Does Saying Yes to Capital Inflows Necessarily Mean Good
... important aspect about the FATF global effort is that jurisdictions that have committed to follow its regulatory practices have in essence opted to abide by a variety of financial regulations that are not only costly to implement and technically challenging, especially in economies that lack sophistic ...
... important aspect about the FATF global effort is that jurisdictions that have committed to follow its regulatory practices have in essence opted to abide by a variety of financial regulations that are not only costly to implement and technically challenging, especially in economies that lack sophistic ...
Global Economic Environment - uni
... There are different types of inflation: creeping, rapid, and hyperinflation The German hyperinflation is a striking example of money expansion driving the inflation rate This experience qualifies as a “controlled experiment” and support Friedman’s thesis that ...
... There are different types of inflation: creeping, rapid, and hyperinflation The German hyperinflation is a striking example of money expansion driving the inflation rate This experience qualifies as a “controlled experiment” and support Friedman’s thesis that ...
When are the Effects of Fiscal Policy Uncertainty Large?
... My second experiment is designed to shed light on the effects of uncertainty about longrun fiscal policy. As in the first experiment, the economy is put into a recession by a preference shock that increases the household discount factor and causes the ZLB to bind. I define long-run fiscal policy to ...
... My second experiment is designed to shed light on the effects of uncertainty about longrun fiscal policy. As in the first experiment, the economy is put into a recession by a preference shock that increases the household discount factor and causes the ZLB to bind. I define long-run fiscal policy to ...
How would a fiscal shock in Germany affect other European countries?
... negative ones in the Czech Republic, Slovakia and Slovenia (the latter apparently due to a stronger weight of the negative interest rate channel in comparison to the potentially positive trade and exchange rate channels). Elekdag and Muir (2013) use a DSGE framework to simulate fiscal spillovers fro ...
... negative ones in the Czech Republic, Slovakia and Slovenia (the latter apparently due to a stronger weight of the negative interest rate channel in comparison to the potentially positive trade and exchange rate channels). Elekdag and Muir (2013) use a DSGE framework to simulate fiscal spillovers fro ...
Nominal GDP Targeting Rules: Can They Stabilize the Economy?
... policy may better stabilize nominal GDP growth at the targeted rate. Under this alternative forecast adjustment rule, policymakers look forward, recognizing that an adjustment in current monetary policy probably will not affect nominal GDP until two to three quarters in the future. Using forecasts o ...
... policy may better stabilize nominal GDP growth at the targeted rate. Under this alternative forecast adjustment rule, policymakers look forward, recognizing that an adjustment in current monetary policy probably will not affect nominal GDP until two to three quarters in the future. Using forecasts o ...
Chapter 35
... point A; output is low (15,000), and the price level is low (102). If aggregate demand is high, the economy is at point B; output is high (16,000), and the price level is high (106). Panel (b) shows the implications for the Phillips curve. Point A, which arises when aggregate demand is low, has high ...
... point A; output is low (15,000), and the price level is low (102). If aggregate demand is high, the economy is at point B; output is high (16,000), and the price level is high (106). Panel (b) shows the implications for the Phillips curve. Point A, which arises when aggregate demand is low, has high ...
Were There Structural Breaks in the Effects of Japanese Monetary
... low.2 Lack of aggregate demand necessarily reduced job opportunities. As a result, the unemployment rate rose from 2.2 percent (February 1991) to 5.4 percent (February 2002).3 For these reasons, this period of turmoil is referred as the lost decade (Hayashi and Prescott, 2002) or the great recession ...
... low.2 Lack of aggregate demand necessarily reduced job opportunities. As a result, the unemployment rate rose from 2.2 percent (February 1991) to 5.4 percent (February 2002).3 For these reasons, this period of turmoil is referred as the lost decade (Hayashi and Prescott, 2002) or the great recession ...
trade and development report, 2011
... B. New thinking on global economic governance................................................................................ 159 C. ...
... B. New thinking on global economic governance................................................................................ 159 C. ...
