Economics_paper_2__HL_markscheme
... - if net exports rise, this will result in an increase in AD and economic growth - the falling exchange rate and increasing inflation may cause the government to raise interest rates (paragraph ) leading to a contraction of the economy - it may encourage greater FDI (if the rupee remains low) as co ...
... - if net exports rise, this will result in an increase in AD and economic growth - the falling exchange rate and increasing inflation may cause the government to raise interest rates (paragraph ) leading to a contraction of the economy - it may encourage greater FDI (if the rupee remains low) as co ...
Henrike Michaelis und Sebastian Watzka: Are there Differences in
... explicitly with the ZLB for Japan and investigate the monetary policy transmission during these periods. Fujiwara (2006) uses a Markov switching VAR model for the period of 1985 to 2004 to investigate whether there are structural breaks in the impact of monetary policy due to the introduction of the ...
... explicitly with the ZLB for Japan and investigate the monetary policy transmission during these periods. Fujiwara (2006) uses a Markov switching VAR model for the period of 1985 to 2004 to investigate whether there are structural breaks in the impact of monetary policy due to the introduction of the ...
NBER WORKING PAPER SERIES Christopher J. Erceg Christopher Gust
... markups in the spirit of Dornbusch. We find that these mechanisms can amplify differences in the response of domestic inflation as the degree of openness varies. For example, domestic inflation falls by less in response to a positive technology shock in a highly open economy, reflecting that the ass ...
... markups in the spirit of Dornbusch. We find that these mechanisms can amplify differences in the response of domestic inflation as the degree of openness varies. For example, domestic inflation falls by less in response to a positive technology shock in a highly open economy, reflecting that the ass ...
Ch 11
... to the right because of the Pigou effect: real money balances are part of household wealth, so an increase in real money balances makes consumers feel wealthier and buy more. This shifts the IS curve to the right, also increasing income. There are two ways in which falling prices can reduce income. ...
... to the right because of the Pigou effect: real money balances are part of household wealth, so an increase in real money balances makes consumers feel wealthier and buy more. This shifts the IS curve to the right, also increasing income. There are two ways in which falling prices can reduce income. ...
International Poverty Comparisons
... currencies? The answer is that tradable goods (for example, TVs, basmati rice) have similar prices everywhere—allowing for transport costs, of course. This is not true of nontradable goods. For instance, a simple haircut in Hanoi (Vietnam) costs $0.33, while in Boston (USA) it costs $12. Despite thi ...
... currencies? The answer is that tradable goods (for example, TVs, basmati rice) have similar prices everywhere—allowing for transport costs, of course. This is not true of nontradable goods. For instance, a simple haircut in Hanoi (Vietnam) costs $0.33, while in Boston (USA) it costs $12. Despite thi ...
NBER WORKING PAPER SERIES STICKY INFORMATION: N. Gregory Mankiw
... show that disinflations and productivity slowdowns have parallel effects: both cause employment and output to fall below their classical levels until the information about the new regime works its way through the economy. Thus, the model may help explain why unemployment rose during the productivity ...
... show that disinflations and productivity slowdowns have parallel effects: both cause employment and output to fall below their classical levels until the information about the new regime works its way through the economy. Thus, the model may help explain why unemployment rose during the productivity ...
Franz Seitz - OTH Amberg
... (Bernanke 1993). The reactions are due either to negative effects of a restrictive monetary policy on the net worth or goodwill of business firms (balance sheet channel) or the reliance on bank loans and the lack of alternative financial resources, especially for small firms and households (bank len ...
... (Bernanke 1993). The reactions are due either to negative effects of a restrictive monetary policy on the net worth or goodwill of business firms (balance sheet channel) or the reliance on bank loans and the lack of alternative financial resources, especially for small firms and households (bank len ...
MEASURING PRODUCTION AND INCOME, Chapter 2
... investment. Monetary policy: A higher money supply decreases the interest rate and thereby private investment, aggregate demand and output. 9.1.2B. The small open economy with its own currency. The interest rate is fixed but the exchange rate is flexible. Main lesson: Fiscal policy is less effectiv ...
... investment. Monetary policy: A higher money supply decreases the interest rate and thereby private investment, aggregate demand and output. 9.1.2B. The small open economy with its own currency. The interest rate is fixed but the exchange rate is flexible. Main lesson: Fiscal policy is less effectiv ...
Stabilization Policy, Output, and Employment (15th ed.)
