Fiscal policy, pricing frictions and monetary accommodation
... correlated with real interest rates, the foreign spending component also may be reduced. Finally, since the real interest rate increases, debt may rise quickly to an unsustainable level, requiring corrective measures. The combination of initial expenditure increases and expenditure cuts or tax incre ...
... correlated with real interest rates, the foreign spending component also may be reduced. Finally, since the real interest rate increases, debt may rise quickly to an unsustainable level, requiring corrective measures. The combination of initial expenditure increases and expenditure cuts or tax incre ...
Determinants of International Capital Flows:The Case of Malaysia:
... researchers discover that the net portfolio flows are related negatively with the current account balance, but positively with both country’s per capita income and growth performance. In addition, the study also highlighted a significant positive relationship between FDI flows and portfolio flows to ...
... researchers discover that the net portfolio flows are related negatively with the current account balance, but positively with both country’s per capita income and growth performance. In addition, the study also highlighted a significant positive relationship between FDI flows and portfolio flows to ...
NBER WORKING PAPER SERIES DEBT RELIEF AND FISCAL SUSTAINABILITY Sebastian Edwards 8939
... question will be able to maintain access to concessional financing. And (3), the “net present value” of external debt used in these calculations is lower from the face value of the debt. The reason for this is that poor nations have access to concessional loans at subsidized interest rates.8 The sus ...
... question will be able to maintain access to concessional financing. And (3), the “net present value” of external debt used in these calculations is lower from the face value of the debt. The reason for this is that poor nations have access to concessional loans at subsidized interest rates.8 The sus ...
Inflation Tutorial
... rates during a financial crisis to provide liquidity (flexibility to get out of investments) to U.S. financial markets, thus preventing a market meltdown. ...
... rates during a financial crisis to provide liquidity (flexibility to get out of investments) to U.S. financial markets, thus preventing a market meltdown. ...
Article - The relationship between resource utilisation and inflation
... Continued rise in resource utilisation indicates higher inflation during the forecast period Sweden and many neighbouring countries have had low inflation for a number of years. One important explanation for this is that the recession period has been prolonged.19 At the same time, the fact tha ...
... Continued rise in resource utilisation indicates higher inflation during the forecast period Sweden and many neighbouring countries have had low inflation for a number of years. One important explanation for this is that the recession period has been prolonged.19 At the same time, the fact tha ...
NBER WORKING PAPER SERIES AN ASSESSMENT OF THE NEW MERCHANTILISM
... an endowment economy that faces non-insurable shocks in domestic income. These shocks are non-insurable because asset markets are incomplete, but the economy still has access to a frictionless credit market in which it can borrow or lend at the world’s risk-free interest rate. The model is calibrate ...
... an endowment economy that faces non-insurable shocks in domestic income. These shocks are non-insurable because asset markets are incomplete, but the economy still has access to a frictionless credit market in which it can borrow or lend at the world’s risk-free interest rate. The model is calibrate ...
research paper series Fiscal Incentives, European Integration and
... companies over the period from 1980 to 1996 in seven industries and eight host economies. The industries are chemicals, mechanical engineering, electrical engineering, road vehicles, other manufacturing, distribution and business services, and the host countries are France, Italy, the UK, Belgium, ...
... companies over the period from 1980 to 1996 in seven industries and eight host economies. The industries are chemicals, mechanical engineering, electrical engineering, road vehicles, other manufacturing, distribution and business services, and the host countries are France, Italy, the UK, Belgium, ...
DISCRETIONARY POLICY INTERACTIONS AND THE
... would lead to a contractionary impact on real GDP 2 (see Giavazzi and Pagano, 1990; Giavazzi, Jappelli and Pagano, 2000), or provoke higher long-term interest rates (the so-called “crowding-out effects”).3 In comparison with this overwhelming literature, the FTPL focuses on the interactions between ...
... would lead to a contractionary impact on real GDP 2 (see Giavazzi and Pagano, 1990; Giavazzi, Jappelli and Pagano, 2000), or provoke higher long-term interest rates (the so-called “crowding-out effects”).3 In comparison with this overwhelming literature, the FTPL focuses on the interactions between ...
NBER WORKING PAPER SERIES TOWARDS A THEORY OF CURRENT ACCOUNTS Jaume Ventura
... give the theory the best possible chance to succeed as the industrial country data is less affected by the debt crisis of the 1980s. Unfortunately, the theory reviewed here is not well equipped yet to provide a full account of this important episode. ...
... give the theory the best possible chance to succeed as the industrial country data is less affected by the debt crisis of the 1980s. Unfortunately, the theory reviewed here is not well equipped yet to provide a full account of this important episode. ...
Publisher_Macro_Chapter_09_14e
... Copyright ©2013 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible web site, in whole or in part. ...
... Copyright ©2013 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible web site, in whole or in part. ...
Document
... permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. ...
... permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. ...
Loan supply shocks and the business cycle - ECB
... empirical model which takes into account potentially important changes in the macroeconomy and to provide some empirical evidence for the Euro Area, the United Kingdom and the United States. To account for possibly signi…cant changes in the macroeconomic environment is a potentially very important s ...
... empirical model which takes into account potentially important changes in the macroeconomy and to provide some empirical evidence for the Euro Area, the United Kingdom and the United States. To account for possibly signi…cant changes in the macroeconomic environment is a potentially very important s ...
New Keynesian Model
... Rational Expectations and the New Keynesian Model Long-term labor contracts are one source of rigidity that prevents wages and prices from responding fully to changes in the expected price level (called wage-price stickiness). For example, workers might find themselves at the end of the first year ...
... Rational Expectations and the New Keynesian Model Long-term labor contracts are one source of rigidity that prevents wages and prices from responding fully to changes in the expected price level (called wage-price stickiness). For example, workers might find themselves at the end of the first year ...
