This document discusses policy timing, deficit targeting, and stock market effects. It notes that there are recognition, implementation, and response lags that make stabilization policy challenging. Deficit targeting aims to reduce deficits by set amounts each year but can end up destabilizing the economy by preventing the automatic stabilizing effect of higher deficits during recessions. The stock market is also discussed as potentially impacting the real economy.
The document discusses key concepts related to policy timing, deficit targeting, and the stock market's effects on the economy. It explains that there are recognition, implementation, and response lags in the effects of monetary and fiscal policy due to delays in policymakers responding to economic changes and the economy adjusting to policies. Deficit targeting measures aim to reduce deficits by set amounts each year but can exacerbate economic downturns by restricting automatic stabilizers. Stock market performance influences the economy through impacts on wealth, consumer spending, and business investment.
This document outlines a chapter on macroeconomics that covers key topics like the components of the macroeconomy, macroeconomic concerns around output growth, unemployment, and inflation/deflation. It also discusses the role of government in the macroeconomy and provides a brief history of macroeconomics thinking. Figures are included to illustrate business cycles, GDP growth, unemployment rates, and inflation trends in the US economy since 1970.
This document provides an introduction to macroeconomics. It defines macroeconomics as dealing with the economy as a whole, focusing on total national income and aggregates. The key macroeconomic concerns outlined are output growth, unemployment, and inflation/deflation. The components of the macroeconomy are divided into households, firms, government, and the rest of the world. Their interactions are illustrated using the circular flow diagram.
This document summarizes key concepts from a chapter on stabilization policy. It discusses debates around whether the government should take an active or passive role in stabilizing the economy. It also examines criticisms of discretionary policy and arguments for rule-based policy. The document defines important terms like inside and outside lags, automatic stabilizers, leading indicators, the Lucas Critique, political business cycles, time inconsistency, and monetarism.
The document discusses aggregate demand in the goods and money markets. It explains that aggregate demand is determined by equilibrium in both the goods market and the money market. In the goods market, aggregate output is determined. In the money market, the equilibrium interest rate is determined. The document outlines how fiscal and monetary policies can impact aggregate demand through their effects on investment, consumption, and the interest rate. It introduces the aggregate demand curve, which shows the negative relationship between aggregate output and the price level when the economy is in equilibrium in both markets.
The document discusses how the tax laws have become increasingly complicated, leading many Americans to rely on tax preparation software or services. It then provides learning objectives and definitions for key terms related to fiscal policy, including how fiscal policy can be used to influence aggregate demand and stabilize the economy. Several figures and tables are included to illustrate fiscal policy concepts like the government purchases multiplier and effects of expansionary and contractionary fiscal policy.
This chapter discusses alternative perspectives on macroeconomic stabilization policy. It describes the arguments for an active policy approach to counter recessions versus a more passive hands-off approach. It also examines whether policy should be conducted via rules or discretion. The chapter outlines different policy rules like monetarism and nominal GDP targeting. It introduces concepts like inside and outside lags, automatic stabilizers, political business cycles, and time inconsistency problems in policymaking.
This document provides an introduction to macroeconomics, covering key topics such as:
1. The three main macroeconomic concerns of output growth, unemployment, and inflation/deflation.
2. The components of the macroeconomy including households, firms, government, and the rest of the world and how they interact in markets.
3. A brief history of macroeconomics from the Great Depression to modern concepts like fiscal and monetary policy.
The document discusses key concepts related to policy timing, deficit targeting, and the stock market's effects on the economy. It explains that there are recognition, implementation, and response lags in the effects of monetary and fiscal policy due to delays in policymakers responding to economic changes and the economy adjusting to policies. Deficit targeting measures aim to reduce deficits by set amounts each year but can exacerbate economic downturns by restricting automatic stabilizers. Stock market performance influences the economy through impacts on wealth, consumer spending, and business investment.
This document outlines a chapter on macroeconomics that covers key topics like the components of the macroeconomy, macroeconomic concerns around output growth, unemployment, and inflation/deflation. It also discusses the role of government in the macroeconomy and provides a brief history of macroeconomics thinking. Figures are included to illustrate business cycles, GDP growth, unemployment rates, and inflation trends in the US economy since 1970.
