Mankiw 5/e Chapter 5: The Open Economy
... A price reduction by one firm causes the overall price level to fall (albeit slightly). This raises real money balances and increases aggregate demand, which benefits other firms. ...
... A price reduction by one firm causes the overall price level to fall (albeit slightly). This raises real money balances and increases aggregate demand, which benefits other firms. ...
Economic Study Notes Economic Growth
... constant dollar terms Economic Growth: Increase in the production of goods and services in an economy to improve standards of living Measures of economic growth Real Income: Real output i.e. money value of all goods and services produced in an economy in one year, adjusted for inflation Strength: Du ...
... constant dollar terms Economic Growth: Increase in the production of goods and services in an economy to improve standards of living Measures of economic growth Real Income: Real output i.e. money value of all goods and services produced in an economy in one year, adjusted for inflation Strength: Du ...
Goldilocks and stagflation
... As an aside, workers could be compensated for such inflation via higher wages. In turn, the question is if what remains of the pie after Brexit is sufficiently large to generate revenue growth that outpaces wage inflation. If not, then companies will go out of business and unemployment will rise. ...
... As an aside, workers could be compensated for such inflation via higher wages. In turn, the question is if what remains of the pie after Brexit is sufficiently large to generate revenue growth that outpaces wage inflation. If not, then companies will go out of business and unemployment will rise. ...
Business Cycles
... around the same time as those of the business cycle. – A lagging variable’s turning points occur later than those of the business cycle. ...
... around the same time as those of the business cycle. – A lagging variable’s turning points occur later than those of the business cycle. ...
Plain Text
... velocity, lower swap and credit spreads, and low energy prices all indicate low but positive global growth. Gradual deleveraging and market reforms should pave the way for more sustainable growth at historical levels in the future. The risk of recession does exist because the absolute level of globa ...
... velocity, lower swap and credit spreads, and low energy prices all indicate low but positive global growth. Gradual deleveraging and market reforms should pave the way for more sustainable growth at historical levels in the future. The risk of recession does exist because the absolute level of globa ...
answers to end-of-chapter questions 26-1
... whenever the cost of living increases faster than nominal income, real income decreases. The losers from inflation are those on incomes fixed in nominal terms or, at least, those with incomes that do not increase as fast as the rate of inflation. Creditors and savers also lose. The winners are borro ...
... whenever the cost of living increases faster than nominal income, real income decreases. The losers from inflation are those on incomes fixed in nominal terms or, at least, those with incomes that do not increase as fast as the rate of inflation. Creditors and savers also lose. The winners are borro ...
Midterm Exam No. 2 - Answers April 1, 2004
... investment. If the economy is small and open, however, LM’ any fall in the interest rate would cause a B capital outflow, reducing demand for the C country’s currency on the foreign exchange A market and forcing it to depreciate. The shortISb run equilibrium therefore has enough of a IS depreciation ...
... investment. If the economy is small and open, however, LM’ any fall in the interest rate would cause a B capital outflow, reducing demand for the C country’s currency on the foreign exchange A market and forcing it to depreciate. The shortISb run equilibrium therefore has enough of a IS depreciation ...
Learn More
... Another risk is found in the Federal Reserve’s January Loan Officer’s Survey, which suggested banks are becoming more cautious. Automotive loan delinquency rates have ticked up, and broader loan demand measures have slowed. These signals point to a potential slowdown in credit growth, although it ha ...
... Another risk is found in the Federal Reserve’s January Loan Officer’s Survey, which suggested banks are becoming more cautious. Automotive loan delinquency rates have ticked up, and broader loan demand measures have slowed. These signals point to a potential slowdown in credit growth, although it ha ...
Understanding the Significance of the Great Depression
... Price rigidity, which formed such a large part of institutionalist criticism, was traced, as with Veblen, to monopolistic tendencies, evident to nearly everyone (aside from willfully blind neoclassical purists) since the turn of the century. But the cumulation of vast amounts of irrefutable evidence ...
... Price rigidity, which formed such a large part of institutionalist criticism, was traced, as with Veblen, to monopolistic tendencies, evident to nearly everyone (aside from willfully blind neoclassical purists) since the turn of the century. But the cumulation of vast amounts of irrefutable evidence ...
Gross domestic product overstates recession
... The difference between the real term of GDP and real GDP can be considerable at times. For example, real GDP in 2000 rose by 3.2% but the real term of GDP by only 1.6%. That is, after all, a difference of 1.6 percentage points, caused by steep rises in raw materials and import prices. Sadly, real GD ...
