Cyclical fiscal policy in developing countries: the case of Africa
... Giavazzi et al. 2000). In this type of models, a fiscal expansion is contractionary because it reduces household’s private consumption. The transmission mechanism may work through the expectation that taxes will increase in the future and/or via the wealth effect associated with the upward adjustmen ...
... Giavazzi et al. 2000). In this type of models, a fiscal expansion is contractionary because it reduces household’s private consumption. The transmission mechanism may work through the expectation that taxes will increase in the future and/or via the wealth effect associated with the upward adjustmen ...
Inflation - American University
... The 1990s saw a resurgence of interest insulating central banks from political influence, and explicit inflation targeting was considered by a number of central banks as a guide to monetary policy. The most famous central bank restructuring is the “New Zealand experiment”. In an inflation targeting ...
... The 1990s saw a resurgence of interest insulating central banks from political influence, and explicit inflation targeting was considered by a number of central banks as a guide to monetary policy. The most famous central bank restructuring is the “New Zealand experiment”. In an inflation targeting ...
Durable Goods, Financial Frictions, and Business Cycles in
... economies. Second, consumption expenditure is more volatile than output in emerging markets while it is not (quite) as volatile as output in developed economies. Third, net exports are more volatile and more countercyclical in emerging markets when compared to developed economies. Finally, real inte ...
... economies. Second, consumption expenditure is more volatile than output in emerging markets while it is not (quite) as volatile as output in developed economies. Third, net exports are more volatile and more countercyclical in emerging markets when compared to developed economies. Finally, real inte ...
Jajri(203).pdf
... Mauer (1969) suggest that FDI responds positively to the market size and many empirical studies in developing host countries have confirmed this hypothesis. Change in exports: The change in export indicates the increase export from Malaysia and the integration with the world economy. Hassan (2003) e ...
... Mauer (1969) suggest that FDI responds positively to the market size and many empirical studies in developing host countries have confirmed this hypothesis. Change in exports: The change in export indicates the increase export from Malaysia and the integration with the world economy. Hassan (2003) e ...
an investigation of the relationship between inflation rates in kenya
... purchasing power. In support to Fisher’s hypothesis Hasan and Javed (2009) finds bidirectional relationship on asset returns and inflation. Feldstein (1980) on the other hand observed that stock prices boost when inflation rate is at a high constant rate and on the contrary stock prices fall when e ...
... purchasing power. In support to Fisher’s hypothesis Hasan and Javed (2009) finds bidirectional relationship on asset returns and inflation. Feldstein (1980) on the other hand observed that stock prices boost when inflation rate is at a high constant rate and on the contrary stock prices fall when e ...
The relevance of Keynes
... process on the maintenance of group differentials. Groups of workers bargain for relative shares with other workers, so no group will be the first to accept a wage cut that might leave them worse off than others; forward contracts also suit employers and unions because they are a way of hedging agai ...
... process on the maintenance of group differentials. Groups of workers bargain for relative shares with other workers, so no group will be the first to accept a wage cut that might leave them worse off than others; forward contracts also suit employers and unions because they are a way of hedging agai ...
A Development-focused Allocation of the Special Drawing Rights
... convert their dollar reserves into gold, thereby drawing down the limited US gold stock (Clark and Polak 2002). Extending the uses to which SDR can be put is derived from the growing demands on the international financial system to respond to the development finance needs of poor nations. Apart from ...
... convert their dollar reserves into gold, thereby drawing down the limited US gold stock (Clark and Polak 2002). Extending the uses to which SDR can be put is derived from the growing demands on the international financial system to respond to the development finance needs of poor nations. Apart from ...
NBER WORKING PAPER SERIES CAPITAL CONTROLS, CAPITAL FLOW CONTRACTIONS, AND MACROECONOMIC VULNERABILITY
... contrast, are defined for all countries, independently of whether they initially had positive or negative net flows. That is, it is possible for a CFC to take place in a country that was originally experiencing net capital outflows. In that regard, then, CFCs also capture surges in what is sometimes ...