This document provides an introduction to macroeconomics. It defines macroeconomics as dealing with the economy as a whole, focusing on total national income and aggregates. The key macroeconomic concerns outlined are output growth, unemployment, and inflation/deflation. The components of the macroeconomy are divided into households, firms, government, and the rest of the world. Their interactions are illustrated using the circular flow diagram.
This document summarizes key concepts from a chapter on stabilization policy. It discusses debates around whether the government should take an active or passive role in stabilizing the economy. It also examines criticisms of discretionary policy and arguments for rule-based policy. The document defines important terms like inside and outside lags, automatic stabilizers, leading indicators, the Lucas Critique, political business cycles, time inconsistency, and monetarism.
The document discusses aggregate demand in the goods and money markets. It explains that aggregate demand is determined by equilibrium in both the goods market and the money market. In the goods market, aggregate output is determined. In the money market, the equilibrium interest rate is determined. The document outlines how fiscal and monetary policies can impact aggregate demand through their effects on investment, consumption, and the interest rate. It introduces the aggregate demand curve, which shows the negative relationship between aggregate output and the price level when the economy is in equilibrium in both markets.
The document discusses how the tax laws have become increasingly complicated, leading many Americans to rely on tax preparation software or services. It then provides learning objectives and definitions for key terms related to fiscal policy, including how fiscal policy can be used to influence aggregate demand and stabilize the economy. Several figures and tables are included to illustrate fiscal policy concepts like the government purchases multiplier and effects of expansionary and contractionary fiscal policy.
This chapter discusses alternative perspectives on macroeconomic stabilization policy. It describes the arguments for an active policy approach to counter recessions versus a more passive hands-off approach. It also examines whether policy should be conducted via rules or discretion. The chapter outlines different policy rules like monetarism and nominal GDP targeting. It introduces concepts like inside and outside lags, automatic stabilizers, political business cycles, and time inconsistency problems in policymaking.
This document provides an introduction to macroeconomics, covering key topics such as:
1. The three main macroeconomic concerns of output growth, unemployment, and inflation/deflation.
2. The components of the macroeconomy including households, firms, government, and the rest of the world and how they interact in markets.
3. A brief history of macroeconomics from the Great Depression to modern concepts like fiscal and monetary policy.
Policymakers debate whether monetary and fiscal policy should be active or passive in response to economic fluctuations, and whether policy should be set by rule or at the discretion of officials. Arguments for active policy include reducing economic hardship during recessions, while critics argue policies have long and variable lags. Policy rules aim to increase credibility and reduce time inconsistency problems, like central banks targeting an inflation rate or following the Taylor rule. The optimal approach remains an open debate among economists.
1
Macroeconomics Tutorial Map (provisional)
Topics Lecture (date)
■ Introduction; Scarcity and choice, market system,
positive and normative, alternative systems
1: F (9/01)
■ Introduction: the PPC, benefits of trade
■ Introduction; Four key macroeconomic variables;
definitions; policy goals;
2: F 9/08
■ The circular flow of income; injections and
withdrawals
■ Measuring National Income 3: F 9/15
■The limits of growth, resource constraints
■ The business cycle 4: F 9/22
■ Introduction to Demand and Supply
■ First In-class TEST Receive 1st take-home
assignment
■Unemployment – measures causes and types 5: F 9/29
■ Unemployment II – measures causes and types
28
Macroeconomics Tutorial Map (provisional)
Topics Lecture (date)
■ Aggregate Demand and Aggregate Supply II –
what drives National Income?
