FROM STANDARD TO David I. Fand A RANDOM-WALK MONETARY
... believe that the easiest and more efficacious way ofdealing with our budget deficit is to monetize it through inflation. Thus, some people even view a rise in inflation in positive terms. These expansionists believe that a higher inflation rate would ameliorate our budgetary and fiscal problems and, ...
... believe that the easiest and more efficacious way ofdealing with our budget deficit is to monetize it through inflation. Thus, some people even view a rise in inflation in positive terms. These expansionists believe that a higher inflation rate would ameliorate our budgetary and fiscal problems and, ...
NBER WORKING PAPER SERIES AND BUDGET DEFICITS, TAX
... this view that the unobserved and unobservable shock that caused velocity to drop in 1982 persisted into 1983 and was offset by fiscal policy. We take the more conventional view that 1982 was the abnormal year in which velocity declined and that there was no priori reason to expect the negative dist ...
... this view that the unobserved and unobservable shock that caused velocity to drop in 1982 persisted into 1983 and was offset by fiscal policy. We take the more conventional view that 1982 was the abnormal year in which velocity declined and that there was no priori reason to expect the negative dist ...
The NAIRU and the Natural Rate of Unemployment
... described in theoretical terms and rendered in empirical terms. One of the key images of macroeconomic equilibrium is potential output that can be defined as an output of the economy which fully exploits production factors while using a given technology. At the same time, this is a product for which ...
... described in theoretical terms and rendered in empirical terms. One of the key images of macroeconomic equilibrium is potential output that can be defined as an output of the economy which fully exploits production factors while using a given technology. At the same time, this is a product for which ...
School of Oriental and African Studies University of London London
... contractual constraints varies by country. They are a further limitation on the ability of governments and central banks to influence price levels over a short time period. This discussion produces the obvious conclusion that governments and central banks do not in practice have the power to influen ...
... contractual constraints varies by country. They are a further limitation on the ability of governments and central banks to influence price levels over a short time period. This discussion produces the obvious conclusion that governments and central banks do not in practice have the power to influen ...
NBER WORKING PAPER SERIES HOW DO MONETARY AND FISCAL POLICY
... countries, and the same implications for fiscal policy? Or, does it affect high debt countries in a different way than low debt countries? Does it favor big countries over small countries? And, how does the existence of twelve separate fiscal policies affect the European Central Bank’s (ECB) ability ...
... countries, and the same implications for fiscal policy? Or, does it affect high debt countries in a different way than low debt countries? Does it favor big countries over small countries? And, how does the existence of twelve separate fiscal policies affect the European Central Bank’s (ECB) ability ...
Practice Exam PPT
... 16. Which of the following policy choices represents a combination of fiscal and monetary policies designed to bring the economy out of a recession? (a) Decreasing both taxes and the money supply (b) Increasing both taxes and the money supply (c) Increasing government spending and decreasing the fe ...
... 16. Which of the following policy choices represents a combination of fiscal and monetary policies designed to bring the economy out of a recession? (a) Decreasing both taxes and the money supply (b) Increasing both taxes and the money supply (c) Increasing government spending and decreasing the fe ...
Macroecon_Practice_Exam
... 16. Which of the following policy choices represents a combination of fiscal and monetary policies designed to bring the economy out of a recession? (a) Decreasing both taxes and the money supply (b) Increasing both taxes and the money supply (c) Increasing government spending and decreasing the fe ...
... 16. Which of the following policy choices represents a combination of fiscal and monetary policies designed to bring the economy out of a recession? (a) Decreasing both taxes and the money supply (b) Increasing both taxes and the money supply (c) Increasing government spending and decreasing the fe ...
Teaching Intermediate Macroeconomics using the 3-Equation
... Wendy Carlin and David Soskice Much teaching of intermediate macroeconomics uses the IS-LM-AS or ADAS approach. This is far removed both from the practice of interest rate setting, inflation-targeting central banks and from the models that are taught in graduate courses. Modern monetary macroeconomi ...
... Wendy Carlin and David Soskice Much teaching of intermediate macroeconomics uses the IS-LM-AS or ADAS approach. This is far removed both from the practice of interest rate setting, inflation-targeting central banks and from the models that are taught in graduate courses. Modern monetary macroeconomi ...
13.1 money and the interest rate
... and the interest rate rises. A rise in the nominal interest rate decreases the quantity of real money demanded. 3. If the interest rate is 5 percent a year, the quantity of money held equals the quantity demanded and the money market is in equilibrium. ...
... and the interest rate rises. A rise in the nominal interest rate decreases the quantity of real money demanded. 3. If the interest rate is 5 percent a year, the quantity of money held equals the quantity demanded and the money market is in equilibrium. ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... devaluations. This is done by purchasing and selling the country’s own currency in order to affect its demand and supply; thus, helping to maintain a stable value in the international markets. This argument is valid mostly for developing economies, whose debt is mostly denominated in foreign currenc ...
... devaluations. This is done by purchasing and selling the country’s own currency in order to affect its demand and supply; thus, helping to maintain a stable value in the international markets. This argument is valid mostly for developing economies, whose debt is mostly denominated in foreign currenc ...
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... sure whether it is sustainable in the long run. As a result, there may be scope for improving the sustainability of the eurozone. ...
... sure whether it is sustainable in the long run. As a result, there may be scope for improving the sustainability of the eurozone. ...
The Monetary and Fiscal History of Latin America: Brazil M´ arcio Garcia
... inflation doubled, and there were increasing difficulties to control the growth of the public ...
