FISCAL POLICY: A P OTENT INSTRUMENT
... ‘crowding out’ and the Ricardian Equivalence Theorem (RET). Further arguments against discretionary fiscal policy concern its so-called ‘institutional aspects’ (Hemming, Kell and Mahfouz, 2002): longer and more variable lags prevail between the announcement and impact of policies than was thought pr ...
... ‘crowding out’ and the Ricardian Equivalence Theorem (RET). Further arguments against discretionary fiscal policy concern its so-called ‘institutional aspects’ (Hemming, Kell and Mahfouz, 2002): longer and more variable lags prevail between the announcement and impact of policies than was thought pr ...
Decomposing Sources of Inflation
... to one-day repurchase rate. The data used is adjusted for this change and it is in yearly differenced. The lagged policy rate is included to represent instrument smoothing as seen in Mohanty and Klau (2004), McCauley and Klau(2006), and Mehrotra and Sanchez-Fung (2011). Manufacturing production inde ...
... to one-day repurchase rate. The data used is adjusted for this change and it is in yearly differenced. The lagged policy rate is included to represent instrument smoothing as seen in Mohanty and Klau (2004), McCauley and Klau(2006), and Mehrotra and Sanchez-Fung (2011). Manufacturing production inde ...
The Classical View
... decline in a nation’s aggregate supply, which destabilizes the economy by simultaneously causing cost-push inflation and recession. ...
... decline in a nation’s aggregate supply, which destabilizes the economy by simultaneously causing cost-push inflation and recession. ...
The Evolution of US Monetary Policy: 2000-2007
... something fundamental must have changed between 2000 and 2007. The statistical analysis presented here is directed at assessing the role monetary policy may have played as a possible source of that change. Its focus on monetary policy is motivated by two interrelated sets of considerations. First, a ...
... something fundamental must have changed between 2000 and 2007. The statistical analysis presented here is directed at assessing the role monetary policy may have played as a possible source of that change. Its focus on monetary policy is motivated by two interrelated sets of considerations. First, a ...
Taylor Rules, McCallum Rules and the Term Structure of Interest Rates
... such as inflation or inflation expectations and real output or expected real output, e.g., a Taylor Rule, can be equivalent to a McCallum Rule in which short-term interest rates are set in response to term structure considerations, as suggested by the work of Cochrane and Piazzesi. If so, then what ...
... such as inflation or inflation expectations and real output or expected real output, e.g., a Taylor Rule, can be equivalent to a McCallum Rule in which short-term interest rates are set in response to term structure considerations, as suggested by the work of Cochrane and Piazzesi. If so, then what ...
pdf copy of this Policy Study
... of applied economic theory is the value of a gold standard. Smith and Friedman both acknowledged the benefits of a gold standard; Smith for its use as a currency, and Friedman for its ability to protect against an intrusive government. However, the supply of gold expands much more slowly than the ec ...
... of applied economic theory is the value of a gold standard. Smith and Friedman both acknowledged the benefits of a gold standard; Smith for its use as a currency, and Friedman for its ability to protect against an intrusive government. However, the supply of gold expands much more slowly than the ec ...
Transcript of lecture
... application of Hayekian theory to the boom and bust of the interwar period, recanted in his 1971 Autobiography (p. 154), confessing that he would "willingly see [his 1934 book] forgotten." Commenting on Hayek's "technical economics" during an interview (Ebenstein, 2001, p. 81), Milton Friedman empha ...
... application of Hayekian theory to the boom and bust of the interwar period, recanted in his 1971 Autobiography (p. 154), confessing that he would "willingly see [his 1934 book] forgotten." Commenting on Hayek's "technical economics" during an interview (Ebenstein, 2001, p. 81), Milton Friedman empha ...
Low Inflation, Deflation, and Policies for Future Price Stability A
... Several things are apparent in Figure 1. First, the inflation rate in Japan has come down steadily since the late 1970s, with the recent deflation—negative inflation—seeming like a continuation of that trend. The average inflation rate fell from 3.0 percent in the 1978-86 period, to 1.2 percent in ...
... Several things are apparent in Figure 1. First, the inflation rate in Japan has come down steadily since the late 1970s, with the recent deflation—negative inflation—seeming like a continuation of that trend. The average inflation rate fell from 3.0 percent in the 1978-86 period, to 1.2 percent in ...
Chapter 23 Employment and Unemployment
... 19. Because discouraged workers and underemployed workers (involuntary part-time or workers not making use of their skills) are not counted among the unemployed in the official unemployment statistic. 20. Frictional, structural, and cyclical unemployment. Cyclical unemployment is broadly spread thro ...
... 19. Because discouraged workers and underemployed workers (involuntary part-time or workers not making use of their skills) are not counted among the unemployed in the official unemployment statistic. 20. Frictional, structural, and cyclical unemployment. Cyclical unemployment is broadly spread thro ...
EMPLOYMENT AND UNEMPLOYMENT
... 19. Because discouraged workers and underemployed workers (involuntary part-time or workers not making use of their skills) are not counted among the unemployed in the official unemployment statistic. 20. Frictional, structural, and cyclical unemployment. Cyclical unemployment is broadly spread thro ...
