Inflation Scares and Forecast-Based Monetary Policy
... of forecasts. Information regarding inflation expectations derived from comparisons of prices on inflationindexed and nominal government securities is also regularly presented by several central banks, including the European Central Bank, Reserve Bank of Australia, and Sveriges Riksbank. Such inform ...
... of forecasts. Information regarding inflation expectations derived from comparisons of prices on inflationindexed and nominal government securities is also regularly presented by several central banks, including the European Central Bank, Reserve Bank of Australia, and Sveriges Riksbank. Such inform ...
Monetary Theories(Basics) We have already learned that the LM
... the central bank's account with the commercial banks), and so forth. However, we will just focus on the OMO. The government has a printing machine with which to print money. Under the current fiat money system where no paper money is convertible into gold, silver, or any commodities, there is virtua ...
... the central bank's account with the commercial banks), and so forth. However, we will just focus on the OMO. The government has a printing machine with which to print money. Under the current fiat money system where no paper money is convertible into gold, silver, or any commodities, there is virtua ...
An Empirical Assessment of Optimal Monetary Policy Delegation in
... contributions of ‘good luck’and ‘good policy’to that moderation. While both elements can half the volatility of in‡ation, the major welfare improvement comes from the reduction in shock volatility since this reduces output volatilities in a way that greater conservatism does not. Secondly, we assess ...
... contributions of ‘good luck’and ‘good policy’to that moderation. While both elements can half the volatility of in‡ation, the major welfare improvement comes from the reduction in shock volatility since this reduces output volatilities in a way that greater conservatism does not. Secondly, we assess ...
ABSTRACT Title of dissertation: ESSAYS ON FISCAL POLICY IN DEVELOPING COUNTRIES
... of real GDP between the years 1970 and 2003, against PPP GDP per capita in 1970. Cyclical components are measured as deviations from trend, using a HodrickPrescott (HP) …lter. The negative correlation between the degree of procyclicality and income per capita is apparent and is statistically signi…c ...
... of real GDP between the years 1970 and 2003, against PPP GDP per capita in 1970. Cyclical components are measured as deviations from trend, using a HodrickPrescott (HP) …lter. The negative correlation between the degree of procyclicality and income per capita is apparent and is statistically signi…c ...
146s10_l18.pdf
... Prevented flows of gold reserves (the balance of payments) from becoming too positive or too negative Prices tended to adjust according the amount of gold circulating in an economy Hume: Price specie flow mechanism is the adjustment of prices as gold (specie) flows into or out of a country Caused pr ...
... Prevented flows of gold reserves (the balance of payments) from becoming too positive or too negative Prices tended to adjust according the amount of gold circulating in an economy Hume: Price specie flow mechanism is the adjustment of prices as gold (specie) flows into or out of a country Caused pr ...
Ill. ii - Informetrica Limited
... unemployment rate are less clear-cut. Low unemployment rates imply higher output, lower social welfare costs and a happier and more satisified population. However, low unemployment rates can also imply over capacity utilization, tight labour and factor markets and inflation. As recent history has ma ...
... unemployment rate are less clear-cut. Low unemployment rates imply higher output, lower social welfare costs and a happier and more satisified population. However, low unemployment rates can also imply over capacity utilization, tight labour and factor markets and inflation. As recent history has ma ...
NBER WORKING PAPER SERIES AN ALTERNATIVE INTERPRETATION
... In the second step, we combine the empirical distribution of our parameter estimates of the Taylor rule with a calibrated standard New Keynesian model and different estimates of trend inflation to infer the likelihood that the US economy was in a determinate equilibrium each period. We find that des ...
... In the second step, we combine the empirical distribution of our parameter estimates of the Taylor rule with a calibrated standard New Keynesian model and different estimates of trend inflation to infer the likelihood that the US economy was in a determinate equilibrium each period. We find that des ...
The effects of fiscal policy on the conduct and transmission
... and channels of monetary policy transmission. Sargent and Wallace (1981) first pointed out that, in a so-called “fiscal dominant” regime, where the fiscal authority sets its budget ...
... and channels of monetary policy transmission. Sargent and Wallace (1981) first pointed out that, in a so-called “fiscal dominant” regime, where the fiscal authority sets its budget ...