... • A Phillips curve indicates the relationship between the rates of inflation and unemployment. • In the 1960s, most economists thought that there was a trade-off between inflation and unemployment – that a lower rate of unemployment could be achieved if we were willing to tolerate a little more infl ...
... • A Phillips curve indicates the relationship between the rates of inflation and unemployment. • In the 1960s, most economists thought that there was a trade-off between inflation and unemployment – that a lower rate of unemployment could be achieved if we were willing to tolerate a little more infl ...
Business Cycles in EU Member States
... 92 hits the Finnish economy most, but leaves Denmark and Luxembourg nearly unaffected. Therefore, Figure 1 suggests that business cycles in Europe are much alike in the timing, but considerable differences exist to the extend single economies are hit by ...
... 92 hits the Finnish economy most, but leaves Denmark and Luxembourg nearly unaffected. Therefore, Figure 1 suggests that business cycles in Europe are much alike in the timing, but considerable differences exist to the extend single economies are hit by ...
NBER WORKING PAPER SERIES OPTIMAL OPERATIONAL MONETARY POLICY IN THE CHRISTIANO-EICHENBAUM-EVANS MODEL
... consumption, labor productivity, and real profits to productivity and monetary shocks in the postwar United States. In this respect, the present paper aspires to be a step ahead in the research program of generating monetary policy evaluation that is of relevance for the actual practice of central b ...
... consumption, labor productivity, and real profits to productivity and monetary shocks in the postwar United States. In this respect, the present paper aspires to be a step ahead in the research program of generating monetary policy evaluation that is of relevance for the actual practice of central b ...
Paper - Queen`s Economics Department
... with only twenty annual observations. We omit lags, first to conserve degrees of freedom and second because a dynamic panel-data model with country-specific fixed effects would require further instruments for consistency, which again may be challenging. A third reason is that there are generally some mi ...
... with only twenty annual observations. We omit lags, first to conserve degrees of freedom and second because a dynamic panel-data model with country-specific fixed effects would require further instruments for consistency, which again may be challenging. A third reason is that there are generally some mi ...
The East Asian Miracle: Four Lessons for Development Policy
... a part of the East Asian success story-since such economic laggards as the countries of the former Soviet Union and Eastern Europe have accumulated resources at equally impressive rates with radically different results.8 the importance of Mystics, on the other hand, while acknowledging accumulation, ...
... a part of the East Asian success story-since such economic laggards as the countries of the former Soviet Union and Eastern Europe have accumulated resources at equally impressive rates with radically different results.8 the importance of Mystics, on the other hand, while acknowledging accumulation, ...
12 INFLATION
... which there are no coins in circulation at all (examples include Ghana, Indonesia, and Vietnam); ask students why rapid inflation countries often have no coins. Demand-Pull Inflation The potential difficulty with both demand-pull and cost-push inflation stories is how the one-time increase translate ...
... which there are no coins in circulation at all (examples include Ghana, Indonesia, and Vietnam); ask students why rapid inflation countries often have no coins. Demand-Pull Inflation The potential difficulty with both demand-pull and cost-push inflation stories is how the one-time increase translate ...
Advanced Macroeconomics 4. The Zero Lower Bound
... The public’s awareness that the central bank will clamp down on inflation if the economy picks up then prevents there being a sufficient increase in inflation rates to get the economy out of the liquidity trap. Krugman thus stresses the need for central banks facing a liquidity trap to “‘commit to b ...
... The public’s awareness that the central bank will clamp down on inflation if the economy picks up then prevents there being a sufficient increase in inflation rates to get the economy out of the liquidity trap. Krugman thus stresses the need for central banks facing a liquidity trap to “‘commit to b ...
A Primer on Inflation
... or television sets, or the likes of long-distance travel. From the perspective of the Austrian School deflation is an increase in money's quality and a decrease in its quantity. It implies a partial realignment of relative prices, which have been distorted during the boom phase. Professor Jörg Guido ...
... or television sets, or the likes of long-distance travel. From the perspective of the Austrian School deflation is an increase in money's quality and a decrease in its quantity. It implies a partial realignment of relative prices, which have been distorted during the boom phase. Professor Jörg Guido ...
Empirical Analysis of Policy Interventions
... that many interventions the Federal Reserve actually considers fall within the prevailing regime. We also compute an ex-post version of the metric, which reports whether the choices actually taken affected macro variables in ways that are consistent with historical effects. We illustrate the approac ...
... that many interventions the Federal Reserve actually considers fall within the prevailing regime. We also compute an ex-post version of the metric, which reports whether the choices actually taken affected macro variables in ways that are consistent with historical effects. We illustrate the approac ...