6: F 10/06
■ Aggregate Demand, Supply and Inflation I
■ Aggregate Demand, Supply and Inflation II 7: F 10/13
■ Inflation – more on inflation
■ Fiscal Policy 8: F 10/20
■ Fiscal Policy
■ Second In-Class Test Receive 2nd take-home
assignment
■ The importance of money. Monetary Policy 9: F 10/27
■ The banking system and interest rates
■ More on monetary policy 10: F 11/03
■ NO CLASS F 11/10
■ Supply-side policy I
■ More on supply side, and productivity II
■ Key Supply-side policy choices
11: F 11/17
29
2nd
Assignment
Due
1st As’mt
Due
Macroeconomics Tutorial Map (provisional)
Topics Lecture (date)
■ NO CLASS 11/24
■ Third In-class TEST Receive 3rd take-home
assignment
13: F 12/01
■ International Trade - Reasons for Trade
■ Evaluating Trade and Trade Policy
■ Balance of Payments
■ Exchange rates
■ Exchange rates and macroeconomic policy
■ Examining policy choices
14: F 12/08
■ FINAL EXAM 9:30AM F 12/15
30
■ Tutorial map
l I reserve the right to change this schedule at any time. I will
need to get used to the pace of the class. I may include or
exclude topics depending upon how we are progressing
l IN THE EVENT OF A CONFLICT BETWEEN THE SCHEDULE
HERE AND THE SYLLABUS, THE MOST RECENT SLIDE PACK
TAKES PRECEDENT
3rd Assignment
Due
Macroeconomics
LECTURES 3 & 4
2
Macroeconomics
■ Last time
l The role of government in managing the economy and
alternative economic systems
l Introduction to the 4 key economic variables
l The Economic Cycle and Circular Flow of Income
l Injections and withdrawals
l An overview of the relationship between the four key
Macroeconomic objectives
l Measuring National Income – real vs. nominal
■ Today – National Income Accounts
l Why growth?
l Measuring National Income
l The limits of growth, resource constraints
l The business cycle
165
Macroeconomics
Assignment:
Read McC & B Ch 7 for National Income Accounting
(read all of the chapter now if you like. We will deal
with the shortcomings of GDP as a measure next time)
165
ANY QUESTIONS ON THE
READING OR THE SLIDES FROM
LAST LESSON?
Macroeconomics
■ The first of the four key economic goals: Economic growth
l Usual ...
1. The document discusses the differences between the short run and long run in macroeconomics, with the short run being when prices do not change much and the long run being when prices have fully adjusted.
2. It explains how wage and price changes can move the economy from a recession or boom in the short run back to full employment in the long run through shifts along the aggregate supply curve.
3. The document also covers how monetary policy can be used to speed up the adjustment process but may lead to higher price levels.
The document discusses monopolistic competition, which is characterized by many firms producing differentiated products. Firms differentiate their products through attributes like branding, quality variations, or intangible features. Advertising helps firms to differentiate products in consumers' minds. In the short run, monopolistically competitive firms will produce where marginal revenue equals marginal cost. In the long run, entry by new firms will eliminate economic profits, but firms still produce less than the efficient quantity.
This document provides an introduction to macroeconomics. It defines macroeconomics as the study of the economy as a whole, including measures of total output, unemployment, inflation, and exchange rates in both the short and long run. It outlines the key concerns of macroeconomics as output growth, unemployment, and inflation/deflation. It also describes the components of the macroeconomy, including households, firms, government, and the rest of the world, and how they interact through goods and services, labor, and money markets according to the circular flow model. Fiscal and monetary policy are introduced as the tools used by government to influence the macroeconomy.
Monetary policy is a set of tools that a nation's central bank has available to promote sustainable economic growth by controlling the overall supply of money that is available to the nation's banks, its consumers, and its businesses.
This document discusses aggregate supply and the equilibrium price level. It begins by defining the aggregate supply curve and explaining that it shows the relationship between overall price levels and output in an economy. It then discusses the short-run aggregate supply curve and how it can shift due to cost shocks. It also explains how the equilibrium price level is determined by the intersection of the aggregate demand and supply curves. The document concludes by discussing the long-run aggregate supply curve and factors that can cause inflation like demand-pull inflation and cost-push inflation.
This chapter discusses monetary policy theory using the aggregate demand-aggregate supply framework. It explains how monetary policy responds to different types of shocks, including demand shocks, permanent supply shocks, and temporary supply shocks. It also discusses lags in the monetary policy process and how they affect policymaker's ability to stabilize the economy. The chapter then covers how monetary policy can target inflation in the long-run but not output, sources of inflation, challenges at the zero lower bound, and use of unconventional monetary policy.
