Significance of Keynesian Legacy
... considered to be mainstream in the so-called standard textbooks of ‘advanced’ macroeconomics.2 Another legacy is the ‘Keynesian’ legacy in a broad sense, which is often considered to be out of fashion. In the ‘classical’ legacy, it is taken for granted that the full employment equilibrium will be au ...
... considered to be mainstream in the so-called standard textbooks of ‘advanced’ macroeconomics.2 Another legacy is the ‘Keynesian’ legacy in a broad sense, which is often considered to be out of fashion. In the ‘classical’ legacy, it is taken for granted that the full employment equilibrium will be au ...
Why Countries Succeed and Fail Economically Ray Dalio
... Prior to World War II, the average income in Japan ranged around 25%-35% of the top earner. Then the shock of World War II brought it down to around 15%. After the war it recovered to about 90% of the top (US) in 1990 (at its bubble’s peak). Since then, it has slipped back to about 75% of the top wh ...
... Prior to World War II, the average income in Japan ranged around 25%-35% of the top earner. Then the shock of World War II brought it down to around 15%. After the war it recovered to about 90% of the top (US) in 1990 (at its bubble’s peak). Since then, it has slipped back to about 75% of the top wh ...
AP Macroeconomics: Unit V Test (Chapters 17-20)
... 28. Suppose that Europeans start to view the United States as a more attractive investment opportunity. Which of the following possibilities is likely to be the next series of events? a. A depreciation of the dollar, which will raise U.S. exports. b. An appreciation of the dollar, which will discour ...
... 28. Suppose that Europeans start to view the United States as a more attractive investment opportunity. Which of the following possibilities is likely to be the next series of events? a. A depreciation of the dollar, which will raise U.S. exports. b. An appreciation of the dollar, which will discour ...
From Short Run to Long Run
... • Short run aggregate supply shifts left because costs are higher. • Return to potential output at a higher price level. LO1 ...
... • Short run aggregate supply shifts left because costs are higher. • Return to potential output at a higher price level. LO1 ...
Izmir University of Economics Name: Department of
... 15. If real GDP decreases from Year 1 to Year 2, we can conclude that (a) production levels are lower in Year 2 than in Year 1. (b) price levels are lower in Year 2 than in Year 1. (c) there is less unemployment in Year 2 than in Year 1. (d) we need more information before commenting. ...
... 15. If real GDP decreases from Year 1 to Year 2, we can conclude that (a) production levels are lower in Year 2 than in Year 1. (b) price levels are lower in Year 2 than in Year 1. (c) there is less unemployment in Year 2 than in Year 1. (d) we need more information before commenting. ...
central bank watch
... The material contained in this report is the property of Royal Bank of Canada and may not be reproduced in any way, in whole or in part, without express authorization of the copyright holder in writing. The statements and statistics contained herein have been prepared by RBC Economics Research based ...
... The material contained in this report is the property of Royal Bank of Canada and may not be reproduced in any way, in whole or in part, without express authorization of the copyright holder in writing. The statements and statistics contained herein have been prepared by RBC Economics Research based ...
Enhancing Competitiveness: National Economic Policies
... months of the year. Interest rates have shifted lower and by late October were below year-earlier levels by about 250 basis points on the short end and 150 basis points on the long end of the credit markets. With sensitive measures of inflation showing few signs of life, the Federal Reserve is under ...
... months of the year. Interest rates have shifted lower and by late October were below year-earlier levels by about 250 basis points on the short end and 150 basis points on the long end of the credit markets. With sensitive measures of inflation showing few signs of life, the Federal Reserve is under ...
Mr. Rodrigo de Rato y Figaredo, Managing Director, International
... businesses; more efficient allocation of investment; and more incentive for Asia’s citizens to invest their savings in Asia. These benefits will be all the greater if Asia’s financial integration continues to complement integration with the global economy. ...
... businesses; more efficient allocation of investment; and more incentive for Asia’s citizens to invest their savings in Asia. These benefits will be all the greater if Asia’s financial integration continues to complement integration with the global economy. ...