... inflation doubled, and there were increasing difficulties to control the growth of the public ...
Intermediate Macroeconomics: Economic Growth and the Solow
... With just a half of a percentage point more of growth per year, over a 30 year horizon the level of X would more than double, increasing by 110 percent. That extra half of a percentage point of growth, which on its own seems quite small, gets us an extra 30 percentage points in the level over 30 yea ...
... With just a half of a percentage point more of growth per year, over a 30 year horizon the level of X would more than double, increasing by 110 percent. That extra half of a percentage point of growth, which on its own seems quite small, gets us an extra 30 percentage points in the level over 30 yea ...
A survey of the effects of discretionary fiscal policy
... In their seminal contribution, Baxter and King (1993) conduct a number of fiscal policy experiments in a neo-classical model. Utility is separable in consumption and leisure. Further, the marginal utilities of consumption and leisure are not affected by government purchases, which consist of govern ...
... In their seminal contribution, Baxter and King (1993) conduct a number of fiscal policy experiments in a neo-classical model. Utility is separable in consumption and leisure. Further, the marginal utilities of consumption and leisure are not affected by government purchases, which consist of govern ...
Why Do Emerging Economies Import Direct Investment and
... markets and developing countries use equity financing rather than debt financing for capital accumulation: 93% of these countries are have a negative (short) net equity position, see Figure 1. Of the countries that are short equity, 70% are short debt and 13% are long debt. According to Lane and Mil ...
... markets and developing countries use equity financing rather than debt financing for capital accumulation: 93% of these countries are have a negative (short) net equity position, see Figure 1. Of the countries that are short equity, 70% are short debt and 13% are long debt. According to Lane and Mil ...
146s10_l16a.pdf
... Monetary policy: policy in which the central bank influences the supply of monetary assets Asset market responds very rapidly...goods market less so Fiscal policy: change G or T . Fiscal policy affects aggregates demand and output first Temporary policy changes are expected to be reversed in the nea ...
... Monetary policy: policy in which the central bank influences the supply of monetary assets Asset market responds very rapidly...goods market less so Fiscal policy: change G or T . Fiscal policy affects aggregates demand and output first Temporary policy changes are expected to be reversed in the nea ...
Macroeconomics 1 Ch VII. Investment and Growth Theories Chapter
... place so that over time K will fall to K*. This gradual adjustment is particularly true when there is an adjustment cost, including the cost of time for adjustment. Thus only a portion, say , will be done in this year. In the next period, an investment will be made for a portion of the remaining ...
... place so that over time K will fall to K*. This gradual adjustment is particularly true when there is an adjustment cost, including the cost of time for adjustment. Thus only a portion, say , will be done in this year. In the next period, an investment will be made for a portion of the remaining ...
A Dynamic Model of Aggregate Demand and Aggregate Supply
... • The dynamic model of aggregate demand and aggregate supply (DAD-DAS) determines both – real GDP (Y), and – the inflation rate (π) ...
... • The dynamic model of aggregate demand and aggregate supply (DAD-DAS) determines both – real GDP (Y), and – the inflation rate (π) ...
NBER WORKING PAPER SERIES THE CONDUCT OF DOMESTIC ICY Robert J. Gordon
... growth. The results from the equation estimated through 1980 are used to examine the behavior of inflation during the 1981—82 recession, and to predict the behavior of inflation and unemployment that would accompany alternative paths of nominal GNP growth after 1982. ...
... growth. The results from the equation estimated through 1980 are used to examine the behavior of inflation during the 1981—82 recession, and to predict the behavior of inflation and unemployment that would accompany alternative paths of nominal GNP growth after 1982. ...
The Equilibrium Real Funds Rate: Past, Present and Future
... Our focus is on the behavior of the real interest rate, defined as the nominal short-term policy rate minus expected inflation. The latter is of course not measured directly, and we follow the common approach in the literature of inferring expected inflation from the forecast of an autoregressive mo ...
... Our focus is on the behavior of the real interest rate, defined as the nominal short-term policy rate minus expected inflation. The latter is of course not measured directly, and we follow the common approach in the literature of inferring expected inflation from the forecast of an autoregressive mo ...
FROM LIBERALIZATION TO INVESTMENT AND JOBS: LOST IN TRANSLATION A.
... It has been argued that China’s shift to capitalism, India’s turn from autarky and the collapse of communism have added to economically active persons in the world by almost 1.5 billion workers, doubling the global labour force (Freeman 2004 and 2005). As a consequence there has been a major shift i ...
... It has been argued that China’s shift to capitalism, India’s turn from autarky and the collapse of communism have added to economically active persons in the world by almost 1.5 billion workers, doubling the global labour force (Freeman 2004 and 2005). As a consequence there has been a major shift i ...
Ch. 15
... • decreases & Y increases Long-run equilibrium • AD, SRAS (*), LRAS (Y*) will intersect at the same ...
... • decreases & Y increases Long-run equilibrium • AD, SRAS (*), LRAS (Y*) will intersect at the same ...
NBER WORKING PAPER SERIES IS THE U.S. CURRENT ACCOUNT DEFICIT
... currency value. In countries running persistent current account deficits, governments normally -- indeed must – reduce domestic consumption. But so far, the United States has relied on other countries to adjust their economies to profligate American spending… (The New York Times, February 20th, 2005 ...
... currency value. In countries running persistent current account deficits, governments normally -- indeed must – reduce domestic consumption. But so far, the United States has relied on other countries to adjust their economies to profligate American spending… (The New York Times, February 20th, 2005 ...