The Equilibrium Rate of Unemployment and the Real Exchange Rate PDF Download
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Author: Hans Lindblad
Publisher:
ISBN:
Category :
Languages : en
Pages : 50
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Book Description
A common assumption when analysing unemployment is that the economy is closed. However, the equilibrium rate of unemployment is not identified in an open economy unless the foreign sector is modeled. Therefore we set up and estimate a structural unobserved components open economy model for the unemployment rate and the real exchange rate. This approach enables us to simultaneously determine changes in both cyclical and equilibrium rates in these two variables. The results indicate that the dramatic changes in the Swedish unemployment rate during the 1990s is mainly a cyclical phenomenon. The development of the exchange rate is mainly driven by terms of trade and government deficits.
Author: Hans Lindblad
Publisher:
ISBN:
Category :
Languages : en
Pages : 50
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Book Description
A common assumption when analysing unemployment is that the economy is closed. However, the equilibrium rate of unemployment is not identified in an open economy unless the foreign sector is modeled. Therefore we set up and estimate a structural unobserved components open economy model for the unemployment rate and the real exchange rate. This approach enables us to simultaneously determine changes in both cyclical and equilibrium rates in these two variables. The results indicate that the dramatic changes in the Swedish unemployment rate during the 1990s is mainly a cyclical phenomenon. The development of the exchange rate is mainly driven by terms of trade and government deficits.
Author: Mark Patrick Moore
Publisher:
ISBN:
Category :
Languages : en
Pages : 54
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Book Description
Author: Finn Ostrup
Publisher: Cambridge University Press
ISBN: 9780521667395
Category : Business & Economics
Languages : en
Pages : 322
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Book Description
The prevailing view among economists and policy makers is that money has no impact on production in a longer term characterised by full price and wage flexibility and rational expectations. This book presents a revisionist view of monetary policy and monetary regimes. It presents several new mechanisms, indicating that money affects long-term production. The consequent policy implications are also discussed, including: the uses of monetary policy and monetary regimes in achieving macroeconomic goals; the impact of an independent central bank; the effects of a movement from floating exchange rates to fixed exchange rates in a monetary union. In addition to the theoretical and policy discussions the book also contains a comprehensive survey of the current state of scholarship in this area. Designed as a textbook for advanced undergraduate and graduate students in macroeconomics, labour economics and finance, this book will also appeal to scholars and policy-makers.
Author: John Williamson
Publisher: Peterson Institute
ISBN: 9780881320763
Category : Business & Economics
Languages : en
Pages : 608
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Book Description
The problems of exchange rate misalignments and the resulting payments imbalances have plagued the world economy for decades. At the Louvre Accord of 1987, the Group of Five industrial countries adopted a system of reference ranges for exchange rate management, influenced by proposals of C. Fred Bergstan and John Williamson for a target zone system. The reference range approach has, however, been operated only intermittently and half-heartedly, and questions continue to be raised in policy and scholarly circles about the design and operation of a full-fledged target zone regime. This volume, with chapters by leading international economists, explores one crucial issue in the design of a target zone system: the problem of calculating Williamson's concept of the fundamental equilibrium exchange rate (FEER). Williamson contributes an overview of the policy and analytic issues and a second chapter on his own calculations.
Author: Reva Krieger
Publisher:
ISBN:
Category : Employment (Economic theory)
Languages : en
Pages : 60
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Book Description
Author: Zahra Bakhshi
Publisher:
ISBN:
Category :
Languages : en
Pages : 10
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Book Description
Unemployment is one of the problems that global economics, especially the economy of developing countries such as Iran is faced with. Therefore, there have been many studies to investigate the variables which affect unemployment in macroeconomics. Considering exchange rate volatility in recent years which have affected most of major variables of economy in Iran, this study tried to investigate the relationship between exchange rate and unemployment in Iran using the annual data of 30 years (from 1981 to 2012). To achieve the objectives of the study, autoregressive econometric model with distributed lag was used to assess the relationship between real exchange rate and unemployment. This model consisted of five main variables, namely unemployment rate, exchange rate, export, import, and gross domestic product. The results of the study demonstrated that economic growth had a significant and positive effect on unemployment. In addition, it was shown that there was a negative relationship between unemployment and exchange rate.
Author: Edmund S. Phelps
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 444
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Book Description
Dissatisfied with the explanations of the business cycle provided by the Keynesian, monetarist, New Keynesian, and real business cycle schools, Edmund Phelps has developed from various existing strands-some modern and some classical--a radically different theory to account for the long periods of unemployment that have dogged the economies of the United States and Western Europe since the early 1970s. Phelps sees secular shifts and long swings of the unemployment rate as structural in nature. That is, they are typically the result of movements in the natural rate of unemployment (to which the equilibrium path is always tending) rather than of long-persisting deviations around a natural rate itself impervious to changing structure. What has been lacking is a "structuralist" theory of how the natural rate is disturbed by real demand and supply shocks, foreign and domestic, and the adjustments they set in motion. To study the determination of the natural rate path, Phelps constructs three stylized general equilibrium models, each one built around a distinct kind of asset in which firms invest and which is important for the hiring decision. An element of these models is the modern economics of the labor market whereby firms, in seeking to dampen their employees' propensities to quit and shirk, drive wages above market-clearing levels-the phenomenon of the "incentive wage"--and so generate involuntary unemployment in labor-market equilibrium. Another element is the capital market, where interest rates are disturbed by demand and supply shocks such as shifts in profitability, thrift, productivity, and the rate of technical progress and population increase. A general-equilibrium analysis shows how various real shocks, operating through interest rates upon the demand for employees and through the propensity to quit and shirk upon the incentive wage, act upon the natural rate (and thus equilibrium path). In an econometric and historical section, the new theory of economic activity is submitted to certain empirical tests against global postwar data. In the final section the author draws from the theory some suggestions for government policy measures that would best serve to combat structural slumps.
Author: Martin Weale
Publisher: Routledge
ISBN: 1317379438
Category : Business & Economics
Languages : en
Pages : 403
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Book Description
This analysis of macroeconomic policy, originally published in 1989, argues that key government objectives, such as reduced inflation, decreased unemployment and an adequate level of national saving can be achieved only by employing both monetary and fiscal policies, in conjunction with supply-side policies expressly designed to improve the workings of the labour market. Part 1 is a comparative analysis showing the effects of monetary and fiscal policy on the economy. Real-wage rigidity in the labour market is shown to have important consequences for the working of both types of policy, because it conditions the economy’s response to tax changes. Part 2 presents an econometric model which combines consistent stock-flow accounts with a full range of expectational effects. Part 3 presents an innovative technique for solving rational expectations models with the need for arbitary terminal conditions.
Author: John Williamson
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 120
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Book Description
Author: J. Peter Neary
Publisher:
ISBN:
Category : Commodity exchanges
Languages : en
Pages : 24
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Book Description
