A survey of the effects of discretionary fiscal policy*
... raises output and consumption and deteriorates the trade balance. Our own evidence, though, suggests that the stimulating effect is weaker and the trade balance deterioration is larger for more open economies. Keynesian-type models with imperfections such as for example credit restrictions seem most ...
... raises output and consumption and deteriorates the trade balance. Our own evidence, though, suggests that the stimulating effect is weaker and the trade balance deterioration is larger for more open economies. Keynesian-type models with imperfections such as for example credit restrictions seem most ...
Unit V - KV Institute of Management and Information Studies
... 1983, with th objective of expanding employment opportunities for the rural landless, i.e., to provide guarantee to atleast one member of the landless household for about 100 days in a year. 7)Integrated Rural Development Programme (IRDP): It was launched in 1978-79 and extended all over the country ...
... 1983, with th objective of expanding employment opportunities for the rural landless, i.e., to provide guarantee to atleast one member of the landless household for about 100 days in a year. 7)Integrated Rural Development Programme (IRDP): It was launched in 1978-79 and extended all over the country ...
Strategies for Controlling Inflation
... against activist policy was developed in papers by Kydland and Prescott (1977), Calvo (1978) and Barro and Gordon (1983), and is commonly referred to as the time-inconsistency problem of monetary policy. The time-inconsistency problem stems from the view that economic behaviour is influenced by expe ...
... against activist policy was developed in papers by Kydland and Prescott (1977), Calvo (1978) and Barro and Gordon (1983), and is commonly referred to as the time-inconsistency problem of monetary policy. The time-inconsistency problem stems from the view that economic behaviour is influenced by expe ...
NBER WORKING PAPER SERIES ON THE CONNECTIONS BETWEEN INTERTEMPORAL AND INTRA-TEMPORAL TRADES
... become larger and the speed of adjustment towards the steady state equilibrium will be lower. Third, we present a series of empirical evidence on the connections between the degree of labor market rigidity and current account adjustment patterns that is consistent with our theory. Our approach di¤er ...
... become larger and the speed of adjustment towards the steady state equilibrium will be lower. Third, we present a series of empirical evidence on the connections between the degree of labor market rigidity and current account adjustment patterns that is consistent with our theory. Our approach di¤er ...
Comparative Advantage, Exchange Rate and Exports in China
... the Chinese authorities have undertaken wide-ranging reforms of exchange and trade systems that have steadily reduced the role of planning and increased the importance of market forces which result in a proliferation of foreign trade. During the twenty year period from 1980 to 2000, the volume of to ...
... the Chinese authorities have undertaken wide-ranging reforms of exchange and trade systems that have steadily reduced the role of planning and increased the importance of market forces which result in a proliferation of foreign trade. During the twenty year period from 1980 to 2000, the volume of to ...
What Explains the Great Recession and the Slow Recovery?
... I find that the Great Recession originated in a decline in the marginal efficiency of investment. This decline started in the second half of 2007 and worsened in the third quarter of 2008, after the bankruptcy of important financial institutions. The U.S. economy encountered the ZLB as monetary poli ...
... I find that the Great Recession originated in a decline in the marginal efficiency of investment. This decline started in the second half of 2007 and worsened in the third quarter of 2008, after the bankruptcy of important financial institutions. The U.S. economy encountered the ZLB as monetary poli ...
The European Union, the Euro, and Equity Market Integration
... model-free, only requiring valuation ratios and therefore avoiding the joint hypothesis problem plaguing extant studies using equity return data. Valuation ratios also are much less volatile than equity returns allowing more powerful statistical tests. Our actual measurement focuses on the earnings ...
... model-free, only requiring valuation ratios and therefore avoiding the joint hypothesis problem plaguing extant studies using equity return data. Valuation ratios also are much less volatile than equity returns allowing more powerful statistical tests. Our actual measurement focuses on the earnings ...
! Optimal International Reserves Behavior for Turkey K. Azim Özdemir
... We can approach this analysis by describing under what conditions it is sensible to establish a link between the level of international reserves and the existence of an optimal level for this variable. The first condition is that there should be some benefits for holding international reserves. The ...
