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 ...
The Evolution of Economic Understanding and Postwar Stabilization Policy Christina D. Romer
... controls and incomes policies, because they were so pessimistic about the effectiveness of slack in reducing inflation. In contrast, after 1979 policymakers pursued very tight policy because they were convinced that the natural rate of unemployment was relatively high, that slack was necessary to re ...
... controls and incomes policies, because they were so pessimistic about the effectiveness of slack in reducing inflation. In contrast, after 1979 policymakers pursued very tight policy because they were convinced that the natural rate of unemployment was relatively high, that slack was necessary to re ...
Principles of Macroeconomics Self-study quiz and Exercises with
... D) the federal government reducing pollution standards to allow firms to produce more output Answer: C 5) The objective of a contractionary fiscal policy is to A) reduce unemployment. B) increase growth in output. C) reduce inflation. D) increase stagflation. Answer: C 6) The objective of an expansi ...
... D) the federal government reducing pollution standards to allow firms to produce more output Answer: C 5) The objective of a contractionary fiscal policy is to A) reduce unemployment. B) increase growth in output. C) reduce inflation. D) increase stagflation. Answer: C 6) The objective of an expansi ...
Remittance Facts
... remittance flows to India (the largest recipient among developing countries) appear to have been relatively more affected by the weak employment in the US and by the debt crisis in Europe. Quarterly data show that private current transfers - composed mostly of migrant remittances - increased by 33% ...
... remittance flows to India (the largest recipient among developing countries) appear to have been relatively more affected by the weak employment in the US and by the debt crisis in Europe. Quarterly data show that private current transfers - composed mostly of migrant remittances - increased by 33% ...
Outlook for Economic Activity and Prices (April 2016, full text)
... is likely to be about 0 percent for the time being, due to the effects of the decline in energy prices, and, as the underlying trend in inflation steadily rises, accelerate toward 2 percent. Meanwhile, assuming that crude oil prices will rise moderately from the recent level, it is likely that the c ...
... is likely to be about 0 percent for the time being, due to the effects of the decline in energy prices, and, as the underlying trend in inflation steadily rises, accelerate toward 2 percent. Meanwhile, assuming that crude oil prices will rise moderately from the recent level, it is likely that the c ...
Chapter 2: Review of Literature
... Inflation in an open economy can be influenced by both internal and external factors. Internal factors include, among others, the government budget deficit, monetary policy and structural regime changes (revolution, political regime changes, etc.). External factors include terms of trade and foreign ...
... Inflation in an open economy can be influenced by both internal and external factors. Internal factors include, among others, the government budget deficit, monetary policy and structural regime changes (revolution, political regime changes, etc.). External factors include terms of trade and foreign ...
The Phillips Curve, Expectations, and Monetary Policy
... where we have introduced πe to stand for previously-expected inflation, with the “e” reminding us that it is an expectation. This equation tells us that inflation π is higher than it was previously expected to be when unemployment u is lower than its natural rate u*. By how much? That depends on the ...
... where we have introduced πe to stand for previously-expected inflation, with the “e” reminding us that it is an expectation. This equation tells us that inflation π is higher than it was previously expected to be when unemployment u is lower than its natural rate u*. By how much? That depends on the ...
Econometric Evidence on the Determinants of the Mark Up
... Despite significant changes in the institutional environment of the Brazilian economy in the 1990s, caused mainly by economic and financial deregulation, price stabilization and privatizations, growth rates were modest along the decade (Hermann 2002). Contrasting with this result, industrial product ...
... Despite significant changes in the institutional environment of the Brazilian economy in the 1990s, caused mainly by economic and financial deregulation, price stabilization and privatizations, growth rates were modest along the decade (Hermann 2002). Contrasting with this result, industrial product ...
Is There Any Tradeoff Between Inflation And Unemployment?
... NAIRU (non accelerating inflation rate of unemployment). NRU (natural rate of unemployment) determines Inflation in the long run, and an attempt to push the economy below that rate of unemployment, sometimes it is also called the non-acceleratingInflation-rate-of-unemployment (NAIRU), would lead to in ...
... NAIRU (non accelerating inflation rate of unemployment). NRU (natural rate of unemployment) determines Inflation in the long run, and an attempt to push the economy below that rate of unemployment, sometimes it is also called the non-acceleratingInflation-rate-of-unemployment (NAIRU), would lead to in ...
