Chapter 22: Main Events of the Period 1970 to 1990
... unemployment than had been experienced before. The oil supply shocks were one reason that this occurred. But they were not the only reason, so there is still much to explain. The economic situation improved in the 1980s and the 1990s, with lower rates of both inflation and unemployment than had been ...
... unemployment than had been experienced before. The oil supply shocks were one reason that this occurred. But they were not the only reason, so there is still much to explain. The economic situation improved in the 1980s and the 1990s, with lower rates of both inflation and unemployment than had been ...
Elhanan Cambridge, MA 02138
... trade theory are reviewed and interpreted. These include growth based on economies of scale, trade with product development, and product cycles. It is argued that there is need for more work in this area in order to understand the relationship between trade and growth. ...
... trade theory are reviewed and interpreted. These include growth based on economies of scale, trade with product development, and product cycles. It is argued that there is need for more work in this area in order to understand the relationship between trade and growth. ...
Unemployment and Inflation - University of Wisconsin–La
... Why is Inflation So Unpopular? • As an economic problem, inflation is widespread since it affects everyone • Workers’ wages may not keep up with inflation • Those on fixed incomes are seriously affected • Long-term contracts are difficult to negotiate • Menu Costs ...
... Why is Inflation So Unpopular? • As an economic problem, inflation is widespread since it affects everyone • Workers’ wages may not keep up with inflation • Those on fixed incomes are seriously affected • Long-term contracts are difficult to negotiate • Menu Costs ...
The Money Supply and the Federal Reserve System
... reduced, the planned aggregate expenditure function may shift from C + I + Gʹ to C + Iʹ + Gʹ because the reduction in output will cause A) money supply to increase, the interest rate to decrease, and planned investment to increase. B) money supply to decrease, the interest rate to decrease, and plan ...
... reduced, the planned aggregate expenditure function may shift from C + I + Gʹ to C + Iʹ + Gʹ because the reduction in output will cause A) money supply to increase, the interest rate to decrease, and planned investment to increase. B) money supply to decrease, the interest rate to decrease, and plan ...
(Closed Economy) Dynamic Stochastic General Equilibrium Model
... have significantly lower variability than the pre-IT era, with the last two shocks being reduced by a factor of 5.6 and 2.3, respectively. The IT era is also associated with lower risk aversion. We also find that the adoption of inflation targeting is associated with interest rate smoothing in the m ...
... have significantly lower variability than the pre-IT era, with the last two shocks being reduced by a factor of 5.6 and 2.3, respectively. The IT era is also associated with lower risk aversion. We also find that the adoption of inflation targeting is associated with interest rate smoothing in the m ...
Ch 31
... A. the inflation rate will fall, but the unemployment rate will not change as the economy moves down the long-run Phillips curve B. the inflation rate will fall, and the unemployment rate will increase as the economy moves down the short-run Phillips curve C. nothing will happen. It takes more than ...
... A. the inflation rate will fall, but the unemployment rate will not change as the economy moves down the long-run Phillips curve B. the inflation rate will fall, and the unemployment rate will increase as the economy moves down the short-run Phillips curve C. nothing will happen. It takes more than ...
NBER WORKING PAPER SERIES BUSINESS CYCLES IN EMERGING ECONOMIES: Pablo A. Neumeyer
... economy (productivity shocks in our model). In this case, these shocks drive, at the same time, business cycles and fluctuations in country risk. Our first finding is that the quantitative results from the model with productivity shocks and country risk induced by productivity shocks can account for ...
... economy (productivity shocks in our model). In this case, these shocks drive, at the same time, business cycles and fluctuations in country risk. Our first finding is that the quantitative results from the model with productivity shocks and country risk induced by productivity shocks can account for ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... growth picked up in 1991 and continued at levels above those of the rest of Latin America through 1994. The currency board was effective in taming inflation—the mean level of inflation dropped from nearly 400 percent per annum to a little under 10 percent in 1991–94 to almost zero in 1995–98. The eco ...
... growth picked up in 1991 and continued at levels above those of the rest of Latin America through 1994. The currency board was effective in taming inflation—the mean level of inflation dropped from nearly 400 percent per annum to a little under 10 percent in 1991–94 to almost zero in 1995–98. The eco ...
Bank of England Inflation Report May 2012
... the MPC’s best collective judgement is that inflation in any particular quarter would lie within the darkest central band on only 10 of those occasions. The fan charts are constructed so that outturns of inflation are also expected to lie within each pair of the lighter red areas on 10 occasions. In ...
... the MPC’s best collective judgement is that inflation in any particular quarter would lie within the darkest central band on only 10 of those occasions. The fan charts are constructed so that outturns of inflation are also expected to lie within each pair of the lighter red areas on 10 occasions. In ...
At a Glance – Outlook and key Brazil themes for 2014
... Exchange rate – FX volatility and asymmetry of pass-through Inflation expectations consolidating above the target Large lag between administered prices and market prices – distortions Foods prices – Unusually low level of rainfall ...
... Exchange rate – FX volatility and asymmetry of pass-through Inflation expectations consolidating above the target Large lag between administered prices and market prices – distortions Foods prices – Unusually low level of rainfall ...
Chapter 21 : What Macroeconomics Is All About?
... weighted average of the prices of a basket of goods and services. - Definition: Inflation is a general rise in prices. - The inflation rate is the percentage change in the general price level from one period to the next. i.e , the inflation rate is the % change in a price index from one period to th ...