... We can approach this analysis by describing under what conditions it is sensible to establish a link between the level of international reserves and the existence of an optimal level for this variable. The first condition is that there should be some benefits for holding international reserves. The ...
somel on surplus
... income to save is vulnerable to the consumer culture that incites people to follow consumption fashions and to acquire status symbols. Moreover, with currency convertibility, not just ‘traditional’ groups, but all those who have savings—large or small—participate in speculating against their nationa ...
... income to save is vulnerable to the consumer culture that incites people to follow consumption fashions and to acquire status symbols. Moreover, with currency convertibility, not just ‘traditional’ groups, but all those who have savings—large or small—participate in speculating against their nationa ...
LCcarL173_en.pdf
... countries change. Within the seven MDCs, Barbados, Belize, Guyana and Jamaica recorded persistent fiscal deficits. On the contrary, Trinidad and Tobago shows recurrent fiscal surpluses, whereas Suriname has continued to improve its fiscal position during the last years. In the case of the ECCU count ...
... countries change. Within the seven MDCs, Barbados, Belize, Guyana and Jamaica recorded persistent fiscal deficits. On the contrary, Trinidad and Tobago shows recurrent fiscal surpluses, whereas Suriname has continued to improve its fiscal position during the last years. In the case of the ECCU count ...
Nudging the Fed Toward a Rules-Based Policy
... caused the German hyperinflation, because interest rates were not low. Modern economists might be inclined to smile at this example of “old Keynesian” thinking, perhaps recalling the more than billionfold increase in the German monetary base between 1920 and 1923, when currency was being printed at ...
... caused the German hyperinflation, because interest rates were not low. Modern economists might be inclined to smile at this example of “old Keynesian” thinking, perhaps recalling the more than billionfold increase in the German monetary base between 1920 and 1923, when currency was being printed at ...
-1- June 2004 THE MACROFOUNDATION OF MONETARY POWER
... Not all imbalances need to be eliminated, of course. Standard economic theory teaches that many current-account imbalances are simply the result of what may be regarded as a kind of rational intertemporal trade – deficit countries borrowing resources from the rest of the world for productive investm ...
... Not all imbalances need to be eliminated, of course. Standard economic theory teaches that many current-account imbalances are simply the result of what may be regarded as a kind of rational intertemporal trade – deficit countries borrowing resources from the rest of the world for productive investm ...
When is the Government Spending Multiplier Large?
... number of periods. Once again, we nd that the government spending multiplier is larger when the zero bound is binding. Allowing for capital accumulation has two e!ects. First, for a given size shock it reduces the likelihood that the zero bound becomes binding. Second, when the zero bound binds, t ...
... number of periods. Once again, we nd that the government spending multiplier is larger when the zero bound is binding. Allowing for capital accumulation has two e!ects. First, for a given size shock it reduces the likelihood that the zero bound becomes binding. Second, when the zero bound binds, t ...
What Is Monetary Policy?
... The Monetary Policy Goals of the Fed Monetary policy The actions the Federal Reserve takes to manipulate the money supply or the interest rate to pursue macroeconomic objectives. The Fed has four monetary policy goals that are intended to promote a well-functioning economy: ...
... The Monetary Policy Goals of the Fed Monetary policy The actions the Federal Reserve takes to manipulate the money supply or the interest rate to pursue macroeconomic objectives. The Fed has four monetary policy goals that are intended to promote a well-functioning economy: ...
The Case for a Long-Run Inflation Target of Four Percent
... term interest rate: when a recession occurs and unemployment rises, policymakers cut the interest rate to boost aggregate demand. In the United States, the Federal Reserve has cut the federal funds rate substantially in every recession since World War II (Romer and Romer, 1994). These actions spurr ...
... term interest rate: when a recession occurs and unemployment rises, policymakers cut the interest rate to boost aggregate demand. In the United States, the Federal Reserve has cut the federal funds rate substantially in every recession since World War II (Romer and Romer, 1994). These actions spurr ...
