Ch 33 Aggregate Demand and Aggregate Supply
... Conversely, when the price level rises, the real value of each consumer’s money holdings falls. In response, some households will try to acquire more money by selling bonds. As they do, the interest ...
... Conversely, when the price level rises, the real value of each consumer’s money holdings falls. In response, some households will try to acquire more money by selling bonds. As they do, the interest ...
Table of Contents
... United States they spoke of "the roaring nineties”, and the great East-Asian crisis of 1997-1998 could not seriously harm the rest of the capitalist world. Only at the beginning of the 21st century and in the years thereafter, a real atmosphere of crisis could be felt. And it did not appear to be f ...
... United States they spoke of "the roaring nineties”, and the great East-Asian crisis of 1997-1998 could not seriously harm the rest of the capitalist world. Only at the beginning of the 21st century and in the years thereafter, a real atmosphere of crisis could be felt. And it did not appear to be f ...
FOREIGN DIRECT INVESTMENT AND ECONOMIC GROWTH
... the issue of foreign capital originated from the mercentalist investment-trade mechanism which was enhanced through protection of domestic producers and making exports competitive. In spite of the rise in saving potentials in export-surplus countries, a large proportion of savings could not be inves ...
... the issue of foreign capital originated from the mercentalist investment-trade mechanism which was enhanced through protection of domestic producers and making exports competitive. In spite of the rise in saving potentials in export-surplus countries, a large proportion of savings could not be inves ...
Module 38 Productivity and Growth
... As population grew, he pointed out, the amount of land per worker would decline. And this, other things equal, would cause productivity to fall. His view, in fact, was that improvements in technology or increases in physical capital would lead only to temporary improvements in productivity because t ...
... As population grew, he pointed out, the amount of land per worker would decline. And this, other things equal, would cause productivity to fall. His view, in fact, was that improvements in technology or increases in physical capital would lead only to temporary improvements in productivity because t ...
NBER WORKING PAPER SERIES REAL BUSINESS CYCLES AND THE LUCAS PARADIGM
... This paper has benefitted from comments provided by participants in the Macroeconomics Workshop at UNC-Chapel Hill, as well as from comments by Charles Plosser, Richard Sweeney, and an anonymous ...
... This paper has benefitted from comments provided by participants in the Macroeconomics Workshop at UNC-Chapel Hill, as well as from comments by Charles Plosser, Richard Sweeney, and an anonymous ...
Articles The Triumph of Monetarism?
... http://www.j-bradford-delong.net/Econ_Articles/monetarism.html from a starting point that sees them as fluctuations around the ...
... http://www.j-bradford-delong.net/Econ_Articles/monetarism.html from a starting point that sees them as fluctuations around the ...
Factor Productivity and Potential Output Growth in South Africa
... Arora and Bhundia (2003) estimated potential output for South Africa for the first seven years of the post-Apartheid period using two statistically detrending approaches, including the HP filter, and the production function method, all of which indicated an increase in the average annual potential o ...
... Arora and Bhundia (2003) estimated potential output for South Africa for the first seven years of the post-Apartheid period using two statistically detrending approaches, including the HP filter, and the production function method, all of which indicated an increase in the average annual potential o ...
Insert D, Ch 29
... Answer: The “real balances effect” refers to the impact of price level on the purchasing power of asset balances. If prices decline, the purchasing power of assets will rise, so spending at each income level should rise because people’s assets are more valuable. The reverse outcome would occur at hi ...
... Answer: The “real balances effect” refers to the impact of price level on the purchasing power of asset balances. If prices decline, the purchasing power of assets will rise, so spending at each income level should rise because people’s assets are more valuable. The reverse outcome would occur at hi ...
Insert D, Ch 29
... Answer: The “real balances effect” refers to the impact of price level on the purchasing power of asset balances. If prices decline, the purchasing power of assets will rise, so spending at each income level should rise because people’s assets are more valuable. The reverse outcome would occur at hi ...
... Answer: The “real balances effect” refers to the impact of price level on the purchasing power of asset balances. If prices decline, the purchasing power of assets will rise, so spending at each income level should rise because people’s assets are more valuable. The reverse outcome would occur at hi ...
