country of origin. (3 marks) 2 Exports of goods; profits earned on overseas investments. ...
... The objectives of government economy policy 1 The current account contains the flows of income into and out of an economy relating to foreign trade and the returns on factors of production located outside their country of origin. (3 marks) 2 Exports of goods; profits earned on overseas investments. ...
Japan: Fragility of the consolidated government debt structure
... needed for price stability could prove hard to implement. Then again, because much of the government’s liabilities have been locked into super-long-term debt, even if interest rates were hiked, the pace of growth of the government’s interest payments could stay extremely low. In any event, the probl ...
... needed for price stability could prove hard to implement. Then again, because much of the government’s liabilities have been locked into super-long-term debt, even if interest rates were hiked, the pace of growth of the government’s interest payments could stay extremely low. In any event, the probl ...
2009-II CENTRAL BANK OF THE REPUBLIC OF TURKEY
... and keeps overnight market rates close to its borrowing rate. The Bank rearranged the methods of using the Liquidity Support Facility on January 29, 2009. Article 40 of the CBRT Law states that “The Bank may extend credits to the banks that are the subject of uncertainty and lack of confidence in th ...
... and keeps overnight market rates close to its borrowing rate. The Bank rearranged the methods of using the Liquidity Support Facility on January 29, 2009. Article 40 of the CBRT Law states that “The Bank may extend credits to the banks that are the subject of uncertainty and lack of confidence in th ...
- TestbankU
... GNP for the United States? For countries with many citizens who work abroad? Answer: GDP represents output produced within a country, while GNP represents output produced by a country's factors of production; the difference is net factor payments from abroad. For the United States there's little dif ...
... GNP for the United States? For countries with many citizens who work abroad? Answer: GDP represents output produced within a country, while GNP represents output produced by a country's factors of production; the difference is net factor payments from abroad. For the United States there's little dif ...
What was Bad for GM was Bad for America: The... Industry and the 1937-38 Recession
... and an estimate of the multiplier, I find that positive price expectations added 0.3 percent to GDP in 1937, while the subsequent drop-off in sales subtracted 1.0 percent from GDP in 1938: absent the shock, the output decline in 1938 would have been more than a third smaller. In the final section o ...
... and an estimate of the multiplier, I find that positive price expectations added 0.3 percent to GDP in 1937, while the subsequent drop-off in sales subtracted 1.0 percent from GDP in 1938: absent the shock, the output decline in 1938 would have been more than a third smaller. In the final section o ...
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.