Historical energy price shocks and their changing effects on the economy: Working Paper 153 (1 MB) (opens in new window)
... demand-driven) of an oil price hike is crucial to its impact on output and inflation. Despite major progress in our understanding of the macroeconomic impacts of oil shocks, most lessons from related studies tend to be limited to evidence gathered from short-run national or cross-sectional studies. ...
... demand-driven) of an oil price hike is crucial to its impact on output and inflation. Despite major progress in our understanding of the macroeconomic impacts of oil shocks, most lessons from related studies tend to be limited to evidence gathered from short-run national or cross-sectional studies. ...
the aggregate demand curve
... capital and labor it has on hand • Firms may have excess capital and excess labor on hand • Even if firms are not holding excess labor and capital, the ...
... capital and labor it has on hand • Firms may have excess capital and excess labor on hand • Even if firms are not holding excess labor and capital, the ...
1 - Index Measures
... approach of Diewert and Morrison, we develop methods for measuring these effects. The growth rates of our alternative price indexes for U.S. imports are as much as 2% per year lower than the growth rate of price indexes calculated using official methods. Because non-petroleum imports amount to aroun ...
... approach of Diewert and Morrison, we develop methods for measuring these effects. The growth rates of our alternative price indexes for U.S. imports are as much as 2% per year lower than the growth rate of price indexes calculated using official methods. Because non-petroleum imports amount to aroun ...
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... conventional wisdom that expansionary monetary policy increases output. Fiscal stimulus is another potential source of variation in demand. If prices are flexible, a temporary increase in government spending results in a sharp rise in real interest rates. This “crowds out” private spending and impli ...
... conventional wisdom that expansionary monetary policy increases output. Fiscal stimulus is another potential source of variation in demand. If prices are flexible, a temporary increase in government spending results in a sharp rise in real interest rates. This “crowds out” private spending and impli ...
Oil Price Shocks: Causes and Consequences
... futures market is a public exchange for oil futures contracts, created in the 1980s. Futures contracts allow investors to agree in advance on the price at which they will exchange a given quantity of crude oil at some future date. This “paper market” for oil allows participants to speculate on the f ...
... futures market is a public exchange for oil futures contracts, created in the 1980s. Futures contracts allow investors to agree in advance on the price at which they will exchange a given quantity of crude oil at some future date. This “paper market” for oil allows participants to speculate on the f ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Monetary Policy Rules
... The model is designed to be representative of recent work on the new neoclassical synthesis, in that New Keynesian-style price stickiness is introduced into an economy with otherwise neoclassical features including intertemporal optimization on the part of households and firms. However, five feature ...
... The model is designed to be representative of recent work on the new neoclassical synthesis, in that New Keynesian-style price stickiness is introduced into an economy with otherwise neoclassical features including intertemporal optimization on the part of households and firms. However, five feature ...
AS-Economics
... Halifax and the Nationwide, two of Britain's leading mortgage providers. From the data it can be seen that a) UK House prices were at their lowest in January 2001 b) The Nationwide has sold fewer houses than the Halifax during the period c) The UK housing market experienced a recession during 2003 d ...
... Halifax and the Nationwide, two of Britain's leading mortgage providers. From the data it can be seen that a) UK House prices were at their lowest in January 2001 b) The Nationwide has sold fewer houses than the Halifax during the period c) The UK housing market experienced a recession during 2003 d ...
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... approach to test the degree of market power in different markets (e.g., Appelbaum, 1982; Schroeter, 1988; Sexton, 1990). The analysis of market power in the catfish industry has been the subject of various studies. Kinnucan and Sullivan (1986) used a theoretical model to estimate the potential econo ...
... approach to test the degree of market power in different markets (e.g., Appelbaum, 1982; Schroeter, 1988; Sexton, 1990). The analysis of market power in the catfish industry has been the subject of various studies. Kinnucan and Sullivan (1986) used a theoretical model to estimate the potential econo ...
Aggregate Demand/Supply
... What happened to the deflation? The basic answer is that since World War II economic fluctuations have taken place around a long-run inflationary trend. Before the war, it was common for prices to fall during recessions, but since then negative demand shocks have been reflected in a decline in the r ...
... What happened to the deflation? The basic answer is that since World War II economic fluctuations have taken place around a long-run inflationary trend. Before the war, it was common for prices to fall during recessions, but since then negative demand shocks have been reflected in a decline in the r ...
