Analysing non-price competitiveness in euro area countries
... is, indeed, some empirical evidence of restructuring in some traditional exports via quality upgrading (Imbriani et al., 2008, Bugamelli, 2007). The empirical challenge is to find a good indicator measuring quality upgrading. Following Lissovolik (2008) we look at the relationship between exports de ...
... is, indeed, some empirical evidence of restructuring in some traditional exports via quality upgrading (Imbriani et al., 2008, Bugamelli, 2007). The empirical challenge is to find a good indicator measuring quality upgrading. Following Lissovolik (2008) we look at the relationship between exports de ...
Macroeconomics
... Think about the things that you want and the scarcity that you face. You want to live a long and healthy life. You want to go to a good school, college, or university. You want to live in a well-equipped, spacious, and comfortable home. You want the latest smart phone and a faster Internet connectio ...
... Think about the things that you want and the scarcity that you face. You want to live a long and healthy life. You want to go to a good school, college, or university. You want to live in a well-equipped, spacious, and comfortable home. You want the latest smart phone and a faster Internet connectio ...
trento 25/3 1998 - Department of Economics
... authorities, that is the government or ministry of finance, determines the performance of the fiscal regime. The monetary and fiscal regime jointly determine the prevailing stabilization policy regime. The monetary and fiscal regime are linked. The monetary regime is influenced by the rules governin ...
... authorities, that is the government or ministry of finance, determines the performance of the fiscal regime. The monetary and fiscal regime jointly determine the prevailing stabilization policy regime. The monetary and fiscal regime are linked. The monetary regime is influenced by the rules governin ...
MacroPolicy - Purdue Agriculture
... to deliver the goods that people wanted. And it all happened automatically, in Smith’s famous phrase, as if directed by an “invisible hand.” Usually we don’t put numbers on our demand and supply diagrams, but draw them like Figure 12 instead. We can always point to the intersection of the demand and ...
... to deliver the goods that people wanted. And it all happened automatically, in Smith’s famous phrase, as if directed by an “invisible hand.” Usually we don’t put numbers on our demand and supply diagrams, but draw them like Figure 12 instead. We can always point to the intersection of the demand and ...
Chapter 27: Aggregate Demand in the Goods and Money
... © 2009 Pearson Education, Inc. Publishing as Prentice Hall Principles of Economics 9e by Case, Fair and Oster ...
... © 2009 Pearson Education, Inc. Publishing as Prentice Hall Principles of Economics 9e by Case, Fair and Oster ...
SHORT-RUN FLUCTUATIONS David Romer University of California
... of a tax increase. Figure I-8 shows the effects of the shift. The economy moves down along the MP curve. Thus the real interest rate and output both fall. Shifts in consumer confidence are an important source of short-run fluctuations. To give one example, Iraq’s invasion of Kuwait and other develop ...
... of a tax increase. Figure I-8 shows the effects of the shift. The economy moves down along the MP curve. Thus the real interest rate and output both fall. Shifts in consumer confidence are an important source of short-run fluctuations. To give one example, Iraq’s invasion of Kuwait and other develop ...
REAL AND TERMS INDEXATION RULES FOR AN OPEN ECONOMY
... How the terms of trade affect output can be illustrated by Figure 1 which shows how the nominal wage and employment are determined. Consider first the effects of an equal rise in domestic and foreign prices which keeps the terms of trade constant. ...
... How the terms of trade affect output can be illustrated by Figure 1 which shows how the nominal wage and employment are determined. Consider first the effects of an equal rise in domestic and foreign prices which keeps the terms of trade constant. ...
Identifying Monetary Policy in Open Economies
... shocks with innovations in the ratio of non-borrowed reserves to total reserves in a recursive VAR model, Eichenbaum and Evans (1995) reported a persistent appreciation of the US dollar for a prolonged period of time. Using the same policy instrument in a recursive VAR approach for the US, Strongin ...
... shocks with innovations in the ratio of non-borrowed reserves to total reserves in a recursive VAR model, Eichenbaum and Evans (1995) reported a persistent appreciation of the US dollar for a prolonged period of time. Using the same policy instrument in a recursive VAR approach for the US, Strongin ...
Money and Inflation
... In 1921, the need to make reparations and reconstruct the economy after World War I caused the German government’s expenditures to greatly exceed revenues. The government could have obtained revenues to cover these increased expenditures by raising taxes, but that solution was, as always, politicall ...
... In 1921, the need to make reparations and reconstruct the economy after World War I caused the German government’s expenditures to greatly exceed revenues. The government could have obtained revenues to cover these increased expenditures by raising taxes, but that solution was, as always, politicall ...
