CHAP1.WP (Word5)
... policymakers face is “How steep or flat are the IS and LM curves?” You might also point out that this issue resurfaces later in the text, in conjunction with discussion of the effects of financial deregulation on the slopes of the curves and of multiplier uncertainty in the context of stabilization ...
... policymakers face is “How steep or flat are the IS and LM curves?” You might also point out that this issue resurfaces later in the text, in conjunction with discussion of the effects of financial deregulation on the slopes of the curves and of multiplier uncertainty in the context of stabilization ...
Rapid-Growth Markets
... Business is steadily gaining momentum in rapid-growth markets (RGMs). Though still uneven, the pickup in activity that began there at the end of last year is becoming the driver of global recovery, even as developed economies continue to lag. For directors and executives charged with shaping investm ...
... Business is steadily gaining momentum in rapid-growth markets (RGMs). Though still uneven, the pickup in activity that began there at the end of last year is becoming the driver of global recovery, even as developed economies continue to lag. For directors and executives charged with shaping investm ...
Fiscal Policy in a Depressed Economy
... —At current and expected future real interest rates on government borrowing, even a very modest amount of “hysteresis,” through which cyclical output shortfalls affect the economy’s future potential, has a substantial effect on estimates of the impact of expansionary fiscal policy on the future debt ...
... —At current and expected future real interest rates on government borrowing, even a very modest amount of “hysteresis,” through which cyclical output shortfalls affect the economy’s future potential, has a substantial effect on estimates of the impact of expansionary fiscal policy on the future debt ...
Christiano, Eichenbaum and Rebelo
... larger when the zero bound binds. Allowing for capital accumulation has two effects. First, for a given size shock it reduces the likelihood that the zero bound becomes binding. Second, when the zero bound binds, the presence of capital accumulation tends to increase the size of the government-spend ...
... larger when the zero bound binds. Allowing for capital accumulation has two effects. First, for a given size shock it reduces the likelihood that the zero bound becomes binding. Second, when the zero bound binds, the presence of capital accumulation tends to increase the size of the government-spend ...
NBER WORKING PAPER SERIES TARIFFS, EMPLOYMENT AND THE CURRENT ACCOUNT:
... A further problem with the macroeconomic literature on tariff policy is that its conclusions on CA effects are based on models incorporating arbitrary static savings functions, not a very meaningful procedure in an analysis of a clearly intertemporal issue such as current account behavior. An elegan ...
... A further problem with the macroeconomic literature on tariff policy is that its conclusions on CA effects are based on models incorporating arbitrary static savings functions, not a very meaningful procedure in an analysis of a clearly intertemporal issue such as current account behavior. An elegan ...
Analysis of macroeconomic shocks in FSU countries
... next ones to join the EU, namely Bulgaria, Romania, Croatia and Turkey. Macro performance of Ukraine is somewhat better and at times Ukraine outperforms the old EU members. Among major macro indicators set by the Maastrich Treaty, such as inflation, public debt and budget deficit, only inflation is ...
... next ones to join the EU, namely Bulgaria, Romania, Croatia and Turkey. Macro performance of Ukraine is somewhat better and at times Ukraine outperforms the old EU members. Among major macro indicators set by the Maastrich Treaty, such as inflation, public debt and budget deficit, only inflation is ...
by Submitted in fulfilment of the requirements for the degree
... transmission of economic shocks originating in the rest of the world on South Africa. The global vector autoregression (GVAR) approach is used since one of its advantages is the incorporation of global trade linkages, which facilitates the analysis of the transmission of shocks from one country to a ...
... transmission of economic shocks originating in the rest of the world on South Africa. The global vector autoregression (GVAR) approach is used since one of its advantages is the incorporation of global trade linkages, which facilitates the analysis of the transmission of shocks from one country to a ...
Real Exchange Rate Undervaluation: Static Losses, Dynamic Gains
... illustrate these effects are Romer (1989), who shows that free trade can enhance growth by increasing the number of intermediate goods and Grossman and Helpman (1991) and Edwards (1992), who demonstrate that an increase in technological spill-overs through trade can raise the long-run growth rate of ...
... illustrate these effects are Romer (1989), who shows that free trade can enhance growth by increasing the number of intermediate goods and Grossman and Helpman (1991) and Edwards (1992), who demonstrate that an increase in technological spill-overs through trade can raise the long-run growth rate of ...