... weighted average of the prices of a basket of goods and services. - Definition: Inflation is a general rise in prices. - The inflation rate is the percentage change in the general price level from one period to the next. i.e , the inflation rate is the % change in a price index from one period to th ...
International Monetary Arrangements
... • But … will this work? – The markets don’t think so – Most commentators agree with markets ...
... • But … will this work? – The markets don’t think so – Most commentators agree with markets ...
Fiscal policy - WorkBank247.com
... Conclusion: In open economies with international capital mobility, contractionary fiscal policy is not as particularly effective in changing the equilibrium levels of output & prices Fiscal policy can still, however, affect interest rates, exchange rates, capital flows and current account balances a ...
... Conclusion: In open economies with international capital mobility, contractionary fiscal policy is not as particularly effective in changing the equilibrium levels of output & prices Fiscal policy can still, however, affect interest rates, exchange rates, capital flows and current account balances a ...
ABSTRACT Title of Document:
... chances of reelection. The politician in charge of the budget also internalizes the private agent’s objective function, but might discount the future at a different rate. We show that capital controls induce looser fiscal policies than fixed and flexible regimes operating under perfect capital mobil ...
... chances of reelection. The politician in charge of the budget also internalizes the private agent’s objective function, but might discount the future at a different rate. We show that capital controls induce looser fiscal policies than fixed and flexible regimes operating under perfect capital mobil ...
Economics and Political Economy
... are highly correlated with business cycles in advanced countries with little lag time between the transmissions of the output fluctuations from advanced countries to developing countries. Additionally, their results suggested that government expenditure plays a countercyclical role in the domestic b ...
... are highly correlated with business cycles in advanced countries with little lag time between the transmissions of the output fluctuations from advanced countries to developing countries. Additionally, their results suggested that government expenditure plays a countercyclical role in the domestic b ...
Money Growth and Inflation
... A complementary perspective on the quantity theory of money builds on the idea of the velocity of money, defined as the rate at which money changes hands, as measured by the number of times each ...
... A complementary perspective on the quantity theory of money builds on the idea of the velocity of money, defined as the rate at which money changes hands, as measured by the number of times each ...
Much ado about EMU, Spring 2012
... • But … will this work? – The markets don’t think so – Most commentators agree with markets ...
... • But … will this work? – The markets don’t think so – Most commentators agree with markets ...
Goods Market Equilibrium
... when the aggregate demand shock parameter equals zero, the IS curve has a short-run output of 0 where the real interest rate is equal to the long-run value of the MPK when the real interest rate changes, the economy will move along the IS curve an increase in the interest rate causes the econom ...
... when the aggregate demand shock parameter equals zero, the IS curve has a short-run output of 0 where the real interest rate is equal to the long-run value of the MPK when the real interest rate changes, the economy will move along the IS curve an increase in the interest rate causes the econom ...
76135150I_en.pdf
... public policies, including a new and more pragmatic trade reform that reintroduced a degree of protection for importables and incentives for non-traditional exports. Then, in the 1990s, a third episode of export dynamism was stimulated by a more comprehensive policy that sought to combine the princi ...
... public policies, including a new and more pragmatic trade reform that reintroduced a degree of protection for importables and incentives for non-traditional exports. Then, in the 1990s, a third episode of export dynamism was stimulated by a more comprehensive policy that sought to combine the princi ...
PDF Download
... According to empirical estimations of current account benchmarks (see Table A1 in annex), the current accounts of Estonia and Lithuania are higher than would be expected in the long run on the basis of fundamental determinants, while that of Latvia is slightly lower than the expected level (Figure 5 ...
... According to empirical estimations of current account benchmarks (see Table A1 in annex), the current accounts of Estonia and Lithuania are higher than would be expected in the long run on the basis of fundamental determinants, while that of Latvia is slightly lower than the expected level (Figure 5 ...
Adopting Inflation Targeting in Pakistan
... discretion. It also demands close contact between monetary and fiscal policy without sacrificing the independence of the central bank. The next step is to determine how best to provide this information to the public. Various methods have been used to bridge the information gap between the central ba ...
... discretion. It also demands close contact between monetary and fiscal policy without sacrificing the independence of the central bank. The next step is to determine how best to provide this information to the public. Various methods have been used to bridge the information gap between the central ba ...
Salvador Gil Pareja Rafael Llorca Vivero* J. A. Martínez Serrano*
... gravity equation. Hence, the random-effect coefficients could be biased, and one should rely on the fixed-effect estimators. Nonetheless, before discussing the fixed-effect estimates, a couple of things are worth noting. First, the results for the parameter of interest (EMU) are very similar for fix ...
... gravity equation. Hence, the random-effect coefficients could be biased, and one should rely on the fixed-effect estimators. Nonetheless, before discussing the fixed-effect estimates, a couple of things are worth noting. First, the results for the parameter of interest (EMU) are very similar for fix ...
July Massachusetts
... unusually low in the middle 1970s owing to the first OPEC shock, which lowered investment demand and increased world saving by transferring wealth from the high—consuming developed countries to OPEC. Second. tight money, high inflation, and hel ghtened nucl ear fear all contributed to real rates bec ...
... unusually low in the middle 1970s owing to the first OPEC shock, which lowered investment demand and increased world saving by transferring wealth from the high—consuming developed countries to OPEC. Second. tight money, high inflation, and hel ghtened nucl ear fear all contributed to real rates bec ...