NBER WORKING PAPER SERIES MONETARY-FISCAL POLICY INTERACTIONS BEYOND
... present value of surpluses. Section 4 presents some results from recent work on simple monetary and tax policy rules, framing the backdrop for the fiscal theory. Although instructive for some purposes, the assumption that all taxes are lump sum prevents the fiscal theory from being understood in the ...
... present value of surpluses. Section 4 presents some results from recent work on simple monetary and tax policy rules, framing the backdrop for the fiscal theory. Although instructive for some purposes, the assumption that all taxes are lump sum prevents the fiscal theory from being understood in the ...
Eurosystem Monetary Targeting: Lessons from U.S. Data ¤ Glenn D. Rudebusch
... de…nitions must be aggregated, and some accounting must be made of the actual historical exchange rate ‡uctuations among the 11 euro-area countries. Furthermore, even if unambiguous pre-union aggregates were available, it is not clear that the experience of the euro area before monetary union under ...
... de…nitions must be aggregated, and some accounting must be made of the actual historical exchange rate ‡uctuations among the 11 euro-area countries. Furthermore, even if unambiguous pre-union aggregates were available, it is not clear that the experience of the euro area before monetary union under ...
FROM STANDARD TO David I. Fand A RANDOM-WALK MONETARY
... by Axel Leijonhufvud (1984, p. 23). Under this standard, the uncertainty about monetary policy grows rapidly as we look to the future. We are less in the dark concerning the thrust of monetary policy this month or next month. We are more in the dark concerning policy six months from now. And when we ...
... by Axel Leijonhufvud (1984, p. 23). Under this standard, the uncertainty about monetary policy grows rapidly as we look to the future. We are less in the dark concerning the thrust of monetary policy this month or next month. We are more in the dark concerning policy six months from now. And when we ...
Monetary Theories(Basics) We have already learned that the LM
... means of controlling H such as the `Switching Operation' (= Withdrawal and Re-deposits of the central bank's account with the commercial banks), and so forth. However, we will just focus on the OMO. The government has a printing machine with which to print money. Under the current fiat money system ...
... means of controlling H such as the `Switching Operation' (= Withdrawal and Re-deposits of the central bank's account with the commercial banks), and so forth. However, we will just focus on the OMO. The government has a printing machine with which to print money. Under the current fiat money system ...
Disputes over Macro Theory and Policy
... would make production less profitable and would cause producers to offer less output and employ fewer workers. The classical response to this view is that input costs would fall along with product prices, leaving real profits and output unchanged. Consider a one-firm economy in which the firm’s owne ...
... would make production less profitable and would cause producers to offer less output and employ fewer workers. The classical response to this view is that input costs would fall along with product prices, leaving real profits and output unchanged. Consider a one-firm economy in which the firm’s owne ...
Murray Rothbard`s America`s Great Depression
... as Rothbard the economist. The fact that America’s Great Depression covers the events and policies of the 1920’s through the end of the Hoover presidency in 1933 is interesting for two reasons. First, because most studies of the Depression focus heavily on the events after the crash of 1929 and igno ...
... as Rothbard the economist. The fact that America’s Great Depression covers the events and policies of the 1920’s through the end of the Hoover presidency in 1933 is interesting for two reasons. First, because most studies of the Depression focus heavily on the events after the crash of 1929 and igno ...
Unit H460/2
... Towards the end of 2013 and at the start of 2014 US and UK monetary policy changed. There was a reduction in the growth of the money supply in the two countries and the prospect of a rise in interest rates in the US. This led to a significant withdrawal of short term funds from the Fragile Five. In ...
... Towards the end of 2013 and at the start of 2014 US and UK monetary policy changed. There was a reduction in the growth of the money supply in the two countries and the prospect of a rise in interest rates in the US. This led to a significant withdrawal of short term funds from the Fragile Five. In ...
FISCAL POLICY: A P OTENT INSTRUMENT
... of cumbersome parliamentary approval and implementation processes; increasing taxes or decreasing government expenditure during upswings may be politically unrealistic, and this may very well generate a deficit bias; spending decisions may be irreversible, which can lead to a public expenditure ratc ...
... of cumbersome parliamentary approval and implementation processes; increasing taxes or decreasing government expenditure during upswings may be politically unrealistic, and this may very well generate a deficit bias; spending decisions may be irreversible, which can lead to a public expenditure ratc ...
Research Paper 2011/08 Modeling the Inflation
... The role monetary aggregates should play, if any, in the conduct of monetary policy remains a controversial issue. Indeed, numerous research on the relationship between money growth and inflation in in the economy, in the form of estimated money-demand relationships or models for forecasting inflati ...
... The role monetary aggregates should play, if any, in the conduct of monetary policy remains a controversial issue. Indeed, numerous research on the relationship between money growth and inflation in in the economy, in the form of estimated money-demand relationships or models for forecasting inflati ...
L7-9InstrumentsMABP
... inflows accelerated rapidly. Initially, the PBoC had no trouble sterilizing the inflows. => The MB growth rate was kept down to the growth rate of the real economy (≈ 10%/year), so there was little inflationary pressure. ...