The theoretical and empirical credibility of commodity money
... mainstream treatment of the relationship between the money economy and the underlying production base (the "real economy"). This inadequacy has stimulated interest in nonneoclassical treatments of money, which has given fresh importance to understanding the possible role of a money commodity in the ...
... mainstream treatment of the relationship between the money economy and the underlying production base (the "real economy"). This inadequacy has stimulated interest in nonneoclassical treatments of money, which has given fresh importance to understanding the possible role of a money commodity in the ...
The effect of asset price volatility on fiscal policy outcomes
... the standard deviation of the change in the cyclically adjusted total expenditures excluding interest payments as a percent of GDP, and the standard deviation of the change in the cyclically adjusted total revenues as a percent of GDP. Given that our analysis involves only 17 countries, we split th ...
... the standard deviation of the change in the cyclically adjusted total expenditures excluding interest payments as a percent of GDP, and the standard deviation of the change in the cyclically adjusted total revenues as a percent of GDP. Given that our analysis involves only 17 countries, we split th ...
N 186
... the transfer of real or financial assets, court acts and petitions, cheques, train tickets, insurance contracts, and so on. The main justification for using the Business Tax as the time-series proxy is two-fold. Logically, that tax was far more sensitive to current business conditions than other tax ...
... the transfer of real or financial assets, court acts and petitions, cheques, train tickets, insurance contracts, and so on. The main justification for using the Business Tax as the time-series proxy is two-fold. Logically, that tax was far more sensitive to current business conditions than other tax ...
Economic Growth II: Technology, Empirics, and
... subsequently grow faster than economies that start off rich? If they do, then the world’s poor economies will tend to catch up with the world’s rich economies. This property of catch-up is called convergence. If convergence does not occur, then countries that start off behind are likely to remain po ...
... subsequently grow faster than economies that start off rich? If they do, then the world’s poor economies will tend to catch up with the world’s rich economies. This property of catch-up is called convergence. If convergence does not occur, then countries that start off behind are likely to remain po ...
What is the Shape of the American Economy
... corporations, while the NIPA covers the entire economy, including small (subchapter S) corporations. Second, the NIPA is designed to measure the income from current production earned by domestic corporations, while S&P earnings are measured on a financial-accounting basis. The third major difference ...
... corporations, while the NIPA covers the entire economy, including small (subchapter S) corporations. Second, the NIPA is designed to measure the income from current production earned by domestic corporations, while S&P earnings are measured on a financial-accounting basis. The third major difference ...
Economics_paper_2__HL_markscheme
... - if net exports rise, this will result in an increase in AD and economic growth - the falling exchange rate and increasing inflation may cause the government to raise interest rates (paragraph ) leading to a contraction of the economy - it may encourage greater FDI (if the rupee remains low) as co ...
... - if net exports rise, this will result in an increase in AD and economic growth - the falling exchange rate and increasing inflation may cause the government to raise interest rates (paragraph ) leading to a contraction of the economy - it may encourage greater FDI (if the rupee remains low) as co ...
Why DSGE analysis cannot accurately model financial-real sector interaction
... produce transaction costs, which money reduces in ways superficially comparable to what was described above. Yet the crucial implicit assumption is that the relevant cost is quantifiable, which requires that the uncertainty be strictly stochastic. Stochastic uncertainty, rather than ruling out perfe ...
... produce transaction costs, which money reduces in ways superficially comparable to what was described above. Yet the crucial implicit assumption is that the relevant cost is quantifiable, which requires that the uncertainty be strictly stochastic. Stochastic uncertainty, rather than ruling out perfe ...
NRB Economic Review
... surplus sector to deficient sector plays crucial role in promoting growth. Several others such as (Kinnon 1973), Shaw (1973), Adekanye (1986), Fry (1988), King and Levine(1993), and Adeniyi (2006)have focused on the significance of private sector credit to economic growth. Similarly studies by Gurle ...
... surplus sector to deficient sector plays crucial role in promoting growth. Several others such as (Kinnon 1973), Shaw (1973), Adekanye (1986), Fry (1988), King and Levine(1993), and Adeniyi (2006)have focused on the significance of private sector credit to economic growth. Similarly studies by Gurle ...
