Real wages, inflation and labour productivity in Australia
... some of the previous empirical studies have been conducted using cointegration analysis with small sample sizes. This may significantly distort the power of the standard tests and lead to misguided conclusions. Third, most empirical studies have ignored the role of real wages on the relationship bet ...
... some of the previous empirical studies have been conducted using cointegration analysis with small sample sizes. This may significantly distort the power of the standard tests and lead to misguided conclusions. Third, most empirical studies have ignored the role of real wages on the relationship bet ...
Optimal Automatic Stabilizers
... of unemployment insurance. This is because, in recessions, economic activity is inefficiently low and aggregate slack is more responsive to the replacement rate for two reasons. First, there are more unemployed workers with high marginal propensities to consume receiving the transfers. Second, the ...
... of unemployment insurance. This is because, in recessions, economic activity is inefficiently low and aggregate slack is more responsive to the replacement rate for two reasons. First, there are more unemployed workers with high marginal propensities to consume receiving the transfers. Second, the ...
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... various innovations in firms’ and consumers’ behavior, perhaps induced by technological progress or financial innovations, might have allowed consumers to better cushion themselves from the impact of interest-rate fluctuations.4 This is however not the only possible interpretation. In fact, the resp ...
... various innovations in firms’ and consumers’ behavior, perhaps induced by technological progress or financial innovations, might have allowed consumers to better cushion themselves from the impact of interest-rate fluctuations.4 This is however not the only possible interpretation. In fact, the resp ...
2. The Sacrifice Ratio - Hal-SHS
... estimation proves however a much more difficult exercise. It requires both identifying changes in ...
... estimation proves however a much more difficult exercise. It requires both identifying changes in ...
IB Economics SL Unit 2: Macroeconomics
... to make a final product. Some examples of factors of producQon are labor (the work done by people), capital (the machines used to makes products), land, and so on. Labor markets are the most common ...
... to make a final product. Some examples of factors of producQon are labor (the work done by people), capital (the machines used to makes products), land, and so on. Labor markets are the most common ...
Fiscal policy, pricing frictions and monetary accommodation
... Our work differs from the existing studies along a number of other dimensions. First, rather than focusing on consumption and investment responses, we study the dynamics of the real wage, real interest rate and the labor wedge since, in theory, this provides the most reliable information on the ques ...
... Our work differs from the existing studies along a number of other dimensions. First, rather than focusing on consumption and investment responses, we study the dynamics of the real wage, real interest rate and the labor wedge since, in theory, this provides the most reliable information on the ques ...
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 ...
Stabilisation policy under Romer IS-MP-IA
... See Figure 2. An adverse demand shock could be the example of a fall in consumer confidence, like in Romer’s paper. The effect on impact is a shift of IS to the left (a fall in the parameter c of the IS curve). This will also shift the AD curve to the left, since for a given inflation rate, there is ...
... See Figure 2. An adverse demand shock could be the example of a fall in consumer confidence, like in Romer’s paper. The effect on impact is a shift of IS to the left (a fall in the parameter c of the IS curve). This will also shift the AD curve to the left, since for a given inflation rate, there is ...
Ill. ii - Informetrica Limited
... unemployment rate can be accounted for by a relatively small number of long-term unemployed. As this brief overview of the recent literature suggests, there is something less than an unanimous opinion as to the actual cyclical position of the economy. Existing NRU estimates suggest that the economy ...
... unemployment rate can be accounted for by a relatively small number of long-term unemployed. As this brief overview of the recent literature suggests, there is something less than an unanimous opinion as to the actual cyclical position of the economy. Existing NRU estimates suggest that the economy ...
12 INFLATION
... Inflation and the Price Level Stories and some data can make the impact of inflation real to students. Have them guess the price of something they buy (which has not changed much in its nature) when you were a student—possible items include a Macdonald’s hamburger, a cup of coffee, an Economics Prin ...
... Inflation and the Price Level Stories and some data can make the impact of inflation real to students. Have them guess the price of something they buy (which has not changed much in its nature) when you were a student—possible items include a Macdonald’s hamburger, a cup of coffee, an Economics Prin ...
Demand Effects of Fiscal Policy since 2008
... their consumption will largely depend on current income (Mankiw, 2000). NK-DSGE models therefore include a share of Ricardian agents and finance-constrained consumers whose consumption depends on current income (Gali et al., 2007). Although the government spending multiplier in NK-DSGE models is po ...