This chapter discusses fiscal policy and the government's use of spending and taxation to influence economic activity. It covers the US government's fiscal response to the 2008 recession through the American Recovery and Reinvestment Act. The chapter objectives are to evaluate the effects of discretionary fiscal policy, discuss potential offsets that can reduce its effectiveness, and explain fiscal policy tools like automatic stabilizers. It also discusses challenges like time lags in fiscal policy that complicate using it to precisely manage economic conditions.
The document discusses several limitations and challenges of fiscal policy as a tool for economic stabilization. It identifies 13 issues that can hamper the effectiveness of fiscal policy: policy lags due to recognition, administrative, and operational delays; difficulties with forecasting economic conditions; challenges determining the appropriate size and timing of fiscal measures; the selective nature of fiscal policy; potential inadequacy or self-offsetting effects of fiscal actions; unintended impacts on income redistribution; issues related to maintaining employment incentives; problems of growing public debt over time; potential adverse psychological reactions; additional difficulties implementing fiscal policy in underdeveloped economies; and administrative challenges in democratic systems with longer legislative and approval processes.
The document provides an overview of Chapter 13 which discusses fiscal policy. It begins by introducing the American Recovery and Reinvestment Act (ARRA) passed in 2008 to stimulate the economy during the recession. It then lists the learning objectives which include evaluating the effects of discretionary fiscal policy, discussing potential offsets that could reduce its effectiveness, and describing automatic stabilizers. The remainder of the document outlines the chapter and provides examples and figures to explain key aspects of discretionary fiscal policy, possible offsets, coping with time lags, and automatic stabilizers.
Present study questions the role of monetary policy in general and inflation targeting in particular with the help of important issues related to it and concludes that it is high time for a change. An irony of the inflation targeting is that price stability has amazingly been achieved in Canada simultaneously with an over-leveraged financial system and an over-exposed economy to the debt and assets. And also, the low policy rate regime under the framework has not been able to stop the investment from decline and the real economy from stagnation.
The document discusses the challenges facing Abenomics policies in Japan and examines the implications for economic welfare and wealth inequality. It establishes a framework to analyze Abenomics by comparing potential policy outcomes to those of Reaganomics and Thatcherism. Key uncertainties include external factors, asymmetrical risks, and whether policy commitments can be maintained. If implementation succeeds, growth could increase aggregate welfare but also potentially widen wealth gaps without redistributive policies.
This document provides an overview of fiscal policy, including:
1) Fiscal policy involves a government adjusting its spending levels and tax rates to influence the economy. It is controlled by the government and includes tools like taxes, government spending, and deficit financing.
2) There are two main types of fiscal policy - expansionary and contractionary. Expansionary policy involves government spending exceeding tax revenue through methods like lowering taxes or raising spending. Contractionary policy occurs when spending is lower than tax revenue.
3) Fiscal policy aims to impact unemployment, inflation, and interest rates. However, it faces criticisms like time lags in taking effect, potential crowding out of private sector activity, and inefficient government
The document summarizes key topics related to unemployment, inflation, and long-run growth from an economics textbook chapter, including:
1) It defines different types of unemployment (frictional, structural, cyclical) and how they are measured using data from the U.S. Bureau of Labor Statistics.
2) It discusses the Consumer Price Index (CPI) and producer price indexes (PPIs) which are used to measure inflation in the U.S.
3) It provides an overview of the costs of unemployment and inflation on individuals and the economy.
Monetary and fiscal policy response and recent developmentsClaro Ganac
The document discusses recent global and domestic developments in the banking industry and their impact on monetary and fiscal policy. It outlines how the 1997 Asian financial crisis, 2008 global financial crisis, and other events have shaped government policies. Domestically, the Philippines' strong economic growth and improving financial markets are noted, alongside the Bangko Sentral ng Pilipinas' moves to tighten monetary policy like raising reserve requirements to manage inflation risks.
Fiscal policy uses changes in government spending and taxation to influence economic activity. It is a tool governments can use to address recessions or inflation. When the economy is in recession, expansionary fiscal policy like tax cuts or increased spending can boost aggregate demand. When the economy is overheating, contractionary fiscal policy such as tax increases or spending cuts can cool it down. However, fiscal policy is difficult to implement effectively in practice as politicians often fail to enact contractionary policy in good times. This has led to large budget deficits and government debt over time in many countries.
