Fiscal and Monetary Policies that Work for Working People
... I’d argue that if we hope to elevate monetary and especially fiscal policy to their proper position in the reconnection agenda, these insights must be well understood by economists and policy makers. They also fit nicely into this theme about how fiscal and monetary policy must work together if we a ...
... I’d argue that if we hope to elevate monetary and especially fiscal policy to their proper position in the reconnection agenda, these insights must be well understood by economists and policy makers. They also fit nicely into this theme about how fiscal and monetary policy must work together if we a ...
Were 364 Economists All Wrong? - Institute of Economic Affairs
... was, indirectly, an attack on their academic stature − particularly given the statement that there was ‘no basis in economic theory or supporting evidence’ for the policy that the Budget was seeking to implement. If, today, one rejects the message of the 364 economists, even with the benefit of hind ...
... was, indirectly, an attack on their academic stature − particularly given the statement that there was ‘no basis in economic theory or supporting evidence’ for the policy that the Budget was seeking to implement. If, today, one rejects the message of the 364 economists, even with the benefit of hind ...
Class 5. The IS-LM model and Aggregate Demand
... c) Why do you suppose this result is called the paradox of thrift? d) Does this paradox arise in the classical model? Why or why not? 5. Suppose the money demand function is d ( M P ) = 1,000 − 100r where r is the interest rate in percent. The money supply is 1,000 and the price level is 2. a) Graph ...
... c) Why do you suppose this result is called the paradox of thrift? d) Does this paradox arise in the classical model? Why or why not? 5. Suppose the money demand function is d ( M P ) = 1,000 − 100r where r is the interest rate in percent. The money supply is 1,000 and the price level is 2. a) Graph ...
A New Keynesian Perspective on the Great
... like GDP and employment, by direct appeal to movements in another, like asset market valuations or interest rates, sometimes make for decent journalism but rarely produce satisfactory economic insights. Second, recessions have always been accompanied by an increase in bankruptcies among financial an ...
... like GDP and employment, by direct appeal to movements in another, like asset market valuations or interest rates, sometimes make for decent journalism but rarely produce satisfactory economic insights. Second, recessions have always been accompanied by an increase in bankruptcies among financial an ...
Labor Markets and Monetary Policy: A New
... Section II characterizes the decentralized equilibrium under alternative wage-setting mechanisms. As is well understood, frictions create a wage band, within which any real wage is consistent with private efficiency. Thus, we explore two alternatives. We first assume Nash bargaining. In this case, t ...
... Section II characterizes the decentralized equilibrium under alternative wage-setting mechanisms. As is well understood, frictions create a wage band, within which any real wage is consistent with private efficiency. Thus, we explore two alternatives. We first assume Nash bargaining. In this case, t ...
Macroeconomic Forecasting and Policy Analysis
... – It is written in “The Main Directions of Monetary and Exchange Rate Policies” – The parliament of Georgia approves the target annually for the next 3 years. – If Parliament does not approve the target. NBG will still follow its policy NBG gradually reduces inflation target toward sits long term v ...
... – It is written in “The Main Directions of Monetary and Exchange Rate Policies” – The parliament of Georgia approves the target annually for the next 3 years. – If Parliament does not approve the target. NBG will still follow its policy NBG gradually reduces inflation target toward sits long term v ...
Full Employment: The Road Not Taken
... level, even when total spending in the economy is strong. According to Keynes, pumping more spending into the economy does not necessarily generate enough job growth to bring the economy to full employment – it all depends on the employment elasticity of demand. At the macro-level, a dollar spent is ...
... level, even when total spending in the economy is strong. According to Keynes, pumping more spending into the economy does not necessarily generate enough job growth to bring the economy to full employment – it all depends on the employment elasticity of demand. At the macro-level, a dollar spent is ...
Major Currents in Contemporary Economics
... All the forgoing reasons combined offer a plausible explanation why economists may disagree even in their positive judgments. Notwithstanding the fact that many conclusions stemming from empirical studies are quite persuasive and widely accepted in the ‘mainstream’ economics essential controversies ...
... All the forgoing reasons combined offer a plausible explanation why economists may disagree even in their positive judgments. Notwithstanding the fact that many conclusions stemming from empirical studies are quite persuasive and widely accepted in the ‘mainstream’ economics essential controversies ...
