Forecasting South African Inflation
... metropolitan areas is the measure of the price level.(L) is a polynomial in the lag operator L, gapt-1 is a detrended measure of lagged output, and vt-1 is a measure of lagged supply shocks. In my baseline estimates I use the percentage appreciation of the nominal effective exchange rate and the p ...
... metropolitan areas is the measure of the price level.(L) is a polynomial in the lag operator L, gapt-1 is a detrended measure of lagged output, and vt-1 is a measure of lagged supply shocks. In my baseline estimates I use the percentage appreciation of the nominal effective exchange rate and the p ...
NBER WORKING PAPER SERIES THE END OF LARGE CURRENT
... and in particular of public and household savings. Some analysts have argued that the recent decline in U.S. savings has been, at least partially, the result of the Fed’s policy of (very) low interest rates. According to this view, low interest rates have helped fuel very rapid increases in housing ...
... and in particular of public and household savings. Some analysts have argued that the recent decline in U.S. savings has been, at least partially, the result of the Fed’s policy of (very) low interest rates. According to this view, low interest rates have helped fuel very rapid increases in housing ...
inflation - WordPress.com
... savings to invest them, rather than have the purchasing power of those savings erode through inflation. In investing, inflation risks often cause investors to take on more systematic risk, in order to gain returns that will stay ahead of expected inflation.[citation needed] Inflation also gives cent ...
... savings to invest them, rather than have the purchasing power of those savings erode through inflation. In investing, inflation risks often cause investors to take on more systematic risk, in order to gain returns that will stay ahead of expected inflation.[citation needed] Inflation also gives cent ...
What Does Monetary Policy Do?
... To use this mathematicalstructurefor economic policy analysis, one has to identify it-give its elements economic interpretations.3The mathematicalmodel explains all variationin the data as arising from the independentdisturbances,E. Since we are studying the effects of monetarypolicy, we need to spe ...
... To use this mathematicalstructurefor economic policy analysis, one has to identify it-give its elements economic interpretations.3The mathematicalmodel explains all variationin the data as arising from the independentdisturbances,E. Since we are studying the effects of monetarypolicy, we need to spe ...
Textbook of Economics
... the area of the Earth and can be enlarged only by building above or under the surface. Accumulation of Capital On the other hand, capital can be accumulated to infinity. Capital goods include tools, machines, and buildings. They are not produced for immediate consumption they are used to produce oth ...
... the area of the Earth and can be enlarged only by building above or under the surface. Accumulation of Capital On the other hand, capital can be accumulated to infinity. Capital goods include tools, machines, and buildings. They are not produced for immediate consumption they are used to produce oth ...
Chapter 5 M F L
... to an average of 59.08 per cent during the IX Plan (1997-2002). During the X Plan (2002-07) so far, the ratio of aggregate liabilities to GDP remained almost at the level of IX Plan (1997-2002) with inter year variations. The long-term tendency of the ratio of fiscal liabilities to GDP therefore exh ...
... to an average of 59.08 per cent during the IX Plan (1997-2002). During the X Plan (2002-07) so far, the ratio of aggregate liabilities to GDP remained almost at the level of IX Plan (1997-2002) with inter year variations. The long-term tendency of the ratio of fiscal liabilities to GDP therefore exh ...
Fiscal Rules for Resource Windfall Allocation: The Case of
... in a sovereign wealth fund, and only the interest accrued from these assets should be spent. Also, it has been argued that because citizens own the resources, the resource rents should be transferred to them in the form of direct transfer programmes or conditional cash transfer schemes (Gelb and Gra ...
... in a sovereign wealth fund, and only the interest accrued from these assets should be spent. Also, it has been argued that because citizens own the resources, the resource rents should be transferred to them in the form of direct transfer programmes or conditional cash transfer schemes (Gelb and Gra ...
Reviewing Pakistan`s Import Demand Function
... A brief review of the statistics shows that the five-year average for import volume and foreign exchange reserves has increased over the last 30 years, which is our main concern. Moreover, the relative prices ratio has fallen because of the very high domestic inflation rate over the last decade. The ...
... A brief review of the statistics shows that the five-year average for import volume and foreign exchange reserves has increased over the last 30 years, which is our main concern. Moreover, the relative prices ratio has fallen because of the very high domestic inflation rate over the last decade. The ...
What Drives the German Current Account? And How Does it Affect
... underscores the importance of analyzing the current account using a structural model that captures the relevant shocks, and their transmission to the macroeconomy. This paper therefore studies the German current account using an estimated Dynamic Stochastic General Equilibrium (DSGE) model with thre ...