Wealth Effect and Nominal Interest Rates
... The goal of this short paper is to use an explicit optimization in order to derive the consumption function and the IS relationship with a wealth effect. This derivation is then used as a possible explanation of the puzzle of interest rate smoothing. Another natural application is a simplification o ...
... The goal of this short paper is to use an explicit optimization in order to derive the consumption function and the IS relationship with a wealth effect. This derivation is then used as a possible explanation of the puzzle of interest rate smoothing. Another natural application is a simplification o ...
8 MAIN GRAPHS TO KNOW
... of money will require the purchase of some assets to meet the desired level of liquidity. ...
... of money will require the purchase of some assets to meet the desired level of liquidity. ...
Four Key Markets, the Circular Flow of Income and
... Business firms demand resources because they contribute to the production of goods the firm expects to sell at a profit. – The demand curve for resources slopes down and to the right. • Supply of Resources: Households supply resources in exchange for income. – Higher prices increase the incentive to ...
... Business firms demand resources because they contribute to the production of goods the firm expects to sell at a profit. – The demand curve for resources slopes down and to the right. • Supply of Resources: Households supply resources in exchange for income. – Higher prices increase the incentive to ...
1 The original Phillips curve and its Policy Implications Phillips
... Suppose that the government decides to have a disinflation policy. When the rate of inflation comes down and if initially people do not revise their expected inflation in line with the actual rate of inflation, the economy should first experience a recession. And then, eventually in the long-run as ...
... Suppose that the government decides to have a disinflation policy. When the rate of inflation comes down and if initially people do not revise their expected inflation in line with the actual rate of inflation, the economy should first experience a recession. And then, eventually in the long-run as ...
Questions of Final Provide explanation of 4 out of 10 principles of
... value of this new project is 10 million after completion. It will cost extra 9 million to complete it. Should the Enterprises go ahead and do so? Why and why not? 11. Suppose that T account for the first national bank is as follows: Assets Reserves Loans ...
... value of this new project is 10 million after completion. It will cost extra 9 million to complete it. Should the Enterprises go ahead and do so? Why and why not? 11. Suppose that T account for the first national bank is as follows: Assets Reserves Loans ...
Ch33 - OCCC.edu
... Note that the objective of monetary policy is very similar to fiscal policy in that we want the economy to be operating efficiently. a. Want FE or maximum employment; they try and keep the output gap (potential –actual GDP) to a minimum to avoid either recessionary gaps or inflationary gaps. b. Stab ...
... Note that the objective of monetary policy is very similar to fiscal policy in that we want the economy to be operating efficiently. a. Want FE or maximum employment; they try and keep the output gap (potential –actual GDP) to a minimum to avoid either recessionary gaps or inflationary gaps. b. Stab ...
Section 3 Notes
... “Big” government officials want to increase spending and/or increase taxes. They believe more and larger government programs are needed to solve problems The Effects of the Public Debt on the Economy The increasing level of the U.S. Public Debt may have significant effects on our economy in the futu ...
... “Big” government officials want to increase spending and/or increase taxes. They believe more and larger government programs are needed to solve problems The Effects of the Public Debt on the Economy The increasing level of the U.S. Public Debt may have significant effects on our economy in the futu ...
Forecasting - Rajeev Dhawan
... – Second, we use a broader array of indicators than just real GDP – Third, we use monthly indicators to arrive at a monthly chronology Q: Could you give an example illustrating this point? – The two-quarter-decline rule of thumb would not have allowed the declaration of the recession until August 20 ...
... – Second, we use a broader array of indicators than just real GDP – Third, we use monthly indicators to arrive at a monthly chronology Q: Could you give an example illustrating this point? – The two-quarter-decline rule of thumb would not have allowed the declaration of the recession until August 20 ...
The Sources of the Recession in Canada: 1989
... strength of the recovery in Canada. At this point it appears reasonably clear that each of the four negative factors, which have acted to restrain real growth in the recent past, has been reversed. The U.S. economy continues to recover; monetary growth has resumed at a pace consistent with positive ...
... strength of the recovery in Canada. At this point it appears reasonably clear that each of the four negative factors, which have acted to restrain real growth in the recent past, has been reversed. The U.S. economy continues to recover; monetary growth has resumed at a pace consistent with positive ...
