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... If real interest rates are calculated on the basis of the increase in the GDP deflator, the decline in real short-term interest rates was (again) 3/4 percentage points in the euro area but only about 1/2 percentage point in the United States as the GDP deflator decelerated more. 4 The Taylor rule in ...
... If real interest rates are calculated on the basis of the increase in the GDP deflator, the decline in real short-term interest rates was (again) 3/4 percentage points in the euro area but only about 1/2 percentage point in the United States as the GDP deflator decelerated more. 4 The Taylor rule in ...
BFH system
... the unit of account physically, in terms of many commodities, and not in terms of any medium of exchange whose value depends on regulation of its quantity or on its redeemability. One fundamental difference between BFH system and either ordinary system relates to the supply and demand that determine ...
... the unit of account physically, in terms of many commodities, and not in terms of any medium of exchange whose value depends on regulation of its quantity or on its redeemability. One fundamental difference between BFH system and either ordinary system relates to the supply and demand that determine ...
DRAFT September 8, 2010
... Flows of workers’ remittances appear to have been increasing sharply in magnitude during recent years. While related impressionistic evidence suggests that most of this increase is real, it is not possible to assess its magnitude conclusively, because part of the increase in recorded flows may simpl ...
... Flows of workers’ remittances appear to have been increasing sharply in magnitude during recent years. While related impressionistic evidence suggests that most of this increase is real, it is not possible to assess its magnitude conclusively, because part of the increase in recorded flows may simpl ...
NBER WORKING PAPER SERIES GLOBALLY CORRELATED NOMINAL FLUCTUATIONS Espen Henriksen Finn E. Kydland
... real. The mechanism is based on cross-country spillovers of shocks and an interaction between Taylor-type rules and domestic no-arbitrage conditions. We focus on two key nominal variables, the aggregate price level and the short-term nominal interest rate—the monetary policy instrument. Our empiric ...
... real. The mechanism is based on cross-country spillovers of shocks and an interaction between Taylor-type rules and domestic no-arbitrage conditions. We focus on two key nominal variables, the aggregate price level and the short-term nominal interest rate—the monetary policy instrument. Our empiric ...
The Two Triangles: What Did Wicksell and Keynes Know about
... tend to exclude it from their consensus view. We demonstrate the explanatory potential of a synthesis of Wicksellian and Keynesian ideas that differs substantially from the Neoclassical Synthesis, Old and New. The rest of the paper is organized in three parts. Section [2] provides a brief account of ...
... tend to exclude it from their consensus view. We demonstrate the explanatory potential of a synthesis of Wicksellian and Keynesian ideas that differs substantially from the Neoclassical Synthesis, Old and New. The rest of the paper is organized in three parts. Section [2] provides a brief account of ...
International monetary systems
... liberalisation of India after her 1991 crisis. Generally the industrial nations experienced much slower growth and higher unemployment than in the previous era, and according to Professor Gordon Fletcher in retrospect the 1950s and 60s when the Bretton Woods system was operating came to be seen as a ...
... liberalisation of India after her 1991 crisis. Generally the industrial nations experienced much slower growth and higher unemployment than in the previous era, and according to Professor Gordon Fletcher in retrospect the 1950s and 60s when the Bretton Woods system was operating came to be seen as a ...
Macroeconomics, 6e (Abel et al.) Chapter 2 The Measurement and
... 19) The CPI may overstate inflation for all the following reasons EXCEPT A) problems measuring changes in the quality of goods. B) substitution by consumers towards cheaper goods. C) problems measuring the quality of services. D) changes in Social Security benefits. Answer: D Diff: 1 T ...
... 19) The CPI may overstate inflation for all the following reasons EXCEPT A) problems measuring changes in the quality of goods. B) substitution by consumers towards cheaper goods. C) problems measuring the quality of services. D) changes in Social Security benefits. Answer: D Diff: 1 T ...
Goals of the Monetary Policy and the Stability of the Purchasing
... - maintenance of a general low level of prices, i.e. low rate of inflation; - low rate of inflation is a significant assumption for a quality and sustainable economic growth and development; - the price stability is also one of the assumptions to maintain the stability of the domestic currency. Foll ...
... - maintenance of a general low level of prices, i.e. low rate of inflation; - low rate of inflation is a significant assumption for a quality and sustainable economic growth and development; - the price stability is also one of the assumptions to maintain the stability of the domestic currency. Foll ...
