NBER WORKING PAPER SERIES MACROECONOMIC POLICIES IN THE OECD Warwick McKibbin
... Prepared for the World Bank/Brookings Institution Seminar on International Consequences of Budget Deficits and the Monetary-Fiscai Policy Mix in the OECD, held October 1, 1984, in Washington D.C. The second author would like to thank the Reserve Bank of Australia for financial support. We would also ...
... Prepared for the World Bank/Brookings Institution Seminar on International Consequences of Budget Deficits and the Monetary-Fiscai Policy Mix in the OECD, held October 1, 1984, in Washington D.C. The second author would like to thank the Reserve Bank of Australia for financial support. We would also ...
Effect of GDP, Interest Rate and Inflation on Private Investment in
... developing countries however may not be felt through higher taxes and/or increased interest rates as in industrial countries. (ii) Empirical studies in private investment The theories of investment date back to Keynes in 1936, who first called attention to the existence of an independent investment ...
... developing countries however may not be felt through higher taxes and/or increased interest rates as in industrial countries. (ii) Empirical studies in private investment The theories of investment date back to Keynes in 1936, who first called attention to the existence of an independent investment ...
The Zero Lower Bound and Endogenous Uncertainty
... technology are high (i.e., low demand or high supply). In those states, firms reduce their prices, which leads to a higher real interest rate and lower output than would occur in the absence of a ZLB constraint. Output becomes more responsive to adverse shocks that hit the economy and, therefore, th ...
... technology are high (i.e., low demand or high supply). In those states, firms reduce their prices, which leads to a higher real interest rate and lower output than would occur in the absence of a ZLB constraint. Output becomes more responsive to adverse shocks that hit the economy and, therefore, th ...
The Thick Market Effect on Local Unemployment Rate Fluctuations ∗
... by industry to approximate the nationwide industry-specific shock. The data on national employment by industry is obtained from the Bureau of Labor Statistics. Let sict denote the employment share of industry i in city c at time t. Let 4it denote the nationwide employment growth rate of industry i d ...
... by industry to approximate the nationwide industry-specific shock. The data on national employment by industry is obtained from the Bureau of Labor Statistics. Let sict denote the employment share of industry i in city c at time t. Let 4it denote the nationwide employment growth rate of industry i d ...
Economic Review, 2nd Quarter, 1999
... on the part of the Federal Reserve. Many analysts have noted that the Federal Reserve has a tendency to smooth movements of the funds rate (Goodfriend; Orphanides; Clarida, Gali, and Gertler 1998). Concern about the stability of financial markets may lead the Federal Reserve to smooth funds rate cha ...
... on the part of the Federal Reserve. Many analysts have noted that the Federal Reserve has a tendency to smooth movements of the funds rate (Goodfriend; Orphanides; Clarida, Gali, and Gertler 1998). Concern about the stability of financial markets may lead the Federal Reserve to smooth funds rate cha ...
Nominal GDP Targeting and the Taylor Rule on
... luck” coming from a “benign economic environment” than from improved monetary policy. The last panel in figure 1 plots real-time output gap misperceptions against a total factor productivity forecast error series. The latter measure comes from running a rolling regression on the trend of Fernald’s ( ...
... luck” coming from a “benign economic environment” than from improved monetary policy. The last panel in figure 1 plots real-time output gap misperceptions against a total factor productivity forecast error series. The latter measure comes from running a rolling regression on the trend of Fernald’s ( ...
Sample Chapter 2 (PDF, 28 Pages
... produced in Canada, regardless of who produced them. GDP is closely related to employment, industrial production, and other economic variables that do not take the nationality of the firm into account. You may think of GDP as a measure of economic activity in Canada. To understand the concept of mea ...
... produced in Canada, regardless of who produced them. GDP is closely related to employment, industrial production, and other economic variables that do not take the nationality of the firm into account. You may think of GDP as a measure of economic activity in Canada. To understand the concept of mea ...
When is the Government Spending Multiplier Large?
... real interest rate and the higher is desired savings. Recall that savings must be zero in equilibrium. So, as above, the nominal interest rate could hit zero before the real interest rate falls by enough to make savings equal to zero. When the zero bound is binding the equilibrium is established by ...
... real interest rate and the higher is desired savings. Recall that savings must be zero in equilibrium. So, as above, the nominal interest rate could hit zero before the real interest rate falls by enough to make savings equal to zero. When the zero bound is binding the equilibrium is established by ...
