Macroeconomic Diagnostics (MDSx) Module
|
|
|
- Roland Nichols
- 5 years ago
- Views:
Transcription
1 Macroeconomic Diagnostics (MDSx) Module 7 Fiscal Policy This training material is the property of the International Monetary Fund (IMF) and is intended for use in IMF Institute for Capacity Development (ICD) courses. Any reuse requires the permission of the IMF and ICD.
2 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 1 Video #: Video Title: Video Type: 1 About Module 7 Standard
3 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 2 Video #: Video Title: Video Type: 1 An Overview of Fiscal Policy Standard
4 Fiscal Policy and the Economy Demand conditions affect fiscal position Fiscal Policy Economy
5 Fiscal Policy and the Economy Fiscal Policy affects demand in short-term Fiscal Policy Economy Objective (short-term): Counter-cyclical Fiscal Policy
6 Fiscal Policy and the Economy Fiscal Policy affects macro stability in medium-term Fiscal Policy Economy Objective (medium-term): Sustainable public debt level
7 Fiscal Policy and the Economy Fiscal Policy affects supply Fiscal Policy Economy
8 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 2 Video #: Video Title: Video Type: 2 Outline of What Comes Next Standard
9 Topics Covered Headline Fiscal Indicators Cyclically-adjusted Fiscal Balance Fiscal Stance and Fiscal Impulse Fiscal Multiplier
10 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 3 Video #: Video Title: Video Type: 1 Headline Fiscal Indicators Standard
11 Headline Fiscal Indicators Stylized Fiscal Account Revenue (T): Tax revenue Non-tax revenue Expenditure (E): Current expenditure (including interest) Capital spending Policy loans T E = Overall Balance (OB)
12 Headline Fiscal Indicators Stylized Fiscal Account Revenue (T): Tax revenue Non-tax revenue Expenditure (E): Current expenditure (including interest) Capital spending Policy loans T (E interest spending) = Primary Balance (PB)
13 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 3 Video #: Video Title: Video Type: 2 Headline Fiscal Indicators in Excel Excel
14 Placeholder to insert EXCEL full canvas diagram or chart. (Draft in PowerPoint and within the guides.)
15 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 3 Video #: Video Title: Video Type: 3 Headline Fiscal Indicators Limitations Standard
16 Factors Affecting Fiscal Balances Discretionary Policy Measures Tax measures Expenditure measures Cyclical Factors Automatic stabilizers Factors beyond the Business Cycle Commodity price effects Other asset price effects
17 Interpreting Headline Fiscal Indicators Potentially misleading signals: Deficit fiscal expansion Surplus fiscal tightening Focus is to assess the discretionary fiscal policy
18 Discretionary Fiscal Policy Changes 3.00 Primary Balance vs. Output Gap, Country Z, Output gap Primary balance
19 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 4 Video #: Video Title: Video Type: 1 Cyclically Adjusted Fiscal Balance Standard
20 Cyclically-Adjusted and Structural Balances Cyclicallyadjusted Overall Balance (CAOB) = Overall Balance net of cyclical factors Reflects changes in discretionary policy measures Main adjustment to be done in most countries Cyclically-adjusted Primary Balance (CAPB) = Primary Balance net of cyclical factors
21 Cyclically-Adjusted and Structural Balances Structural Balance (SB) Overall Balance net of cyclical factors = and Factors beyond the business cycle Definition varies from country to country and depends on what is important/relevant.
22 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 4 Video #: Video Title: Video Type: 2 Cyclically Adjusted Fiscal Balance Continued Standard
23 Fiscal Policy Analysis Using CAOB Two application areas: Assessing current fiscal policy stance Assessing fiscal sustainability
24 Assessing Current Fiscal Policy Stance Changes in CAOB: Fiscal policy more expansionary or tightening? Pro-cyclical or counter-cyclical? Automatic stabilizers are counter-cyclical but not enough Discretionary policy may be pro-cyclical
25 Fiscal Policy is Not Always Counter-Cyclical 3.00 Primary Balance vs. Output Gap, Country Z, Output gap Primary balance
26 Assessing Fiscal Sustainability Some points: CAPB enough to keep debt at sustainable level? Comparison of the CAPB against a certain benchmark Short-term and Medium-term goals are interrelated
27 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 4 Video #: Video Title: Video Type: 3 Computing Cyclically Adjusted Fiscal Balance Standard
28 Removing the Impact of the Business Cycle Overall Balance (OB) = Cyclical + Factors Cyclicallyadjusted Overall Balance (CAOB)
29 Cyclical Adjustment The Aggregated Approach: Cyclicallyadjusted Overall Balance (CAOB) = Cyclicallyadjusted revenue (T CA ) - Cyclicallyadjusted expenditure (G CA ) T CA Y = T Y P ε T, Y T: Actual revenue Y: Output ; Y P : Potential Output ɛ T,Y : Revenue elasticity, - If >0, T is procyclical G CA Y = G Y P ε G, Y G: Actual expenditure ɛ G,Y : Expenditure elasticity - If <0, G is counter-cyclical
30 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 4 Video #: Video Title: Video Type: 5 Computing Cyclically Adjusted Fiscal Balance Continued Standard
31 The Aggregated Approach Elasticities: Are generally acquired from Econometric estimation More detailed breakdown of revenues and expenditures (disaggregated approach) IF data/time scarce, THEN use judgment/approximate values.
