Questions tagged [macroeconomics]

Macroeconomics is a branch of economics dealing with the aggregate economy as a whole, rather than individual markets.

Filter by
Sorted by
Tagged with
0
votes
2answers
27 views

Real wages fluctuation as per classical economics

I have just started studying Macroeconomics and have noticed that as per the Classical economics, the real wage level will always remain same because any change in price level in the market is ...
2
votes
2answers
60 views

Real Income and a Fixed Money Supply

What would happen to nominal income and wages if the money supply were fixed (100% reserve banking). Would real wages increase, even though nominal wages would stay the same or even decrease?
1
vote
1answer
49 views

Total factor productivity (TFP) estimation in R

I'm trying to calculate TFP with the estprod package in R because this package allows me to calculate with Gross-Output (like with levinsohn petrin) but I have ...
0
votes
1answer
24 views

How can autonomous private spending change budget surplus?

I was reading Keynesian economics in R.Dornbusch's book where he mentioned the defects of using budget surplus as a measure where he says it can be changed and effected by autonomous private spending ...
1
vote
1answer
40 views

Is Currency Devaluation a cause or effect of interest rates?

I understand that Federal bank/Goverment can manipulate the currency market and devalue its currency by printing more money or buying foreign currencies/assets (essentially increasing the supply of ...
10
votes
8answers
90k views

How interest rate affects currency

I am quite new to economics. I was reading about changes in interest rates and its effect on currency value. The fact is as interest rates increases, the currency value also increases and vice versa....
1
vote
1answer
12 views

Using the Federal Reserve's Implicit Price Deflator to Convert to 2020 Dollars

I have a list of government expenditures from 2011 to 2018 as shown below: 2011 2012 2013... 2018 $30m $35m $42m $120m How can I use the Federal ...
2
votes
1answer
62 views

Net Neutrality and Recent Telecom Projects

It has come to my attention that the big telecom providers are launching some big infrastructural projects recently (at the time of post, Jan. 2018). I presume by that they mean talking laying cables ...
0
votes
1answer
13 views

Why is deflation a likely short-term of an increase in M2?

The year-on-year growth in M2 — a broad measure of US money supply — has rocketed this year due to the efforts of monetary and fiscal policymakers to reduce the economic damage caused by the pandemic. ...
5
votes
1answer
2k views

Estimating the rental rate of capital from data

Take the classic optimization problem of the neo-classical firm: \begin{equation} \begin{array}{*2{>{\displaystyle}r}} \mbox{maximize (over $K, L$)} & f(K, L) - RK - WL \end{array} \end{...
6
votes
1answer
266 views

Labour markets and supply-side policies: too much stress put on the WS push factors?

In reading several macro textbooks, it seems that most of the supply-side policies tend to be focused on the labour supply side (wage setting curve), instead on the firm/labour demand side(price ...
2
votes
1answer
58 views

What are some examples of goods that entrepreneurship-intense?

Entrepreneurship is considered to be one of factors of production (the other factors of production are capital, labor and land). According to Heckscher–Ohlin model, a country that has an abundant ...
0
votes
0answers
24 views

How is the GINI coefficient half the relative mean absolute difference?

I've tried to derive a proof myself and have looked through a lot of sources but can't seem to find an understandable mathematical explanation/proof for why this is the case. I found one at(https://...
1
vote
1answer
67 views

How is employment related to aggregate demand and aggregate supply?

When we talk about excess or deficient aggregate demand , how does employment suddenly comes ?
0
votes
1answer
32 views

What is the characteristics of economic downturn and which countries experience economic downturn from 2010 to 2018?

I would like to know the characteristics of economic downturn. Is downturn the same as recession? and which countries experience economic downturn from 2010 to 2018?
0
votes
1answer
37 views

Max of a profit function: partial derivative of an integral function?

I am struggling with the maximization of the following profit function in a New-Keynesian model. Here there is the FOC. $$\frac{\delta}{\delta Y_t(i)} P_tY_t- \int_0^1 P_t(i)Y_t(i)di = \frac{\delta}{\...
0
votes
1answer
31 views

Can anyone help me understand the Motrtensen-Pissarides model?