International spill-overs of uncertainty shocks: Evidence from a FAVAR
... The effects of the Global Financial Crisis, although it originated in the US, have been felt around the world. Despite large amounts of monetary and fiscal stimulus in the US and other countries, most advanced economies have experienced prolonged and synchronised downturns. Recently economists are r ...
... The effects of the Global Financial Crisis, although it originated in the US, have been felt around the world. Despite large amounts of monetary and fiscal stimulus in the US and other countries, most advanced economies have experienced prolonged and synchronised downturns. Recently economists are r ...
The Two Triangles
... the effects of present interest-rate gaps to present and future output and inflation. As a result, these variables diverge from their intertemporal equilibrium path, in a way that considerably modifies the dynamic properties of the system with respect to the standard NNS framework where this effect ...
... the effects of present interest-rate gaps to present and future output and inflation. As a result, these variables diverge from their intertemporal equilibrium path, in a way that considerably modifies the dynamic properties of the system with respect to the standard NNS framework where this effect ...
Agustín S. Bénétrix IIIS, Trinity College Dublin Philip R. Lane
... year. Second, the use of annual data reduces the role of anticipation effects. Blanchard and Perotti (2002) test for the existence of anticipated fiscal policy with future values of estimated fiscal shocks using quarterly frequency. To this end, they include future values of a dummy variable that me ...
... year. Second, the use of annual data reduces the role of anticipation effects. Blanchard and Perotti (2002) test for the existence of anticipated fiscal policy with future values of estimated fiscal shocks using quarterly frequency. To this end, they include future values of a dummy variable that me ...
Low Inflation, Deflation, and Policies for Future Price Stability A
... differently, velocity has been declining. Mori et al (2000, Fig 28) show that M2 plus CD, as a ratio to nominal GDP, has been above the secular trend for k in the 1990s. The trend is estimated from 1970 to 1986. They cite this above trend growth in this ratio as evidence (there is similar evidence f ...
... differently, velocity has been declining. Mori et al (2000, Fig 28) show that M2 plus CD, as a ratio to nominal GDP, has been above the secular trend for k in the 1990s. The trend is estimated from 1970 to 1986. They cite this above trend growth in this ratio as evidence (there is similar evidence f ...
Demographics and Real Interest Rates
... quite low for historical standards, have remained positive and roughly stable (in most countries, at least on average). This observation naturally brings forth the implication that accommodative monetary policies (both conventional and unconventional) that were put in place in response to the GFC ar ...
... quite low for historical standards, have remained positive and roughly stable (in most countries, at least on average). This observation naturally brings forth the implication that accommodative monetary policies (both conventional and unconventional) that were put in place in response to the GFC ar ...
Short-run aggregate supply
... • Excess demand or supply are rapidly eliminated by wage or price changes so that potential output is quickly restored. • Monetary and fiscal policy affect prices but have no impact on output. • In the short-run before wages and prices have adjusted, the Keynesian position is relevant whilst the cla ...
... • Excess demand or supply are rapidly eliminated by wage or price changes so that potential output is quickly restored. • Monetary and fiscal policy affect prices but have no impact on output. • In the short-run before wages and prices have adjusted, the Keynesian position is relevant whilst the cla ...
AP® Economics - AP Central
... rates. There is only one real interest rate that equates the dollars saved with the dollars invested, and the market for loanable funds shows how this real interest rate is determined. 3. The money market serves to balance the quantity of money demanded with the quantity of money supplied. The Quan ...
... rates. There is only one real interest rate that equates the dollars saved with the dollars invested, and the market for loanable funds shows how this real interest rate is determined. 3. The money market serves to balance the quantity of money demanded with the quantity of money supplied. The Quan ...
unemployment rate
... The shoe-leather costs of inflation were substantial. Israelis spent a lot of time moving money in and out of bank accounts that provided high enough interest rates to offset inflation. Businesses made efforts to minimize menu costs. For example, restaurant menus often didn’t list prices. It was har ...
... The shoe-leather costs of inflation were substantial. Israelis spent a lot of time moving money in and out of bank accounts that provided high enough interest rates to offset inflation. Businesses made efforts to minimize menu costs. For example, restaurant menus often didn’t list prices. It was har ...
Impact of Shocks to Aggregate Demand and Aggregate Supply on
... 4. unit profits are zero in all production sectors; 5. markets for goods and services clear; 6. the government account constraint is satisfied; 7. the balance of payments condition is fulfilled the economy grows at a constant rate beyond a certain terminal period T. Macroeconomic Theme:16 ...