Inflation Targeting with a backward Bending Phillips Curve
... Analytically, the key feature of Tobin’s neo-Keynesian Phillips curve is that the coefficient of inflation expectations in equation (3.1) is less than unity (λ < 1). That means incorporation of inflation expectations into nominal wage-setting is less than complete, and it is this rather than the for ...
... Analytically, the key feature of Tobin’s neo-Keynesian Phillips curve is that the coefficient of inflation expectations in equation (3.1) is less than unity (λ < 1). That means incorporation of inflation expectations into nominal wage-setting is less than complete, and it is this rather than the for ...
Understanding Inflation and the Implications for
... Both before and after the September 2008 watershed, economists would have liked to have had a clearer understanding of the determinants of inflation. If the economy remained weak and the degree of resource slack rose, how much disinflationary pressure would be exerted, if any? In other words, to wha ...
... Both before and after the September 2008 watershed, economists would have liked to have had a clearer understanding of the determinants of inflation. If the economy remained weak and the degree of resource slack rose, how much disinflationary pressure would be exerted, if any? In other words, to wha ...
The Macroeconomic Implications of Credit Rating Shocks in
... Many works belong to the former. Reisen and Maltzan (1999), with sovereign credit rating data from Standard & Poor’s, Moody’s and Fitch Ratings, perform an event study for the period that goes from 1989 to 1997. By exploring the market response for 30 trading days before and after rating announcemen ...
... Many works belong to the former. Reisen and Maltzan (1999), with sovereign credit rating data from Standard & Poor’s, Moody’s and Fitch Ratings, perform an event study for the period that goes from 1989 to 1997. By exploring the market response for 30 trading days before and after rating announcemen ...
Marco Cangiano , E. Baldacci , S. Mahfouz , andAxel Schimmelpfenning The Effectiveness of Fiscal Policy in Stimulating Economic Activity: An Empirical Investigation (Second IMF Research Conference)..
... theory suggests that fiscal multipliers are more likely to be positive and large when economies are relatively closed, there is considerable slack in productive capacity, government debt is low, fiscal expansion focuses on spending, and there is an accompanying monetary expansion. Fiscal multipliers ...
... theory suggests that fiscal multipliers are more likely to be positive and large when economies are relatively closed, there is considerable slack in productive capacity, government debt is low, fiscal expansion focuses on spending, and there is an accompanying monetary expansion. Fiscal multipliers ...
UK inflation in the 1970s and 1980s: the role of
... Rather, the problem was that official measures of the output gap were only belatedly revised in response to the slowing in US productivity growth that began in the late 1960s.(2) Consequently, ‘real-time’ measures of the output gap in the 1970s appeared to support the view that output was well below ...
... Rather, the problem was that official measures of the output gap were only belatedly revised in response to the slowing in US productivity growth that began in the late 1960s.(2) Consequently, ‘real-time’ measures of the output gap in the 1970s appeared to support the view that output was well below ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... For the United States, we do not find it useful to categorize the 1960s as part of the same inflation epoch as that of the 1970s. To do so is to gloss over the very significant segment of US policymaking in 1969 to 1970, in which both policy decisions and the principles guiding them were largely mod ...
... For the United States, we do not find it useful to categorize the 1960s as part of the same inflation epoch as that of the 1970s. To do so is to gloss over the very significant segment of US policymaking in 1969 to 1970, in which both policy decisions and the principles guiding them were largely mod ...
KSA - KSU Faculty Member websites
... attributable to monies transferred outside the official channels and hence not recorded or included in the values of worker remittances used in this study. These non-officials transfers are specially important in the case of labor sending countries where black markets in currencies predominate. In t ...
... attributable to monies transferred outside the official channels and hence not recorded or included in the values of worker remittances used in this study. These non-officials transfers are specially important in the case of labor sending countries where black markets in currencies predominate. In t ...
Sample Chapter 28
... INFLATION, THE FED, AND THE AD CURVE One of the primary responsibilities of the Fed, or any central bank, is to maintain a low and stable rate of inflation. For example, in recent years, the Fed has tried to keep inflation in the United States in the range of 2 to 3 percent. By keeping inflation low ...
... INFLATION, THE FED, AND THE AD CURVE One of the primary responsibilities of the Fed, or any central bank, is to maintain a low and stable rate of inflation. For example, in recent years, the Fed has tried to keep inflation in the United States in the range of 2 to 3 percent. By keeping inflation low ...
