Money and Inflation
... In 1921, the need to make reparations and reconstruct the economy after World War I caused the German government’s expenditures to greatly exceed revenues. The government could have obtained revenues to cover these increased expenditures by raising taxes, but that solution was, as always, politicall ...
... In 1921, the need to make reparations and reconstruct the economy after World War I caused the German government’s expenditures to greatly exceed revenues. The government could have obtained revenues to cover these increased expenditures by raising taxes, but that solution was, as always, politicall ...
General Equilibrium and IS-LM 1. Some points about IS
... • Anything that shifts the saving curve or the investment curve in the saving-investment market, other than changes in Y , shifts the IS curve. • Anything that shifts the investment curve out in the saving-investment market shifts the IS curve out. or up. (Reason: Shifting the investment curve out c ...
... • Anything that shifts the saving curve or the investment curve in the saving-investment market, other than changes in Y , shifts the IS curve. • Anything that shifts the investment curve out in the saving-investment market shifts the IS curve out. or up. (Reason: Shifting the investment curve out c ...
Information for investors
... for purchase and for sale (the bid-ask spread), as well as the fact that there is no bid-ask quotation for the appropriate volume of transactions at any moment (or period). Therefore, the investor may find it impossible to buy or sell some liquid assets under normal market conditions. This can happe ...
... for purchase and for sale (the bid-ask spread), as well as the fact that there is no bid-ask quotation for the appropriate volume of transactions at any moment (or period). Therefore, the investor may find it impossible to buy or sell some liquid assets under normal market conditions. This can happe ...
NBER WORKING PAPER SERIES FISCAL POLICIES, CAPITAL FORMATION. AND CAPITALISM Martin Feldstein
... rise in asset values. An investor who bought a representative portfolio of U.S. common stocks ...
... rise in asset values. An investor who bought a representative portfolio of U.S. common stocks ...
Ch.2 (TB) Abel 7e
... 24) Carl's Computer Center sells computers to business firms. Businesses then use the computers to produce other goods and services. Over the past year, sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for ...
... 24) Carl's Computer Center sells computers to business firms. Businesses then use the computers to produce other goods and services. Over the past year, sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for ...
taxing private equity carried interest using an incentive stock option
... their funds’ investments. Private equity funds are in the business of buying and selling companies. They make money when they sell their holdings at a profit or, less frequently, when their holdings pay dividends. Fund managers are paid in part with a share of the fund’s profits — a share called car ...
... their funds’ investments. Private equity funds are in the business of buying and selling companies. They make money when they sell their holdings at a profit or, less frequently, when their holdings pay dividends. Fund managers are paid in part with a share of the fund’s profits — a share called car ...
Forecasting South African Inflation
... based on the HP detrended output through 1998:4. To generate a series of such ex ante forecasts, each subsequent period I add one more period of data to my sample and then reestimate detrended output and then the Phillips curve. The re-estimated Phillips curve is then used to provide one more foreca ...
... based on the HP detrended output through 1998:4. To generate a series of such ex ante forecasts, each subsequent period I add one more period of data to my sample and then reestimate detrended output and then the Phillips curve. The re-estimated Phillips curve is then used to provide one more foreca ...
Inflation Features
... borrowed (+ fixed interests), but the inflation could be higher than the interests; therefore they will be paying less money back. (example, you borrowed $1000 in 2005 with a 5% fixed interest rate and you paid it back in full in 2007, let’s suppose the inflation rate for 2005, 2006 and 2007 has bee ...
... borrowed (+ fixed interests), but the inflation could be higher than the interests; therefore they will be paying less money back. (example, you borrowed $1000 in 2005 with a 5% fixed interest rate and you paid it back in full in 2007, let’s suppose the inflation rate for 2005, 2006 and 2007 has bee ...
Answers to Homework #4
... Please remember the section number for the section you are registered, because you will need that number when you submit exams and homework. Late homework will not be accepted so make plans ahead of time. Please show your work. Good luck! 1. Use the loanable funds framework for this problem. Suppose ...
... Please remember the section number for the section you are registered, because you will need that number when you submit exams and homework. Late homework will not be accepted so make plans ahead of time. Please show your work. Good luck! 1. Use the loanable funds framework for this problem. Suppose ...
Macroeconomics, 7e (Abel/Bernanke/Croushore)
... to produce other goods and services. Over the past year, sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for Carl, and $10 million was paid for computers at the wholesale level. What was the firm's total c ...
... to produce other goods and services. Over the past year, sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for Carl, and $10 million was paid for computers at the wholesale level. What was the firm's total c ...
Sample
... 24) Carl's Computer Center sells computers to business firms. Businesses then use the computers to produce other goods and services. Over the past year, sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for ...
... 24) Carl's Computer Center sells computers to business firms. Businesses then use the computers to produce other goods and services. Over the past year, sales representatives were paid $3.5 million, $0.5 million went for rent on the building, $0.5 million went for taxes, $0.5 million was profit for ...
NBER WORKING PAPERS SERIES ASSET BUBBLES AND GROWFH Noriyuki Yanagawa
... asset bubbles can exist in an economy with endogenous growth provided they arc not too asset bubbles can exist in an economy with endogenous growth provided they are not too large and that the growth rate in the equilibrium without bubbles exceeds the interest rate. large and that the growth rate in ...
... asset bubbles can exist in an economy with endogenous growth provided they arc not too asset bubbles can exist in an economy with endogenous growth provided they are not too large and that the growth rate in the equilibrium without bubbles exceeds the interest rate. large and that the growth rate in ...
Inflation and Hyperinflation
... (8) SE = πL(π) = g – t + rbg The right side of this equation is the overall budget deficit; the left side is seigniorage. This equation means that when there is no access to foreign or internal private financing, seigniorage is the only mean to finance the deficit. Hyperinflation can be experienced ...