The Thick Market Effect on Local Unemployment Rate Fluctuations ∗
... While studying how the average and peak unemployment rates vary across cities has important policy implications, it is equally important to understand the variation in the duration of the unemployment cycle. The duration of an unemployment cycle is the time length of the cycle.4 Although the length ...
... While studying how the average and peak unemployment rates vary across cities has important policy implications, it is equally important to understand the variation in the duration of the unemployment cycle. The duration of an unemployment cycle is the time length of the cycle.4 Although the length ...
PDF Download
... The EEAG, which is in toto responsible for this report, consists of a team of eight economists from seven European countries. It is chaired by Giancarlo Corsetti (European University Institute, Florence) and includes Lars Calmfors (University of Stockholm), Seppo Honkapohja (Universities of Helsinki ...
... The EEAG, which is in toto responsible for this report, consists of a team of eight economists from seven European countries. It is chaired by Giancarlo Corsetti (European University Institute, Florence) and includes Lars Calmfors (University of Stockholm), Seppo Honkapohja (Universities of Helsinki ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... the evaluation of IMF programs by Goldstein and Montiel (1986). It is based on the idea that one can derive a counterfactual—what would have happened to an IMF-participating country if it had not adopted a program—by investigating the policy responses of nonparticipating countries. The key element i ...
... the evaluation of IMF programs by Goldstein and Montiel (1986). It is based on the idea that one can derive a counterfactual—what would have happened to an IMF-participating country if it had not adopted a program—by investigating the policy responses of nonparticipating countries. The key element i ...
The Unemployment Rate The Other Factors - U
... The Other Factors The third variable in equation (6.1), z, is a catchall variable that stands for all the factors that affect wages given the expected price level and the unemployment rate. By By the definition of z, an inconvention, we will define z so that an increase in z implies an increase in t ...
... The Other Factors The third variable in equation (6.1), z, is a catchall variable that stands for all the factors that affect wages given the expected price level and the unemployment rate. By By the definition of z, an inconvention, we will define z so that an increase in z implies an increase in t ...
does consumer price index represent the actual rate of inflation?
... Economists wake up in the morning hoping for a chance to debate the causes of inflation. There is no one cause that's universally agreed upon, but at least two theories are generally accepted: Demand-Pull Inflation - This theory can be summarized as "too much money chasing too few goods". In other w ...
... Economists wake up in the morning hoping for a chance to debate the causes of inflation. There is no one cause that's universally agreed upon, but at least two theories are generally accepted: Demand-Pull Inflation - This theory can be summarized as "too much money chasing too few goods". In other w ...
The Role of Firm-Level Productivity Growth for the Optimal Rate of
... to reduce their real price over time. In contrast to new firms, however, a positive long-run inflation rate can affect incumbent firms adversely. In the case in which incumbent firms expand their productivity less than new firms, they prefer to reduce their real price less than new firms, or to even ...
... to reduce their real price over time. In contrast to new firms, however, a positive long-run inflation rate can affect incumbent firms adversely. In the case in which incumbent firms expand their productivity less than new firms, they prefer to reduce their real price less than new firms, or to even ...
Chapter27 - Web.UVic.ca
... Interest Rates and Inflation Why Inflation Influences the Nominal Interest Rate On the average, and other things remaining the same, a 1 percentage point rise in the inflation rate leads to a 1 percentage point rise in the nominal interest rate. Why? The answer is that the financial capital market ...
... Interest Rates and Inflation Why Inflation Influences the Nominal Interest Rate On the average, and other things remaining the same, a 1 percentage point rise in the inflation rate leads to a 1 percentage point rise in the nominal interest rate. Why? The answer is that the financial capital market ...
AP ECON – Final Exam Review
... III. depreciated a. I only d. I and II only b. II only e. I and III only c. III only ____ 31. The nominal exchange rate at which a given basket of goods and services would cost the same in each country describes a. the international consumer price index d. purchasing power parity (ICPI). b. apprecia ...
... III. depreciated a. I only d. I and II only b. II only e. I and III only c. III only ____ 31. The nominal exchange rate at which a given basket of goods and services would cost the same in each country describes a. the international consumer price index d. purchasing power parity (ICPI). b. apprecia ...
OPTIMAL TRANSACTION FILTERS UNDER TRANSITORY
... exchange value exceeds some moving average of its past values by more than the x percent “band”. Presumably, such a filter reduces trading and thus transaction costs. The idea is that if the trade indicator is weak the expected return from the transaction may not compensate for the transaction cost. ...