Macroeconomic Fluctuations Under Natural Disaster Shocks in
... of US monetary policy in 12 Caribbean countries. Like Hoffmaister et al. (1998), they divided the study into two groups of countries to see the effects of different exchange rate regimes. Their results show that for both groups, domestic supply shocks have important effects in the long run. The rela ...
... of US monetary policy in 12 Caribbean countries. Like Hoffmaister et al. (1998), they divided the study into two groups of countries to see the effects of different exchange rate regimes. Their results show that for both groups, domestic supply shocks have important effects in the long run. The rela ...
ch06
... Expected Inflation • The natural rate of unemployment and expected inflation together determine the position of the Phillips curve – higher expected inflation moves the Phillips curve upward ...
... Expected Inflation • The natural rate of unemployment and expected inflation together determine the position of the Phillips curve – higher expected inflation moves the Phillips curve upward ...
Reassessing Discretionary Fiscal Policy
... of the automatic stabilizers does change over time (see the paper by Alan Auerbach and Daniel Feenberg in this symposium), but countercyclical stabilization is at best a minor consideration when changing the tax law. Hence, it is a realistic assumption to take the automatic stabilizers as given and ...
... of the automatic stabilizers does change over time (see the paper by Alan Auerbach and Daniel Feenberg in this symposium), but countercyclical stabilization is at best a minor consideration when changing the tax law. Hence, it is a realistic assumption to take the automatic stabilizers as given and ...
Why the Federal Reserve Should Adopt Inflation Targeting
... Critics of inflation targeting, most notably Don Kohn (forthcoming), who is member of the Board of Governors of the Federal Reserve, have also worried that inflation targeting may be too rigid because inflation-targeting central banks in advanced economies have often adopted a horizon for their infl ...
... Critics of inflation targeting, most notably Don Kohn (forthcoming), who is member of the Board of Governors of the Federal Reserve, have also worried that inflation targeting may be too rigid because inflation-targeting central banks in advanced economies have often adopted a horizon for their infl ...
dynamic seigniorage theory - University of California, Berkeley
... in very special cases. The behavior predicted by these models generally will not be observed when the government can set policy anew each period at its discretion.4 The model developed in this paper synthesizes elements of the discretionarypolicy and inflation-smoothing approaches in a genuine dynam ...
... in very special cases. The behavior predicted by these models generally will not be observed when the government can set policy anew each period at its discretion.4 The model developed in this paper synthesizes elements of the discretionarypolicy and inflation-smoothing approaches in a genuine dynam ...
Should the European Central Bank and the
... debt. The automatic stabilizers move countercyclically with the GDP gap (denoted by y); the parameter " measures the strength of the stabilizers. Interest payments depend on the size of the debt and the interest rates at which it was contracted. The second component – the structural primary deficit ...
... debt. The automatic stabilizers move countercyclically with the GDP gap (denoted by y); the parameter " measures the strength of the stabilizers. Interest payments depend on the size of the debt and the interest rates at which it was contracted. The second component – the structural primary deficit ...
8the economy at full employment: the classical model
... of labor is the relationship between the quantity of labor supplied and the real wage rate when all other influences on work plans remain the same. ♦ The labor supply curve, LS, slopes upward, as illustrated in Figure 8.2, because higher real wage rates increase the amount of goods and services that ...
... of labor is the relationship between the quantity of labor supplied and the real wage rate when all other influences on work plans remain the same. ♦ The labor supply curve, LS, slopes upward, as illustrated in Figure 8.2, because higher real wage rates increase the amount of goods and services that ...
Dealing with Debt - Scholars at Harvard
... Central to the discussion of economic prospects is the level of debt in major economies. After the severe 2008 global financial crisis and resultant recession in onehalf of the economies of the world, deleveraging in the private sector was modest and balance-sheet expansion in the public sector was ...
... Central to the discussion of economic prospects is the level of debt in major economies. After the severe 2008 global financial crisis and resultant recession in onehalf of the economies of the world, deleveraging in the private sector was modest and balance-sheet expansion in the public sector was ...
M F L
... Appendix-VII gives the total liability of the government for the last 25 years since 1976-77. Aggregate fiscal liabilities have grown over nine times in the last sixteen years from Rs 137,485 crore in 1985-86 to Rs 1238,842 crore in 2000-01, at an average trend rate of around 16 per cent. The rate o ...
... Appendix-VII gives the total liability of the government for the last 25 years since 1976-77. Aggregate fiscal liabilities have grown over nine times in the last sixteen years from Rs 137,485 crore in 1985-86 to Rs 1238,842 crore in 2000-01, at an average trend rate of around 16 per cent. The rate o ...
Measuring the equilibrium real interest rate
... gap at every point in time. However, as we mentioned in the introduction, tracking the equilibrium RIR may not be feasible when the zero bound on nominal interest rates becomes binding. Put another way, sometimes the equilibrium RIR may fall enough that, even with the short-term nominal interest rat ...
... gap at every point in time. However, as we mentioned in the introduction, tracking the equilibrium RIR may not be feasible when the zero bound on nominal interest rates becomes binding. Put another way, sometimes the equilibrium RIR may fall enough that, even with the short-term nominal interest rat ...
May 2007 by Alexander J. Field*
... during which the trend growth rate of TFP was quite different. These conclusions are robust to substituting the pre-1948 unemployment series generated by Weir (1992) for the Lebergott numbers which continue to be used by most researchers. This finding is important in explaining and forecasting short ...
... during which the trend growth rate of TFP was quite different. These conclusions are robust to substituting the pre-1948 unemployment series generated by Weir (1992) for the Lebergott numbers which continue to be used by most researchers. This finding is important in explaining and forecasting short ...