... 4. unit profits are zero in all production sectors; 5. markets for goods and services clear; 6. the government account constraint is satisfied; 7. the balance of payments condition is fulfilled the economy grows at a constant rate beyond a certain terminal period T. Macroeconomic Theme:16 ...
Inflation - Mr. P. Ronan
... Menu costs - this is a general term for all the inconvenient costs that businesses and individuals face. As prices increase they have to redo their price lists, change price labels, reprint menus and so on. If inflation is constant these costs can mount up. Competitiveness - if our prices are increa ...
... Menu costs - this is a general term for all the inconvenient costs that businesses and individuals face. As prices increase they have to redo their price lists, change price labels, reprint menus and so on. If inflation is constant these costs can mount up. Competitiveness - if our prices are increa ...
Taxa Real de Câmbio, Mobilidade de Capitais e Mudança
... In second place, we will suppose that the rate of change of nominal wages is not uniform in all over the world economy (Setterfield, 1997, p.55), but is country-specific. In this setting, we will suppose the existence of the so-called real wage resistance; that is insensitivity of real wage rates to ...
... In second place, we will suppose that the rate of change of nominal wages is not uniform in all over the world economy (Setterfield, 1997, p.55), but is country-specific. In this setting, we will suppose the existence of the so-called real wage resistance; that is insensitivity of real wage rates to ...
homework 4
... Answer: A 20. The interaction of the IS curve and the LM curve together determine: A. the price level and the inflation rate. B. the interest rate and the price level. C. investment and the money supply. D. the interest rate and the level of output. Answer: D 21. In the IS–LM model when taxation inc ...
... Answer: A 20. The interaction of the IS curve and the LM curve together determine: A. the price level and the inflation rate. B. the interest rate and the price level. C. investment and the money supply. D. the interest rate and the level of output. Answer: D 21. In the IS–LM model when taxation inc ...
Lecture 2
... The point estimate of consumption growth under business as usual in Stern (2006) is g(C(t)) = 1.3% a year. Use this in equation (4) to obtain: D(t) = 2.05% a year for Cline D(t) = 4.30% a year for Nordhaus D(t) = 1.40% a year for Stern That is why Cline and Stern arrive at similar conclusions and w ...
... The point estimate of consumption growth under business as usual in Stern (2006) is g(C(t)) = 1.3% a year. Use this in equation (4) to obtain: D(t) = 2.05% a year for Cline D(t) = 4.30% a year for Nordhaus D(t) = 1.40% a year for Stern That is why Cline and Stern arrive at similar conclusions and w ...
Inflation Cycles
... But other sources might be international disturbances, climate fluctuations, or natural disasters. We’ll explore RBC theory by looking first at its impulse and then at the mechanism that converts that impulse into a cycle in real GDP. ...
... But other sources might be international disturbances, climate fluctuations, or natural disasters. We’ll explore RBC theory by looking first at its impulse and then at the mechanism that converts that impulse into a cycle in real GDP. ...
PDF
... Spain and to a lesser degree Italy. A key common denominator in these cases was that all of them had credit-fuelled booms, ran large current account deficits prior to the crisis, and were constrained in adjustment by the lack of their own currency (Baldwin and Giavazzi, 2015). Many of these countrie ...
... Spain and to a lesser degree Italy. A key common denominator in these cases was that all of them had credit-fuelled booms, ran large current account deficits prior to the crisis, and were constrained in adjustment by the lack of their own currency (Baldwin and Giavazzi, 2015). Many of these countrie ...
The Anatomy of Stagnation in a Modern Economy
... the calculations. In 2010, the second full year following the crisis, real GDP was 10.0 percentage points below its pre-crisis trend. Unused resources in the form of unemployment was the single biggest factor in the shortfall, in the sense that real GDP would have been 3.3 percent higher in 2010 if ...
... the calculations. In 2010, the second full year following the crisis, real GDP was 10.0 percentage points below its pre-crisis trend. Unused resources in the form of unemployment was the single biggest factor in the shortfall, in the sense that real GDP would have been 3.3 percent higher in 2010 if ...
Syllabus
... residents of the country whether it is generated domestically or abroad. The difference is due to the balance between foreigners claims to income generated domestically and residents claims to income generated abroad. A distinction is critical between nominal and real income as the first measures ch ...
... residents of the country whether it is generated domestically or abroad. The difference is due to the balance between foreigners claims to income generated domestically and residents claims to income generated abroad. A distinction is critical between nominal and real income as the first measures ch ...