... underscores the importance of analyzing the current account using a structural model that captures the relevant shocks, and their transmission to the macroeconomy. This paper therefore studies the German current account using an estimated Dynamic Stochastic General Equilibrium (DSGE) model with thre ...
Economics of Money, Banking, and Financial Markets, 8e
... 7) If workers believe that government policymakers will increase aggregate demand to avoid a politically unpopular increase in unemployment when workers demand higher wages, then workers will not fear higher unemployment and their wage demands will result in A) demand-pull inflation. B) hyperinflati ...
... 7) If workers believe that government policymakers will increase aggregate demand to avoid a politically unpopular increase in unemployment when workers demand higher wages, then workers will not fear higher unemployment and their wage demands will result in A) demand-pull inflation. B) hyperinflati ...
International Trade and Capital
... of goods for private consumption, such as ready-made clothes and food-stuffs. Production of readymade clothes was strongly declining during 2007. However, during January-February, the industry revived to 2.4% yoy likely due to a low comparative base. Meanwhile, food production, the locomotive of ind ...
... of goods for private consumption, such as ready-made clothes and food-stuffs. Production of readymade clothes was strongly declining during 2007. However, during January-February, the industry revived to 2.4% yoy likely due to a low comparative base. Meanwhile, food production, the locomotive of ind ...
Pushing on a string: US monetary policy is less powerful in
... resource utilization such as the output gap do not as clearly distinguish regimes. We find that fiscal policy seems to have counteracted monetary policy in recessions, but reinforced it in expansions, which provides one explanation for our results. These findings are relevant for the design of stabi ...
... resource utilization such as the output gap do not as clearly distinguish regimes. We find that fiscal policy seems to have counteracted monetary policy in recessions, but reinforced it in expansions, which provides one explanation for our results. These findings are relevant for the design of stabi ...
The long history of financial boom-bust cycles in Iceland1 Part I
... decades even – calls for a longer data span than is usually required for analysing most other macroeconomic phenomena. We have therefore constructed an annual frequency database (described in more detail in Appendix 1) covering a 139 year period from 1875 to 2013. As is often the case, the need for ...
... decades even – calls for a longer data span than is usually required for analysing most other macroeconomic phenomena. We have therefore constructed an annual frequency database (described in more detail in Appendix 1) covering a 139 year period from 1875 to 2013. As is often the case, the need for ...
NBER WORKING PAPER SERIES OPTIMAL SIMPLE AND IMPLEMENTABLE MONETARY Stephanie Schmitt-Grohé
... of view, neither of these two assumptions is particularly compelling for economies like the United States, it is of interest to investigate the characteristics of optimal policy in their absence. Last but not least, more often than not studies of optimal policy in models with nominal rigidities are ...
... of view, neither of these two assumptions is particularly compelling for economies like the United States, it is of interest to investigate the characteristics of optimal policy in their absence. Last but not least, more often than not studies of optimal policy in models with nominal rigidities are ...
does consumer price index represent the actual rate of inflation?
... Almost everyone thinks inflation is evil, but it isn't necessarily so. Inflation affects different people in different ways. It also depends on whether inflation is anticipated or unanticipated. If the inflation rate corresponds to what the majority of people are expecting (anticipated inflation), t ...
... Almost everyone thinks inflation is evil, but it isn't necessarily so. Inflation affects different people in different ways. It also depends on whether inflation is anticipated or unanticipated. If the inflation rate corresponds to what the majority of people are expecting (anticipated inflation), t ...
Term 2 Week 6 to 9 - Singapore A Level Notes
... Describe the appropriate measures the Singapore government can adopt to deal with the recession. Budget 2007 Explain the possible links between trade deficit and a budget deficit. Explain what causes inflation. Discuss why a high rate of inflation might have an adverse effect on output and employmen ...
... Describe the appropriate measures the Singapore government can adopt to deal with the recession. Budget 2007 Explain the possible links between trade deficit and a budget deficit. Explain what causes inflation. Discuss why a high rate of inflation might have an adverse effect on output and employmen ...
This PDF is a selection from a published volume from
... setup. Expectations formation effects arise whenever agents rational expectations of future regime change induce them to alter their expectations functions. Expectations formation effects are the difference between the impact of a shock when regime can change and the impact when regime is forever fi ...
... setup. Expectations formation effects arise whenever agents rational expectations of future regime change induce them to alter their expectations functions. Expectations formation effects are the difference between the impact of a shock when regime can change and the impact when regime is forever fi ...