Chapter 29(14)
... ♦ Transactions costs — higher anticipated inflation causes people to use resources (e.g., shoe leather) in order to spend their money more rapidly (by shopping more frequently). At still higher anticipated inflation rates, people incur costs by using alternatives for money to conduct transactions. ♦ ...
... ♦ Transactions costs — higher anticipated inflation causes people to use resources (e.g., shoe leather) in order to spend their money more rapidly (by shopping more frequently). At still higher anticipated inflation rates, people incur costs by using alternatives for money to conduct transactions. ♦ ...
The Political Economy of Commitment to the Gold Standard First
... While the gold standard can be seen as a institutional mechanism to improve inflation performance, there is substantial evidence that the gold standard did not buy automatic credibility for all countries that adopted it: nations in the North Atlantic core were blessed with an extraordinary degree of ...
... While the gold standard can be seen as a institutional mechanism to improve inflation performance, there is substantial evidence that the gold standard did not buy automatic credibility for all countries that adopted it: nations in the North Atlantic core were blessed with an extraordinary degree of ...
Working Paper 189 - An Empirical Investigation of the Taylor Curve
... policy-setting behaviour is characterised by a Taylor rule suggests optimal monetary policy settings or conduct during the inflation-targeting regime relative to earlier regimes. This implies that policymakers have managed to execute the mandate of flexible inflation-targeting ...
... policy-setting behaviour is characterised by a Taylor rule suggests optimal monetary policy settings or conduct during the inflation-targeting regime relative to earlier regimes. This implies that policymakers have managed to execute the mandate of flexible inflation-targeting ...
6The Short-run Model for the Closed Economy
... activity which we observe in the real world. We will illustrate how business fluctuations may be seen as the economy’s reaction to various shocks which tend to shift the aggregate supply and demand curves. We will also study the extent to which our model is able to reproduce the most important styli ...
... activity which we observe in the real world. We will illustrate how business fluctuations may be seen as the economy’s reaction to various shocks which tend to shift the aggregate supply and demand curves. We will also study the extent to which our model is able to reproduce the most important styli ...
Can an increase in public investment sustainably lift
... investment in a context of ultra-low interest rates that reduce financing costs and of large infrastructure needs in some OECD countries. The following sections present model simulations, provide estimates of the impact of sustained increase in public investment on growth and public finances and ide ...
... investment in a context of ultra-low interest rates that reduce financing costs and of large infrastructure needs in some OECD countries. The following sections present model simulations, provide estimates of the impact of sustained increase in public investment on growth and public finances and ide ...
Multiple-choice questions to accompany
... 10. "As best we can tell, responded the central bank governor, the center of the 2 percent inflation target, namely 1 percent, appears to correspond to genuine price stability once the various sources of bias in the CPI are allowed for." An example of bias in the CPI measure is that it a) ignores im ...
... 10. "As best we can tell, responded the central bank governor, the center of the 2 percent inflation target, namely 1 percent, appears to correspond to genuine price stability once the various sources of bias in the CPI are allowed for." An example of bias in the CPI measure is that it a) ignores im ...
STATE BANK OF PAKISTAN SBP Working Paper Series
... analysis by evaluating alternative interest rate rules and calibrating the model using data from Pakistan economy. The learning and determinacy analysis suggests that monetary authority in developing economies should broadly follow the Taylor principle and put some weight on exchange rate fluctuatio ...
... analysis by evaluating alternative interest rate rules and calibrating the model using data from Pakistan economy. The learning and determinacy analysis suggests that monetary authority in developing economies should broadly follow the Taylor principle and put some weight on exchange rate fluctuatio ...
Phillips curve
... • Expected inflation explains why there is a tradeoff between inflation and unemployment in the short run but not in the long run. • How quickly the short-run tradeoff disappears depends on how quickly expectations adjust. • Proponents of rational expectations built on the Friedman-Phelps analysis t ...
... • Expected inflation explains why there is a tradeoff between inflation and unemployment in the short run but not in the long run. • How quickly the short-run tradeoff disappears depends on how quickly expectations adjust. • Proponents of rational expectations built on the Friedman-Phelps analysis t ...
