economics
... This figure assumes a price level of 100 for the year 2020 and charts possible outcomes for the year 2021. Panel (a) shows the model of aggregate demand and aggregate supply. If aggregate demand is low, the economy is at point A; output is low (15,000), and the price level is low (102). If aggregate ...
... This figure assumes a price level of 100 for the year 2020 and charts possible outcomes for the year 2021. Panel (a) shows the model of aggregate demand and aggregate supply. If aggregate demand is low, the economy is at point A; output is low (15,000), and the price level is low (102). If aggregate ...
Planned Investment and the Interest Rate
... An increase in the interest rate from 3 percent to 6 percent lowers planned aggregate expenditure and thus reduces equilibrium income from Y0 to Y1. 6 of 37 ...
... An increase in the interest rate from 3 percent to 6 percent lowers planned aggregate expenditure and thus reduces equilibrium income from Y0 to Y1. 6 of 37 ...
NBER WORKING PAPER SERIES PRICE STABILITY Giancarlo Corsetti
... We characterize the optimal cooperative monetary policy under commitment. In order to reduce ine ciencies due to price stickiness, monetary policy does mitigate uctuations in the major components of consumer price in ation. However, it falls short of stabilizing completely either the CPI, or the pr ...
... We characterize the optimal cooperative monetary policy under commitment. In order to reduce ine ciencies due to price stickiness, monetary policy does mitigate uctuations in the major components of consumer price in ation. However, it falls short of stabilizing completely either the CPI, or the pr ...
Minutes of the Federal Open Market Committee June 18–19, 2013
... in domestic and foreign financial markets as well as the System open market operations during the period since the Federal Open Market Committee (FOMC) met on April 30–May 1, 2013. The review included a report that the System’s purchases of longer-term assets did not appear to have had an adverse ef ...
... in domestic and foreign financial markets as well as the System open market operations during the period since the Federal Open Market Committee (FOMC) met on April 30–May 1, 2013. The review included a report that the System’s purchases of longer-term assets did not appear to have had an adverse ef ...
Slide 1
... – The public – did not believe them • When he announced monetary policy to reduce inflation ...
... – The public – did not believe them • When he announced monetary policy to reduce inflation ...
Mr. Robert Barro, professor of Economy at Harvard University
... The determinants of economic growth and investment are analyzed in a panel of around 100 countries observed from 1960 to 1995. The data reveal a pattern of conditional convergence in the sense that the growth rate of per capita GDP is inversely related to the starting level of per capita GDP, holdin ...
... The determinants of economic growth and investment are analyzed in a panel of around 100 countries observed from 1960 to 1995. The data reveal a pattern of conditional convergence in the sense that the growth rate of per capita GDP is inversely related to the starting level of per capita GDP, holdin ...
7 The Anatomy of Inflation and Unemployment
... example, might include automatic cost of living adjustments, or COLA provisions, which tie nominal wages to the CPI. Interest rates might be adjusted for inflation as well. Of course, the CPI is not a perfect measure of inflation, and by tying wages and interest rates to this measure we may just be ...
... example, might include automatic cost of living adjustments, or COLA provisions, which tie nominal wages to the CPI. Interest rates might be adjusted for inflation as well. Of course, the CPI is not a perfect measure of inflation, and by tying wages and interest rates to this measure we may just be ...
Inflation and the Role of Macroeconomic Policy in Ethiopia
... monetary growth below 20% in 2008/09 and less than 17% in 2009/10 in broad money supply has been driven by domestic credit both to private and public enterprises. Growth in net lending to government contracted from 12.8% in 2007/08 to 0% in 2008/09 as well as 2010. A cap on credit placed on private ...
... monetary growth below 20% in 2008/09 and less than 17% in 2009/10 in broad money supply has been driven by domestic credit both to private and public enterprises. Growth in net lending to government contracted from 12.8% in 2007/08 to 0% in 2008/09 as well as 2010. A cap on credit placed on private ...
