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Author: Artidiatun Adji Publisher: ISBN: Category : Languages : en Pages : 345
Book Description
Due to low salaries in the formal sector, employees have been engaged in moonlighting activities, mostly in the form of self-employment (e.g., opening retail stores or services). This phenomenon may help to explain why private credit---which amounts to 29 percent of GDP---fails to explain consumption behavior. Most loans are made for investment rather than for consumption.
Author: Artidiatun Adji Publisher: ISBN: Category : Languages : en Pages : 345
Book Description
Due to low salaries in the formal sector, employees have been engaged in moonlighting activities, mostly in the form of self-employment (e.g., opening retail stores or services). This phenomenon may help to explain why private credit---which amounts to 29 percent of GDP---fails to explain consumption behavior. Most loans are made for investment rather than for consumption.
Author: David E. W. Laidler Publisher: Cambridge, Mass. : MIT Press ISBN: Category : Business & Economics Languages : en Pages : 248
Book Description
Putting the matters back into money matters is David Laidler's intent in this collection of ten essays on the role of monetary institutions in the development of monetary theory and the implications of these ideas for policy. Together, the essays provide a coherent and accessible introduction to the power and range of thinking by one of the world's leading monetary economists. In Taking Money Seriously Laidler seeks to develop and sustain monetarist ideas of the 1960s in relationship to the new classical economics and to argue their continued policy relevance. Money matters, he points out, because monetary exchange rather than the Walrasian market coordinates economic activity in the real world. Laidler's discussion of the costs of inflation points up the importance of money's means-of-exchange role and is followed by an extended critique of new classical economics. He devotes several chapters to policy issues, in which he asserts that the monetary system is a public good whose organization and control present inherently political problems. David Laidler is Professor of Economics at the University of Western Ontario.
Author: Eric Mengus Publisher: ISBN: Category : Languages : en Pages : 0
Book Description
This dissertation is made of four distinct chapters. In the first chapter, I investigate sovereign debt repayment incentives when countries can implement domestic transfers to mitigate internal costs of default. I show that, in the absence of reputation costs and international sanctions, sovereign repayment emerges as an equilibrium outcome if and only if individual domestic exposures to the domestic debt are not observable by the government. In the second chapter, I extend this mechanism to a two-country situation where one country's private sector is exposed to the second country's sovereign debt. I show that, in case of the second country's default, the optimal compensation can take the form of a purchase of the defaulting bonds. Ex ante, this leads to the existence of an implicit guarantee on sovereign debts. In the third chapter, I consider the connection between sovereign debt repayment incentives and domestic fiscal and redistributive policies. I establish that when the domestic economy is Ricardian, the government can perfectly compensate domestic agents and, thus, no internal cost of default emerges. Then I characterize deviations from Ricardian equivalence that are able to sustain external debt. In the fourth chapter, coauthored with Roberto Pancrazi, we investigate the impact of participation costs to insurance markets on households' ability to smooth consumption. We build a model where households face idiosyncratic risks against which they can purchase insurance, provided that they pay a fixed participation cost. We then confront our results to households' consumption data.
Author: International Monetary Fund. Research Dept. Publisher: International Monetary Fund ISBN: 1451956770 Category : Business & Economics Languages : en Pages : 228
Book Description
A central proposition regarding effects of different mechanisms of fi-nancing public expenditures is that, under specific circumstances, it makes no difference to the level of aggregate demand if the government finances its outlays by debt or taxation. This so-called Ricardian equivalence states that, for a given expenditure path, substitution of debt for taxes does not affect private sector wealth and consumption. This paper provides a model illustrating the implications of Ricardian equivalence, surveys the litera-ture, considers effects of relaxing the basic assumptions, provides a frame-work to study implications of various extensions, and critically reviews recent empirical work on Ricardian equivalence.
Author: Raffaele Rossi Publisher: ISBN: Category : Languages : en Pages :
Book Description
This thesis is composed by four chapters on New Keynesian macroeconomics. Chapter 1 develops a small New Keynesian model augmented with a steady state level of public debt and a share of rule-of-thumb consumers (ROTC henceforth) as in Gal? etal. (2004; 2007). This chapter focuses on the consequences for the design of monetary and?scal rules, of the bifurcation on the demand side of the economy generated by the presence of ROTC, in the absence of Ricardian equivalence. When?scal policy follows a balanced budget rule, the share of ROTC determines whether an active and/or a passive monetary policy in the sense of Leeper (1991) guarantees determinacy. When a short run public debt asset is introduced, the amount of ROTC determines whether equilibrium determinacy requires a mix of active (passive) monetary policy and a passive (active) fiscal policy or a mix where both policies are active or passive. Chapter 2 studies the equilibrium determinacy of a New Keynesian model augmented with trend inflation, public debt and distortionary taxation. Both the level of long run inflation as well as the stock of steady state public debt have to be explicitly taken into consideration for the characterisation of the equilibrium dynamics between monetary and fiscal policy. Chapter 3 considers the implications of external habits for optimal monetary policy in an otherwise standard New Keynesian model, when those habits exist at the levelof individual goods as in Ravn et al. (2006). External habits generate an additional distortion in the economy, which implies that the flex-price equilibrium will no longer be efficient and that policy faces interesting new trade-offs and potential stabilisation biases. The endogenous mark-up behaviour, which emerges with deep habits, signi?cantly a?ects the optimal policy response to shocks and the stabilising properties of standard simplerules. Chapter 4 analyses both optimal monetary and?scal policy in a New Keynesian model augmented with deep habits and valuable government spending. We?find that, in line with the general consensus in the macro literature,?scal policy adds very little to optimal monetary policy as a stabilisation device.
Author: Irem Zeyneloglu Publisher: ISBN: Category : Languages : en Pages : 194
Book Description
New open economy macroeconomics (NOEM) literature, initiated by Obstfeld-Rogoff (1995), offers a more rigourous setup for the analysis of macroeconomic policy with respect to Mundell-Fleming models. The perpective of deterministic general equilibrium NOEM models that emerged from Obstfeld-Rogoff (1995) has been extended by Obstfeld-Rogoff (2002) to a stochastic environment. The present dissertation aims to contribute to these two streams of research concerning fiscal policy analysis in the NOEM literature. The dissertation consists of a survey and four essays. The first two essays extend the deterministic setup Obstfeld-Rogoff (1995) by introducing imperfect financial integration and by relaxing the assumption of ricardian equivalence respectively. The third and fourth essays extend Obstfeld-Rogoff (2002) to analyze stabilization and cooperation gains from fiscal policy as well as the interactions between monetary and fiscal policy.
Author: G. Harcourt Publisher: Springer ISBN: 1137475358 Category : Business & Economics Languages : en Pages : 444
Book Description
Joseph Halevi, G. C. Harcourt, Peter Kriesler and J. W. Nevile bring together a collection of their most influential papers on post-Keynesian thought. Their work stresses the importance of the underlying institutional framework, of the economy as a historical process and, therefore, of path determinacy. In addition, their essays suggest the ultimate goal of economics is as a tool to inform policy and make the world a better place, with better being defined by an overriding concern with social justice. Volume II assess application and policies.
Author: Artidiatun Adji
Author: Artidiatun Adji
Author: David E. W. Laidler
Author: Vadym Lepetyuk
Author: Seid Yimer Hassan
Author: Eric Mengus
Author: International Monetary Fund. Research Dept.
Author: Raffaele Rossi
Author: Long Zhang
Author: Irem Zeyneloglu
Author: G. Harcourt