Macroprudential Policies in a Global Perspective Olivier Jeanne
... a recent contribution, Korinek (2012) shows in a model similar to the one presented here that international cooperation is not justified if small countries use prudential capital controls to redress domestic externalities. In another, Bengui (2012) studies the scope for international coordination in ...
... a recent contribution, Korinek (2012) shows in a model similar to the one presented here that international cooperation is not justified if small countries use prudential capital controls to redress domestic externalities. In another, Bengui (2012) studies the scope for international coordination in ...
No. 278 Distortionary Fiscal Policy and Monetary Policy Goals
... the resource constraint. Then, the Ramsey plan is implemented even if the …scal policy maker lacks the ability to commit to future policies. The whole mechanism breaks when the central bank moves at the same time as the …scal authority, since the nominal interest rate cannot be contingent on public ...
... the resource constraint. Then, the Ramsey plan is implemented even if the …scal policy maker lacks the ability to commit to future policies. The whole mechanism breaks when the central bank moves at the same time as the …scal authority, since the nominal interest rate cannot be contingent on public ...
The Macroeconomics of Scaling Up Aid
... effectively. A key question at the core of the literature on aid effectiveness is therefore how to ensure that aid is effectively used, considering the ample empirical evidence showing a weak link between aid and growth (see Burnside and Dollar, 2000, 2004; Rajan and Subramanian, 2005). Two issues a ...
... effectively. A key question at the core of the literature on aid effectiveness is therefore how to ensure that aid is effectively used, considering the ample empirical evidence showing a weak link between aid and growth (see Burnside and Dollar, 2000, 2004; Rajan and Subramanian, 2005). Two issues a ...
NBER WORKING PAPER SERIES INFLATION REPORTS Eric M. Leeper
... description than an economic one. Then the staff can explain how their judgments shift the forecast away from the benchmark. Indeed, this explanation would be a central theme of the staff’s briefings of the Executive Board. It would be interesting also to produce forecasts from the benchmark model ...
... description than an economic one. Then the staff can explain how their judgments shift the forecast away from the benchmark. Indeed, this explanation would be a central theme of the staff’s briefings of the Executive Board. It would be interesting also to produce forecasts from the benchmark model ...
The Effects of Macroeconomic Aggregates on Fertility Decisions
... short run. The urbanization rate is the most robust non-macroeconomic factor in shaping fertility decisions; above-trend urbanization rate is associated with below-trend TFR and BR in all specifications considered. Short run fluctuations in female life expectancy have also been found to be importan ...
... short run. The urbanization rate is the most robust non-macroeconomic factor in shaping fertility decisions; above-trend urbanization rate is associated with below-trend TFR and BR in all specifications considered. Short run fluctuations in female life expectancy have also been found to be importan ...
Sense and Nonsense About Deflation
... general level of prices. This is an aspect of the recent discussion over the potential for deflation worldwide that tends to be lost in the debate. For at least three decades following the end of World War II, the main preoccupation of governments was to exploit the trade-off between inflation and u ...
... general level of prices. This is an aspect of the recent discussion over the potential for deflation worldwide that tends to be lost in the debate. For at least three decades following the end of World War II, the main preoccupation of governments was to exploit the trade-off between inflation and u ...
free sample here
... change, so do the prices of exports and imports. Countries whose exchange rates are depreciating will find their exports becoming more price competitive and their imports relatively more expensive. If a seller of products or services expects payment for exports in any denomination other than their h ...
... change, so do the prices of exports and imports. Countries whose exchange rates are depreciating will find their exports becoming more price competitive and their imports relatively more expensive. If a seller of products or services expects payment for exports in any denomination other than their h ...
A Classical View of the Business Cycle
... The New Keynesian model used for much of modern business cycle analysis consists, at its core, of three equations: forward-looking Phillips and IS Curves, together with an interest rate rule for monetary policy. A central element of this model is some form of administrative cost or information rigid ...
... The New Keynesian model used for much of modern business cycle analysis consists, at its core, of three equations: forward-looking Phillips and IS Curves, together with an interest rate rule for monetary policy. A central element of this model is some form of administrative cost or information rigid ...