Valuation effects and sustainability of current account
... France. The process of integration, measured as the sum of foreign assets and liabilities as a percentage of GDP, has been deep and wide, especially from the beginning of the nineties. For the large OECD economies, this percentage has more than doubled in less that one decade. In the small open econ ...
... France. The process of integration, measured as the sum of foreign assets and liabilities as a percentage of GDP, has been deep and wide, especially from the beginning of the nineties. For the large OECD economies, this percentage has more than doubled in less that one decade. In the small open econ ...
ExamView Pro - ec1001june2009.tst
... a. everyone benefits because money is cheaper. b. everyone benefits because prices do not increase. c. lenders of fixed-rate mortgages generally benefit because they will make higher profits than they had calculated. d. borrowers with fixed-rate loans will benefit because their purchasing power will ...
... a. everyone benefits because money is cheaper. b. everyone benefits because prices do not increase. c. lenders of fixed-rate mortgages generally benefit because they will make higher profits than they had calculated. d. borrowers with fixed-rate loans will benefit because their purchasing power will ...
macroeconomic policy - Faculty of Business and Economics Courses
... the aggregate demand increases or decreases. Well, is this assumption realistic or not? Yes, it is realistic. If we look around, especially for countries which are not described by wage price spirals (leading to high rates of price and wage inflation) this assumption seems to be validated by the emp ...
... the aggregate demand increases or decreases. Well, is this assumption realistic or not? Yes, it is realistic. If we look around, especially for countries which are not described by wage price spirals (leading to high rates of price and wage inflation) this assumption seems to be validated by the emp ...
The role of labor markets for euro area monetary - ECB
... spells and inflexible wages. The relationships between rigid labor markets and labor market outcomes, such as, for example, unemployment durations, have received great attention in both the academic literature and the political debate. In contrast, little work is available on the link between structu ...
... spells and inflexible wages. The relationships between rigid labor markets and labor market outcomes, such as, for example, unemployment durations, have received great attention in both the academic literature and the political debate. In contrast, little work is available on the link between structu ...
ch04
... • In the sticky-price model, the investment function is the same as in the flexible-price model – in the flexible price model, the level of savings determined investment and the investment function determined the real interest rate – in the sticky-price model, the real interest rate is determined ou ...
... • In the sticky-price model, the investment function is the same as in the flexible-price model – in the flexible price model, the level of savings determined investment and the investment function determined the real interest rate – in the sticky-price model, the real interest rate is determined ou ...
Institutional Factors in Domestic Inflation
... process. It is often argued that for the economy to climb down from its current and persistent 6 to 7 percent inflation rate would require an extended and perhaps a deep recession. Given long lags, the inflation spiral would indeed appear to unwind very slowly. In addition, the presumed nonlinear sh ...
... process. It is often argued that for the economy to climb down from its current and persistent 6 to 7 percent inflation rate would require an extended and perhaps a deep recession. Given long lags, the inflation spiral would indeed appear to unwind very slowly. In addition, the presumed nonlinear sh ...
Essays on Fiscal Policy in Developing Countries and Microstates Universitat Autònoma de Barcelona
... In Chapter 3, I consider the issue of procyclicality of fiscal policy in developing countries. In the literature, there exist two competing plausible explanations. One espouses the view that procyclical fiscal policy is a result of lack of financial integration with the world economy while the other ...
... In Chapter 3, I consider the issue of procyclicality of fiscal policy in developing countries. In the literature, there exist two competing plausible explanations. One espouses the view that procyclical fiscal policy is a result of lack of financial integration with the world economy while the other ...
the evolution of economic understanding
... setting the fiscal policy agenda, the Economic Reports can provide evidence of the model of the economy being used by fiscal policymakers in different eras. And indeed, we find that the Economic Reports are often quite detailed in their discussion of economic relationships. The key disadvantage of t ...
... setting the fiscal policy agenda, the Economic Reports can provide evidence of the model of the economy being used by fiscal policymakers in different eras. And indeed, we find that the Economic Reports are often quite detailed in their discussion of economic relationships. The key disadvantage of t ...
Gains from Commitment in Monetary Policy: Implications of the Cost
... cost directly depends on the nominal interest rate, which points to a supply-side mechanism for monetary policy transmission referred to as the cost channel. In this paper, I show that studies that disregard this supply-side transmission channel signi…cantly underestimate the value of monetary polic ...
