NBER WORKING PAPER SERIES TARIFFS, EMPLOYMENT AND THE CURRENT ACCOUNT:
... A further problem with the macroeconomic literature on tariff policy is that its conclusions on CA effects are based on models incorporating arbitrary static savings functions, not a very meaningful procedure in an analysis of a clearly intertemporal issue such as current account behavior. An elegan ...
... A further problem with the macroeconomic literature on tariff policy is that its conclusions on CA effects are based on models incorporating arbitrary static savings functions, not a very meaningful procedure in an analysis of a clearly intertemporal issue such as current account behavior. An elegan ...
Why There Is Rapid Economic Growth Accompanied By High
... percentage point below the natural unemployment rate, the economic growth will be higher than potential output 3 percentage points, this is the famous Okun's Law, this Law and the Phillips curve, they are cornerstones constitute the neo-classical economics, the of the aggregate supply curve. 1 ...
... percentage point below the natural unemployment rate, the economic growth will be higher than potential output 3 percentage points, this is the famous Okun's Law, this Law and the Phillips curve, they are cornerstones constitute the neo-classical economics, the of the aggregate supply curve. 1 ...
Production and Cpi Day 2010
... everything. Core CPI is important because this is what the Federal Reserve looks at to decide whether or not to raise the Fed Funds rate. The Fed uses the Core CPI because food and energy, specifically gasoline, are so volatile and the Fed's tools are so slow-acting. Therefore, inflation could be hi ...
... everything. Core CPI is important because this is what the Federal Reserve looks at to decide whether or not to raise the Fed Funds rate. The Fed uses the Core CPI because food and energy, specifically gasoline, are so volatile and the Fed's tools are so slow-acting. Therefore, inflation could be hi ...
Impact of Inflation on Economic Growth: Case Study of Nigeria (1970
... Maintaining price stability and growth together in an economy is one of the central macroeconomic policy objectives of most developing countries in the world today. In order to promote economic growth and strengthen the purchasing power of the domestic currency for the Nigerian economy, emphasis has ...
... Maintaining price stability and growth together in an economy is one of the central macroeconomic policy objectives of most developing countries in the world today. In order to promote economic growth and strengthen the purchasing power of the domestic currency for the Nigerian economy, emphasis has ...
Answers to Homework #3
... f. How would the unemployment rate change in Thomasville if part-time workers were counted as unemployed workers rather than employed workers? Verbally describe how the unemployment rate would change and then calculate a numeric value based on this change in the definition of unemployment. Answer: A ...
... f. How would the unemployment rate change in Thomasville if part-time workers were counted as unemployed workers rather than employed workers? Verbally describe how the unemployment rate would change and then calculate a numeric value based on this change in the definition of unemployment. Answer: A ...
Mankiw 5/e Chapter 10: Aggregate Demand I
... – output determined by factors of production & technology – unemployment equals its natural rate Short run – prices fixed – output determined by aggregate demand – unemployment is negatively related to output CHAPTER 10 ...
... – output determined by factors of production & technology – unemployment equals its natural rate Short run – prices fixed – output determined by aggregate demand – unemployment is negatively related to output CHAPTER 10 ...
Video Clip 1 "Swedish Economic System"
... (c) The most frequent argument against casino gambling is that lower income households tend to gamble away more of their incomes than do higher income households. Thus, the taxes collected from gambling come predominantly from lower income households and often from gambling addicts. 7. (a) Tuition ( ...
... (c) The most frequent argument against casino gambling is that lower income households tend to gamble away more of their incomes than do higher income households. Thus, the taxes collected from gambling come predominantly from lower income households and often from gambling addicts. 7. (a) Tuition ( ...
Credibility and Monetary Policy - Federal Reserve Bank of Kansas City
... then each Apt reduction must be anticipated two periods in advance to avoid all output costs, with an extension to J-period lags straightforward. These costs will, nevertheless, be smaller the smaller is the excess of expected over actual inflation rates during the epi~ode.~ The rather different con ...
... then each Apt reduction must be anticipated two periods in advance to avoid all output costs, with an extension to J-period lags straightforward. These costs will, nevertheless, be smaller the smaller is the excess of expected over actual inflation rates during the epi~ode.~ The rather different con ...
DP2006/01 Phillips curve forecasting in a small open economy Troy Matheson March 2006
... However, when β (L) and δ (L) = 0 and γ(1), our null and alternative models are the same – the models are nested. In this situation, the distribution of dt is nonstandard (Clark and McCracken 2001). Thus far, the distribution theory related to testing mean squared forecast error (MSFE) differences i ...
... However, when β (L) and δ (L) = 0 and γ(1), our null and alternative models are the same – the models are nested. In this situation, the distribution of dt is nonstandard (Clark and McCracken 2001). Thus far, the distribution theory related to testing mean squared forecast error (MSFE) differences i ...
Introduction by Paul Krugman to The General Theory of Employment
... • Government policies to increase demand, by contrast, can reduce unemployment quickly • Sometimes increasing the money supply won’t be enough to persuade the private sector to spend more, and government spending must step into the breach To a modern practitioner of economic policy, none of this – e ...
... • Government policies to increase demand, by contrast, can reduce unemployment quickly • Sometimes increasing the money supply won’t be enough to persuade the private sector to spend more, and government spending must step into the breach To a modern practitioner of economic policy, none of this – e ...
Aggregate Demand
... Macroeconomic Schools of Thought The Keynesian View A Keynesian macroeconomist believes that left alone, the economy would rarely operate at full employment and that to achieve and maintain full employment, active help from fiscal policy and monetary policy is required. The term “Keynesian” derives ...