32 The Aggregated Approach Elasticities: Usual assumption: ε T,Y =1 (or a bit higher) Cyclically-adjusted revenue is lower in booms, and higher in recessions. Proportional taxes Progressive taxes Social security contributions
33 The Aggregated Approach Elasticities: Usual assumption: ε G,Y =0 (or small negative) Expenditure does not depend on output Except unemployment benefits
34 Interpreting the Cyclically-Adjusted Balance Boom: YY > YY PP TT > TT CCCC, GG GG CCCC => The actual balance > CAOB Recession: YY < YY PP TT < TT CCCC, GG GG CCCC => The actual balance < CAOB
35 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 4 Video #: Video Title: Video Type: 5 Cyclically Adjusted Fiscal Balance in Excel Excel
36 Placeholder to insert EXCEL full canvas diagram or chart. (Draft in PowerPoint and within the guides.)
37 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 4 Video #: Video Title: Video Type: 6 Adjusting the Fiscal Balance: Extensions Standard
38 Adjusting the Fiscal Balance Extensions Disaggregated approach to cyclical adjustment: Adjust each revenue/expenditure category separately Factors beyond the business cycle: Commodity prices effects Other asset prices effects Output composition
39 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 5 Video #: Video Title: Video Type: 1 Fiscal Stance and Fiscal Impulse Standard
40 Fiscal Stance Defined as: FS t = CAOB t CAOB t < 0 CAOB t = 0 CAOB t > 0 Expansionary (FS t > 0) Neutral (FS t = 0) Contractionary (FS t < 0)
41 Fiscal Impulse Measures the change in Fiscal Stance: FI = FS FS t t 1 FI < 0 Fiscal Policy is either less expansionary or more contractionary FI > 0 Fiscal Policy is either more expansionary or less contractionary
42 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 5 Video #: Video Title: Video Type: 2 Interpreting Fiscal Stance and Fiscal Impulse Standard
43 Fiscal Stance and Impulse in Hungary Fiscal policy more expansionary in More contractionary in , Fiscal impulse Net lending/ borrowing Structural balance Data: IMF WEO
44 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 5 Video #: Video Title: Video Type: 3 Fiscal Stance and Fiscal Impulse in Excel Excel
45 Placeholder to insert EXCEL full canvas diagram or chart. (Draft in PowerPoint and within the guides.)
46 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 6 Video #: Video Title: Video Type: 1 Fiscal Multipliers Standard
47 Fiscal Multiplier Defined by: How much output changes (ΔY) following a discretionary change in government spending (ΔG) or revenue (- ΔT). Impact multiplier = ΔY t ΔG t
48 Fiscal Multiplier General Features: Change is unnecessary one-to-one Private and Government saving may offset each other In reality can be much larger than 1; or negative Highly dependent on circumstances
49 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 6 Video #: Video Title: Video Type: 2 Fiscal Multipliers in Practice Standard
50 Size of Multiplier Recent Empirical Estimates: Overall Range in normal times ~0-40% less during booms ~0-60% more during recessions FM closer to the lower boundary if: Public debt is high Capacity to administer government finance is low Economy is open Exchange rate is flexible Labor market is flexible Source: Weber A., L. Eyraud, and N. Batini, 2014, A Simple Method to Compute Fiscal Multipliers, IMF Working Paper 14/93
51 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 7 Video #: Video Title: Video Type: 1 Summarizing What We Have Learned Standard
52 Summarizing the Module Headline Fiscal Indicators can be misleading Need to adjust Fiscal Balances for the effects of the business cycle and other factors Fiscal Impulse explains contraction or expansion of Fiscal Policy Fiscal Multiplier measures the short-term impact of discretionary Fiscal Policy on output
53 Required to effectively communicate video segments. Course: Module: Section: MDSx 7 8 Video #: Video Title: Video Type: 1 Assessing Diagnostica Standard
