Working Paper 142
... variation with respect to the effect on output and asset prices is less clear. We find increased responsiveness during some periods but decreased reactions at other points in time. This is not surprising given the growing theoretical and empirical literature (as discussed below and in section 4) tha ...
... variation with respect to the effect on output and asset prices is less clear. We find increased responsiveness during some periods but decreased reactions at other points in time. This is not surprising given the growing theoretical and empirical literature (as discussed below and in section 4) tha ...
Gatton College of Business and Economics ECO Economics
... Analytical consideration of the role of agriculture in economic development in relation to overall development strategy at various stages of growth. Theoretical and policy issues of particular relevance to the agricultural development in underdeveloped agrarian economies with various resource, socia ...
... Analytical consideration of the role of agriculture in economic development in relation to overall development strategy at various stages of growth. Theoretical and policy issues of particular relevance to the agricultural development in underdeveloped agrarian economies with various resource, socia ...
GROWTH AND INFLATION IN SOUTH AFRICA: IS THERE
... slower growth. Moreover, uncertainty about future price levels could force investors to delay investment decisions, since investment is a sunk cost and largely irreversible (Pindyck, 1991). Lastly, high and variable prices imply uncertainty about the real interest rate. If savers and investors form ...
... slower growth. Moreover, uncertainty about future price levels could force investors to delay investment decisions, since investment is a sunk cost and largely irreversible (Pindyck, 1991). Lastly, high and variable prices imply uncertainty about the real interest rate. If savers and investors form ...
Monetary and Fiscal Policy in a Liquidity Trap:
... expected inflation, and a weaker domestic currency in the adverse periods when the natural rate of interest significantly deviates from a normal level. This is as if a central bank “borrows” future monetary easing in the periods when current monetary easing is exhausted. This idea of borrowing futu ...
... expected inflation, and a weaker domestic currency in the adverse periods when the natural rate of interest significantly deviates from a normal level. This is as if a central bank “borrows” future monetary easing in the periods when current monetary easing is exhausted. This idea of borrowing futu ...
Fiscal Discretion and its Impact on Pakistan Economy By Abstract
... produce, differ in their respective economic activities. The occurrence of this difference results in creation of waves in economic activities, which are the business cycles (Spencer and Amos 1993). Output variation in moderate context is either a recession or recovery. During recession the economic ...
... produce, differ in their respective economic activities. The occurrence of this difference results in creation of waves in economic activities, which are the business cycles (Spencer and Amos 1993). Output variation in moderate context is either a recession or recovery. During recession the economic ...
8 - Weber State University
... 24) If the inflation rate is 10% and nominal GDP growth is 8% then real GDP must have A) increased by 2%. B) decreased by 18%. C) decreased by 2%. D) increased by 18%. 25) Which of the following does NOT affect nominal GDP? A) tax rate B) foreign exchange rate C) nominal money supply D) expected inf ...
... 24) If the inflation rate is 10% and nominal GDP growth is 8% then real GDP must have A) increased by 2%. B) decreased by 18%. C) decreased by 2%. D) increased by 18%. 25) Which of the following does NOT affect nominal GDP? A) tax rate B) foreign exchange rate C) nominal money supply D) expected inf ...
Inflation Tutorial
... the same pace as inflation. The exception to this is stagflation. The combination of a bad economy with an increase in costs is bad for stocks. Also, a company is in the same situation as a normal consumer - the more cash it carries, the more its purchasing power decreases with increases in inflatio ...
... the same pace as inflation. The exception to this is stagflation. The combination of a bad economy with an increase in costs is bad for stocks. Also, a company is in the same situation as a normal consumer - the more cash it carries, the more its purchasing power decreases with increases in inflatio ...
Preparing for inflation - Charles Schwab Bank Collective Trust Funds
... an effective inflation preparation plan. However, our research shows that including commodities in one’s portfolio when an economy is experiencing healthy growth can introduce additional risk that we believe is not always offset by improved returns. Approximately one-third of the time, investors wou ...
... an effective inflation preparation plan. However, our research shows that including commodities in one’s portfolio when an economy is experiencing healthy growth can introduce additional risk that we believe is not always offset by improved returns. Approximately one-third of the time, investors wou ...
NBER WORKING PAPER SERIES TECHNOLOGY SHOCKS IN THE NEW KEYNESIAN MODEL
... with 1 > ρa ≥ 0, where the zero-mean, serially uncorrelated innovation εat is normally distributed with standard deviation σ a . Driscoll (2000) and Ireland (2002a) show that the additive separability of this utility function in its three arguments–consumption, real money balances, and hours worked– ...