I am seeking help with the Mortensen-Pissarides model in discrete time? Basically, I was given the following in class example (which we didn’t complete do to time constraints associated with the end ...
0
votes
1answer
58 views

Is the money market model based on assumption of no interest rate targeting on the part of the central bank?

This is quote from Gregory Mankiw's macroeconomics text about mechanism of formation of the interest rate in the money market model: How does the interest rate get to this equilibrium of money supply ...
0
votes
4answers
43 views

Discount & Interest rates

Small question, is discount rates and interest rates the same/similar thing in economics? A bit confused regarding this.
2
votes
1answer
38 views

Are rational expectations in economics purely forwards looking, or can they have backward looking components?

Are rational expectations (Muth, Lucas, Kyland and Prescott) in economics purely forwards looking, or can they have backward looking components?
-1
votes
0answers
16 views

How would Russia winning the COVID19 vaccine race impact its economy? [closed]

According to reports (see links below), Russia may be the first country to declare victory in the race for a COVID19 vaccine and distribute it on a mass scale. Whether they will be or won't be, isn't ...
0
votes
0answers
26 views

What industries, if any, are best when nationalized/government-run?

In free-market economics, private firms are said to be more efficient and better for consumers as competition between private firms in an industry breeds innovation, low cost (for consumers), and ...
-1
votes
0answers
20 views

What steps can a country (or island) take to prevent another Turkey? [closed]

I'm hearing a lot about what's happening to Turkey and its economy. High inflation, meager foreign currency reserves. Sounds like normal economic issues any other country can face. What steps can a ...
0
votes
2answers
158 views

Balance of Trade ( Surplus and Deficit)

I'm new to economics. I want to ask that what remedies that the government can actually employ to address the deficit/surplus in the fish trade balances over time? My attempt, Trade deficit (i) The ...
4
votes
1answer
69 views

Negative Inflation, AS/AD framework, What Graph to use?

My macroeconomic homework contains the question below, and I'm not sure what graphs we're suppose to use to solve it. I believe I can answer the whole question using the IS-MP Diagram, but do I need ...
0
votes
1answer
31 views

What does “writes a check to Congress in exchange for them” mean in this context?

On page 192 of the 5th edition, George Edward Griffin begins to describe the "Mandrake Mechanism", chapter ten, in "The Creature from Jekyll Island". First, the Fed takes all the ...
0
votes
0answers
35 views

Is it legitimate to assess the resilience of industries and sectors to covid19 through the stock market? [closed]

I would like to assess the resilience of some sectors in Europe (for practice and also make a project to show in case I want to go to a better uni) but I honestly lack data, and it seemed to me the ...
0
votes
1answer
42 views

What does full employment mean?

I am a bit confused about the term "full employment". I am currently learning about the labour market model, and how that is influenced by changes in aggregate demand. My textbook states &...
3
votes
1answer
27 views

Literature on DSGE models featuring a financial sector

I recently read a ECB primer on DSGE models featuring the financial sector and became interested in the field. I also started to read some of the earlier literature in that field (e.g. Gertler & ...
4
votes
2answers
126 views

What economics aggregate(s) could suggest an imminent change in exchange rates?

I have read articles about the Swiss Franc breaking its peg with the dollar and I would like to understand what indicators people look at to determine whether a currency break/depegging is imminent. ...
0
votes
0answers
27 views

When is the upward economic convergence in the EU estimated to happen?

Although the regional cohesion, i. e. the socio-economical convergence of the East and the West has been one of the EU's main goals, some economists seem to dispute there's any evidence for them being ...
5
votes
2answers
120 views

Is ongoing economic growth possible without additional non-renewable inputs?

Can ongoing economic growth occur without use of additional non-renewable inputs? That is, any additional inputs would only be from renewable resources: all non-renewable resources would be reused, ...
0
votes
0answers
22 views

Effects on Early International Travel Ban and Economy

Can't find articles regarding on this. Had the country set up an early international travel ban to avoid this Covid-19 pandemic, can that country survive thru local businesses after 4-6 months or more ...
5
votes
2answers
62 views

Do patents foster innovation?

I'm looking for a good meta analysis which answers the question if patents are generally beneficial to economy or not. Some papers I've read claim they are indispensable, other say it depends on the ...
0
votes
1answer
29 views

Why does the Loanable Funds Market model use the real interest rate instead of the nominal interest rate?