... their consumption will largely depend on current income (Mankiw, 2000). NK-DSGE models therefore include a share of Ricardian agents and finance-constrained consumers whose consumption depends on current income (Gali et al., 2007). Although the government spending multiplier in NK-DSGE models is po ...
Keynesian and Monetarist Views on the German Unemployment
... economy, it has an influence on the future values of nominal wages even if wages do not respond within the period to the state of the economy. If this effect of policy on future wages is not taken into account, the dynamic analysis misses an important factor and any advice given to policy makers may ...
... economy, it has an influence on the future values of nominal wages even if wages do not respond within the period to the state of the economy. If this effect of policy on future wages is not taken into account, the dynamic analysis misses an important factor and any advice given to policy makers may ...
Unemployment benefits extensions at the zero lower bound on
... because it reduces job search and job acceptance. However, most of the discussion has left aside the economic environment in which the policy has been conducted. The fall in aggregate demand and deflation have driven the economy in a liquidity trap where the nominal interest rate is pinned at the ze ...
... because it reduces job search and job acceptance. However, most of the discussion has left aside the economic environment in which the policy has been conducted. The fall in aggregate demand and deflation have driven the economy in a liquidity trap where the nominal interest rate is pinned at the ze ...
SEDP-2014-11-Chen-Kirsanova-Leith
... policy in isolation but are also of interest given the Bundesbank’s leadership role within the ERM. Clarida et al. (1998) find that the Bundesbank was not following a pure monetary growth target, but was concerned with real and inflationary developments. Moreover, they also find that other major eco ...
... policy in isolation but are also of interest given the Bundesbank’s leadership role within the ERM. Clarida et al. (1998) find that the Bundesbank was not following a pure monetary growth target, but was concerned with real and inflationary developments. Moreover, they also find that other major eco ...
Optimal simple and implementable monetary and fiscal rules
... individual agent. As a point of comparison for policy evaluation, we compute the real allocation associated with the Ramsey-optimal policy. Our findings suggest that the precise degree to which the central bank responds to inflation in setting the nominal interest rate (i.e., the size of the inflation ...
... individual agent. As a point of comparison for policy evaluation, we compute the real allocation associated with the Ramsey-optimal policy. Our findings suggest that the precise degree to which the central bank responds to inflation in setting the nominal interest rate (i.e., the size of the inflation ...
NBER WORKING PAPER SERIES Jesús Fernández-Villaverde
... However, while the previous statement is transparent, it is much less clear how to decide which particular elements of the model we wish to include. On the one hand, we want a model that is su¢ ciently detailed to account for the dynamics of the data reasonably well. But this goal con‡icts with the ...
... However, while the previous statement is transparent, it is much less clear how to decide which particular elements of the model we wish to include. On the one hand, we want a model that is su¢ ciently detailed to account for the dynamics of the data reasonably well. But this goal con‡icts with the ...
completing conditions to implement monetary policy under inflation
... 20 years gone with remarkable ups and downs, Vietnam economy is facing high rate of inflation, and also, in line with several achievements in inflation control by releasing effective regulations on monetary policy management of the State Bank of Vietnam (SBV) Since 2012, inflation is basically contr ...
... 20 years gone with remarkable ups and downs, Vietnam economy is facing high rate of inflation, and also, in line with several achievements in inflation control by releasing effective regulations on monetary policy management of the State Bank of Vietnam (SBV) Since 2012, inflation is basically contr ...
Price level targeting, the zero bound on the nominal interest rate and
... In the aftermath of the recent financial crisis, central banks in many advanced economies lowered their policy interest rates to record lows and resorted to unconventional monetary tools to counter rapidly deteriorating economic outlooks. In the ensuing global recession, millions of jobs were lost; ...
... In the aftermath of the recent financial crisis, central banks in many advanced economies lowered their policy interest rates to record lows and resorted to unconventional monetary tools to counter rapidly deteriorating economic outlooks. In the ensuing global recession, millions of jobs were lost; ...
Inflation - American University
... The 1990s saw a resurgence of interest insulating central banks from political influence, and explicit inflation targeting was considered by a number of central banks as a guide to monetary policy. The most famous central bank restructuring is the “New Zealand experiment”. In an inflation targeting ...
... The 1990s saw a resurgence of interest insulating central banks from political influence, and explicit inflation targeting was considered by a number of central banks as a guide to monetary policy. The most famous central bank restructuring is the “New Zealand experiment”. In an inflation targeting ...
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.