Milton Friedman
... Depression was probably caused by a sharp reduction in money supply by the US central bank, the Fed. • In the long run, however, the quantity of money affects the price level alone Milton Friedman ...
... Depression was probably caused by a sharp reduction in money supply by the US central bank, the Fed. • In the long run, however, the quantity of money affects the price level alone Milton Friedman ...
Slope of the Phillips curve
... “theoretical regularities.” They can be patterns that originate in the authors’ imagination, not in real-world data. The authors should build an empirical case for their claim that productivity improvements are contractionary. Thirdly, and most importantly, Why is all of the analysis focused on AS s ...
... “theoretical regularities.” They can be patterns that originate in the authors’ imagination, not in real-world data. The authors should build an empirical case for their claim that productivity improvements are contractionary. Thirdly, and most importantly, Why is all of the analysis focused on AS s ...
LCcarG640_en.pdf
... industry, which is the most significant sector in most countries. They are, therefore, susceptible to fluctuations in commodity prices on international markets. The Caribbean region is also prone to natural disasters, in particular, hurricanes, which can constrain efforts at increasing output and in ...
... industry, which is the most significant sector in most countries. They are, therefore, susceptible to fluctuations in commodity prices on international markets. The Caribbean region is also prone to natural disasters, in particular, hurricanes, which can constrain efforts at increasing output and in ...
Introducing technological change
... k = s f (k ) (n h ) k Test the long-run equilibrium of k 0 : s f ( k ) = (n h ) k The equilibrium is unique and globally stable. It has exactly the same properties as earlier one, except: • Note that the growth term includes h (rate of tech. change). • All natural variables are g ...
... k = s f (k ) (n h ) k Test the long-run equilibrium of k 0 : s f ( k ) = (n h ) k The equilibrium is unique and globally stable. It has exactly the same properties as earlier one, except: • Note that the growth term includes h (rate of tech. change). • All natural variables are g ...
Focus 1 Japan`s recent net export performance
... adjusted their prices in foreign currency downwards only partially, this implied a substantial increase in export prices in yen, thereby boosting exporters’ profits. That also helped Japanese exporters to reverse some of the margin compression suffered when the yen had appreciated substantially afte ...
... adjusted their prices in foreign currency downwards only partially, this implied a substantial increase in export prices in yen, thereby boosting exporters’ profits. That also helped Japanese exporters to reverse some of the margin compression suffered when the yen had appreciated substantially afte ...
The International Implications of October 1979 (7 Oct 04).
... percent in the 1990s and so far this decade is less than 1 percent. In the emerging markets the variability of inflation fell from 24 percent in the 1990s to less than 1 percent this decade. There is now little difference between the variability of inflation in the developed and emerging economies. ...
... percent in the 1990s and so far this decade is less than 1 percent. In the emerging markets the variability of inflation fell from 24 percent in the 1990s to less than 1 percent this decade. There is now little difference between the variability of inflation in the developed and emerging economies. ...
1 1) Consider I = b +b Y-b
... people of Macronesia believe that you will carry out your plans. Will these expectations of decreasing inflation make it more or less costly for you to actually cut inflation (compared to the first disinflation)? In one or two sentences, use equation (2) to explain your answer. (5 points) This will ...
... people of Macronesia believe that you will carry out your plans. Will these expectations of decreasing inflation make it more or less costly for you to actually cut inflation (compared to the first disinflation)? In one or two sentences, use equation (2) to explain your answer. (5 points) This will ...
Renminbi Undervaluation, China`s Surplus, and the US Trade Deficit
... considered to have contributed to large Chinese current account surpluses in recent years and, correspondingly, to large US current account deficits.” A recent empirical study at the US Federal Reserve finds even higher price elasticities for China’s exports.5 The coefficient on domestic growth minu ...
... considered to have contributed to large Chinese current account surpluses in recent years and, correspondingly, to large US current account deficits.” A recent empirical study at the US Federal Reserve finds even higher price elasticities for China’s exports.5 The coefficient on domestic growth minu ...