Price Stability and the Long-Run Target for
... In recent years, a body of literature on the relative merits of targeting the price level versus targeting the inflation rate has emerged. The traditional view is that price-level targeting would reduce the costs arising from uncertainty about the long-run price level but that the need to restore th ...
... In recent years, a body of literature on the relative merits of targeting the price level versus targeting the inflation rate has emerged. The traditional view is that price-level targeting would reduce the costs arising from uncertainty about the long-run price level but that the need to restore th ...
If GT =0, Debt/GDP increases if the r > growth rate of GDP
... 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 ...
from global collapse to recovery
... The global crisis is now in the rear view mirror and world growth is being restored. In sharp contrast with past episodes of global turmoil, this time the recovery is led by the periphery—specifically by the larger and more dynamic emerging markets (Brazil, China, India, South Korea, Malaysia, Phili ...
... The global crisis is now in the rear view mirror and world growth is being restored. In sharp contrast with past episodes of global turmoil, this time the recovery is led by the periphery—specifically by the larger and more dynamic emerging markets (Brazil, China, India, South Korea, Malaysia, Phili ...
Money and Monetary Policy for the 21st Century
... the past decade demonstrated, financial institutions are “potential output” of the economy, which is the social paynot sound and payments systems are not efficient when the off for policies that maintain sound money. The frequently value of money is not stable. Decades of experience have referred to, bu ...
... the past decade demonstrated, financial institutions are “potential output” of the economy, which is the social paynot sound and payments systems are not efficient when the off for policies that maintain sound money. The frequently value of money is not stable. Decades of experience have referred to, bu ...
Banking Crises and Crises Dating: Theory and Evidence*
... of bank insolvency.”(p. 307) CEA do not provide a definition of the start and end dates of a banking crisis episode and whether the crisis was systemic or not, but just refer to the corresponding definitions in CK. In their tables, CEA report an extensive narrative supporting their crisis dating in ...
... of bank insolvency.”(p. 307) CEA do not provide a definition of the start and end dates of a banking crisis episode and whether the crisis was systemic or not, but just refer to the corresponding definitions in CK. In their tables, CEA report an extensive narrative supporting their crisis dating in ...
Keun H. Lee, Northern State University, Farid Sadrieh, Quinnipiac University,
... benefits from using the same currency. Whether the creation of the Euro is rooted in the Mudellian notion of the optimal currency area, or is merely motivated by political aspirations is a moot question. Nonetheless, the Euro is generally believed to be beneficial for the participating nations of th ...
... benefits from using the same currency. Whether the creation of the Euro is rooted in the Mudellian notion of the optimal currency area, or is merely motivated by political aspirations is a moot question. Nonetheless, the Euro is generally believed to be beneficial for the participating nations of th ...
This PDF is a selection from a published volume from
... Simplicity, we find, takes three forms. First, only two shocks drive the U.S. macroeconomy. These shocks explain the fundamental business-cycle behavior of all key variables and, in particular, of the federal funds rate, inflation, and output. Second, the two orthogonal shocks can be robustly identi ...
... Simplicity, we find, takes three forms. First, only two shocks drive the U.S. macroeconomy. These shocks explain the fundamental business-cycle behavior of all key variables and, in particular, of the federal funds rate, inflation, and output. Second, the two orthogonal shocks can be robustly identi ...
The Risk Octagon: A Comprehensive Framework for Assessing
... medium term. Second, you have most countries which are not yet under pressure but will start tightening fiscal policy in 2011, to varying degrees. Finally, you have the two largest advanced countries—the U.S. and Japan—where fiscal policy will not be tightened significantly in 2011, following recent ...
... medium term. Second, you have most countries which are not yet under pressure but will start tightening fiscal policy in 2011, to varying degrees. Finally, you have the two largest advanced countries—the U.S. and Japan—where fiscal policy will not be tightened significantly in 2011, following recent ...