... contrast, are defined for all countries, independently of whether they initially had positive or negative net flows. That is, it is possible for a CFC to take place in a country that was originally experiencing net capital outflows. In that regard, then, CFCs also capture surges in what is sometimes ...
People`s Republic of China: 2015 IV Consultation
... investment, led by a slowdown in residential real estate; and passing a new budget law aimed at safeguarding fiscal sustainability. However, they agreed that more needs to be done to put vulnerabilities on a downward path, including a further decline in real estate investment, multi-year deleveragin ...
... investment, led by a slowdown in residential real estate; and passing a new budget law aimed at safeguarding fiscal sustainability. However, they agreed that more needs to be done to put vulnerabilities on a downward path, including a further decline in real estate investment, multi-year deleveragin ...
mankiw6e-chap04_2007_
... Firms facing menu costs change prices infrequently. Example: A firm issues new catalog each January. As the general price level rises throughout the year, the firm’s relative price will fall. ...
... Firms facing menu costs change prices infrequently. Example: A firm issues new catalog each January. As the general price level rises throughout the year, the firm’s relative price will fall. ...
Mankiw 5/e Chapter 4: Money and Inflation
... Example: 1/1/2009: you bought $10,000 worth of Starbucks stock 12/31/2009: you sold the stock for $11,000, so your nominal capital gain was $1000 (10%). Suppose = 10% in 2009. Your real capital gain is $0. But the govt requires you to pay taxes on your $1000 nominal gain!! CHAPTER 4 ...
... Example: 1/1/2009: you bought $10,000 worth of Starbucks stock 12/31/2009: you sold the stock for $11,000, so your nominal capital gain was $1000 (10%). Suppose = 10% in 2009. Your real capital gain is $0. But the govt requires you to pay taxes on your $1000 nominal gain!! CHAPTER 4 ...
Fiscal Policy and Macroeconomic Stability: New Evidence and
... insights of Galì (1994) and revolve around the negative relationship between output volatility and government size, used as a proxy for the cyclical sensitivity of the budget balance. While the literature generally confirms the countercyclical impact of automatic stabilizers, the relationship appear ...
... insights of Galì (1994) and revolve around the negative relationship between output volatility and government size, used as a proxy for the cyclical sensitivity of the budget balance. While the literature generally confirms the countercyclical impact of automatic stabilizers, the relationship appear ...
INFLATION IN VIETNAM
... affected significantly (Vinh, 2007).The government control of the economy and a nonconvertible currency have protected Vietnam from what could have been a more severe impact resulting from the East Asian financial crisis in 1997. Inflation was controlled at a fairly low rate while the average GDP gr ...
... affected significantly (Vinh, 2007).The government control of the economy and a nonconvertible currency have protected Vietnam from what could have been a more severe impact resulting from the East Asian financial crisis in 1997. Inflation was controlled at a fairly low rate while the average GDP gr ...
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... In the Euro Area, banks were severely affected by the global financial crises that erupted in 2007. Large credit losses borne by banks increased financial stress in the credit markets, which figured prominently in the commentary on the slump of the real economy that followed (Adrian and Shin, 2009). ...
... In the Euro Area, banks were severely affected by the global financial crises that erupted in 2007. Large credit losses borne by banks increased financial stress in the credit markets, which figured prominently in the commentary on the slump of the real economy that followed (Adrian and Shin, 2009). ...
Why the Operational Activity Ratio is so powerful
... that value is being destroyed by permitting the entity as structured to continue. In other words, both the entity and everyone that deals with it are better off if the entity sells its assets and pays its debts down, rather than using them for whatever business it is in. In our corporate work, we id ...
... that value is being destroyed by permitting the entity as structured to continue. In other words, both the entity and everyone that deals with it are better off if the entity sells its assets and pays its debts down, rather than using them for whatever business it is in. In our corporate work, we id ...
CHAPTER 7: Long-Run and Short
... The two features immediately clear when you examine the trend in productivity in the United States over the past fifty years are: a. An upward trend and fairly sizable fluctuations around that trend. b. An upward trend and relatively small fluctuations around that trend. c. A downward trend and fair ...