Synthetic Commodity Money
... may consist of something that has a nonmonetary use or uses, but is only contingently rather than absolutely or “naturally” scarce. An example would be a durable good which, though capable of being reproduced at zero marginal cost, is rendered scarce by having rights to it, or to the technology need ...
... may consist of something that has a nonmonetary use or uses, but is only contingently rather than absolutely or “naturally” scarce. An example would be a durable good which, though capable of being reproduced at zero marginal cost, is rendered scarce by having rights to it, or to the technology need ...
Twin Deficits: Squaring Theory, Evidence and Common Sense1
... higher relative price of domestic goods crowds out net export. If fiscal deficits also raise the interest rate, the resulting external imbalance may be mitigated because of a simultaneous fall in domestic investment. This model stresses changes in terms of trade and interest rates, but abstracts fro ...
... higher relative price of domestic goods crowds out net export. If fiscal deficits also raise the interest rate, the resulting external imbalance may be mitigated because of a simultaneous fall in domestic investment. This model stresses changes in terms of trade and interest rates, but abstracts fro ...
Discussing Economic Factors` Effects on Personal Saving Rate
... because a low personal saving rate means that the U.S. economy is growing rapidly in the short run. However, business capital and investment are increasingly moving abroad as globalization occurs, and worldwide economic integration is accordingly strengthened. Therefore, every country is involved in ...
... because a low personal saving rate means that the U.S. economy is growing rapidly in the short run. However, business capital and investment are increasingly moving abroad as globalization occurs, and worldwide economic integration is accordingly strengthened. Therefore, every country is involved in ...
AP Macroeconomics Crash Course
... “deflator” because nominal GDP will usually overstate the value of a nation’s output if there has been inflation. The Consumer Price Index (CPI) is another commonly used price index. 5. Real GDP: ...
... “deflator” because nominal GDP will usually overstate the value of a nation’s output if there has been inflation. The Consumer Price Index (CPI) is another commonly used price index. 5. Real GDP: ...
NBER WORKING PAPERS SERIES GOVERNMENT SOLVENCY, PONZI FINANCE AND THE REDUNDANCY
... Note that this definition of solvency can be generalized easily to all OLG models with finite household horizons. It relies only on the reasonable postulate that in the last period of its life, each household disposes of all real and financial assets (including public debt) and pays off any debts it ...
... Note that this definition of solvency can be generalized easily to all OLG models with finite household horizons. It relies only on the reasonable postulate that in the last period of its life, each household disposes of all real and financial assets (including public debt) and pays off any debts it ...
The slowdown in emerging market economies and its
... economies and its implications for the global economy Emerging market economies (EMEs) have been a significant driver of global growth and euro area external demand in the 21st century. However, since 2010 growth in EMEs has been on a downward trend. Some of that moderation has been driven by struct ...
... economies and its implications for the global economy Emerging market economies (EMEs) have been a significant driver of global growth and euro area external demand in the 21st century. However, since 2010 growth in EMEs has been on a downward trend. Some of that moderation has been driven by struct ...
The Small Open-Economy New Keynesian Phillips Curve: Empirical
... the generalized method of moments (GMM) to handle expectational terms. The purpose of this paper is, therefore, to evaluate empirically the small open-economy (SOE) version of the NKPC derived in Galí and Monacelli (2005), henceforth the SOE NKPC. Notably, the SOE NKPC links inflation dynamics to ex ...
... the generalized method of moments (GMM) to handle expectational terms. The purpose of this paper is, therefore, to evaluate empirically the small open-economy (SOE) version of the NKPC derived in Galí and Monacelli (2005), henceforth the SOE NKPC. Notably, the SOE NKPC links inflation dynamics to ex ...
Natural Resources Determining FDI in Nigeria: An Empirical
... exchange and inflation rates, as well as FDI flow and economic activities (GDP). This study provides an additional avenue through which exogenous factors may affect one economy. This paper examines the impact of exogenous factors considering the major trading partners from North like the US, UK, Ger ...
... exchange and inflation rates, as well as FDI flow and economic activities (GDP). This study provides an additional avenue through which exogenous factors may affect one economy. This paper examines the impact of exogenous factors considering the major trading partners from North like the US, UK, Ger ...