NBER WORKING PAPER SERIES GLOBALIZATION AND INFLATION DYNAMICS: Argia M. Sbordone
... effect of creating pressure to innovate, which contributes to increasing productivity. Higher productivity in turn further lowers production costs: if markups are constant, lower production costs reduce the pressure on prices. But the margins that firms are willing to charge over their costs might be ...
... effect of creating pressure to innovate, which contributes to increasing productivity. Higher productivity in turn further lowers production costs: if markups are constant, lower production costs reduce the pressure on prices. But the margins that firms are willing to charge over their costs might be ...
Globalization and Inflation Dynamics
... effect of creating pressure to innovate, which contributes to increasing productivity. Higher productivity in turn further lowers production costs: if markups are constant, lower production costs reduce the pressure on prices. But the margins that firms are willing to charge over their costs might be ...
... effect of creating pressure to innovate, which contributes to increasing productivity. Higher productivity in turn further lowers production costs: if markups are constant, lower production costs reduce the pressure on prices. But the margins that firms are willing to charge over their costs might be ...
Reforming The Fertiliser Sector
... the more subsidies it receives. This year, the government has revised its policy, taking steps in the right direction, but the essential features of being firm-specific and inversely related to efficiency remain as described in ...
... the more subsidies it receives. This year, the government has revised its policy, taking steps in the right direction, but the essential features of being firm-specific and inversely related to efficiency remain as described in ...
The CPI and the Cost of Living C H A P T E R C H E C K L I S T
... • 48 million Social Security benefit payments • 22 million food stamp payments • 4 million pensions for retired military personnel, federal civil servants, and their surviving spouses • the budget for 27 million school lunches ...
... • 48 million Social Security benefit payments • 22 million food stamp payments • 4 million pensions for retired military personnel, federal civil servants, and their surviving spouses • the budget for 27 million school lunches ...
15.2 THE CPI AND OTHER PRICE LEVEL MEASURES The
... • 48 million Social Security benefit payments • 22 million food stamp payments • 4 million pensions for retired military personnel, federal civil servants, and their surviving spouses • the budget for 27 million school lunches ...
... • 48 million Social Security benefit payments • 22 million food stamp payments • 4 million pensions for retired military personnel, federal civil servants, and their surviving spouses • the budget for 27 million school lunches ...
28 pages - World bank documents
... the price of the exportable good 1. The change in real GDP could be measured by the change in nominal expenditure deflated by an exact consumer price index, constructed with the same prices o ...
... the price of the exportable good 1. The change in real GDP could be measured by the change in nominal expenditure deflated by an exact consumer price index, constructed with the same prices o ...
Power Point: Equilibrium and Multiplier
... Identify the component of AE which is affected (C, I, G, X or M) and explain how it is affected. a) Prices in the US Increase (decrease) relative to prices abroad. b) The U.S. dollar becomes weaker (stronger) c) Home prices collapse (increase) d) Stock prices collapse (increase) e) Interest rates In ...
... Identify the component of AE which is affected (C, I, G, X or M) and explain how it is affected. a) Prices in the US Increase (decrease) relative to prices abroad. b) The U.S. dollar becomes weaker (stronger) c) Home prices collapse (increase) d) Stock prices collapse (increase) e) Interest rates In ...
File
... A) inverse relationship between the price level and real GDP purchased. B) direct relationship between the price level and real GDP produced. C) inverse relationship between interest rates and real GDP produced. D) direct relationship between real-balances and real GDP purchased. ...
... A) inverse relationship between the price level and real GDP purchased. B) direct relationship between the price level and real GDP produced. C) inverse relationship between interest rates and real GDP produced. D) direct relationship between real-balances and real GDP purchased. ...
Oil price shocks and real GDP growth: empirical evidence for
... In fact, the declines in oil prices occurred over the second half of the 1980s were found to have smaller positive effects on economic activity than predicted by linear models. Thus, some authors introduced non-linear transformations of oil prices to re-establish the negative relationship between inc ...
... In fact, the declines in oil prices occurred over the second half of the 1980s were found to have smaller positive effects on economic activity than predicted by linear models. Thus, some authors introduced non-linear transformations of oil prices to re-establish the negative relationship between inc ...
What Is New-Keynesian Economics? Robert J. Gordon Journal of Economic Literature
... A prerequisite for any theory purporting to explain wage and/or price stickiness is a demonstration that the phenomenon of stickiness exists in realworld data. In Part I1 we begin by defining three different dimensions of price For convenience, this introduction concludes some references to the ma ...