54 Placeholder to insert EXCEL full canvas diagram or chart. (Draft in PowerPoint and within the guides.)
Macroeconomic Diagnostics (MDSx) Module
Macroeconomic Diagnostics (MDSx) Module 11 External Sustainability and External Vulnerability This training material is the property of the International Monetary Fund (IMF) and is intended for use in
Shanghai Livingston American School Quarterly / Trimester Plan 3 AP Macro
Shanghai Livingston American School Quarterly / Trimester Plan 3 AP Macro Concept / Topic To Teach: Unit 4 MODULE 22: SAVING, INVESTMENT, AND THE FINANCIAL Specific Objectives: ELD Standards SYSTEM Week
UNIT 4 READING GUIDES CHAPTERS 16-20
UNIT 4 READING GUIDES CHAPTERS 16-20 Take your own notes on the reading guides. You WILL be able to use them on the test BUT ONLY IF YOU DO ALL OF THEM. These will be turned in after the UNIT 4 TEST for
INTERNATIONAL MONETARY FUND
INTERNATIONAL MONETARY FUND Joint Vienna Institute / Institute for Capacity Development Course on Fiscal Policy Analysis (JV18.05) March 19 March 30, 2018 Vienna, Austria PROGRAM Monday, March 19 8:30
Quantifying the Cyclically Adjusted Fiscal Stance for India. Saurabh Ghosh and Sangita Misra Next Generation Fiscal Reform Frameworks, Dec 2014
Quantifying the Cyclically Adjusted Fiscal Stance for India Saurabh Ghosh and Sangita Misra Next Generation Fiscal Reform Frameworks, Dec 2014 Structure of the Paper The Concept Literature review; IMF
11/25/2018. FISCAL POLICY Government Spending and Tax Policy Part 2. Supply-Side Effects of Fiscal Policy What about Budget Deficits?
13 FISCAL POLICY Government Spending and Tax Policy Part 2 Supply-Side Effects of Fiscal Policy What about Budget Deficits? Cut T and hold G fixed => increase in budget deficit Government needs to borrow
Module 4: Applications of Supply and Demand
The following list shows a summary of the topics covered in the macroeconomics course. Module 1: Economic Thinking Understanding Economics and Scarcity The Concept of Opportunity Cost Labor, Markets, and
OUTLINE November 8, Review: PPF & AD. Three types of policy. Government Spending 11/6/2017 5:34 PM
OUTLINE November 8, 2017 Interest rates & Net Exports, recap Fiscal Policy Effect on GDP in the short run Deficits and Debt Concerns regarding deficit spending PS4 due Mon/Tues Nov. 20/21 MT2 reflection
Klaus Schmidt-Hebbel
Fiscal Policy for Commodity Exporting Countries: Experience from Chile Klaus Schmidt-Hebbel Catholic University of Chile kschmidt-hebbel@uc.cl IMF Seminar on Commodity Price Volatility and Inclusive Growth
Agenda. Government Spending and its Financing, Part 1. Fiscal Policy and Budget Balances. Budget balance line. Fiscal Policy and Budget Balances
Agenda Government Spending and its Financing, Part 1 Measuring Budget Change Automatic versus Discretionary Changes Designing Effective Short-run Fiscal Policy 18-1 18-2 Budget balance line Budget Arithmetic:
Practice Problems 30-32
Practice Problems 30-32 1. The budget balance is calculated as: A. T G TR B. T + G TR C. T G + TR D. T + G + TR E. TR T G 2. The government budget balance equals: A. Taxes + Government purchases + Government
Short-run effects of fiscal policy on GDP and employment in Sweden
SPECIAL ANALYSIS Short-run effects of fiscal policy on GDP and employment in Sweden The Swedish economy is currently booming, but sooner or later it will return to operating below capacity. This makes
MACROECONOMICS - CLUTCH CH FISCAL POLICY.