... with 1 > ρa ≥ 0, where the zero-mean, serially uncorrelated innovation εat is normally distributed with standard deviation σ a . Driscoll (2000) and Ireland (2002a) show that the additive separability of this utility function in its three arguments–consumption, real money balances, and hours worked– ...
Economics of Money, Banking, and Financial Markets, 8e
... 3) According to aggregate demand and supply analysis of inflation and with everything else held constant, a continually increasing money supply causes A) aggregate demand to increase along a stationary aggregate supply curve, leading to continually increasing aggregate output and prices. B) aggregat ...
... 3) According to aggregate demand and supply analysis of inflation and with everything else held constant, a continually increasing money supply causes A) aggregate demand to increase along a stationary aggregate supply curve, leading to continually increasing aggregate output and prices. B) aggregat ...
INFLATION A TWO-WEEK UNIT OF STUDY Albert Goldsmith
... a. A definition of inflation can be written and learned. b. Effective control of inflation requires a cooperative relationship between the government and the people e. Inflation does affect me. d. The most important job of the government is to control and support our money system. e. Inflation is th ...
... a. A definition of inflation can be written and learned. b. Effective control of inflation requires a cooperative relationship between the government and the people e. Inflation does affect me. d. The most important job of the government is to control and support our money system. e. Inflation is th ...
Unemployment dynamics and NAIRU estimates for Accession countries: a univariate approach
... on speci…cation issues (number and identity of explanatory variables and its linear-non linear and/or symmetric-asymmetric nature)3 ; third, there is a statistical identi…cation problem typical of systems of equations where the determined variable enters as explanatory variable at the same time, cre ...
... on speci…cation issues (number and identity of explanatory variables and its linear-non linear and/or symmetric-asymmetric nature)3 ; third, there is a statistical identi…cation problem typical of systems of equations where the determined variable enters as explanatory variable at the same time, cre ...
Unemployment - SpencerEconomics
... of workers. Minimum-wage laws are one source of structural unemployment. Recall that minimum-wage laws force the wage to remain above the equilibrium wage. This causes the quantity of labor supplied to exceed the quantity of labor demanded. There is a surplus of labor or unemployment. Since the equi ...
... of workers. Minimum-wage laws are one source of structural unemployment. Recall that minimum-wage laws force the wage to remain above the equilibrium wage. This causes the quantity of labor supplied to exceed the quantity of labor demanded. There is a surplus of labor or unemployment. Since the equi ...
Near-Rational Exuberance - Economic Research
... Judgement is a fact of life in macroeconomic forecasting. It is widely understood that even the most sophisticated econometric forecasts are adjusted before presentation. This adjustment is so pervasive that it is known as the use of “add-factors”–subjective changes to the forecast which depend on t ...
... Judgement is a fact of life in macroeconomic forecasting. It is widely understood that even the most sophisticated econometric forecasts are adjusted before presentation. This adjustment is so pervasive that it is known as the use of “add-factors”–subjective changes to the forecast which depend on t ...
Near-rational exuberance
... Judgement is a fact of life in macroeconomic forecasting as even the most sophisticated econometric forecasts are adjusted before presentation. This adjustment is so pervasive that it is known as the use of “add-factors”– subjective changes to the forecast which depend on the forecaster’s assessment ...
... Judgement is a fact of life in macroeconomic forecasting as even the most sophisticated econometric forecasts are adjusted before presentation. This adjustment is so pervasive that it is known as the use of “add-factors”– subjective changes to the forecast which depend on the forecaster’s assessment ...
Working Paper 189 - An Empirical Investigation of the Taylor Curve
... volatilities. To achieve the objectives stated above, we use the framework in Olson et al. (2012) which implement a multivariate Garch model discussed in Engle and Kroner (1995). We modified the mean equation to include the effects of openness captured by the exchange rate because South Africa is sm ...
... volatilities. To achieve the objectives stated above, we use the framework in Olson et al. (2012) which implement a multivariate Garch model discussed in Engle and Kroner (1995). We modified the mean equation to include the effects of openness captured by the exchange rate because South Africa is sm ...
HAyEK`S CRITIQUE OF The General Theory
... there is a direct and positive relationship between employment and aggregate expenditure. Thus, according to Keynes, total demand determines the employment level in an economy and, therefore, the existence of unemployment indicates that aggregate demand is insufficient to employ all the productive f ...
... there is a direct and positive relationship between employment and aggregate expenditure. Thus, according to Keynes, total demand determines the employment level in an economy and, therefore, the existence of unemployment indicates that aggregate demand is insufficient to employ all the productive f ...
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.