As far as I understand, the majority of loan contracts specify a nominal interest rate, NOT a real interest rate. So a hypothetical loanable funds markets would have people suggesting potential ...
3
votes
1answer
105 views

Use Lag Operator to find Lifetime Budget Constraint

The budget constraint is $c_t + \tau_t + s_{t+1} =w_t(1-l_t) +(1+r_t)s_t$ And assume $\underset{t \longrightarrow \infty}{lim} \ \displaystyle{\frac{s_t}{\Pi_{i=1}^{t-1} (1+r_i)}} = 0$ Lag ...
3
votes
1answer
63 views

Do countries with centrally-planned economy have Entrepreneurship as a factor of production?

Let's don't count self-employed people without other employees (like "lone wolf" craftsmen) and people who have an illegal business as entrepreneurs. By centrally-planed economy I mean an ...
-1
votes
3answers
43 views

How are recessions even possible if its impossible for banks to lose money?

When a bank issues a loan, the money must end up with another bank. Therefore, the banking system as a whole can never lose money. Only the dumb banks which make loans that arent repaid can ever lose ...
1
vote
1answer
268 views

Wealth - Bond Market and Liquidity Preference Framework

I've been told that an increase in wealth will lead to an increase in both the demand for Bonds determined by the Theory of Asset Demand. This should shift the bond curve to the right, increasing ...
0
votes
1answer
58 views

Is there an “ideal” ratio of tax revenue to GDP? Or, at least, can I assume a higher ratio is better?

At the link below, you can see countries have a huge difference in ratios of tax revenue to GDP. Is it fair to assume that a higher ratio is better? Does raising a substantial portion of your GDP in ...
1
vote
1answer
106 views

Solving Euler Equation for standard DSGE Models

I am studying a rather standard DSGE Model with a standard Utility function $U = f(c_t, n_t, M_t)$ subject to a budget constraint. Now, tosolve the intertemporal optimization problem I have, or ...
2
votes
1answer
55 views

Best history of macro book?

I'd like to know if you know some book that summarize the history of macro ? I'm in Master (after undergrad) so I don't ask for beginner's book. I've begun to read "a history of macroeconomics ...
1
vote
1answer
41 views

Still don’t understand why a trade deficit must be financed by foreign borrowing (even after reading other answers)

Maybe my understanding of how the real world works is now clouding my ability to understand the theoretical because I aced this stuff in college, but now can’t wrap my head around it. Yes, I’ve read ...
0
votes
1answer
33 views

Why do all/majority of loan contracts charge nominal interest rate instead of fixed real interest rate?

As far as I understand, all/majority of loan contracts charge nominal interest rate, there are (almost?) no loan contracts that charge fixed real interest rate. Why is it so? Normally I would expect ...
2
votes
1answer
43 views

Why does a current account deficit contribute to making a country a “sitting duck” for currency speculators?

George Soros had this to say about the factors surrounding his famous short of the British pound: The U.K. had a large current-account deficit…, modest FX reserves and no capital controls to rebuff ...
1
vote
1answer
72 views

Is a lack of “rules” dangerous for cryptocurrency

An issue/disadvantage that the gold standard had was a lack of mechanisms that forced economies to abide by the rules of the game. As a result, they could at any time de-monetize gold and therefore ...
0
votes
2answers
63 views

Is fiat currency better than a backed-currency?

My question is would it be better if we went back to something like a gold standard but backed by a finite virtual material instead? It avoids the problem of fluctuations in gold supply. The money-...
0
votes
1answer
26 views

What is the probability of an unemployed worker receiving no job offer during a time period?

we are currently covering one sided search models and I had a question for you all. I kind of understand the raw calculus behind finding the probability of a job offer over a time interval h, but what ...
4
votes
2answers
758 views

Matlab code example for piecewise linear approximation and Euler Equation Iteration

Where I can find a good Matlab sample code that performs Euler equation iteration with piece-wise linear approximation of policy functions? The Projection method I have in mind is something like ...
3
votes
1answer
67 views

What is an estimate of the value of the world's assets?

Gross world product is on the order of 80E12 $ per year (PPP). Where can I find an estimate of the net value of the world's assets (companies, properties, infrastructure...)? Preferably with some more ...

1
2 3 4 5
42