!! www.clutchprep.com CONCEPT: INTRODUCTION TO FISCAL POLICY Fiscal Policy involves setting the level of and by Focus specifically on spending and taxes of government > Government spending is an important
Lecture 7. Fiscal Policy
Lecture 7 Fiscal Policy The role of government spending and taxes Fiscal policy: government spending and tax policy AD = C + II + G What if G changes? What is the effect on Y? How large is (government)
Chapter 16: FISCAL POLICY
Chapter 16: FISCAL POLICY FISCAL POLICY AND ITS EFFECT ON AGGREGATE DEMAND & AGGREGATE SUPPLY What is GOVERNMENT BUDGET? The government budget is an annual statement of the revenues, the outlays, and surplus
SAMPLE COURSE OUTLINE ECONOMICS ATAR YEAR 12
SAMPLE COURSE OUTLINE ECONOMICS ATAR YEAR 12 Copyright School Curriculum and Standards Authority, 2015 This document apart from any third party copyright material contained in it may be freely copied,
1. When the Federal government uses taxation and spending actions to stimulate the economy it is conducting:
1. When the Federal government uses taxation and spending actions to stimulate the economy it is conducting: A. Fiscal policy B. Incomes policy C. Monetary policy D. Employment policy 2. When the Federal
AQA Economics A-level
AQA Economics A-level Macroeconomics Topic 2: How the Macroeconomy Works, Circular Flow of Income, AD- AS Analysis and Related Concepts 2.3 The determinants of aggregate demand Notes Aggregate demand is
7. Refer to the above graph. It depicts an economy in the: A. Immediate short run B. Short run C. Immediate long run D. Long run
CHAPTER 29 1. When the price level decreases: A. The demand for money falls and the interest rate falls B. Holders of financial assets with fixed money values decrease their spending C. Holders of financial
L-1 Macroeconomic Framework and Linkages
L-1 Macroeconomic Framework and Linkages IMF Singapore Regional Training Institute OT 18.52 Macroeconomic Diagnostics February 26 March 2, 2018 Presenter Stephan Danninger This training material is the
Disposable income (in billions)
Section 4 version 2 Multiple Choice Identify the choice that best completes the statement or answers the question. 1. An increase in the MPC: A. increases the multiplier. B. shifts the autonomous investment
Financial Programing and Policies, Part 2 Module 5
Financial Programing and Policies, Part 2 Module 5 Forecasting the Government Sector This training material is the property of the International Monetary Fund (IMF) and is intended for use in IMF Institute
Measuring consolidation efforts on the tax side
Measuring consolidation efforts on the tax side DG ECFIN DG ECFIN taxation workshop Brussels, 18 October 2012 Outline 1. Measure tax consolidation efforts 2. Definition of discretionary tax measures (DTM)
Chapter 4. Fiscal Multipliers: How Will Consolidation Affect Latin America and the Caribbean? Regional Economic Outlook: Western Hemisphere May 2018
Regional Economic Outlook: Western Hemisphere May 2018 Chapter 4 Fiscal Multipliers: How Will Consolidation Affect Latin America and the Caribbean? Yan Carrière-Swallow, Antonio David, Daniel Leigh & Jorge
Macro Week 1. A. Overview B. National Income Accounts; Aggregate Demand & Supply C. Business Cycles D. Understanding Central Bank Actions
Macro Week 1 A. Overview B. National Income Accounts; Aggregate Demand & Supply C. Business Cycles D. Understanding Central Bank Actions 1 A. OVERVIEW 2 Four indicators of interest (i) Real income per
No 02. Chapter 1. Chapter Outline. What Macroeconomics Is About. Introduction to Macroeconomics
No 02. Chapter 1 Introduction to Macroeconomics Chapter Outline What Macroeconomists Do Why Macroeconomists Disagree Macroeconomics: the study of structure and performance of national economies and government
Brussels, COM(2016) 727 final. ANNEXES 1 to 2 ANNEXES. to the
EUROPEAN COMMISSION Brussels, 16.11.2016 COM(2016) 727 final ANNEXES 1 to 2 ANNEXES to the COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT, THE COUNCIL, THE EUROPEAN CENTRAL BANK, THE EUROPEAN
FISCAL POLICY AFTER THE GREAT RECESSION
FISCAL POLICY AFTER THE GREAT RECESSION Alberto Alesina Harvard a University sty and IGIER June 2012 What do we agree upon Tax smoothing principle Automatic stabilizers have to do their work That would
Fiscal policy. Macroeconomics 5th lecture
Fiscal policy Macroeconomics 5th lecture Reminder Transactions by the government Firms Commodity market transfer payments taxes Government transfer payments taxes Households Financial markets 2 Fiscal
SV151, Principles of Economics K. Christ February 2012
SV151, Principles of Economics K. Christ 13 17 February 2012 SV151, Principles of Economics K. Christ 14 February 2012 Key terms / chapter 23: Aggregate demand Wealth effects Interest rate effects Exchange
Rules-Based Fiscal Policy in EMU: Pros and Cons
Rules-Based Fiscal Policy in EMU: Pros and Cons Presentation at the Brussels Economic Forum Richard Hemming International Monetary Fund April 22, 2004 The Case for Fiscal Rules Political economy influences
Impact of the fiscal manoeuvre on GDP growth: estimation of short-term effects using fiscal multipliers
Impact of the fiscal manoeuvre on GDP growth: estimation of short-term effects using fiscal multipliers Research and Forecasting Department Bank of Russia November 2018 2 Central Bank of the Russian Federation
The Tools of Fiscal Policy
ACTIVITY 5-1 The Tools of Fiscal Policy Changes in taxes and government spending designed to affect the level of aggregate demand in the economy are called fiscal policy. Recall that aggregate demand is
The Stability and Growth Pact Status in 2001
4 The Stability and Growth Pact Status in 200 Tina Winther Frandsen, International Relations INTRODUCTION The EU member states' public finances showed remarkable development during the 990s. In 993, the
Archimedean Upper Conservatory Economics, November 2016 Quiz, Unit VI, Stabilization Policies
Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The federal budget tends to move toward _ as the economy. A. deficit; contracts B. deficit; expands C.