Wages, Prices, and Employment: Von Mises and the
... here was a watershed in the history of economic ideas in the twentieth century, particularly ideas dealing with the relationships, in the aggregate, between money wage rates, price levels, and employment. This watershed occurred not quite a third of the way through the century and was derivative fro ...
... here was a watershed in the history of economic ideas in the twentieth century, particularly ideas dealing with the relationships, in the aggregate, between money wage rates, price levels, and employment. This watershed occurred not quite a third of the way through the century and was derivative fro ...
I Changes in Business Cycles: Evidence and Explanations Christina D. Romer
... n his 1959 Presidential Address to the American Economic Association, Arthur Burns (1960, p. 1) predicted, if not the end of business cycles in the United States, at least “progress towards economic stability.” The advent of stabilization policy, the end of bank runs, and structural changes in the e ...
... n his 1959 Presidential Address to the American Economic Association, Arthur Burns (1960, p. 1) predicted, if not the end of business cycles in the United States, at least “progress towards economic stability.” The advent of stabilization policy, the end of bank runs, and structural changes in the e ...
Inflation in Pakistan: Money or Oil Prices
... Rising wages also allow the aggregate demand to rise as the high disposable income leads to the high spending of consumers. Another reason of cost push inflation is when the raw material used in production becomes expensive and when the import prices of products increases due to devaluation of impor ...
... Rising wages also allow the aggregate demand to rise as the high disposable income leads to the high spending of consumers. Another reason of cost push inflation is when the raw material used in production becomes expensive and when the import prices of products increases due to devaluation of impor ...
As real as real - Dmitri Williams
... Taken together, GDP, prices, and the QTM constitute a simple and robust approach to measuring aggregate economic behavior. However, they remain imperfectly validated on large scales, even in the real world, because total measurement of an entire economy has rarely been possible unless the economy in ...
... Taken together, GDP, prices, and the QTM constitute a simple and robust approach to measuring aggregate economic behavior. However, they remain imperfectly validated on large scales, even in the real world, because total measurement of an entire economy has rarely been possible unless the economy in ...
NBER WORKING PAPER SERIES MACROECONOMIC MODELING FOR MONETARY POLICY EVALUATION Jordi Galí
... there is monopolistic competition as opposed to perfect competition, the natural level of economic activity is below the socially e¢ cient level. However, this distinction does not a¤ect the nature of the associated cyclical dynamics of the natural level of economic activity which, within our baseli ...
... there is monopolistic competition as opposed to perfect competition, the natural level of economic activity is below the socially e¢ cient level. However, this distinction does not a¤ect the nature of the associated cyclical dynamics of the natural level of economic activity which, within our baseli ...
Hoover and the Great Depression
... Herbert Hoover: Consistent Critic of Capitalism The skeptical reader can rest assured that Hoover’s claims to have rejected Mellon’s “liquidationist” advice were not merely self-serving lies penned kin his diary after the fact. On the contrary, Herbert Hoover was a consistent critic of unfettered ca ...
... Herbert Hoover: Consistent Critic of Capitalism The skeptical reader can rest assured that Hoover’s claims to have rejected Mellon’s “liquidationist” advice were not merely self-serving lies penned kin his diary after the fact. On the contrary, Herbert Hoover was a consistent critic of unfettered ca ...
Ch15.aggregate demand - Emporia State University
... C. A fall in prices increases the real value of consumers’ wealth. Move down along AD curve (wealth-effect). D. State governments replace sales taxes with new taxes on interest, dividends, and capital gains. C rises, AD shifts right. ...
... C. A fall in prices increases the real value of consumers’ wealth. Move down along AD curve (wealth-effect). D. State governments replace sales taxes with new taxes on interest, dividends, and capital gains. C rises, AD shifts right. ...
Chap23
... – Most economists believe that classical theory describes the world in the long run but not in the short run. – Changes in the money supply affect nominal variables but not real variables in the long run. – The assumption of monetary neutrality is not appropriate when studying year-to-year changes i ...
... – Most economists believe that classical theory describes the world in the long run but not in the short run. – Changes in the money supply affect nominal variables but not real variables in the long run. – The assumption of monetary neutrality is not appropriate when studying year-to-year changes i ...
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%.