Is discretionary fiscal policy a mitigating mechanism that coun
... structure in order to counteract booms and bust, if the countries do not share the same position in the cycle the instrument can create an opposite effect. Country-specific disparities in real and financial economic variables involve a risk, not only to the single country but also for the whole unio ...
... structure in order to counteract booms and bust, if the countries do not share the same position in the cycle the instrument can create an opposite effect. Country-specific disparities in real and financial economic variables involve a risk, not only to the single country but also for the whole unio ...
The Contributions of Milton Friedman to Economics
... to that consensus. In order to place his ideas in perspective, this section provides some background on prevailing views in the 1950s and 1960s. The Depression had created a near-consensus that the price system had failed and that it had failed because of the displacement of competitive markets with ...
... to that consensus. In order to place his ideas in perspective, this section provides some background on prevailing views in the 1950s and 1960s. The Depression had created a near-consensus that the price system had failed and that it had failed because of the displacement of competitive markets with ...
Government Spending Multipliers under the Zero
... estimates the effects of government spending shocks on the economy. For example, Blanchard and Perotti (2002), Ramey (2011b) and Barro and Redlick (2011), Fisher and Peters (2010) and many other papers identify the multipliers for the U.S. using different identification schemes such as the instituti ...
... estimates the effects of government spending shocks on the economy. For example, Blanchard and Perotti (2002), Ramey (2011b) and Barro and Redlick (2011), Fisher and Peters (2010) and many other papers identify the multipliers for the U.S. using different identification schemes such as the instituti ...
Fiscal Rules, Discretionary Fiscal Policy and Macroeconomic
... support this view: First, to prevent governments from running excessive deficits and from ...
... support this view: First, to prevent governments from running excessive deficits and from ...
CORE 2608 Economic Environment of Business
... what suppliers to use for raw materials, equipment, etc. In each case, weighing the alternatives can be less onerous for a manager aware of the types of influences that cannot be avoided in business decision-making. Then, having acquired knowledge of these external factors, how do firms decide on pr ...
... what suppliers to use for raw materials, equipment, etc. In each case, weighing the alternatives can be less onerous for a manager aware of the types of influences that cannot be avoided in business decision-making. Then, having acquired knowledge of these external factors, how do firms decide on pr ...
NBER WORKING PAPER SERIES THE PHILLIPS CURVE IS BACK? USING
... is well within the range of more recent estimates (see the symposium in the Journal of Economic Perspectives (especially Gordon (1997) and Staiger, Stock and Watson (1997)). Over the entire sample period, the point estimate is -0.82. The intellectual history of the Phillips curve is familiar to most ...
... is well within the range of more recent estimates (see the symposium in the Journal of Economic Perspectives (especially Gordon (1997) and Staiger, Stock and Watson (1997)). Over the entire sample period, the point estimate is -0.82. The intellectual history of the Phillips curve is familiar to most ...
Sharing a Ride on the Commodities Roller Coaster
... traded in international markets. These swings have been observed across distinct types of commodities, from agricultural products to fuels and metals. What have been the macroeconomic consequences of these swings for small emerging market economies (EMEs) that export these goods? EMEs, often portray ...
... traded in international markets. These swings have been observed across distinct types of commodities, from agricultural products to fuels and metals. What have been the macroeconomic consequences of these swings for small emerging market economies (EMEs) that export these goods? EMEs, often portray ...
Standing in the way of development?
... centre-stage in political debates about the role of the state, including in the regulation of finance for the public good. Long out of fashion, “Keynesian” approaches such as deficitfinancing, loose monetary policies and countercyclical fiscal stimuli have been embraced once again, as policy-makers ...
... centre-stage in political debates about the role of the state, including in the regulation of finance for the public good. Long out of fashion, “Keynesian” approaches such as deficitfinancing, loose monetary policies and countercyclical fiscal stimuli have been embraced once again, as policy-makers ...
International Doctorate in Economic Analysis Departament d’Economia i d’Història Econòmica
... accelerator for fiscal shocks; it speeds up reductions in spreads and economic recovery during recessions, while it implies only modest effects on spreads and output during normal times. However, the theoretical literature discussed above has so far neglected a critical aspect: the increasing role o ...
... accelerator for fiscal shocks; it speeds up reductions in spreads and economic recovery during recessions, while it implies only modest effects on spreads and output during normal times. However, the theoretical literature discussed above has so far neglected a critical aspect: the increasing role o ...