This document summarizes a presentation on the economic impact of the COVID-19 pandemic. It discusses three potential scenarios for the duration of the outbreak lasting 3, 6, or 12 months and their implications on the UK economy and public finances. It finds that GDP could contract by 10-24% in 2020, the largest annual fall in 300 years. Public sector borrowing is projected to rise to peacetime highs, with public debt peaking at between 100-150% of GDP. Several policy challenges are outlined, including keeping people and businesses active through job support programs, financing large fiscal deficits, and restoring long-term fiscal sustainability after the outbreak ends.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
Explore the world of investments with an in-depth comparison of the stock market and real estate. Understand their fundamentals, risks, returns, and diversification strategies to make informed financial decisions that align with your goals.
Policymakers debate whether monetary and fiscal policy should be active or passive in response to economic fluctuations, and whether policy should be set by rule or at the discretion of officials. Arguments for active policy include reducing economic hardship during recessions, while critics argue policies have long and variable lags. Policy rules aim to increase credibility and reduce time inconsistency problems, like central banks targeting an inflation rate or following the Taylor rule. The optimal approach remains an open debate among economists.
1
Macroeconomics Tutorial Map (provisional)
Topics Lecture (date)
■ Introduction; Scarcity and choice, market system,
positive and normative, alternative systems
1: F (9/01)
■ Introduction: the PPC, benefits of trade
■ Introduction; Four key macroeconomic variables;
definitions; policy goals;
2: F 9/08
■ The circular flow of income; injections and
withdrawals
■ Measuring National Income 3: F 9/15
■The limits of growth, resource constraints
■ The business cycle 4: F 9/22
■ Introduction to Demand and Supply
■ First In-class TEST Receive 1st take-home
assignment
■Unemployment – measures causes and types 5: F 9/29
■ Unemployment II – measures causes and types
28
Macroeconomics Tutorial Map (provisional)
Topics Lecture (date)
■ Aggregate Demand and Aggregate Supply II –
what drives National Income?
6: F 10/06
■ Aggregate Demand, Supply and Inflation I
■ Aggregate Demand, Supply and Inflation II 7: F 10/13
■ Inflation – more on inflation
■ Fiscal Policy 8: F 10/20
■ Fiscal Policy
■ Second In-Class Test Receive 2nd take-home
assignment
■ The importance of money. Monetary Policy 9: F 10/27
■ The banking system and interest rates
■ More on monetary policy 10: F 11/03
■ NO CLASS F 11/10
■ Supply-side policy I
■ More on supply side, and productivity II
■ Key Supply-side policy choices
11: F 11/17
29
2nd
Assignment
Due
1st As’mt
Due
Macroeconomics Tutorial Map (provisional)
Topics Lecture (date)
■ NO CLASS 11/24
■ Third In-class TEST Receive 3rd take-home
assignment
13: F 12/01
■ International Trade - Reasons for Trade
■ Evaluating Trade and Trade Policy
■ Balance of Payments
■ Exchange rates
■ Exchange rates and macroeconomic policy
■ Examining policy choices
14: F 12/08
■ FINAL EXAM 9:30AM F 12/15
30
■ Tutorial map
l I reserve the right to change this schedule at any time. I will
need to get used to the pace of the class. I may include or
exclude topics depending upon how we are progressing
l IN THE EVENT OF A CONFLICT BETWEEN THE SCHEDULE
HERE AND THE SYLLABUS, THE MOST RECENT SLIDE PACK
TAKES PRECEDENT
3rd Assignment
Due
Macroeconomics
LECTURES 3 & 4
2
Macroeconomics
■ Last time
l The role of government in managing the economy and
alternative economic systems
l Introduction to the 4 key economic variables
l The Economic Cycle and Circular Flow of Income
l Injections and withdrawals
l An overview of the relationship between the four key
Macroeconomic objectives
l Measuring National Income – real vs. nominal
■ Today – National Income Accounts
l Why growth?
l Measuring National Income
l The limits of growth, resource constraints
l The business cycle
165
Macroeconomics
Assignment:
Read McC & B Ch 7 for National Income Accounting
(read all of the chapter now if you like. We will deal
with the shortcomings of GDP as a measure next time)
165
ANY QUESTIONS ON THE
READING OR THE SLIDES FROM
LAST LESSON?