... 19. Because discouraged workers and underemployed workers (involuntary part-time or workers not making use of their skills) are not counted among the unemployed in the official unemployment statistic. 20. Frictional, structural, and cyclical unemployment. Cyclical unemployment is broadly spread thro ...
Learning and Change in Twentieth-Century British Economic Policy
... One of the problems with illuminating the “black box” of policymaking is the real definitional issue we encounter when we treat ideas as an independent variable, and the difficulty of devising empirical tests of the power and impact of ideas (Berman 1998, 14). Berman has suggested that for ideas to ...
... One of the problems with illuminating the “black box” of policymaking is the real definitional issue we encounter when we treat ideas as an independent variable, and the difficulty of devising empirical tests of the power and impact of ideas (Berman 1998, 14). Berman has suggested that for ideas to ...
CH 11 PDF
... • If demand turns out to be larger at that price than the firm planned, the firm will still meet the demand at that price, since it earns additional profits due to the markup • Since the firm is paying an efficiency wage, it can hire more workers at that wage to produce more goods when necessary • T ...
... • If demand turns out to be larger at that price than the firm planned, the firm will still meet the demand at that price, since it earns additional profits due to the markup • Since the firm is paying an efficiency wage, it can hire more workers at that wage to produce more goods when necessary • T ...
Real-Wage Rigidity - Pearson Higher Education
... – The FE line is vertical, as in the classical model, since fullemployment output is determined in the labor market and doesn't depend on the real interest rate – But in the Keynesian model, changes in labor supply don't affect the FE line, since they don't affect equilibrium employment – A change i ...
... – The FE line is vertical, as in the classical model, since fullemployment output is determined in the labor market and doesn't depend on the real interest rate – But in the Keynesian model, changes in labor supply don't affect the FE line, since they don't affect equilibrium employment – A change i ...
T S I
... term structure. In Section 3 we derive the central bank’s optimal monetary policy rule. We show that the optimal short-term interest rate will be more responsive to the underlying state of the economy as the maturity of the long-term bond – measured by its duration – increases. Next, in Section 4 we ...
... term structure. In Section 3 we derive the central bank’s optimal monetary policy rule. We show that the optimal short-term interest rate will be more responsive to the underlying state of the economy as the maturity of the long-term bond – measured by its duration – increases. Next, in Section 4 we ...
From real business cycle and new Keynesian to DSGE
... Department of Economics, University of São Paulo, Brazil (pgduarte@usp.br). Financial support from CNPq (Brazil) is gratefully acknowledged. ...
... Department of Economics, University of São Paulo, Brazil (pgduarte@usp.br). Financial support from CNPq (Brazil) is gratefully acknowledged. ...
LOYOLA COLLEGE (AUTONOMOUS), CHENNAI – 600034 DEPARTMENT OF ECONOMICS Major Core (MC)
... To instruct what is established and useful in macroeconomics, bringing in new ideas: and To reflect the changing tone and emphasis that emerge from the past decade of macroeconomic events and scholarly research ...
... To instruct what is established and useful in macroeconomics, bringing in new ideas: and To reflect the changing tone and emphasis that emerge from the past decade of macroeconomic events and scholarly research ...
paper i - Madhya Pradesh Bhoj Open University
... the business cycle. The theories forming the basis of Keynesian economics were first presented in The General Theory of Employment, Interest and Money, published in 1936; the interpretations of Keynes are contentious, and several schools of thought claim his legacy. Keynesian economics advocates a m ...
... the business cycle. The theories forming the basis of Keynesian economics were first presented in The General Theory of Employment, Interest and Money, published in 1936; the interpretations of Keynes are contentious, and several schools of thought claim his legacy. Keynesian economics advocates a m ...
fiscal multipliers
... magnitude of differing multipliers are reviewed. Special cases and allowances for asymmetric effects are examined. ...
... magnitude of differing multipliers are reviewed. Special cases and allowances for asymmetric effects are examined. ...
Unemployment in Nigeria: A Time Bomb Waiting To Explode: Issues
... Even with the expansion of the industry, unemployment has continued to grow at an alarming rate. Until early 1970s, agriculture remained as the mainstay of the Nigerian economy. It constituted the major income earner for the country and the largest employer of labour a ...
... Even with the expansion of the industry, unemployment has continued to grow at an alarming rate. Until early 1970s, agriculture remained as the mainstay of the Nigerian economy. It constituted the major income earner for the country and the largest employer of labour a ...
Edmund Phelps
Edmund Strother Phelps, Jr. (born July 26, 1933) is an American economist and the winner of the 2006 Nobel Memorial Prize in Economic Sciences. Early in his career he became renowned for his research at Yale's Cowles Foundation in the first half of the 1960s on the sources of economic growth. His demonstration of the Golden Rule savings rate, a concept first devised by John von Neumann and Maurice Allais, started a wave of research on how much a nation ought to spend on present consumption rather than save and invest for future generations. His most seminal work inserted a microfoundation—one featuring imperfect information, incomplete knowledge and expectations about wages and prices—to support a macroeconomic theory of employment determination and price-wage dynamics. This led to his development of the natural rate of unemployment—its existence and the mechanism governing its size.Phelps has been McVickar Professor of Political Economy at Columbia University since 1982. He is also the director of Columbia's Center on Capitalism and Society.