... exchange value exceeds some moving average of its past values by more than the x percent “band”. Presumably, such a filter reduces trading and thus transaction costs. The idea is that if the trade indicator is weak the expected return from the transaction may not compensate for the transaction cost. ...
Forward Guidance and Macroeconomic Outcomes Since the Financial Crisis ∗ Jeffrey R. Campbell
... As such we identify forward guidance as interpreted by market participants, which may or may not be as intended by the members of the FOMC. In addition to introducing forward guidance to the monetary policy rule we make two changes to the preferences of the workhorse model. First, we include an addi ...
... As such we identify forward guidance as interpreted by market participants, which may or may not be as intended by the members of the FOMC. In addition to introducing forward guidance to the monetary policy rule we make two changes to the preferences of the workhorse model. First, we include an addi ...
vsi10 roc Hung2 13364920 en
... its East-Asian neighbors and OPEC countries (Figure 1). Its national saving rate was 54.4 percent in 2007, more than twice of the average saving rate of OECD countries (Table 1A). Moreover, high saving, not weak investment is responsible for China’s large excess saving. China’s investment/GDP ratio ...
... its East-Asian neighbors and OPEC countries (Figure 1). Its national saving rate was 54.4 percent in 2007, more than twice of the average saving rate of OECD countries (Table 1A). Moreover, high saving, not weak investment is responsible for China’s large excess saving. China’s investment/GDP ratio ...
NBER WORKING PAPER SERIES MONETARY RULES FOR COMMODITY TRADERS Luis Catão Roberto Chang
... more restrictive assumptions on parameters and production structure than we allow for here, and in addition assume only perfect international sharing. Our discussion of optimal monetary policy is inspired by and has some overlap with Gali and Monacelli (2005) and Faia and Monacelli (2007). But our ...
... more restrictive assumptions on parameters and production structure than we allow for here, and in addition assume only perfect international sharing. Our discussion of optimal monetary policy is inspired by and has some overlap with Gali and Monacelli (2005) and Faia and Monacelli (2007). But our ...
The unremunerated reserve requirement and net capital flows: Chile
... From 1990 through 1997, the net inflow of foreign capital to Chile was exceptionally large, surpassing what would be considered a sustainable level of external financing. At the same time, real private expenditure, which accounts for over 75% of domestic aggregate demand, doubled as a result of a 10 ...
... From 1990 through 1997, the net inflow of foreign capital to Chile was exceptionally large, surpassing what would be considered a sustainable level of external financing. At the same time, real private expenditure, which accounts for over 75% of domestic aggregate demand, doubled as a result of a 10 ...
The Interest Rate Effect on Private Saving: Alternative Perspectives
... better prepared for retirement. Such a tendency can also be strong in an economy in which sufficient social protections such as social securities and unemployment benefits are not available. Generally, people may want to increase their aggregate amount of saving in response to lower interest rates i ...
... better prepared for retirement. Such a tendency can also be strong in an economy in which sufficient social protections such as social securities and unemployment benefits are not available. Generally, people may want to increase their aggregate amount of saving in response to lower interest rates i ...
Exchange rate
In finance, an exchange rate (also known as a foreign-exchange rate, forex rate, FX rate or Agio) between two currencies is the rate at which one currency will be exchanged for another. It is also regarded as the value of one country’s currency in terms of another currency. For example, an interbank exchange rate of 119 Japanese yen (JPY, ¥) to the United States dollar (US$) means that ¥119 will be exchanged for each US$1 or that US$1 will be exchanged for each ¥119. In this case it is said that the price of a dollar in terms of yen is ¥119, or equivalently that the price of a yen in terms of dollars is $1/119.Exchange rates are determined in the foreign exchange market, which is open to a wide range of different types of buyers and sellers where currency trading is continuous: 24 hours a day except weekends, i.e. trading from 20:15 GMT on Sunday until 22:00 GMT Friday. The spot exchange rate refers to the current exchange rate. The forward exchange rate refers to an exchange rate that is quoted and traded today but for delivery and payment on a specific future date.In the retail currency exchange market, a different buying rate and selling rate will be quoted by money dealers. Most trades are to or from the local currency. The buying rate is the rate at which money dealers will buy foreign currency, and the selling rate is the rate at which they will sell the currency. The quoted rates will incorporate an allowance for a dealer's margin (or profit) in trading, or else the margin may be recovered in the form of a commission or in some other way. Different rates may also be quoted for cash (usually notes only), a documentary form (such as traveler's cheques) or electronically (such as a credit card purchase). The higher rate on documentary transactions has been justified to compensate for the additional time and cost of clearing the document, while the cash is available for resale immediately. Some dealers on the other hand prefer documentary transactions because of the security concerns with cash.