Macroeconomics
■ The first of the four key economic goals: Economic growth
l Usual ...
1. The document discusses the differences between the short run and long run in macroeconomics, with the short run being when prices do not change much and the long run being when prices have fully adjusted.
2. It explains how wage and price changes can move the economy from a recession or boom in the short run back to full employment in the long run through shifts along the aggregate supply curve.
3. The document also covers how monetary policy can be used to speed up the adjustment process but may lead to higher price levels.
The document discusses monopolistic competition, which is characterized by many firms producing differentiated products. Firms differentiate their products through attributes like branding, quality variations, or intangible features. Advertising helps firms to differentiate products in consumers' minds. In the short run, monopolistically competitive firms will produce where marginal revenue equals marginal cost. In the long run, entry by new firms will eliminate economic profits, but firms still produce less than the efficient quantity.
This document provides an introduction to macroeconomics. It defines macroeconomics as the study of the economy as a whole, including measures of total output, unemployment, inflation, and exchange rates in both the short and long run. It outlines the key concerns of macroeconomics as output growth, unemployment, and inflation/deflation. It also describes the components of the macroeconomy, including households, firms, government, and the rest of the world, and how they interact through goods and services, labor, and money markets according to the circular flow model. Fiscal and monetary policy are introduced as the tools used by government to influence the macroeconomy.
Monetary policy is a set of tools that a nation's central bank has available to promote sustainable economic growth by controlling the overall supply of money that is available to the nation's banks, its consumers, and its businesses.
This document discusses aggregate supply and the equilibrium price level. It begins by defining the aggregate supply curve and explaining that it shows the relationship between overall price levels and output in an economy. It then discusses the short-run aggregate supply curve and how it can shift due to cost shocks. It also explains how the equilibrium price level is determined by the intersection of the aggregate demand and supply curves. The document concludes by discussing the long-run aggregate supply curve and factors that can cause inflation like demand-pull inflation and cost-push inflation.
This chapter discusses monetary policy theory using the aggregate demand-aggregate supply framework. It explains how monetary policy responds to different types of shocks, including demand shocks, permanent supply shocks, and temporary supply shocks. It also discusses lags in the monetary policy process and how they affect policymaker's ability to stabilize the economy. The chapter then covers how monetary policy can target inflation in the long-run but not output, sources of inflation, challenges at the zero lower bound, and use of unconventional monetary policy.
This chapter discusses fiscal policy and the government's use of spending and taxation to influence economic activity. It covers the US government's fiscal response to the 2008 recession through the American Recovery and Reinvestment Act. The chapter objectives are to evaluate the effects of discretionary fiscal policy, discuss potential offsets that can reduce its effectiveness, and explain fiscal policy tools like automatic stabilizers. It also discusses challenges like time lags in fiscal policy that complicate using it to precisely manage economic conditions.
The document discusses several limitations and challenges of fiscal policy as a tool for economic stabilization. It identifies 13 issues that can hamper the effectiveness of fiscal policy: policy lags due to recognition, administrative, and operational delays; difficulties with forecasting economic conditions; challenges determining the appropriate size and timing of fiscal measures; the selective nature of fiscal policy; potential inadequacy or self-offsetting effects of fiscal actions; unintended impacts on income redistribution; issues related to maintaining employment incentives; problems of growing public debt over time; potential adverse psychological reactions; additional difficulties implementing fiscal policy in underdeveloped economies; and administrative challenges in democratic systems with longer legislative and approval processes.
The document provides an overview of Chapter 13 which discusses fiscal policy. It begins by introducing the American Recovery and Reinvestment Act (ARRA) passed in 2008 to stimulate the economy during the recession. It then lists the learning objectives which include evaluating the effects of discretionary fiscal policy, discussing potential offsets that could reduce its effectiveness, and describing automatic stabilizers. The remainder of the document outlines the chapter and provides examples and figures to explain key aspects of discretionary fiscal policy, possible offsets, coping with time lags, and automatic stabilizers.