BEING KEYNESIAN IN THE SHORT TERM AND CLASSICAL IN
... those of prices. First, enterprises set their prices on the basis of prices prevailing at the previous period. Then, the nominal wage rate is adjusted to the level corresponding to the real wage rate for new prices. The fact that prices are modified in response to disequilibria between supply and de ...
... those of prices. First, enterprises set their prices on the basis of prices prevailing at the previous period. Then, the nominal wage rate is adjusted to the level corresponding to the real wage rate for new prices. The fact that prices are modified in response to disequilibria between supply and de ...
What drives the German current account?
... is thus crucial for positive and normative evaluations of the current account, and for policy advice (Obstfeld and Rogoff (1996), Obstfeld (2012), Kollmann (1998, 2001, 2004)). This underscores the importance of analyzing the current account using a structural model that captures the relevant shock ...
... is thus crucial for positive and normative evaluations of the current account, and for policy advice (Obstfeld and Rogoff (1996), Obstfeld (2012), Kollmann (1998, 2001, 2004)). This underscores the importance of analyzing the current account using a structural model that captures the relevant shock ...
NBER WORKING PAPER SERIES DSGE MODELS FOR MONETARY POLICY ANALYSIS Mathias Trabandt
... this purpose. We show that whether the HP filter is a good estimator of the gap depends sensitively on the details of the underlying model economy. This discussion involves a careful review of the intuition of how the New Keynesian model responds to shocks. Interestingly, a New Keynesian model fit t ...
... this purpose. We show that whether the HP filter is a good estimator of the gap depends sensitively on the details of the underlying model economy. This discussion involves a careful review of the intuition of how the New Keynesian model responds to shocks. Interestingly, a New Keynesian model fit t ...
Currency Jumps, Cojumps and the Role of Macro News
... explain the behavior of exchange rates led Frankel and Rose (1994) to conclude that: “The case for macroeconomic determinants of exchange rates is in a sorry state ... results indicate that no model based on such standard fundamentals like money supplies, real income, interest rates, inflation rate ...
... explain the behavior of exchange rates led Frankel and Rose (1994) to conclude that: “The case for macroeconomic determinants of exchange rates is in a sorry state ... results indicate that no model based on such standard fundamentals like money supplies, real income, interest rates, inflation rate ...
AID AND FOREIGN DIRECT INVESTMENT:
... to “consumption-smoothing” behavior of MNFs, who shift their production decision between the home and the host country. Recent empirical studies on FDI also suggest that agglomeration effects provide valuable information to the new investors. One proxy for such agglomeration effects is the lagged FD ...
... to “consumption-smoothing” behavior of MNFs, who shift their production decision between the home and the host country. Recent empirical studies on FDI also suggest that agglomeration effects provide valuable information to the new investors. One proxy for such agglomeration effects is the lagged FD ...
MacroLab Documentation - BORA
... model’s structure is more or less consistent with the behavior described by standard undergraduate macroeconomics textbook models—whether in narrative, diagrammatic, graphical, or mathematical form. Even mainstream textbooks have more or less subtle differences in their description of how a market e ...
... model’s structure is more or less consistent with the behavior described by standard undergraduate macroeconomics textbook models—whether in narrative, diagrammatic, graphical, or mathematical form. Even mainstream textbooks have more or less subtle differences in their description of how a market e ...
NBER WORKING PAPER SERIES Jesús Fernández-Villaverde
... during Volcker’s tenure at the Fed, those changes contributed little to the great moderation. Instead, changes in the volatility of structural shocks account for most of it. Also, while we …nd that monetary policy was di¤erent under Volcker, there is no much evidence of a di¤erence in monetary polic ...
... during Volcker’s tenure at the Fed, those changes contributed little to the great moderation. Instead, changes in the volatility of structural shocks account for most of it. Also, while we …nd that monetary policy was di¤erent under Volcker, there is no much evidence of a di¤erence in monetary polic ...
Chapter 17 - Faculty of Business and Economics Courses
... the same manner as an ordinary demand curve If the price of product falls, the consumer’s real income rises increasing the amount consumed for a normal good (income effect) The lower price induces consumers to purchase more of product because it’s cheaper (substitution ...
... the same manner as an ordinary demand curve If the price of product falls, the consumer’s real income rises increasing the amount consumed for a normal good (income effect) The lower price induces consumers to purchase more of product because it’s cheaper (substitution ...