ECS2602. Tutorial letter 201/1/2018. Macroeconomics. Department of Economics First semester ECS2602/201/1/2018
ECS2602/201/1/2018 Tutorial letter 201/1/2018 Macroeconomics ECS2602 Department of Economics First semester Answers to Assignment 01 Answers to Assignment 02 Answers to Self-assessment Assignment 04 BARCODE
L-3 Analyzing Aggregate Demand
L-3 Analyzing Aggregate Demand IMF Singapore Regional Training Institute OT 18.52 Macroeconomic Diagnostics February 26 March 2, 2018 Presenter Natan Epstein Deputy Director, STI This training material
Structural budget balance and fiscal policy stance in Tunisia
e Theoretical and Applied Economics Volume XXV (2018), No. 4(617), Winter, pp. 145-154 Structural budget balance and fiscal policy stance in Tunisia Wissem KHANFIR University of Sfax, Tunisia khanfirwissemfseg@yahoo.fr
Czech monetary policy: On a way to neutral interest rates
Czech monetary policy: On a way to neutral interest rates Petr Král Deputy Executive Director Monetary Department Czech & Hungary Investor Day London, 14 November 2018 Current economic situation 2 Structure
Economic Policy in the Crisis. Lars Calmfors Jönköping International Business School, 2 November 2009
Economic Policy in the Crisis Lars Calmfors Jönköping International Business School, 2 November 2009 My involvement Professor of International Economics at the Institute for International Economic Studies,
HCCS 2011 REVIEW FOR TEST II Covering chapters from Case, Fair, Oster text. GDP and the Standard of Living
HCCS 2011 REVIEW FOR TEST II Covering chapters 20 -- 24 from Case, Fair, Oster text GDP and the Standard of Living What is Gross Domestic Product and how is it measured? Expenditure Approach (C+I+G+NX)
OCR Economics A-level
OCR Economics A-level Macroeconomics Topic 2: Aggregate Demand and Aggregate Supply 2.2 Aggregate demand (AD) Notes Aggregate demand is the total demand in the economy. It measures spending on goods and
Review. Overarching Concepts 12/1/2017 4:42 PM. OUTLINE December 4 & 6, Production Possibilities Frontier. Review of Material.
OUTLINE December 4 & 6, 2017 Review of Material Order of file is Micro (pp. 3-33) Then macro (pp. 34-52) We ll go as far as we can Monday & finish on Wednesday PPF Economic Growth Gains from Trade Supply
Automatic Stabilizers
Automatic Stabilizers By: OpenStaxCollege The millions of unemployed in 2008 2009 could collect unemployment insurance benefits to replace some of their salaries. Federal fiscal policies include discretionary
Fiscal Policy. Changes in federal taxes and purchases
Fiscal Policy Changes in federal taxes and purchases Where does the government spend its money? Federal Government Spending, 2010 Fiscal Policy An Overview of Government Spending and Taxes The Federal
EU fiscal rules, real-time uncertainty, and stabilization
EU fiscal rules, real-time uncertainty, and stabilization Tero Kuusi, ETLA Firstrun project meeting, Helsinki October 3, 2017 Real-time uncertainty affects the EU s key fiscal policy indicators EC s real-time
Ryerson University Department of Economics ECN 204 MidtermTwo W12. Name: Student No:
Ryerson University Department of Economics ECN 204 MidtermTwo W12 Instructor: Prof. T.Barbiero Duration: 50 Minutes Name: Student No: Choose the BEST answer and recorded it on both your scanner sheet and
Measuring China's Fiscal Policy Stance
Measuring China's Fiscal Policy Stance By Sebastian Dullien 1 June 2004, corrected version 2006 Abstract: This paper argues that the tradtitional way of gauging a country's fiscal policy stance by looking
Aggregate Supply. Dudley Cooke. Trinity College Dublin. Dudley Cooke (Trinity College Dublin) Aggregate Supply 1 / 38
Aggregate Supply Dudley Cooke Trinity College Dublin Dudley Cooke (Trinity College Dublin) Aggregate Supply 1 / 38 Reading Mankiw, Macroeconomics: Chapters 9.4 and 13.1 and.2 On real wages, also see Basu
The Modern Fiscal Policy Dilemma
CHAPTER 35 The Modern Fiscal Policy Dilemma An economist s lag may be a politician s catastrophe. George Schultz McGraw-Hill/Irwin Copyright 2010 by the McGraw-Hill Companies, Inc. All rights reserved.