... The difference between the real term of GDP and real GDP can be considerable at times. For example, real GDP in 2000 rose by 3.2% but the real term of GDP by only 1.6%. That is, after all, a difference of 1.6 percentage points, caused by steep rises in raw materials and import prices. Sadly, real GD ...
Caribbean Economic Recessions in Historical Perspective
... Domestic factors played a role in the post- independence recessions. Fiscal and debt policy are among the more important ones. In Barbados, for instance, the Central Government had an average annual fiscal deficit of $24 million between 1976/77 and 1979/80. In the next ...
... Domestic factors played a role in the post- independence recessions. Fiscal and debt policy are among the more important ones. In Barbados, for instance, the Central Government had an average annual fiscal deficit of $24 million between 1976/77 and 1979/80. In the next ...
Aggregate Supply & Aggregate Demand
... – Advocated government intervention to bring an end to the Great Depression. – Focused on boosting demand for output, not flexible prices. ...
... – Advocated government intervention to bring an end to the Great Depression. – Focused on boosting demand for output, not flexible prices. ...
Japanese Economic Recovery and the Macroeconomic Policy Mix
... Just as the role of monetary and fiscal policy for aggregate demand push was redefined by Keynes, the General Theory of Employment, Money and Interest (J.M. Keynes,1936) provided new ways of understanding the modern stock-market based financial system. As in the Japanese case where the economic slu ...
... Just as the role of monetary and fiscal policy for aggregate demand push was redefined by Keynes, the General Theory of Employment, Money and Interest (J.M. Keynes,1936) provided new ways of understanding the modern stock-market based financial system. As in the Japanese case where the economic slu ...
Quarterly revision of the macroeconomic projections Governor
... Moderate economy growth – the economy will be below the potential in the following two years; Instable environment and enduring risks, but with positive impulse from the new private and public investments; The inflation is within the acceptable limits, but with present upward risks; The external pos ...
... Moderate economy growth – the economy will be below the potential in the following two years; Instable environment and enduring risks, but with positive impulse from the new private and public investments; The inflation is within the acceptable limits, but with present upward risks; The external pos ...
Inflation - Murphonomics
... 3. Borrowers will gain at the expense of lenders. If US$100 is borrowed at 10% rate of interest, the borrower will pay back $110 a year later. If the inflation rate was 12% then the $110 will be worth less than the $100 a year earlier in _________ terms- the lender has effectively lost out (but the ...
... 3. Borrowers will gain at the expense of lenders. If US$100 is borrowed at 10% rate of interest, the borrower will pay back $110 a year later. If the inflation rate was 12% then the $110 will be worth less than the $100 a year earlier in _________ terms- the lender has effectively lost out (but the ...
The International Monetary Fund and East Asian Financial Crisis
... The quick capital liberalization that East Asian countries completed was unsuitable for their long-term economic growth. It allowed domestic banks and firms to borrow as much as they wanted abroad, where interest rates were lower than in their respective countries. The method of borrowing foreign fu ...
... The quick capital liberalization that East Asian countries completed was unsuitable for their long-term economic growth. It allowed domestic banks and firms to borrow as much as they wanted abroad, where interest rates were lower than in their respective countries. The method of borrowing foreign fu ...
President’s Report Board Directors
... Data released since your last Directors' meeting show the economy grew in the fourth quarter at a slower pace than originally estimated, but one that was still a bit stronger than seen in the third quarter. In February, initial claims increased as harsh winter weather affected large parts of the cou ...
... Data released since your last Directors' meeting show the economy grew in the fourth quarter at a slower pace than originally estimated, but one that was still a bit stronger than seen in the third quarter. In February, initial claims increased as harsh winter weather affected large parts of the cou ...
We Remain Positive About 2016
... the Fed, and it’s what we would call a field day for the Pouting Pundits of Pessimism. Chaos and uncertainty are their friends, and they have unlimited running room to make up whatever “end of the world” horror stories that can be conceived. But (and, yes, we have a “but”), the US economy has contin ...
... the Fed, and it’s what we would call a field day for the Pouting Pundits of Pessimism. Chaos and uncertainty are their friends, and they have unlimited running room to make up whatever “end of the world” horror stories that can be conceived. But (and, yes, we have a “but”), the US economy has contin ...
Economics 154b Spring 2006 National Income
... {qt} = {qt1, qt2}. Then growth is: g({qt}/{qt-1}) = U(qt)/U(qt-1). For example, assume “Cobb-Douglas” utility function, Q = U = (q1)λ (q2) 1- λ Also, define the (logarithmic) growth rate of xt as g(xt) = ln(xt/xt-1). Then ...