... (8) SE = πL(π) = g – t + rbg The right side of this equation is the overall budget deficit; the left side is seigniorage. This equation means that when there is no access to foreign or internal private financing, seigniorage is the only mean to finance the deficit. Hyperinflation can be experienced ...
influence of selected factors on the demand for money 1994–2000
... 1994 and 20001 and to show the effects of some factors influencing its development. This analysis shares a common base with and draws on earlier studies: The Demand for Money in the Czech Economy (Hanousek, Tuma, 1995), The Demand-for-Money Function: the Case of the Czech Economy (Klacek, Šmídková, ...
... 1994 and 20001 and to show the effects of some factors influencing its development. This analysis shares a common base with and draws on earlier studies: The Demand for Money in the Czech Economy (Hanousek, Tuma, 1995), The Demand-for-Money Function: the Case of the Czech Economy (Klacek, Šmídková, ...
FiMod – a DSGE model for fiscal policy simulations
... But which taxes should be increased? Which spending components should be cut? All across Europe, countries such as Germany, Greece, Portugal, Spain and others have put forward consolidation plans that include cuts in public employment, public wages and public investment as well as increases in VAT a ...
... But which taxes should be increased? Which spending components should be cut? All across Europe, countries such as Germany, Greece, Portugal, Spain and others have put forward consolidation plans that include cuts in public employment, public wages and public investment as well as increases in VAT a ...
Tax Deduction at Source 2015-2016
... Final settlement means company's tax obligation for these sources of income is limited to the tax that has been deducted at source at the time of receiving the income. There shall be no additional tax liability of the company on income earned by the company from these businesses and there shall not ...
... Final settlement means company's tax obligation for these sources of income is limited to the tax that has been deducted at source at the time of receiving the income. There shall be no additional tax liability of the company on income earned by the company from these businesses and there shall not ...
3rd draft. - Harvard Kennedy School
... The third explanation, somewhat less prominent than the first two, is that easy monetary policy was at least one of the factors contributing to either the high demand for, or low supply of, commodities. Easy monetary policy is often mediated through low real interest rates.3 Some have argued that hi ...
... The third explanation, somewhat less prominent than the first two, is that easy monetary policy was at least one of the factors contributing to either the high demand for, or low supply of, commodities. Easy monetary policy is often mediated through low real interest rates.3 Some have argued that hi ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Monetary Policy Rules
... Robert G. King is the Carter Glass Professor of Economics and the Robert P. Black Research Professor of Economics at the University of Virginia. He is also a consultant to the Federal Reserve Bank of Richmond and a research associate of the National Bureau of Economic Research. Alexander L. Wolman i ...
... Robert G. King is the Carter Glass Professor of Economics and the Robert P. Black Research Professor of Economics at the University of Virginia. He is also a consultant to the Federal Reserve Bank of Richmond and a research associate of the National Bureau of Economic Research. Alexander L. Wolman i ...
Robrt J. Gordon Working 1050 OF EVENTS AND
... This paper traces the evolution of macroeconomic events and ideas from the late 1940s to the present day. After a brief introduction that highlights the unique features of the main macroeconomic variables as compared to their behavior before 1947, the paper turns to an analysis of four main postwar ...
... This paper traces the evolution of macroeconomic events and ideas from the late 1940s to the present day. After a brief introduction that highlights the unique features of the main macroeconomic variables as compared to their behavior before 1947, the paper turns to an analysis of four main postwar ...
7. Demand-pull inflation
... impairing efficiency. Unanticipated inflation usually favors debtors, profit seekers, and risk-taking speculators. It hurts creditors, fixed-income classes, and timid investors. Inflation leads to distortions in relative prices, tax rates, and real interest rates. People take more trips to the bank, ...
... impairing efficiency. Unanticipated inflation usually favors debtors, profit seekers, and risk-taking speculators. It hurts creditors, fixed-income classes, and timid investors. Inflation leads to distortions in relative prices, tax rates, and real interest rates. People take more trips to the bank, ...
CHAP1.WP (Word5)
... single increase. Inflation is measured by the (percentage) rate of change of the GDP deflator, and Section 8-1 explains with numerical example how sustaining inflation may erode the purchasing power of the economic agents and its adverse effect on the economy. Gordon explains that a central objectiv ...
... single increase. Inflation is measured by the (percentage) rate of change of the GDP deflator, and Section 8-1 explains with numerical example how sustaining inflation may erode the purchasing power of the economic agents and its adverse effect on the economy. Gordon explains that a central objectiv ...
Interest rate
An interest rate is the rate at which interest is paid by borrowers (debtors) for the use of money that they borrow from lenders (creditors). Specifically, the interest rate is a percentage of principal paid a certain number of times per period for all periods during the total term of the loan or credit. Interest rates are normally expressed as a percentage of the principal for a period of one year, sometimes they are expressed for different periods such as a month or a day. Different interest rates exist parallelly for the same or comparable time periods, depending on the default probability of the borrower, the residual term, the payback currency, and many more determinants of a loan or credit. For example, a company borrows capital from a bank to buy new assets for its business, and in return the lender receives rights on the new assets as collateral and interest at a predetermined interest rate for deferring the use of funds and instead lending it to the borrower.Interest-rate targets are a vital tool of monetary policy and are taken into account when dealing with variables like investment, inflation, and unemployment. The central banks of countries generally tend to reduce interest rates when they wish to increase investment and consumption in the country's economy. However, a low interest rate as a macro-economic policy can be risky and may lead to the creation of an economic bubble, in which large amounts of investments are poured into the real-estate market and stock market. In developed economies, interest-rate adjustments are thus made to keep inflation within a target range for the health of economic activities or cap the interest rate concurrently with economic growth to safeguard economic momentum.