Version 2.0, Instruction Manual, Revised Version
... Debt Sustainability Analysis (DSA) is a key component of macroeconomic supervision in many countries of Latin America and the Caribbean (LAC). Exposure to risks of debt crisis in the LAC countries is not insignificant, at least in the perception of international financial markets and rating agencies ...
... Debt Sustainability Analysis (DSA) is a key component of macroeconomic supervision in many countries of Latin America and the Caribbean (LAC). Exposure to risks of debt crisis in the LAC countries is not insignificant, at least in the perception of international financial markets and rating agencies ...
The Science of Monetary Policy
... in response to output disturbances depends critically on the nature of the disturbances: It should offset demand shocks but accommodate supply shocks, as we discuss. Section 4 turns to the case with commitment. Much of the literature has emphasized that an inefficiently high steady state inflation r ...
... in response to output disturbances depends critically on the nature of the disturbances: It should offset demand shocks but accommodate supply shocks, as we discuss. Section 4 turns to the case with commitment. Much of the literature has emphasized that an inefficiently high steady state inflation r ...
Macroeconomics - University of London International Programmes
... This guide was prepared for the University of London International Programmes by: Dr Vito Polito, Lecturer, Cardiff Business School Charles Brendon, Max Weber Fellow, European University Institute This is one of a series of subject guides published by the University. We regret that due to pressure ...
... This guide was prepared for the University of London International Programmes by: Dr Vito Polito, Lecturer, Cardiff Business School Charles Brendon, Max Weber Fellow, European University Institute This is one of a series of subject guides published by the University. We regret that due to pressure ...
Determinants of Inflation in Nepal: An Empirical Assessment
... The supply shocks from within and outside the domestic economy are accepted as one of the major causes of inflation. The economy wide shortages of goods and services cause the cost push inflation, that is, supply bottleneck causes this inflation. The cost push inflation may have many sources. One of ...
... The supply shocks from within and outside the domestic economy are accepted as one of the major causes of inflation. The economy wide shortages of goods and services cause the cost push inflation, that is, supply bottleneck causes this inflation. The cost push inflation may have many sources. One of ...
This PDF is a selection from a published volume from
... tax on private holdings of nominal government liabilities. This is indeed the reason why, in flexible price environments, the optimal inflation volatility is very high (see, for example, Calvo and Guidotti 1990, 1993; and Chari et al. 1991). Second, the fact that nominal wages are sticky provides an ...
... tax on private holdings of nominal government liabilities. This is indeed the reason why, in flexible price environments, the optimal inflation volatility is very high (see, for example, Calvo and Guidotti 1990, 1993; and Chari et al. 1991). Second, the fact that nominal wages are sticky provides an ...
The Close Connection Between Nominal
... for T years from now, where EyT is today’s best estimate of future potential real GDP and where pT p+T extrapolates the current price level forward at in‡ation rate . Why this particular target? Because if policymakers succeed in hitting it (so that pT +yT = nT ), if potential output evolves as expe ...
... for T years from now, where EyT is today’s best estimate of future potential real GDP and where pT p+T extrapolates the current price level forward at in‡ation rate . Why this particular target? Because if policymakers succeed in hitting it (so that pT +yT = nT ), if potential output evolves as expe ...
mmi06 kletzer 1923465 en
... observed, contingent repayments are only needed if outstanding government debt exceeds a threshold. A conclusion of the paper is that conventional bonds that are renegotiated with positive probability only as the government’s debt limit is approached support an efficient outcome with private informa ...
... observed, contingent repayments are only needed if outstanding government debt exceeds a threshold. A conclusion of the paper is that conventional bonds that are renegotiated with positive probability only as the government’s debt limit is approached support an efficient outcome with private informa ...
NBER WORKING PAPER SERIES INTERNATIONAL EVIDENCE ON FISCAL SOLVENCY:
... record is consistent with behavior that satisfies an intertemporal budget constraint, or not. Fiscal policy, however, is subject to a whole host of heterogeneous, often transitory, influences that would appear to make disentangling the systematic effect of policy makers’ efforts to adhere to an inte ...
... record is consistent with behavior that satisfies an intertemporal budget constraint, or not. Fiscal policy, however, is subject to a whole host of heterogeneous, often transitory, influences that would appear to make disentangling the systematic effect of policy makers’ efforts to adhere to an inte ...