... Macroeconomic Schools of Thought The Keynesian View A Keynesian macroeconomist believes that left alone, the economy would rarely operate at full employment and that to achieve and maintain full employment, active help from fiscal policy and monetary policy is required. The term “Keynesian” derives ...
Introduction by Paul Krugman to The General Theory of Employment
... • Government policies to increase demand, by contrast, can reduce unemployment quickly • Sometimes increasing the money supply won’t be enough to persuade the private sector to spend more, and government spending must step into the breach To a modern practitioner of economic policy, none of this – e ...
... • Government policies to increase demand, by contrast, can reduce unemployment quickly • Sometimes increasing the money supply won’t be enough to persuade the private sector to spend more, and government spending must step into the breach To a modern practitioner of economic policy, none of this – e ...
Document
... A. increases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources. B. increases aggregate demand in the United States, and may decrease aggregate supply by increasing the prices of imported resources. C. decreases aggregate demand in t ...
... A. increases aggregate demand in the United States, and may increase aggregate supply by reducing the prices of imported resources. B. increases aggregate demand in the United States, and may decrease aggregate supply by increasing the prices of imported resources. C. decreases aggregate demand in t ...
Axel A Weber: The role of interest rates in theory and practice
... important information on the current state of the economy, and the extent to which past monetary policy measures have already started to take effect. Put it differently, interest rates are important as both an input into and an output of monetary policy decisions – they are instrument variables as w ...
... important information on the current state of the economy, and the extent to which past monetary policy measures have already started to take effect. Put it differently, interest rates are important as both an input into and an output of monetary policy decisions – they are instrument variables as w ...
Chapter 24 Aggregate Demand and Aggregate Supply
... enough about how money supply changes will effect the economy (how long will the take? what will be the size of the change?). They think than many recessions have been caused by bad monetary policy. Monetarists believe that the Great Depression was caused by mismanaged monetary policy. At the start ...
... enough about how money supply changes will effect the economy (how long will the take? what will be the size of the change?). They think than many recessions have been caused by bad monetary policy. Monetarists believe that the Great Depression was caused by mismanaged monetary policy. At the start ...
AS-AD and the Business Cycle
... gap. An inflationary gap occurs when the AS curve and the AD curve intersect to the right of the potential GDP line, as illustrated in the figure to the left, above. In this case real wages have fallen and workers eventually demand higher wages. The tight labor market allows the money wage rate to i ...
... gap. An inflationary gap occurs when the AS curve and the AD curve intersect to the right of the potential GDP line, as illustrated in the figure to the left, above. In this case real wages have fallen and workers eventually demand higher wages. The tight labor market allows the money wage rate to i ...
Forecasting South African Inflation
... Therefore, my strategy is to try to identify an accurate forecasting equation that is based on a variation of the Phillips curve in equation (1), where there is a significant role for the variables measuring the balance between aggregate demand and aggregate supply. An immediate problem of empirical ...
... Therefore, my strategy is to try to identify an accurate forecasting equation that is based on a variation of the Phillips curve in equation (1), where there is a significant role for the variables measuring the balance between aggregate demand and aggregate supply. An immediate problem of empirical ...
Chapter 14 - Aufinance
... Long-term interest rates that influence spending plans are linked loosely to the federal funds rate. The response of the real long-term interest rate to a change in the nominal rate depends on how inflation expectations change. The response of expenditure plans to changes in the real interest rate d ...
... Long-term interest rates that influence spending plans are linked loosely to the federal funds rate. The response of the real long-term interest rate to a change in the nominal rate depends on how inflation expectations change. The response of expenditure plans to changes in the real interest rate d ...
Full employment
Full employment, in macroeconomics, is the level of employment rates where there is no cyclical or deficient-demand unemployment. It is defined by the majority of mainstream economists as being an acceptable level of unemployment somewhere above 0%. The discrepancy from 0% arises due to non-cyclical types of unemployment, such as frictional unemployment (there will always be people who have quit or have lost a seasonal job and are in the process of getting a new job) and structural unemployment (mismatch between worker skills and job requirements). Unemployment above 0% is seen as necessary to control inflation in capitalist economies, to keep inflation from accelerating, i.e., from rising from year to year. This view is based on a theory centering on the concept of the Non-Accelerating Inflation Rate of Unemployment (NAIRU); in the current era, the majority of mainstream economists mean NAIRU when speaking of ""full"" employment. The NAIRU has also been described by Milton Friedman, among others, as the ""natural"" rate of unemployment. Having many names, it has also been called the structural unemployment rate.The 20th century British economist William Beveridge stated that an unemployment rate of 3% was full employment. Other economists have provided estimates between 2% and 13%, depending on the country, time period, and their political biases. For the United States, economist William T. Dickens found that full-employment unemployment rate varied a lot over time but equaled about 5.5 percent of the civilian labor force during the 2000s. Recently, economists have emphasized the idea that full employment represents a ""range"" of possible unemployment rates. For example, in 1999, in the United States, the Organisation for Economic Co-operation and Development (OECD) gives an estimate of the ""full-employment unemployment rate"" of 4 to 6.4%. This is the estimated unemployment rate at full employment, plus & minus the standard error of the estimate.The concept of full employment of labor corresponds to the concept of potential output or potential real GDP and the long run aggregate supply (LRAS) curve. In neoclassical macroeconomics, the highest sustainable level of aggregate real GDP or ""potential"" is seen as corresponding to a vertical LRAS curve: any increase in the demand for real GDP can only lead to rising prices in the long run, while any increase in output is temporary.