Aggregate Supply. Reading. On real wages, also see Basu and Taylor (1999), Journal of Economic. Mankiw, Macroeconomics: Chapters 9.4 and 13.1 and.
Aggregate Supply Dudley Cooke Trinity College Dublin Dudley Cooke (Trinity College Dublin) Aggregate Supply 1/38 Reading Mankiw, Macroeconomics: Chapters 9.4 and 13.1 and.2 On real wages, also see Basu
Chapter 4 Monetary and Fiscal. Framework
Chapter 4 Monetary and Fiscal Policies in IS-LM Framework Monetary and Fiscal Policies in IS-LM Framework 64 CHAPTER-4 MONETARY AND FISCAL POLICIES IN IS-LM FRAMEWORK 4.1 INTRODUCTION Since World War II,
Edexcel Economics AS-level
Edexcel Economics AS-level Unit 2: Macroeconomic Performance and Policy Topic 3: Aggregate Demand (AD) 3.1 Aggregate Demand (AD) Notes Aggregate demand is the total demand in the economy. It measures spending
Econ 102 Exam 2 Name ID Section Number
Econ 102 Exam 2 Name ID Section Number 1. In a closed economy government spending was $30 billion, consumption was $70 billion, taxes were $20 billion, and GDP was $110 billion this year. Investment spending
Econ 102 Final Exam Name ID Section Number
Econ 102 Final Exam Name ID Section Number 1. Over time, contractionary monetary policy nominal wages and causes the short-run aggregate supply curve to shift. A) raises; leftward B) lowers; leftward C)
The 2018 Stability & Convergence Programmes
ISSN 2443-8014 (online) The 2018 Stability & Convergence Programmes An Overview and Implications for the Euro Area Fiscal Stance INSTITUTIONAL PAPER 088 SEPTEMBER 2018 EUROPEAN ECONOMY Economic and Financial
Klaus Schmidt-Hebbel
Commodity Prices, Sovereign Wealth Funds, and Fiscal Policy: Lessons from Chile and Norway Klaus Schmidt-Hebbel Catholic University of Chile kschmidt-hebbel@uc.cl Getúlio Vargas Foundation and VALE Conference
Table B2. Monetary and fiscal conditions. Per cent and percentage change United States euro area Sweden
ECONOMIC POLICY AND INFLATION During the past year there has been a considerable expansionary adjustment of both fiscal and monetary policies in a number of countries. This text aims to describe how expansionary
chapter: Solution Fiscal Policy
S169-S182_Krug2e_Macro_PS_Ch13.qxp 2/25/09 8:02 PM Page S-169 Fiscal Policy chapter: 29 13 ECONOMICS MACROECONOMICS 1. The accompanying diagram shows the current macroeconomic situation for the economy
Estimates of the Output Gap in Armenia with Applications to Monetary and Fiscal Policy
WP/10/197 Estimates of the Output Gap in Armenia with Applications to Monetary and Fiscal Policy Asmaa El-Ganainy and Anke Weber 2006 International Monetary Fund WP/10/197 IMF Working Paper Middle East
1. STUDENTS WILL BE ABLE TO DEFINE AND EXPLAIN THE CONCEPT OF FISCAL POLICY
LIGHTHOUSE CPA SOCIAL SCIENCES DEPARTMENT AP ECONOMICS STUDY GUIDE # 18 - FISCAL POLICY & MANAGEMENT CHAPTER LEARNING OBJECTIVES STUDENTS WILL BE ABLE TO DEFINE AND EXPLAIN THE CONCEPT OF FISCAL POLICY
Reserves +$500 Checkable Deposits +$500
Some solutions to problems from chapters 13 and 14 2. a. Mother-of-pearl is commodity money since the shells have other uses (for instance, for shirt buttons). b. Salt is commodity money since it has other
The EFB: the first year
European Fiscal Board (EFB) The EFB: the first year Niels THYGESEN, Chair Mateusz SZCZUREK, Member Bruegel Brussels, 6 November 2017 The opinions expressed in this presentation are the sole responsibility
COMMISSION STAFF WORKING DOCUMENT. Analysis of the draft budgetary plan of Luxembourg. Accompanying the document COMMISSION OPINION
EUROPEAN COMMISSION Brussels, 22.11.2017 SWD(2017) 521 final COMMISSION STAFF WORKING DOCUMENT Analysis of the draft budgetary plan of Luxembourg Accompanying the document COMMISSION OPINION on the Draft
Chapter 11 Fiscal Policy, Deficits, and Debt
Chapter Overview Chapter 11 Fiscal Policy, Deficits, and Debt This chapter explores the tools of government stabilization policy in terms of the aggregate demandaggregate (AD-AS) model. Next, fiscal policy
CIE Economics AS-level
CIE Economics AS-level Topic 4: The Macroeconomy a) Aggregate Demand (AD) and Aggregate Supply (AS) analysis Notes Determinants of AD: Aggregate demand is the total demand in the economy. It measures spending
ECO 2013: Macroeconomics Valencia Community College
ECO 2013: Macroeconomics Valencia Community College Final Exam Fall 2008 1. Fiscal policy is carried out primarily by: A. the Federal government. B. state and local governments working together. C. state
Helpful Hint Fiscal Policy and the AS-AD Model
Helpful Hint Fiscal Policy and the AS-AD Model In this Helpful Hint, we analyze the effects of a change in fiscal policy using the AS-AD model. In doing so, it is useful to consider a specific example.