... cost directly depends on the nominal interest rate, which points to a supply-side mechanism for monetary policy transmission referred to as the cost channel. In this paper, I show that studies that disregard this supply-side transmission channel signi…cantly underestimate the value of monetary polic ...
chapter outline
... b. If the economy experiences a high level of aggregate demand, we would be at a shortrun equilibrium like point B. This point also corresponds with point B on the Phillips curve. Note that when aggregate demand is high, the inflation rate is relatively high and the unemployment rate is relatively l ...
... b. If the economy experiences a high level of aggregate demand, we would be at a shortrun equilibrium like point B. This point also corresponds with point B on the Phillips curve. Note that when aggregate demand is high, the inflation rate is relatively high and the unemployment rate is relatively l ...
SP227: Lost at Sea: The Euro Needs a Euro Treasury
... Arguably, the preoccupations of OCA theory have been of rather limited value in understanding the eurozone’s malperformance and proneness to crisis. The immediate causes of the ongoing euro crisis were neither some exogenous asymmetric shock nor fiscal profligacy. Rather, the regime’s foremost failu ...
... Arguably, the preoccupations of OCA theory have been of rather limited value in understanding the eurozone’s malperformance and proneness to crisis. The immediate causes of the ongoing euro crisis were neither some exogenous asymmetric shock nor fiscal profligacy. Rather, the regime’s foremost failu ...
EMU Break-up
... the first two years is over 12%. This is substantially greater than the losses that followed the demise of Lehman Brothers in September 2008. The complexity of financial and trade inter-linkages are such that the short term consequences would be traumatic. In the first year, Eurozone GDP might fall ...
... the first two years is over 12%. This is substantially greater than the losses that followed the demise of Lehman Brothers in September 2008. The complexity of financial and trade inter-linkages are such that the short term consequences would be traumatic. In the first year, Eurozone GDP might fall ...
Ensuring Financial Stability: Financial Structure and the
... that attempts to stabilise asset prices by using interest rate policy are likely to induce pronounced macroeconomic fluctuations. However, while the panel estimates confirm that monetary policy has predictable effects on residential property prices, by construction these estimates disregard all coun ...
... that attempts to stabilise asset prices by using interest rate policy are likely to induce pronounced macroeconomic fluctuations. However, while the panel estimates confirm that monetary policy has predictable effects on residential property prices, by construction these estimates disregard all coun ...
NBER WORKING PAPER SERIES OPTIMAL SIMPLE AND IMPLEMENTABLE MONETARY AND FISCAL RULES
... lump-sum or distortionary taxation, we consider two different feedback rules. One feedback rule postulates that each period tax receipts are adjusted in response to variations in the secondary fiscal deficit in such a way that the secondary deficit is zero. We refer to this rule as a balanced-budget ...
... lump-sum or distortionary taxation, we consider two different feedback rules. One feedback rule postulates that each period tax receipts are adjusted in response to variations in the secondary fiscal deficit in such a way that the secondary deficit is zero. We refer to this rule as a balanced-budget ...
When is the Government Spending Multiplier Large? Northwestern University
... even though there were large increases in government spending, tells us nothing about the question of interest. Given these diculties, we investigate the size of the multiplier in the zero bound state using the empirically plausible DSGE model proposed by Altig, Christiano, Eichenbaum and Lindé (20 ...
... even though there were large increases in government spending, tells us nothing about the question of interest. Given these diculties, we investigate the size of the multiplier in the zero bound state using the empirically plausible DSGE model proposed by Altig, Christiano, Eichenbaum and Lindé (20 ...
INFLATION
... The quantity theory of money is the proposition that, in the long run, an increase in the quantity of money brings an equal percentage increase in the price level. The quantity theory of money is based on the velocity of circulation and the equation of exchange. The velocity of circulation is the av ...
... The quantity theory of money is the proposition that, in the long run, an increase in the quantity of money brings an equal percentage increase in the price level. The quantity theory of money is based on the velocity of circulation and the equation of exchange. The velocity of circulation is the av ...
Lost at Sea: The Euro Needs a Euro Treasury
... union. For with nominal exchange rates abolished through the common currency, balanced intra-area competitiveness positions came to critically hinge on national trends in wages and unit-labor costs. In actual fact, persistent divergences in wages and unit-labor costs arose under the euro, but were j ...