3 estimation of the impact of single monetary policy on - Hal-SHS
... January 1st, 1999 is now a key date in modern history. Indeed, it points the transition to the third phase of the Maastricht’s Treaty signed in 1992: founding of the Economic and Monetary Union and creation of a single currency, the Euro, within this zone. The change from national monetary policies ...
... January 1st, 1999 is now a key date in modern history. Indeed, it points the transition to the third phase of the Maastricht’s Treaty signed in 1992: founding of the Economic and Monetary Union and creation of a single currency, the Euro, within this zone. The change from national monetary policies ...
NBER WORKING PAPER SERIES EMPIRICAL ANALYSIS OF POLICY INTERVENTIONS Eric M. Leeper
... that many interventions the Federal Reserve actually considers fall within the prevailing regime. We also compute an ex-post version of the metric, which reports whether the choices actually taken affected macro variables in ways that are consistent with historical effects. We illustrate the approac ...
... that many interventions the Federal Reserve actually considers fall within the prevailing regime. We also compute an ex-post version of the metric, which reports whether the choices actually taken affected macro variables in ways that are consistent with historical effects. We illustrate the approac ...
Interest rates and fiscal sustainability
... government must offer incentive to encourage private lenders to accept its IOUs in exchange for their saving or as a premium against the risk of default or—again, worse still—the possibility of future monetization to “repay” the deficits. The only caveat considered, of course, has been that “approp ...
... government must offer incentive to encourage private lenders to accept its IOUs in exchange for their saving or as a premium against the risk of default or—again, worse still—the possibility of future monetization to “repay” the deficits. The only caveat considered, of course, has been that “approp ...
Exam Name___________________________________ 1
... 7) Economic theory argues that there will be fewer real effects from inflation as long as the A) actual rate of inflation is less than 5 percent. B) inflation is fully anticipated and no one changes their behaviour. C) whole private sector is unaware that it is happening. D) anticipated rate of inf ...
... 7) Economic theory argues that there will be fewer real effects from inflation as long as the A) actual rate of inflation is less than 5 percent. B) inflation is fully anticipated and no one changes their behaviour. C) whole private sector is unaware that it is happening. D) anticipated rate of inf ...
$doc.title
... The advent of Bayesian techniques for estimating DSGE models offered the Reserve Bank the opportunity to move from a calibrated model to a model more strongly, and more formally, informed by the data. Computational power and estimation algorithms had also improved to the point that small- and medium ...
... The advent of Bayesian techniques for estimating DSGE models offered the Reserve Bank the opportunity to move from a calibrated model to a model more strongly, and more formally, informed by the data. Computational power and estimation algorithms had also improved to the point that small- and medium ...
600 - freit
... shocks. They tackled, in fact, true issue related to some relationships between these shocks, on the one side, and financial integration process that are implemented by emerging and developing countries, on the other side. Their main focus is to consider that bank failures are in the center of rece ...
... shocks. They tackled, in fact, true issue related to some relationships between these shocks, on the one side, and financial integration process that are implemented by emerging and developing countries, on the other side. Their main focus is to consider that bank failures are in the center of rece ...
NBER WORKING PAPER SERIES CAN CENTRAL BANK TRANSPARENCY GO TOO FAR?
... the inflation target is unable to send immediate signals to both the public and the markets as to whether the current stance of money is appropriate. Because as equation 5 and 6 illustrate, optimal monetary policy involves “inflation forecast targeting”, publication of forecasts provides immediate ...
... the inflation target is unable to send immediate signals to both the public and the markets as to whether the current stance of money is appropriate. Because as equation 5 and 6 illustrate, optimal monetary policy involves “inflation forecast targeting”, publication of forecasts provides immediate ...
Understanding the Great Recession ! Lawrence J. Christiano Martin S. Eichenbaum
... reduction in consumption as a trigger for a zero lower bound (ZLB) episode (see Eggertsson and Woodford (2003), Eggertsson and Krugman (2012) and Guerrieri and Lorenzoni (2012)). The third shock in our analysis is a neutral technology shock that captures the observed decline, relative to trend, in ...
... reduction in consumption as a trigger for a zero lower bound (ZLB) episode (see Eggertsson and Woodford (2003), Eggertsson and Krugman (2012) and Guerrieri and Lorenzoni (2012)). The third shock in our analysis is a neutral technology shock that captures the observed decline, relative to trend, in ...