Business Cycles and Public Finances
71 Business Cycles and Public Finances Ann-Louise Winther, Economics INTRODUCTION AND SUMMARY Developments in public finances depend on the fiscal policy stance as well as the cyclical situation. During
ECO102. Macroeconomics Lecture 5
ECO102 Macroeconomics Lecture 5 ECO201 Macroeconomics Chapter 24: The Government and Fiscal Policy ECO102 Macroeconomics The Government and Fiscal Policy Government in the Economy!! Government Purchases
L-6 The Fiscal Multiplier debate and the eurozone response to the crisis. Carlos San Juan Mesonada Jean Monnet Professor University Carlos III Madrid
L-6 The Fiscal Multiplier debate and the eurozone response to the crisis Carlos San Juan Mesonada Jean Monnet Professor University Carlos III Madrid The Fiscal Multiplier debate and the eurozone response
Principles of Macroeconomics November 11th, Answer Key Midterm 2
EC132.01(02) Serge Kasyanenko rinciples of Macroeconomics November 11th, 2005 I. Multiple Choice Section (30 points). Select one correct answer. Answer all questions. 1. A stable inflation can be achieved
4.2 Fiscal Policy.notebook May 02, Fiscal Policy
4.2 Fiscal Policy How do we achieve our three economic objectives? Economic Growth Full Employment Steady inflation With Monetary and Fiscal Policy! Review of the Business Cycle A cycle goes through a
Aggregate Demand II: Applying the IS - LM Model MACROECONOMICS PowerPoint Slides by Ron Cronovich
12 : Applying the IS-LM Model MACROECONOMICS N. Gregory Mankiw Modified for EC 204 by Bob Murphy PowerPoint Slides by Ron Cronovich 2013 Worth Publishers, all rights reserved Context! Chapter 10 introduced
Model Question Paper Economics - II (MSF1A4)
Model Question Paper Economics - II (MSF1A4) Answer all 74 questions. Marks are indicated against each question. 1. Which of the following is true if the central bank of a country sells government securities
Name: Student # : Section: RYERSON UNIVERSITY Department of Economics
Name: Student # : Section: RYERSON UNIVERSITY Department of Economics ECN 204 (Section-7) TERM TEST 2 November, 2004 Instructor: Sharif F. Khan Time Limit: 50 minutes Total Pages Including the Cover Sheet:
The government and fiscal policy
The government and fiscal policy The government in the economy A. Central government B. Regional/provincial government C. Local government D. Public corporations A + B + C = General government A + B +
ECONOMICS. ATAR course examination Marking Key
ECONOMICS ATAR course examination 08 Marking Key Marking keys are an explicit statement about what the examining panel expect of candidates when they respond to particular examination items. They help
Macroeconomic Accounts and Policies: Financial Programming and Macro Interrelationships (*)
Macroeconomic Accounts and Policies: Financial Programming and Macro Interrelationships (*) World Bank/Poverty and Equity Summer University, Washington, DC, July 20-21, 2017 Alvaro Manoel International
MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question.