... The two features immediately clear when you examine the trend in productivity in the United States over the past fifty years are: a. An upward trend and fairly sizable fluctuations around that trend. b. An upward trend and relatively small fluctuations around that trend. c. A downward trend and fair ...
Stabilisation policy under Romer IS-MP-IA
... This gets a lower equilibrium output, so we end up with a downward sloping AD curve. The emphasis on endogenous movements of interest rates is crucial. ...
... This gets a lower equilibrium output, so we end up with a downward sloping AD curve. The emphasis on endogenous movements of interest rates is crucial. ...
REAL AND TERMS INDEXATION RULES FOR AN OPEN ECONOMY
... unanticipated rise in the domestic price.). With full indexation, the change in output is even larger, since Indexation prevents the rise in the domestic price from dampening the direct effect of the disturbance on output. Thus indexation increases the effect of the disturbance on output. Both of th ...
... unanticipated rise in the domestic price.). With full indexation, the change in output is even larger, since Indexation prevents the rise in the domestic price from dampening the direct effect of the disturbance on output. Thus indexation increases the effect of the disturbance on output. Both of th ...
Review of the literature on the comparison of price level targeting
... a higher level of uncertainty about what price levels will be in the future. The central bank may miss its inflation target by a very small percentage in some years, but if these misses ...
... a higher level of uncertainty about what price levels will be in the future. The central bank may miss its inflation target by a very small percentage in some years, but if these misses ...
Macro Econometric Modelling: A Practical Approach under EViews
... Let us start with a definition of the field of macroeconometric modelling by one of the best experts, whose recent demise was deeply felt by all who knew him: "A schematic simplification that strips away the non-essential aspects to reveal the inner working, shapes, or design of a more complicated m ...
... Let us start with a definition of the field of macroeconometric modelling by one of the best experts, whose recent demise was deeply felt by all who knew him: "A schematic simplification that strips away the non-essential aspects to reveal the inner working, shapes, or design of a more complicated m ...
The Responsiveness of Remittances to Price of Oil: The Case
... make additional spending to curb a recession and a slight reduction in spending than desirable in order to mitigate inflation. The positive and significant coefficient of the US federal fund rate indicates that an increase in the US interest rate raises the per capita remittances from the GCC count ...
... make additional spending to curb a recession and a slight reduction in spending than desirable in order to mitigate inflation. The positive and significant coefficient of the US federal fund rate indicates that an increase in the US interest rate raises the per capita remittances from the GCC count ...
Monetary policy with uncertain estimates of potential output
... discusses in greater detail what it is that potential output is supposed to measure, and reviews some of the estimates in current use. The next section discusses a new technique for estimating potential output. This method differs from existing measures by explicitly modelling potential real GNP as ...
... discusses in greater detail what it is that potential output is supposed to measure, and reviews some of the estimates in current use. The next section discusses a new technique for estimating potential output. This method differs from existing measures by explicitly modelling potential real GNP as ...
Short description of models available in MMB 2.0
... equations of this model can be derived from the behavior of optimizing agents. The expectational IS equation and the policy rule together can be viewed as determining aggregate demand, while the New-Keynesian Phillips curve equation determines aggregate supply. The Phillips curve equation can be obt ...
... equations of this model can be derived from the behavior of optimizing agents. The expectational IS equation and the policy rule together can be viewed as determining aggregate demand, while the New-Keynesian Phillips curve equation determines aggregate supply. The Phillips curve equation can be obt ...
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... down in the real world. In fact, it can not be excluded that potential output had been overestimated in the boom-period before the financial crisis. An other important feature of the Secular Stagnation debate is the possibility of excess savings that would require real interest rates to be very low ...
... down in the real world. In fact, it can not be excluded that potential output had been overestimated in the boom-period before the financial crisis. An other important feature of the Secular Stagnation debate is the possibility of excess savings that would require real interest rates to be very low ...