Document
... recalling Kalecki and Steindl idea of a ‘monopolistic economy which is operating well below full capacity’ (Rowthorn 1981: 1). In such an economy, ‘prices are relatively inflexible and firms respond to change in demand by varying the amount they produce. When demand is depressed firms respond by red ...
... recalling Kalecki and Steindl idea of a ‘monopolistic economy which is operating well below full capacity’ (Rowthorn 1981: 1). In such an economy, ‘prices are relatively inflexible and firms respond to change in demand by varying the amount they produce. When demand is depressed firms respond by red ...
Current Account Norms in Natural Resource Rich and Capital
... those of the IMF or IMF policy, or of DFID. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. The permanent income hypothesis implies that frictionless open economies with exhaustible natural resources should save abroad most of ...
... those of the IMF or IMF policy, or of DFID. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate. The permanent income hypothesis implies that frictionless open economies with exhaustible natural resources should save abroad most of ...
5 Chartalism and the tax-driven approach to money
... (b) the power to declare what it will accept in payment of taxes. Thus the state delimits money to be that which will be accepted at government pay offices for extinguishing debt to the state. The purpose of taxation is not to finance government spending but to create demand for the currency – hence t ...
... (b) the power to declare what it will accept in payment of taxes. Thus the state delimits money to be that which will be accepted at government pay offices for extinguishing debt to the state. The purpose of taxation is not to finance government spending but to create demand for the currency – hence t ...
Overview - OECD.org
... effect such comparisons. They are not designed, however, to make international comparisons of monetary flows, such as aid and foreign direct investment, or trade flows. For such comparisons, exchange rates should be used. Note that many international comparisons require neither PPPs nor exchange rat ...
... effect such comparisons. They are not designed, however, to make international comparisons of monetary flows, such as aid and foreign direct investment, or trade flows. For such comparisons, exchange rates should be used. Note that many international comparisons require neither PPPs nor exchange rat ...
7. Demand-pull inflation
... 1. Recall that inflation occurs when the general level of prices is rising. The rate of inflation is the percentage change in a price index from one period to the next. The major price indexes are the consumer price index (CPI) and the GDP deflator. 2. Like diseases, inflations come in different str ...
... 1. Recall that inflation occurs when the general level of prices is rising. The rate of inflation is the percentage change in a price index from one period to the next. The major price indexes are the consumer price index (CPI) and the GDP deflator. 2. Like diseases, inflations come in different str ...
Chapter 7
... • The increase in government purchases leads to an increase in interest rates – the higher real interest rates leads to a drop in investment and an appreciation in the home currency – the appreciation in the home currency leads to a decline in net exports – the decline in net exports and investment ...
... • The increase in government purchases leads to an increase in interest rates – the higher real interest rates leads to a drop in investment and an appreciation in the home currency – the appreciation in the home currency leads to a decline in net exports – the decline in net exports and investment ...
Monetary Policy - Macmillan Learning
... r, which you can think of as a representative short-term interest rate such as the rate on one-month CDs. (As we discussed in Chapter 10, it is the nominal interest rate, not the real interest rate, that influences people’s money allocation decisions. Hence, r in Figure 15-1 and all subsequent figur ...
... r, which you can think of as a representative short-term interest rate such as the rate on one-month CDs. (As we discussed in Chapter 10, it is the nominal interest rate, not the real interest rate, that influences people’s money allocation decisions. Hence, r in Figure 15-1 and all subsequent figur ...
Republic of Croatia: 2014 Article IV Consultation--Staff Report
... Difficulties have been exacerbated by export industries in structural decline, such as ship building. The quasi-peg to the euro and a rigid labor market—preventing adjustment of unit labor cost through wages—have stood in the way of a rapid price response to these shocks. Staff estimates that the RE ...
... Difficulties have been exacerbated by export industries in structural decline, such as ship building. The quasi-peg to the euro and a rigid labor market—preventing adjustment of unit labor cost through wages—have stood in the way of a rapid price response to these shocks. Staff estimates that the RE ...
Fluctuations in Emerging Economies: Regional and Global Factors
... while the literature agrees EME macroeconomic variables fluctuates a lot more than those of wealthier economies, little has been said about differences within emerging economies themselves. Given the literature’s focus on Latin American economies, many stylised facts derived from that region are bel ...