Inflation is
... In the previous slide, AD increases from AD1 to AD2. As a result, the equilibrium in the economy moves from point A to point B. There are two important things to notice about the new equilibrium (relative to the old one): – First, notice that the price level in the economy has increased (from 102 to ...
... In the previous slide, AD increases from AD1 to AD2. As a result, the equilibrium in the economy moves from point A to point B. There are two important things to notice about the new equilibrium (relative to the old one): – First, notice that the price level in the economy has increased (from 102 to ...
Lecture Notes - Wiwi Uni
... 1 The data have quarterly frequency, i.e. there one observation for real GDP for each quarter. The …rst observation is the GDP for the …rst three months of 1967, the last observation is the GDP for April to June 2001. The data are then converted to yearly numbers (basically by multiplying them by 4) ...
... 1 The data have quarterly frequency, i.e. there one observation for real GDP for each quarter. The …rst observation is the GDP for the …rst three months of 1967, the last observation is the GDP for April to June 2001. The data are then converted to yearly numbers (basically by multiplying them by 4) ...
mtw11-Benz 16830266 en
... production of goods. This can either be an R&D activity, or some form of education activity, or else it may arise in the form of an externality associated with production of goods. In turn, oshoring may aect these fundamental dynamic relationships in two dierent ways. First, it may become an inte ...
... production of goods. This can either be an R&D activity, or some form of education activity, or else it may arise in the form of an externality associated with production of goods. In turn, oshoring may aect these fundamental dynamic relationships in two dierent ways. First, it may become an inte ...
Strategic financial innovation in segmented markets
... agents who find it costly to trade directly with each other has been documented by Allen and Santomero (1997). They also point to the absence of a theoretical framework to address this feature of financial markets. The present paper takes a first step in filling this gap. We study a two-period model ...
... agents who find it costly to trade directly with each other has been documented by Allen and Santomero (1997). They also point to the absence of a theoretical framework to address this feature of financial markets. The present paper takes a first step in filling this gap. We study a two-period model ...
Business Economics – II (MB1B4): January 2009
... consumption function of the following form, C = 1,400 + 0.2Yd ? (a) The marginal propensity to consume is 1,40 0; autonomous consumption spendi ng is Re.0.20 (b) The marginal propensity to consume is 0.20 ; autonomous co nsumption spending is Re.0.20 (c) The marginal propensity to consume is 0.2; au ...
... consumption function of the following form, C = 1,400 + 0.2Yd ? (a) The marginal propensity to consume is 1,40 0; autonomous consumption spendi ng is Re.0.20 (b) The marginal propensity to consume is 0.20 ; autonomous co nsumption spending is Re.0.20 (c) The marginal propensity to consume is 0.2; au ...
The Inflation–Output Trade-Off Revisited
... of employment. Moreover, once inflation had risen in 1970s, its high level arguably became somewhat of a hindrance rather than a help for growth.2 Indeed, while Paul Volcker managed to bring down inflation from double digits to relatively low rates in the early 1980s, he did so by generating a well- ...
... of employment. Moreover, once inflation had risen in 1970s, its high level arguably became somewhat of a hindrance rather than a help for growth.2 Indeed, while Paul Volcker managed to bring down inflation from double digits to relatively low rates in the early 1980s, he did so by generating a well- ...
The CPI and the Cost of Living C H A P T E R C H E C K L I S T
... Because tax rates on large incomes are higher than those on small incomes as incomes rise, the burden of taxes would rise relentlessly if these adjustments were not made. To the extent that the CPI is biased upward, the tax adjustments over-compensate for rising prices and decrease the amount paid i ...
... Because tax rates on large incomes are higher than those on small incomes as incomes rise, the burden of taxes would rise relentlessly if these adjustments were not made. To the extent that the CPI is biased upward, the tax adjustments over-compensate for rising prices and decrease the amount paid i ...
15.2 THE CPI AND OTHER PRICE LEVEL MEASURES The
... Because tax rates on large incomes are higher than those on small incomes as incomes rise, the burden of taxes would rise relentlessly if these adjustments were not made. To the extent that the CPI is biased upward, the tax adjustments over-compensate for rising prices and decrease the amount paid i ...
... Because tax rates on large incomes are higher than those on small incomes as incomes rise, the burden of taxes would rise relentlessly if these adjustments were not made. To the extent that the CPI is biased upward, the tax adjustments over-compensate for rising prices and decrease the amount paid i ...