... union. For with nominal exchange rates abolished through the common currency, balanced intra-area competitiveness positions came to critically hinge on national trends in wages and unit-labor costs. In actual fact, persistent divergences in wages and unit-labor costs arose under the euro, but were j ...
Mexico City
... subsidies and is expected to proposed other spending cuts to put the country on a more fiscally sustainable path. He is also beginning an overhaul of the INDEC, the government statistical bureau, to restore transparency and integrity in key indicators. • A USD $16.5 billion bond issue was emitted in ...
... subsidies and is expected to proposed other spending cuts to put the country on a more fiscally sustainable path. He is also beginning an overhaul of the INDEC, the government statistical bureau, to restore transparency and integrity in key indicators. • A USD $16.5 billion bond issue was emitted in ...
Capital Account Liberalisation and Foreign Direct Investmentin Nigeria
... 1956) which presupposes that capital should be re-allocated from the capital-poor economies to capital-rich economies. Consequently, this is expected to cover the saving-investment gap of these capital-deficit countries and, thus, increases the global capital flow. However, the neoclassical model pr ...
... 1956) which presupposes that capital should be re-allocated from the capital-poor economies to capital-rich economies. Consequently, this is expected to cover the saving-investment gap of these capital-deficit countries and, thus, increases the global capital flow. However, the neoclassical model pr ...
Non-Keynesian Fiscal Policy effects
... experienced significant benefits due to Fiscal contraction whereas Sweden (1990-1994) suffered large losses as a result of Fiscal expansion. First of all, I would like to mention that private consumption with respect to all three countries appear to act conflicting which was not expected by the Gove ...
... experienced significant benefits due to Fiscal contraction whereas Sweden (1990-1994) suffered large losses as a result of Fiscal expansion. First of all, I would like to mention that private consumption with respect to all three countries appear to act conflicting which was not expected by the Gove ...
The composition of capital inflows when emerging market firms face
... pushed into emerging markets, it would be optimal for emerging market economies to design policies that encourage certain kinds of ows (e.g., long-term debt vs. short-term debt, FDI vs. portfolio ows) so that it would be more di cult for foreigners to reduce the supply dramatically if conditions c ...
... pushed into emerging markets, it would be optimal for emerging market economies to design policies that encourage certain kinds of ows (e.g., long-term debt vs. short-term debt, FDI vs. portfolio ows) so that it would be more di cult for foreigners to reduce the supply dramatically if conditions c ...
PDF
... a shift in policy from command economy to free market economy was introduced in the country. This shift has opened opportunities for the private sector to have an active role in various sectors of the country’s economy. Since then, a lot of efforts have been exerted and various forms of incentive pa ...
... a shift in policy from command economy to free market economy was introduced in the country. This shift has opened opportunities for the private sector to have an active role in various sectors of the country’s economy. Since then, a lot of efforts have been exerted and various forms of incentive pa ...
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... In China, the government will continue its efforts to dampen investment demand in certain industries to support a more balanced growth pattern. Together with a small appreciation of the renminbi against the US dollar, this will probably imply that Chinese growth will be slightly lower than before, b ...
... In China, the government will continue its efforts to dampen investment demand in certain industries to support a more balanced growth pattern. Together with a small appreciation of the renminbi against the US dollar, this will probably imply that Chinese growth will be slightly lower than before, b ...
philipscurve
... Quantity theorists tend to favor a policy that relies on rules rather than a discretionary policy. The institutional theory of inflation sees the source of inflation in the wage-and-price setting institutions. Institutionalists see the direction of causation going from price increases to money suppl ...
... Quantity theorists tend to favor a policy that relies on rules rather than a discretionary policy. The institutional theory of inflation sees the source of inflation in the wage-and-price setting institutions. Institutionalists see the direction of causation going from price increases to money suppl ...
Monetary Policy Practice Questions
... A) reduced, but the multiple by which the commercial banking system can lend is unaffected. B) reduced and the multiple by which the commercial banking system can lend is increased. C) increased and the multiple by which the commercial banking system can lend is increased. D) increased and the multi ...
... A) reduced, but the multiple by which the commercial banking system can lend is unaffected. B) reduced and the multiple by which the commercial banking system can lend is increased. C) increased and the multiple by which the commercial banking system can lend is increased. D) increased and the multi ...