Present study questions the role of monetary policy in general and inflation targeting in particular with the help of important issues related to it and concludes that it is high time for a change. An irony of the inflation targeting is that price stability has amazingly been achieved in Canada simultaneously with an over-leveraged financial system and an over-exposed economy to the debt and assets. And also, the low policy rate regime under the framework has not been able to stop the investment from decline and the real economy from stagnation.
The document discusses the challenges facing Abenomics policies in Japan and examines the implications for economic welfare and wealth inequality. It establishes a framework to analyze Abenomics by comparing potential policy outcomes to those of Reaganomics and Thatcherism. Key uncertainties include external factors, asymmetrical risks, and whether policy commitments can be maintained. If implementation succeeds, growth could increase aggregate welfare but also potentially widen wealth gaps without redistributive policies.
This document provides an overview of fiscal policy, including:
1) Fiscal policy involves a government adjusting its spending levels and tax rates to influence the economy. It is controlled by the government and includes tools like taxes, government spending, and deficit financing.
2) There are two main types of fiscal policy - expansionary and contractionary. Expansionary policy involves government spending exceeding tax revenue through methods like lowering taxes or raising spending. Contractionary policy occurs when spending is lower than tax revenue.
3) Fiscal policy aims to impact unemployment, inflation, and interest rates. However, it faces criticisms like time lags in taking effect, potential crowding out of private sector activity, and inefficient government
The document summarizes key topics related to unemployment, inflation, and long-run growth from an economics textbook chapter, including:
1) It defines different types of unemployment (frictional, structural, cyclical) and how they are measured using data from the U.S. Bureau of Labor Statistics.
2) It discusses the Consumer Price Index (CPI) and producer price indexes (PPIs) which are used to measure inflation in the U.S.
3) It provides an overview of the costs of unemployment and inflation on individuals and the economy.
Monetary and fiscal policy response and recent developmentsClaro Ganac
The document discusses recent global and domestic developments in the banking industry and their impact on monetary and fiscal policy. It outlines how the 1997 Asian financial crisis, 2008 global financial crisis, and other events have shaped government policies. Domestically, the Philippines' strong economic growth and improving financial markets are noted, alongside the Bangko Sentral ng Pilipinas' moves to tighten monetary policy like raising reserve requirements to manage inflation risks.
Fiscal policy uses changes in government spending and taxation to influence economic activity. It is a tool governments can use to address recessions or inflation. When the economy is in recession, expansionary fiscal policy like tax cuts or increased spending can boost aggregate demand. When the economy is overheating, contractionary fiscal policy such as tax increases or spending cuts can cool it down. However, fiscal policy is difficult to implement effectively in practice as politicians often fail to enact contractionary policy in good times. This has led to large budget deficits and government debt over time in many countries.
This document summarizes a presentation on the economic impact of the COVID-19 pandemic. It discusses three potential scenarios for the duration of the outbreak lasting 3, 6, or 12 months and their implications on the UK economy and public finances. It finds that GDP could contract by 10-24% in 2020, the largest annual fall in 300 years. Public sector borrowing is projected to rise to peacetime highs, with public debt peaking at between 100-150% of GDP. Several policy challenges are outlined, including keeping people and businesses active through job support programs, financing large fiscal deficits, and restoring long-term fiscal sustainability after the outbreak ends.
13 Jun 24 ILC Retirement Income Summit - slides.pptxILC- UK
ILC's Retirement Income Summit was hosted by M&G and supported by Canada Life. The event brought together key policymakers, influencers and experts to help identify policy priorities for the next Government and ensure more of us have access to a decent income in retirement.