... {qt} = {qt1, qt2}. Then growth is: g({qt}/{qt-1}) = U(qt)/U(qt-1). For example, assume “Cobb-Douglas” utility function, Q = U = (q1)λ (q2) 1- λ Also, define the (logarithmic) growth rate of xt as g(xt) = ln(xt/xt-1). Then ...
Speech to Community Leaders Luncheon Salt Lake City, Utah
... below, but close to 2 percent. In addition, even though much of the recent increase in inflation is attributable to commodity prices, and therefore likely to be a temporary phenomenon, the central bank has been worried about second-round effects on inflation expectations, wages, and other costs, and ...
... below, but close to 2 percent. In addition, even though much of the recent increase in inflation is attributable to commodity prices, and therefore likely to be a temporary phenomenon, the central bank has been worried about second-round effects on inflation expectations, wages, and other costs, and ...
Document
... increased aggregate demand enough that the inflation rate began to increase The high inflation rates induced President Richard Nixon to introduce ceilings on prices and wages in 1971 ...
... increased aggregate demand enough that the inflation rate began to increase The high inflation rates induced President Richard Nixon to introduce ceilings on prices and wages in 1971 ...
GDP and economic growth
... The Great Depression – The Great Depression was the most severe downturn in US history. – Between 1929 and 1933, GDP fell by almost one third, and unemployment rose to about 25 percent. Later Recessions – In the 1970s, an OPEC embargo caused oil prices to quadruple. This led to a recession that last ...
... The Great Depression – The Great Depression was the most severe downturn in US history. – Between 1929 and 1933, GDP fell by almost one third, and unemployment rose to about 25 percent. Later Recessions – In the 1970s, an OPEC embargo caused oil prices to quadruple. This led to a recession that last ...
Financial Market Crisis as a Phenomenon of - Fritz Breuss
... policy as one facet of the macroeconomic causes. Seeking the explanation for the overshooting on stock markets until 2007 mainly in an excessively accommodating monetary policy neglects many other aspects in the bundle of macro- and microeconomic causes for the crisis. The improvement of cross-borde ...
... policy as one facet of the macroeconomic causes. Seeking the explanation for the overshooting on stock markets until 2007 mainly in an excessively accommodating monetary policy neglects many other aspects in the bundle of macro- and microeconomic causes for the crisis. The improvement of cross-borde ...
Sample Questions_Chap 26
... A) initial investment shifts the the aggregate demand schedule to the left, making further investment less costly. B) as further investment takes place the economy moves upward to the left along the marginal product schedule. C) initial investment shifts the the investment demand schedule to the lef ...
... A) initial investment shifts the the aggregate demand schedule to the left, making further investment less costly. B) as further investment takes place the economy moves upward to the left along the marginal product schedule. C) initial investment shifts the the investment demand schedule to the lef ...
Document
... existing workers. One way to achieve increased productivity is through education, training, and experience. ...
... existing workers. One way to achieve increased productivity is through education, training, and experience. ...
Long Depression
The Long Depression was a worldwide price recession, beginning in 1873 and running through the spring of 1879. It was the most severe in Europe and the United States, which had been experiencing strong economic growth fueled by the Second Industrial Revolution in the decade following the American Civil War. The episode was labeled the ""Great Depression"" at the time, and it held that designation until the Great Depression of the 1930s. Though a period of general deflation and a general contraction, it did not have the severe economic retrogression of the Great Depression.It was most notable in Western Europe and North America, at least in part because reliable data from the period are most readily available in those parts of the world. The United Kingdom is often considered to have been the hardest hit; during this period it lost some of its large industrial lead over the economies of Continental Europe. While it was occurring, the view was prominent that the economy of the United Kingdom had been in continuous depression from 1873 to as late as 1896 and some texts refer to the period as the Great Depression of 1873–96.In the United States, economists typically refer to the Long Depression as the Depression of 1873–79, kicked off by the Panic of 1873, and followed by the Panic of 1893, book-ending the entire period of the wider Long Depression. The National Bureau of Economic Research dates the contraction following the panic as lasting from October 1873 to March 1879. At 65 months, it is the longest-lasting contraction identified by the NBER, eclipsing the Great Depression's 43 months of contraction.In the US, from 1873–1879, 18,000 businesses went bankrupt, including 89 railroads. Ten states and hundreds of banks went bankrupt. Unemployment peaked in 1878, long after the panic ended. Different sources peg the peak unemployment rate anywhere from 8.25% to 14%.