NBER WORKING PAPER SERIES PRODUCTIVITY, EXTERNAL BALANCE AND
... the international relative price of domestic tradables (i.e. it should worsen the country’s terms of trade) and raise the relative price of domestic nontradables — as predicted by to the Harrod-Balassa-Samuelson (henceforth HBS) hypothesis. A host of theoretical and quantitative models built by acad ...
... the international relative price of domestic tradables (i.e. it should worsen the country’s terms of trade) and raise the relative price of domestic nontradables — as predicted by to the Harrod-Balassa-Samuelson (henceforth HBS) hypothesis. A host of theoretical and quantitative models built by acad ...
Re-Targeting the Fed
... In other words, the economic crisis not only overwhelmed the Fed’s inflation-targeting methods, but showed them to be deeply inadequate. Given the consequences of that failure, America’s policymakers now need to ask: Could the Fed have done better? It could have, had it set its sights not on inflati ...
... In other words, the economic crisis not only overwhelmed the Fed’s inflation-targeting methods, but showed them to be deeply inadequate. Given the consequences of that failure, America’s policymakers now need to ask: Could the Fed have done better? It could have, had it set its sights not on inflati ...
PAPER SERIES CURRENT MID ANTICIPATED DEFICITS, INTEREST RATES AND ECONOMIC ACTIVITY
... some validity, and more generally to reexamine the relation between debt, deficits, interest rates and economic activity. The first issue taken up in the paper is that of sustainability. Is it the case that some countries are running unsustainable deficits and may be forced, at some time in the futu ...
... some validity, and more generally to reexamine the relation between debt, deficits, interest rates and economic activity. The first issue taken up in the paper is that of sustainability. Is it the case that some countries are running unsustainable deficits and may be forced, at some time in the futu ...
Optimal Monetary Policy in a Currency Union: Implications of a
... optimal policy plan requires that union in‡ation is stabilized by the single central bank, whereas …scal policy, implemented at the country-level, should stabilize idiosyncratic shocks. Ferrero (2009) moves one step further by introducing a government budget constraint. He shows that a balanced budg ...
... optimal policy plan requires that union in‡ation is stabilized by the single central bank, whereas …scal policy, implemented at the country-level, should stabilize idiosyncratic shocks. Ferrero (2009) moves one step further by introducing a government budget constraint. He shows that a balanced budg ...
Document
... 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 ...
NBER WORKING PAPER SERIES THE "AUSTERITY MYTH": GAIN WITHOUT PAIN? Roberto Perotti
... typical features of an exchange rate based stabilization: inflation and interest rates fell fast, domestic demand initially boomed; but as competitiveness slowly worsened, the current account started worsening, and eventually growth ground to a halt and consumption declin ...
... typical features of an exchange rate based stabilization: inflation and interest rates fell fast, domestic demand initially boomed; but as competitiveness slowly worsened, the current account started worsening, and eventually growth ground to a halt and consumption declin ...
Inflation and Unemployment: The Phillips Curve
... 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 ...
Inflation and Unemployment: The Phillips Curve
... 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 ...
Evolving post-World War II UK economic
... post-WWII era. Empirical evidence suggests that over the past decade the UK economy has been, in a broad sense, significantly more stable than during previous post-WWII years. The paper identifies structural breaks in real GDP growth, and in three alternative measures of inflation (RPIX, the GDP def ...
... post-WWII era. Empirical evidence suggests that over the past decade the UK economy has been, in a broad sense, significantly more stable than during previous post-WWII years. The paper identifies structural breaks in real GDP growth, and in three alternative measures of inflation (RPIX, the GDP def ...
reserve requirements and optimal chinese stabilization policy
... rules, social welfare can be further improved relative to each individual optimal rule. In the case of jointly optimal policy rules, the effectiveness of interest rate policy for stabilization is enhanced by also pursuing optimal RR policy. This result suggests that RR policy can be complementary to ...
... rules, social welfare can be further improved relative to each individual optimal rule. In the case of jointly optimal policy rules, the effectiveness of interest rate policy for stabilization is enhanced by also pursuing optimal RR policy. This result suggests that RR policy can be complementary to ...
1 Principles of Macroeconomics, 9e
... 2) The agreements that were reached at the Bretton Woods conference in 1944 established a system A) in which the values of currencies were fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading. B) of floating exchange rates determined b ...
... 2) The agreements that were reached at the Bretton Woods conference in 1944 established a system A) in which the values of currencies were fixed in terms of a specific number of ounces of gold, which in turn determined their values in international trading. B) of floating exchange rates determined b ...
Potential GDP Estimation for Romania
... Economic growth displays irregular fluctuations along business cycles, periods of economic expansion alternating with those of stagnation. The fact that economies have a central longterm growth tendency has prompted economists to formulate the concept of potential GDP, whose long-term growth rate is ...
... Economic growth displays irregular fluctuations along business cycles, periods of economic expansion alternating with those of stagnation. The fact that economies have a central longterm growth tendency has prompted economists to formulate the concept of potential GDP, whose long-term growth rate is ...
Slide 1
... larger or smaller than the fiscal change: The multiplier effect tends to amplify the effects of fiscal policy on aggregate demand. The crowding-out effect tends to dampen the effects of fiscal policy on aggregate demand. ...
... larger or smaller than the fiscal change: The multiplier effect tends to amplify the effects of fiscal policy on aggregate demand. The crowding-out effect tends to dampen the effects of fiscal policy on aggregate demand. ...