Unemployment Equilibria and Input Prices
... supporting a role for oil prices and mixed for interest rates). However, we prefer the latter approach because the error-correction framework has coherence with the theoretical model, as it estimates an equilibrium relationship between unemployment and input prices and a path of adjustment of unempl ...
... supporting a role for oil prices and mixed for interest rates). However, we prefer the latter approach because the error-correction framework has coherence with the theoretical model, as it estimates an equilibrium relationship between unemployment and input prices and a path of adjustment of unempl ...
T P A :
... can be seen from another of fisher’s contributions, the fisher equation. since r = i – π, and i cannot fall below zero, under sustained deflation (π < 0) the real interest rate, r, must rise. 3 of course, assuming debt contracts were continuously being created from 1929 to 1933; reflation to one arb ...
... can be seen from another of fisher’s contributions, the fisher equation. since r = i – π, and i cannot fall below zero, under sustained deflation (π < 0) the real interest rate, r, must rise. 3 of course, assuming debt contracts were continuously being created from 1929 to 1933; reflation to one arb ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... answer, one could speak of a period of greater stability but not of progress toward greater stability. The latter implies improvements in the operational characteristics of the economy or in economic institutions or policies, as a result of which the system became less vulnerable to the variety of s ...
... answer, one could speak of a period of greater stability but not of progress toward greater stability. The latter implies improvements in the operational characteristics of the economy or in economic institutions or policies, as a result of which the system became less vulnerable to the variety of s ...
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... such low unemployment in spite of its generous unemployment benefits. It resolves the puzzle pointed out by OECD (1994b, chapter 8) that earlier empirical studies had found a negative crosscountry correlation between benefit levels and aggregate unemployment in the 1960s and early 1970s. When includ ...
... such low unemployment in spite of its generous unemployment benefits. It resolves the puzzle pointed out by OECD (1994b, chapter 8) that earlier empirical studies had found a negative crosscountry correlation between benefit levels and aggregate unemployment in the 1960s and early 1970s. When includ ...
Dynamic Effects of Fiscal Policy on Output and Unemployment in
... risk of overheating. In the medium and long term, fiscal policy also plays a significant role in the economy. Although there have been numerous studies on fiscal policy as it relates to economic growth, much attention has not been given to its effect on unemployment despite its importance in theory ...
... risk of overheating. In the medium and long term, fiscal policy also plays a significant role in the economy. Although there have been numerous studies on fiscal policy as it relates to economic growth, much attention has not been given to its effect on unemployment despite its importance in theory ...
The monetary and fiscal policy mix in Poland
... The factor that significantly limits the fiscal authorities’ credibility in Poland is the lack of any nominal/real anchor, that would constitute a constraint on the excessive fiscal relaxation, thus improving the transparency and predictability of the fiscal stance. One attempt to implement such an ...
... The factor that significantly limits the fiscal authorities’ credibility in Poland is the lack of any nominal/real anchor, that would constitute a constraint on the excessive fiscal relaxation, thus improving the transparency and predictability of the fiscal stance. One attempt to implement such an ...
IOSR Journal of Business and Management (IOSRJBM)
... were statistically significant, which means that the studied variable could be used to predict inflation. Furthermore, domestic credit was not statistically significant, even though it could be used as a policy variable to account for inflation. Based on these findings, it was recommended that monet ...
... were statistically significant, which means that the studied variable could be used to predict inflation. Furthermore, domestic credit was not statistically significant, even though it could be used as a policy variable to account for inflation. Based on these findings, it was recommended that monet ...
Business Cycles, Unemployment, & Inflation
... • Minimum wages - a government-mandated floor on the price of labor. • Unions - by bargaining for all a firm’s workers collectively (collective bargaining), unions can often win higher wages from employers than the market would have otherwise provided when workers bargained individually. • Efficienc ...
... • Minimum wages - a government-mandated floor on the price of labor. • Unions - by bargaining for all a firm’s workers collectively (collective bargaining), unions can often win higher wages from employers than the market would have otherwise provided when workers bargained individually. • Efficienc ...
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.