... while the literature agrees EME macroeconomic variables fluctuates a lot more than those of wealthier economies, little has been said about differences within emerging economies themselves. Given the literature’s focus on Latin American economies, many stylised facts derived from that region are bel ...
After studying this chapter, you will able to
... After studying this chapter, you will able to Distinguish between inflation and a one-time rise in the price level Explain how demand-pull inflation is generated Explain how cost-push inflation is generated Describe the effects of inflation Explain the short-run and long-run relationships ...
... After studying this chapter, you will able to Distinguish between inflation and a one-time rise in the price level Explain how demand-pull inflation is generated Explain how cost-push inflation is generated Describe the effects of inflation Explain the short-run and long-run relationships ...
University of Lethbridge — Department of Economics
... 19) Refer to Figure 28.1.2. Consider the market for labour as the short-run aggregate supply curve shifts leftward from SAS0 to SAS1 . This shift could have been the result of an agreement between workers and employers for a A) 15 percent increase in the money wage rate. B) 10 percent increase in th ...
... 19) Refer to Figure 28.1.2. Consider the market for labour as the short-run aggregate supply curve shifts leftward from SAS0 to SAS1 . This shift could have been the result of an agreement between workers and employers for a A) 15 percent increase in the money wage rate. B) 10 percent increase in th ...
This PDF is a selection from a published volume
... of monetary and fiscal policy. Twelve countries—each with its own tax and spending policies—are now married by a common monetary policy. Does the common monetary policy have the same effect in each of the countries, and the same implications for fiscal policy? Or, does it affect high debt countries ...
... of monetary and fiscal policy. Twelve countries—each with its own tax and spending policies—are now married by a common monetary policy. Does the common monetary policy have the same effect in each of the countries, and the same implications for fiscal policy? Or, does it affect high debt countries ...
Monetary policy trade-offs and forward guidance
... rate relates directly to the amount of slack in the economy, is less volatile than some alternative measures of activity, is not prone to substantial revisions, and is widely understood. The MPC anticipates that it will be appropriate at a minimum to maintain the current stance of monetary policy at ...
... rate relates directly to the amount of slack in the economy, is less volatile than some alternative measures of activity, is not prone to substantial revisions, and is widely understood. The MPC anticipates that it will be appropriate at a minimum to maintain the current stance of monetary policy at ...
The impact of fiscal policy on government bond spreads in emerging
... lower spreads than other emerging market countries because of the rise in credibility of economic policy thanks to their EU membership. The approach in modelling that they use is as follows: they choose three dependent variables (rating, spread and yield on local bonds), but they go into all three r ...
... lower spreads than other emerging market countries because of the rise in credibility of economic policy thanks to their EU membership. The approach in modelling that they use is as follows: they choose three dependent variables (rating, spread and yield on local bonds), but they go into all three r ...
The labyrinth: how can Latin America and the Caribbean navigate
... THE LABYRINTH: HOW CAN LATIN AMERICA AND THE CARIBBEAN NAVIGATE THE GLOBAL ECONOMY ...
... THE LABYRINTH: HOW CAN LATIN AMERICA AND THE CARIBBEAN NAVIGATE THE GLOBAL ECONOMY ...
... deficient or Keynesian unemployment. During depression, demand decline considerably as a result, investment activities get discouraged. The entrepreneurs have to cut down their output, and in certain cases, they have also to close down the plant. Consequently, the demand for labour declines (Didia, ...
Integration of Real and Monetary Sectors with Labor Market – SD
... model macroeconomic dynamics. In the first paper [6], money supply and creation processes of deposits were modeled. Analytical method employed in the ∗ This paper is presented at the 24th International Conference of the System Dynamics Society, Nijmegen, The Netherlands, July 23-27, 2006. I’m very g ...
... model macroeconomic dynamics. In the first paper [6], money supply and creation processes of deposits were modeled. Analytical method employed in the ∗ This paper is presented at the 24th International Conference of the System Dynamics Society, Nijmegen, The Netherlands, July 23-27, 2006. I’m very g ...