Public support for the single European currency, the euro,
... are drawn. The basic sampling design in all EU member states is multi-stage and random (probability), thereby guaranteeing the polling of a representative sample of the population. To measure public support for the euro the survey respondents were asked about their opinion on several proposals: “Ple ...
... are drawn. The basic sampling design in all EU member states is multi-stage and random (probability), thereby guaranteeing the polling of a representative sample of the population. To measure public support for the euro the survey respondents were asked about their opinion on several proposals: “Ple ...
Chapter 16: Monetary Policy
... the Fed, has artfully managed the money supply to avoid escalating inflation or deep recession and deflation. Some economists are concerned that this “artful management” may be a unique quality of Greenspan and that someone less insightful may not be as successful. ...
... the Fed, has artfully managed the money supply to avoid escalating inflation or deep recession and deflation. Some economists are concerned that this “artful management” may be a unique quality of Greenspan and that someone less insightful may not be as successful. ...
Fiscal Policy in an Unemployment Crisis
... reduces private wealth and stimulates labor supply (e.g. Barro and King (1984) and Aiyagari et al. (1992)). Yet the same wealth effect which instills a rise in output crowds out private consumption and the multiplier must fall short of unity. Alternatively, in the new Keynesian model in which prices ...
... reduces private wealth and stimulates labor supply (e.g. Barro and King (1984) and Aiyagari et al. (1992)). Yet the same wealth effect which instills a rise in output crowds out private consumption and the multiplier must fall short of unity. Alternatively, in the new Keynesian model in which prices ...
What is the IMF? - UCLA Division of Social Sciences
... Finally, the government succumbs in 1975, but negotiates for weak conditions: – IMF required only that domestic credit usage by the public sector ...
... Finally, the government succumbs in 1975, but negotiates for weak conditions: – IMF required only that domestic credit usage by the public sector ...
Fiscal Policy in an Unemployment Crisis
... 7. The expected-inflation channel is intimately linked to the hypothesis that negative supply shocks can have a positive effect on output. The reason is that increased production costs put upward pressure on (expected) inflation, which thereby lowers the real interest rate (e.g. Eggertsson (2012)). ...
... 7. The expected-inflation channel is intimately linked to the hypothesis that negative supply shocks can have a positive effect on output. The reason is that increased production costs put upward pressure on (expected) inflation, which thereby lowers the real interest rate (e.g. Eggertsson (2012)). ...
Inflation, Crisis and Money
... in monetary policy which could not be addressed by changing the interest rate. To be more precise, the New-Keynesian Model which consists of three equations was considered good enough to explain the economy and other macro variables which were not included in this model were often ignored. However, ...
... in monetary policy which could not be addressed by changing the interest rate. To be more precise, the New-Keynesian Model which consists of three equations was considered good enough to explain the economy and other macro variables which were not included in this model were often ignored. However, ...
Andrs Solimano
... cannot be observed directly. This approach was used in a recent study by Caballero and Pindyck (1992) of U.S. manufacturing industries, and it will provide one of the means by which we gauge the impact of uncertainty in this paper. In the next section, we briefly review the basic theory of irreversi ...
... cannot be observed directly. This approach was used in a recent study by Caballero and Pindyck (1992) of U.S. manufacturing industries, and it will provide one of the means by which we gauge the impact of uncertainty in this paper. In the next section, we briefly review the basic theory of irreversi ...
Sectoral Asymmetries in a Small Open Economy September 2014
... market economies and more advanced small open economies. They argue that emerging markets are characterized by dominant trend growth rate shocks in contrast to the case of advanced economies in which stationary productivity shocks take the lead. In this paper, our main objective is to look at the so ...
... market economies and more advanced small open economies. They argue that emerging markets are characterized by dominant trend growth rate shocks in contrast to the case of advanced economies in which stationary productivity shocks take the lead. In this paper, our main objective is to look at the so ...
The New IS-LM Model: Language, Logic, and Limits
... that featured a Phillips (1958) curve—made it possible to explore the implications for inflation.1 The simultaneous occurrence of high inflation and high unemployment in the 1970s led macroeconomists to question this aspect of theoretical and quantitative macromodels. Further, during the rational ex ...
... that featured a Phillips (1958) curve—made it possible to explore the implications for inflation.1 The simultaneous occurrence of high inflation and high unemployment in the 1970s led macroeconomists to question this aspect of theoretical and quantitative macromodels. Further, during the rational ex ...
2006 Prentice Hall Business Publishing Macroeconomics, 4/e
... leads to a decrease in output. Equilibrium in financial markets implies that an increase in output leads to an increase in the interest rate. When the IS curve intersects the LM curve, both goods and financial markets are in ...
... leads to a decrease in output. Equilibrium in financial markets implies that an increase in output leads to an increase in the interest rate. When the IS curve intersects the LM curve, both goods and financial markets are in ...
Chapter 1 - IDEAS/RePEc
... If the deficit is caused by a decrease in taxes, the government debt will ultimately be paid off with higher taxes that benefits current citizens and harms future ones. If the deficit is caused by higher government spending, however, the economy will be affected in a different way. ...
... If the deficit is caused by a decrease in taxes, the government debt will ultimately be paid off with higher taxes that benefits current citizens and harms future ones. If the deficit is caused by higher government spending, however, the economy will be affected in a different way. ...
Download paper (PDF)
... 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 ...