Chapter 25 060413-1 檔案
... When firms produce what is demanded, PAE determines the GDP. Output gaps can cause inflation to increase (if expansionary gap) or decrease (if recessionary gap). The aggregate demand - aggregate supply (AD-AS) model studies both inflation and output. AD-AS 模型討論產出和物價 Effective for analyzing a ...
... When firms produce what is demanded, PAE determines the GDP. Output gaps can cause inflation to increase (if expansionary gap) or decrease (if recessionary gap). The aggregate demand - aggregate supply (AD-AS) model studies both inflation and output. AD-AS 模型討論產出和物價 Effective for analyzing a ...
NBER WORKING PAPER SERIES OPTIMAL FISCAL AND MONETARY POLICY EXPANDED VERSION
... markets optimal taxation calls for a subsidy on capital of a magnitude approximately equal to the markup of prices over marginal cost. However, our results suggest that the optimal capital subsidy is much larger than the one identified in the work of Judd. The reason for this discrepancy is that cap ...
... markets optimal taxation calls for a subsidy on capital of a magnitude approximately equal to the markup of prices over marginal cost. However, our results suggest that the optimal capital subsidy is much larger than the one identified in the work of Judd. The reason for this discrepancy is that cap ...
When inflation
... When firms produce what is demanded, PAE determines the GDP. Output gaps can cause inflation to increase (if expansionary gap) or decrease (if recessionary gap). The aggregate demand - aggregate supply (AD-AS) model studies both inflation and output. AD-AS 模型討論產出和物價 Effective for analyzing a ...
... When firms produce what is demanded, PAE determines the GDP. Output gaps can cause inflation to increase (if expansionary gap) or decrease (if recessionary gap). The aggregate demand - aggregate supply (AD-AS) model studies both inflation and output. AD-AS 模型討論產出和物價 Effective for analyzing a ...
Purchasing Power Parities: Statistics to Describe the World
... compile, analyze and review price data Available in 6 UN languages Distributed free of charge to countries participating in the International Comparison Program Provides a powerful data management capability to store and analyze price data Standardizes price collection methods within and across coun ...
... compile, analyze and review price data Available in 6 UN languages Distributed free of charge to countries participating in the International Comparison Program Provides a powerful data management capability to store and analyze price data Standardizes price collection methods within and across coun ...
k - Université de Liège
... where t is the number of periods = (number of dates – 1). (e.g. 1991, 1992 and 1993 are 3 dates but 1991-1992 and 1992-1993 are two periods). This average growth rate R is calculated by using the geometric mean where the growth rate compound continuously. If the number of periods is 1, then t = 1 an ...
... where t is the number of periods = (number of dates – 1). (e.g. 1991, 1992 and 1993 are 3 dates but 1991-1992 and 1992-1993 are two periods). This average growth rate R is calculated by using the geometric mean where the growth rate compound continuously. If the number of periods is 1, then t = 1 an ...
Search Equilibrium with Migration: the Case of Poland
... to the European Union. Both anecdotal evidence and the data indicate that the number of Polish workers looking for a job abroad, in Western European countries, has substantially increased after the date. This paper focuses on the effect emigration flows have had on wages in Poland. The link between ...
... to the European Union. Both anecdotal evidence and the data indicate that the number of Polish workers looking for a job abroad, in Western European countries, has substantially increased after the date. This paper focuses on the effect emigration flows have had on wages in Poland. The link between ...
A Graceful Return of the Drachma
... In the wake of the sovereign debt crisis in Greece, many economists have suggested that Greece leave the euro and return to its own currency. The country could convert its euro liabilities and those of its banks into new drachma and allow the drachma to depreciate. This would give Greece access to s ...
... In the wake of the sovereign debt crisis in Greece, many economists have suggested that Greece leave the euro and return to its own currency. The country could convert its euro liabilities and those of its banks into new drachma and allow the drachma to depreciate. This would give Greece access to s ...