The “Great Moderation” In OECD Countries: Its Deepness and Implications with Business Cycles
... The results reveal a progressive “moderation” in all countries, characterized by regime changes in both growth rates and volatility and suggest that countries differ on the relative magnitude of the impacts of negative shocks on volatility, relatively to those of positive shocks ...
... The results reveal a progressive “moderation” in all countries, characterized by regime changes in both growth rates and volatility and suggest that countries differ on the relative magnitude of the impacts of negative shocks on volatility, relatively to those of positive shocks ...
May 2014 - University of British Columbia
... consumption, future utility, and a time-varying factor that is external to the agent but grows at the common growth rate in a balanced growth equilibrium. This time dependence allows for preferences to exhibit increasing marginal impatience, which is a necessary condition for a non-degenerate asympt ...
... consumption, future utility, and a time-varying factor that is external to the agent but grows at the common growth rate in a balanced growth equilibrium. This time dependence allows for preferences to exhibit increasing marginal impatience, which is a necessary condition for a non-degenerate asympt ...
Download paper (PDF)
... various innovations in firms’ and consumers’ behavior, perhaps induced by technological progress or financial innovations, might have allowed consumers to better cushion themselves from the impact of interest-rate fluctuations.4 This is however not the only possible interpretation. In fact, the resp ...
... various innovations in firms’ and consumers’ behavior, perhaps induced by technological progress or financial innovations, might have allowed consumers to better cushion themselves from the impact of interest-rate fluctuations.4 This is however not the only possible interpretation. In fact, the resp ...
implementing scenarios using DSGE models
... behaviour of economic agents on the basis of explicit micro-foundations allowing for a distinction between intrinsic dynamics and dynamics arising from rational expectations. As a result, DSGE models appear less prone to the Lucas critique (Lucas, 1976) than traditional macroeconomic models. Yet, th ...
... behaviour of economic agents on the basis of explicit micro-foundations allowing for a distinction between intrinsic dynamics and dynamics arising from rational expectations. As a result, DSGE models appear less prone to the Lucas critique (Lucas, 1976) than traditional macroeconomic models. Yet, th ...
The Transmission of Monetary Policy Operations through
... open market purchases of securities by Central Banks have no e§ect on the real economy. This result, which goes back to Wallace (1981)’s seminal article, is at odds with the widely held view that open market operations (OMO) by Central Banks a§ect interest rates–and at odds indeed with the very prac ...
... open market purchases of securities by Central Banks have no e§ect on the real economy. This result, which goes back to Wallace (1981)’s seminal article, is at odds with the widely held view that open market operations (OMO) by Central Banks a§ect interest rates–and at odds indeed with the very prac ...
IV Taller Regional sobre Gestión de la Deuda Pública - captac-dr
... The result of the ALM model was the elaboration of regular reports, identifying the mismatches between assets and liabilities, in terms of indexes (risk categories), average time to maturities, cash flows and percentage of debt outstanding on the short term, including the simulation on the future ...
... The result of the ALM model was the elaboration of regular reports, identifying the mismatches between assets and liabilities, in terms of indexes (risk categories), average time to maturities, cash flows and percentage of debt outstanding on the short term, including the simulation on the future ...
Database of Global Economic Indicators
... The Database of Global Economic Indicators (DGEI) is intended to deal with the problem of “not seeing the forest for the trees” in economic and policy analysis of international developments. In other words, it aims to provide a broad perspective on the world economy that is less subject to idiosyncr ...
... The Database of Global Economic Indicators (DGEI) is intended to deal with the problem of “not seeing the forest for the trees” in economic and policy analysis of international developments. In other words, it aims to provide a broad perspective on the world economy that is less subject to idiosyncr ...
vsi10 roc Hung2 13364920 en
... are not too far off from those of Loayza, et al. (2000). In the second stage, we use estimated models to make in-sample predictions of national saving rates for individual countries and measure the extent to which a country’s national saving deviates from models’ predictions for that country. Overal ...
... are not too far off from those of Loayza, et al. (2000). In the second stage, we use estimated models to make in-sample predictions of national saving rates for individual countries and measure the extent to which a country’s national saving deviates from models’ predictions for that country. Overal ...