... inflows accelerated rapidly. Initially, the PBoC had no trouble sterilizing the inflows. => The MB growth rate was kept down to the growth rate of the real economy (≈ 10%/year), so there was little inflationary pressure. ...
Estimating A Monetary Policy Reaction Function for the CBN–
... output while the exchange rate should also be pegged and prevented from sustained depreciation. This was to reduce the incidence of imported inflation as the economy needed imports of raw materials and capital goods for improved industrial output. After designing a monetary programme, the Bank issue ...
... output while the exchange rate should also be pegged and prevented from sustained depreciation. This was to reduce the incidence of imported inflation as the economy needed imports of raw materials and capital goods for improved industrial output. After designing a monetary programme, the Bank issue ...
EU202 lecture slides 7
... Spillovers such as income flows, borrowing costs, and the risk of debt default can have serious effects across the Euro area Some countries may lack the political institutions necessary for fiscal discipline necessitating the use of an external agent such as Brussels for restraint ...
... Spillovers such as income flows, borrowing costs, and the risk of debt default can have serious effects across the Euro area Some countries may lack the political institutions necessary for fiscal discipline necessitating the use of an external agent such as Brussels for restraint ...
Macroeconomic stabilization, monetary
... stimulative effects. To make matters worse, the expectations of default or restructuring can be selffulfilling. Although the Outright Monetary Transactions program launched by the European Central Bank in 2012 has eliminated or at least reduced the possibility of self-fulfilling creditor runs on a e ...
... stimulative effects. To make matters worse, the expectations of default or restructuring can be selffulfilling. Although the Outright Monetary Transactions program launched by the European Central Bank in 2012 has eliminated or at least reduced the possibility of self-fulfilling creditor runs on a e ...
Inflation and Hyperinflation
... Inflation is defined as a continuing and rapid rise in the price level. According to Milton Friedman, it is “always and everywhere a monetary phenomenon”. Most economists, whether monetarists or Keynesians, agree that proposition. In what follows, we will study that proposition before presenting the ...
... Inflation is defined as a continuing and rapid rise in the price level. According to Milton Friedman, it is “always and everywhere a monetary phenomenon”. Most economists, whether monetarists or Keynesians, agree that proposition. In what follows, we will study that proposition before presenting the ...
a case study of class-based political business cycles
... system’. His words were prophetic in hindsight but, as this paper argues, more in terms of Kalecki’s view of how capitalists reassert their power, rather than Cairns’s view of collective action of the masses supporting Labor. Cairns’s influence on economic policy preceded his own appointment to the ...
... system’. His words were prophetic in hindsight but, as this paper argues, more in terms of Kalecki’s view of how capitalists reassert their power, rather than Cairns’s view of collective action of the masses supporting Labor. Cairns’s influence on economic policy preceded his own appointment to the ...
Monetary Policy Fall 2016 (material for last course outline)
... the new reserves, the banks must lower interest rates. o Think about it this way: Suppose you are one of ten people selling apples at a stand along the street. You have priced them so that the demand for apples is the same as the supply. You and all the other apple stands suddenly get a new shipment ...
... the new reserves, the banks must lower interest rates. o Think about it this way: Suppose you are one of ten people selling apples at a stand along the street. You have priced them so that the demand for apples is the same as the supply. You and all the other apple stands suddenly get a new shipment ...
Franz Seitz - OTH Amberg
... exports and the unemployment rate. Besides aggregate output effects only two papers deal with other real variables: For the US Karras (1996a) finds that asymmetry holds for both consumption and investment, too, and Garibaldi (1997) gets evidence of asymmetric effects of monetary policy on job destru ...
... exports and the unemployment rate. Besides aggregate output effects only two papers deal with other real variables: For the US Karras (1996a) finds that asymmetry holds for both consumption and investment, too, and Garibaldi (1997) gets evidence of asymmetric effects of monetary policy on job destru ...
Gold Sterilization and the Recession of 1937-38
... to be the major source of monetary expansion over the next few years. As Romer (1992) argues, expansionary monetary policy was a critical part of the recovery from the Great Depression. Real GDP grew 11 percent a year, on average, between 1933 and 1936. With the economy operating with substantial e ...
... to be the major source of monetary expansion over the next few years. As Romer (1992) argues, expansionary monetary policy was a critical part of the recovery from the Great Depression. Real GDP grew 11 percent a year, on average, between 1933 and 1936. With the economy operating with substantial e ...
Fiscal Policy in the New Economic Consensus and Post Keynesian
... maintaining constant patterns of spending. Under Ricardian equivalence, if taxes increase, individuals are not expected to adjust their spending downward, because they know that a tax cut is coming, that will offset these temporary changes to incomes. But if individuals face borrowing/liquidity cons ...
... maintaining constant patterns of spending. Under Ricardian equivalence, if taxes increase, individuals are not expected to adjust their spending downward, because they know that a tax cut is coming, that will offset these temporary changes to incomes. But if individuals face borrowing/liquidity cons ...