These 101 questions have been randomly selected (for the chapters eligible for examination) by the computer from the test bank that accompanies your text. Your prof. has not seen these questions, so as
Structure & Learning Objectives
U1 Structure & Learning Objectives In this part of the course, we will study the newly revamped IMF framework for public debt sustainability in market-access countries A historical overview of debt-to-gdp
Professor Christina Romer. LECTURE 21 FISCAL POLICY April 10, 2018
Economics 2 Spring 2018 Professor Christina Romer Professor David Romer LECTURE 21 FISCAL POLICY April 10, 2018 I. REVIEW OF THE KEYNESIAN CROSS DIAGRAM A. Determination of output in the short run B. What
FISCAL POLICY. Objectives. Government Budgets. Balancing Acts on Parliament Hill. Government Budgets. Government Budgets CHAPTER
FISCAL POLICY 24 CHAPTER Objectives After studying this chapter, you will able to Describe how federal and provincial budgets are created Describe the recent history of federal and provincial expenditures,
Government Budget and Fiscal Policy CHAPTER
Government Budget and Fiscal Policy 11 CHAPTER The National Budget The national budget is the annual statement of the government s expenditures and tax revenues. Fiscal policy is the use of the national
Chapter 22. Adding Government and Trade to the Simple Macro Model. In this chapter you will learn to. Introducing Government. Government Purchases
Chapter 22 Adding Government and Trade to the Simple Macro Model In this chapter you will learn to 1. Describe the relationship between national income and government purchases and tax revenues. 2. Describe
RESPONSES TO SURVEY OF
RESPONSES TO SURVEY OF PRIMARY DEALERS Markets Group, Federal Reserve Bank of New York RESPONSES TO SURVEY OF a v JANUARY Distributed: 1/18/ Received by: 1/22/ The Survey of Primary Dealers is formulated
Medium-term. forecast. Update Q4
Medium-term forecast Update Q4 2017 Published by: Národná banka Slovenska Address: Národná banka Slovenska Imricha Karvaša 1 813 25 Bratislava Slovakia Contact: info@nbs.sk http://www.nbs.sk Discussed
3 Macroeconomics LESSON 8
3 Macroeconomics LESSON 8 Fiscal Policy Introduction and Description Fiscal policy is one of the two demand management policies available to policy makers. Government expenditures and the level and type
Macroeconomic Management in Emerging-Market Economies with Open Capital Accounts. Outline
Macroeconomic Management in Emerging-Market Economies with Open Capital Accounts Klaus Schmidt-Hebbel, Central Bank of Chile Seminar on Crisis Prevention in Emerging Markets IMF-Singapore Training Institute
Chapter 25 Fiscal Policy Principles of Economics in Context (Goodwin, et al.)
Chapter 25 Fiscal Policy Principles of Economics in Context (Goodwin, et al.) Chapter Overview This chapter introduces you to a formal analysis of fiscal policy, and puts it in context with real-world
Archimedean Upper Conservatory Economics, October 2016
Multiple Choice Identify the choice that best completes the statement or answers the question. 1. The marginal propensity to consume is equal to: A. the proportion of consumer spending as a function of
Structural Budget Balances in Oil-Rich Countries: The Cases of Azerbaijan, Kazakhstan, and Russia
Graduate Institute of International and Development Studies International Economics Department Working Paper Series Working Paper No. HEIDWP01-2018 Structural Budget Balances in Oil-Rich Countries: The
Economic Letter. Using the Countercyclical Capital Buffer: Insights from a structural model. Matija Lozej & Martin O Brien Vol. 2018, No.
Economic Letter Using the Countercyclical Capital Buffer: Insights from a structural model Matija Lozej & Martin O Brien Vol. 8, No. 7 Using the Countercyclical Capital Buffer Central Bank of Ireland Page
Monetary Policy Tools?
EQ: What is the Federal Reserve System? In the U.S., the Federal Reserve System was established in 1913 to discharge the function of a central bank and provide a strengthened framework of regulatory control
Yangon, Myanmar February 16 27, Jan Gottschalk. IMF-TAOLAM training activities are supported by funding of the Government of Japan
Introduction Financial Programming and Policies Yangon, Myanmar February 16 27, 2015 Jan Gottschalk TAOLAM IMF-TAOLAM training activities are supported by funding of the Government of Japan Outline I.
Professor Christina Romer. LECTURE 22 FISCAL POLICY April 14, 2016
Economics 2 Spring 2016 Professor Christina Romer Professor David Romer LECTURE 22 FISCAL POLICY April 14, 2016 I. REVIEW OF THE KEYNESIAN CROSS DIAGRAM A. Determination of output in the short run B. What
Fiscal policy in the goods market. Screen 1
Fiscal policy in the goods market Screen 1 In this presentation we look at the impact of fiscal policy on the goods market. Make sure that you are thoroughly familiar with the goods market before you start
C ONTENTS A SSESSMENT OF C OMPLIANCE WITH F ISCAL RULES K EY M ESSAGES I NTRODUCTION C OMPLIANCE WITH THE B UDGETARY RULE...
C ONTENTS A SSESSMENT OF C OMPLIANCE WITH F ISCAL RULES K EY M ESSAGES... 67 4.1 I NTRODUCTION... 68 4.2 C OMPLIANCE WITH THE B UDGETARY RULE... 68 4.3 C OMPLIANCE WITH OTHER I RISH AND EU FISCAL RULES...
FETP/MPP8/Macroeconomics/Riedel. General Equilibrium in the Short Run II The IS-LM model
FETP/MPP8/Macroeconomics/iedel General Equilibrium in the Short un II The -LM model The -LM Model Like the AA-DD model, the -LM model is a general equilibrium model, which derives the conditions for simultaneous