Contributors included:
Jo Blanden, Professor in Economics, University of Surrey
Clive Bolton, CEO, Life Insurance M&G Plc
Jim Boyd, CEO, Equity Release Council
Molly Broome, Economist, Resolution Foundation
Nida Broughton, Co-Director of Economic Policy, Behavioural Insights Team
Jonathan Cribb, Associate Director and Head of Retirement, Savings, and Ageing, Institute for Fiscal Studies
Joanna Elson CBE, Chief Executive Officer, Independent Age
Tom Evans, Managing Director of Retirement, Canada Life
Steve Groves, Chair, Key Retirement Group
Tish Hanifan, Founder and Joint Chair of the Society of Later life Advisers
Sue Lewis, ILC Trustee
Siobhan Lough, Senior Consultant, Hymans Robertson
Mick McAteer, Co-Director, The Financial Inclusion Centre
Stuart McDonald MBE, Head of Longevity and Democratic Insights, LCP
Anusha Mittal, Managing Director, Individual Life and Pensions, M&G Life
Shelley Morris, Senior Project Manager, Living Pension, Living Wage Foundation
Sarah O'Grady, Journalist
Will Sherlock, Head of External Relations, M&G Plc
Daniela Silcock, Head of Policy Research, Pensions Policy Institute
David Sinclair, Chief Executive, ILC
Jordi Skilbeck, Senior Policy Advisor, Pensions and Lifetime Savings Association
Rt Hon Sir Stephen Timms, former Chair, Work & Pensions Committee
Nigel Waterson, ILC Trustee
Jackie Wells, Strategy and Policy Consultant, ILC Strategic Advisory Board
Explore the world of investments with an in-depth comparison of the stock market and real estate. Understand their fundamentals, risks, returns, and diversification strategies to make informed financial decisions that align with your goals.
KYC Compliance: A Cornerstone of Global Crypto Regulatory FrameworksAny kyc Account
This presentation explores the pivotal role of KYC compliance in shaping and enforcing global regulations within the dynamic landscape of cryptocurrencies. Dive into the intricate connection between KYC practices and the evolving legal frameworks governing the crypto industry.
Madhya Pradesh, the "Heart of India," boasts a rich tapestry of culture and heritage, from ancient dynasties to modern developments. Explore its land records, historical landmarks, and vibrant traditions. From agricultural expanses to urban growth, Madhya Pradesh offers a unique blend of the ancient and modern.
Fabular Frames and the Four Ratio ProblemMajid Iqbal
Digital, interactive art showing the struggle of a society in providing for its present population while also saving planetary resources for future generations. Spread across several frames, the art is actually the rendering of real and speculative data. The stereographic projections change shape in response to prompts and provocations. Visitors interact with the model through speculative statements about how to increase savings across communities, regions, ecosystems and environments. Their fabulations combined with random noise, i.e. factors beyond control, have a dramatic effect on the societal transition. Things get better. Things get worse. The aim is to give visitors a new grasp and feel of the ongoing struggles in democracies around the world.
Stunning art in the small multiples format brings out the spatiotemporal nature of societal transitions, against backdrop issues such as energy, housing, waste, farmland and forest. In each frame we see hopeful and frightful interplays between spending and saving. Problems emerge when one of the two parts of the existential anaglyph rapidly shrinks like Arctic ice, as factors cross thresholds. Ecological wealth and intergenerational equity areFour at stake. Not enough spending could mean economic stress, social unrest and political conflict. Not enough saving and there will be climate breakdown and ‘bankruptcy’. So where does speculative design start and the gambling and betting end? Behind each fabular frame is a four ratio problem. Each ratio reflects the level of sacrifice and self-restraint a society is willing to accept, against promises of prosperity and freedom. Some values seem to stabilise a frame while others cause collapse. Get the ratios right and we can have it all. Get them wrong and things get more desperate.
Monthly Market Risk Update: June 2024 [SlideShare]Commonwealth
Markets rallied in May, with all three major U.S. equity indices up for the month, said Sam Millette, director of fixed income, in his latest Market Risk Update.
For more market updates, subscribe to The Independent Market Observer at https://blog.commonwealth.com/independent-market-observer.
Dr. Alyce Su Cover Story - China's Investment Leadermsthrill
In World Expo 2010 Shanghai – the most visited Expo in the World History
https://www.britannica.com/event/Expo-Shanghai-2010
China’s official organizer of the Expo, CCPIT (China Council for the Promotion of International Trade https://en.ccpit.org/) has chosen Dr. Alyce Su as the Cover Person with Cover Story, in the Expo’s official magazine distributed throughout the Expo, showcasing China’s New Generation of Leaders to the World.