Globak Slack and Domestic Inflation Rates: A
... (Rogoff, 2003). Sbordone relaxes the assumption of constant elasticity of substitution among differentiated goods, by allowing it to vary with the firm’s relative market share. It is through its effect on market shares and hence on the elasticity of demand that globalization may affect the slope of ...
... (Rogoff, 2003). Sbordone relaxes the assumption of constant elasticity of substitution among differentiated goods, by allowing it to vary with the firm’s relative market share. It is through its effect on market shares and hence on the elasticity of demand that globalization may affect the slope of ...
When is the Government Spending Multiplier Large?
... the output cost of being in the zero-bound state is also large. In such economies it can be socially optimal to substantially raise government spending in response to shocks that make the zero lower bound on the nominal interest rate binding. We begin by considering an economy with Calvo-style pric ...
... the output cost of being in the zero-bound state is also large. In such economies it can be socially optimal to substantially raise government spending in response to shocks that make the zero lower bound on the nominal interest rate binding. We begin by considering an economy with Calvo-style pric ...
Y - McGraw Hill Higher Education
... Inflation will remain have inertia if the economy is operating at Y* ...
... Inflation will remain have inertia if the economy is operating at Y* ...
8 - Weber State University
... B) Pe and prices are rigid. C) Pe and real wages are rigid. D) None of the above. 9) The slope of the SP curve is determined in large part by the A) rate of increase in mark-ups. B) the slope of the LP curve. C) the level of Pe. D) the level of fixed real wage. 10) When the actual inflation rate is ...
... B) Pe and prices are rigid. C) Pe and real wages are rigid. D) None of the above. 9) The slope of the SP curve is determined in large part by the A) rate of increase in mark-ups. B) the slope of the LP curve. C) the level of Pe. D) the level of fixed real wage. 10) When the actual inflation rate is ...
"Great Inflation" Lessons for Monetary Policy
... Indeed, a key reason for Germany’s success during the 1970s was that, following the collapse of Bretton Woods, it swiftly adopted a new nominal anchor in the form of monetary targeting. The stability of inflation expectations, however, should never be taken for granted, and requires continuous and c ...
... Indeed, a key reason for Germany’s success during the 1970s was that, following the collapse of Bretton Woods, it swiftly adopted a new nominal anchor in the form of monetary targeting. The stability of inflation expectations, however, should never be taken for granted, and requires continuous and c ...
Interest Sensitivity and Volatility Reductions: Cross‐Section Evidence No. 05‐4
... ways that reduced the effect of shocks on output and inflation. More recently, Boivin and Giannoni (2003) further investigated these questions using a small-scale structural New Keynesian macro model with a forward-looking Taylor rule reaction function. They estimated this model using impulse respon ...
... ways that reduced the effect of shocks on output and inflation. More recently, Boivin and Giannoni (2003) further investigated these questions using a small-scale structural New Keynesian macro model with a forward-looking Taylor rule reaction function. They estimated this model using impulse respon ...
Chapter 17
... Figure 17-3 Expansionary Monetary Policy with Underutilized Resources • The recessionary gap is due to insufficient AD • To increase AD, use expansionary monetary policy • AD increases and real GDP increases to full employment ...
... Figure 17-3 Expansionary Monetary Policy with Underutilized Resources • The recessionary gap is due to insufficient AD • To increase AD, use expansionary monetary policy • AD increases and real GDP increases to full employment ...
Monetary Policy - Central Bank of Nigeria
... monetary policy is the realization of stable non-inflationary growth. This gives the citizens confidence in the future value of their money, so that they can make sound economic and financial decisions. Low and stable inflation also helps to prevent inflationary boom and bust cycles that could resul ...
... monetary policy is the realization of stable non-inflationary growth. This gives the citizens confidence in the future value of their money, so that they can make sound economic and financial decisions. Low and stable inflation also helps to prevent inflationary boom and bust cycles that could resul ...
The Transmission of Monetary Policy Operations through
... ‡exible and there are no labour market frictions. (In extensions of the model, we study the impact of labour frictions due to search and matching and wage rigidities.) The inclusion of durable goods is motivated by the empirical …nding that the response of economic activity is primarily driven by th ...
... ‡exible and there are no labour market frictions. (In extensions of the model, we study the impact of labour frictions due to search and matching and wage rigidities.) The inclusion of durable goods is motivated by the empirical …nding that the response of economic activity is primarily driven by th ...