... A prerequisite for any theory purporting to explain wage and/or price stickiness is a demonstration that the phenomenon of stickiness exists in realworld data. In Part I1 we begin by defining three different dimensions of price For convenience, this introduction concludes some references to the ma ...
The US economy from 1992 to 1998: historical and decom-
... for 1992 to 1998, concentrating on the explanation of growth in trade. Section 5 also contains an illustrative industry analysis, for iron and steel. Concluding remarks are in section 6. 2. USAGE-ITC, background information USAGE-ITC is a detailed, dynamic, computable general equilibrium model of th ...
... for 1992 to 1998, concentrating on the explanation of growth in trade. Section 5 also contains an illustrative industry analysis, for iron and steel. Concluding remarks are in section 6. 2. USAGE-ITC, background information USAGE-ITC is a detailed, dynamic, computable general equilibrium model of th ...
NBER WORKING PAPER SERIES TOWARDS A THEORY OF FIRM ENTRY
... reason, the goal of (welfare-based) CPI stability may not be a good target for policy makers. To the extent that it is desirable to support a ‡ex price allocation, monetary authorities should stabilize …rms’marginal costs and prices. The price level may then freely ‡uctuate with entry, providing in ...
... reason, the goal of (welfare-based) CPI stability may not be a good target for policy makers. To the extent that it is desirable to support a ‡ex price allocation, monetary authorities should stabilize …rms’marginal costs and prices. The price level may then freely ‡uctuate with entry, providing in ...
Working Paper 142
... To achieve its primary objective of price stability, the European Central Bank (ECB) uses a strategy based on two "pillars". One of these pillars, referred to as the monetary analysis, exploits the long-run link between money and inflation. In particular, to signal its commitment to price stability ...
... To achieve its primary objective of price stability, the European Central Bank (ECB) uses a strategy based on two "pillars". One of these pillars, referred to as the monetary analysis, exploits the long-run link between money and inflation. In particular, to signal its commitment to price stability ...
Gasoline prices and road fatalities - Arndt
... each country’s underground oil reserves and the international crude oil price as instruments for that country’s gasoline price. We find that the mean long-run gasoline price elasticity of road deaths is in the order of -0.3 to -0.6, and that around 35,000 lives could be saved on roads each year by p ...
... each country’s underground oil reserves and the international crude oil price as instruments for that country’s gasoline price. We find that the mean long-run gasoline price elasticity of road deaths is in the order of -0.3 to -0.6, and that around 35,000 lives could be saved on roads each year by p ...
The Impact of a Reduced Rate of VAT on Restaurants 3
... The literature indicates that tourists are sensitive to several economic variables. Income in the origin country is a primary explanatory variable. A priori, according to demand theory, positive income elasticity indicates that a commodity is normal, while a negative value indicates that it is an in ...
... The literature indicates that tourists are sensitive to several economic variables. Income in the origin country is a primary explanatory variable. A priori, according to demand theory, positive income elasticity indicates that a commodity is normal, while a negative value indicates that it is an in ...
2000s commodities boom
The 2000s commodities boom or the commodities super cycle was the rise in many physical commodity prices (such as those of food stuffs, oil, metals, chemicals, fuels and the like) which occurred during the decade of the 2000s (2000–2009), following the Great Commodities Depression of the 1980s and 1990s. The boom was largely due to the rising demand from emerging markets such as the BRIC countries, as well as the result of concerns over long-term supply availability. There was a sharp down-turn in prices during 2008 and early 2009 as a result of the credit crunch and sovereign debt crisis, but prices began to rise as demand recovered from late 2009 to mid-2010. Oil began to slip downwards after mid-2010, but peaked at $101.80 on 30 and 31 January 2011, as then Egyptian political crisis and rioting broke out, leading to concerns over both the safe use of the Suez Canal and over all security in Arabia itself. On 3 March, Libya's National Oil Corp said that output had halved due to the departure of foreign workers. As this happened, Brent Crude surged to a new high of above $116.00 a barrel as supply disruptions and potential for more unrest in the Middle East and North Africa continued to worry investors. Thus the price of oil kept rising into the 2010s. The commodities super-cycle peaked in 2011, ""driven by a combination of strong demand from emerging nations and low supply growth."" Prior to 2002, only 5 to 10 per cent of trading in the commodities market was attributable to investors. Since 2002 ""30 per cent of trading is attributable to investors in the commodities market"" which ""has caused higher price volatility.""