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
2
votes
0answers
28 views

Additive or multiplicative decomposing?

I am going to decompose one of my time series. My goal is to get rid of the seasonal component. It looks like this: The last picture is: log(next value/present value) I have understood that if the ...
10
votes
4answers
2k views

The Sonnenschein-Mantel-Debreu results, what are the implications for macroeconomics?

I have always wondered why such a negative result such as Sonnenschein–Mantel–Debreu theorem (SMD) theorem is usually ignored or disregarded by practitioners, specially in macro. The result roughly ...
0
votes
0answers
17 views

Equities-dollar correlation

Equities-dollar correlation was mostly positive in the 2000s and switched to negative since the GFC. Are there any structural drivers explaining this change in correlation?
10
votes
1answer
165 views

Causes of trade deficit: Multiple views

I am trying to understand the causes and macroeconomic implications of running a trade deficit in the United States, and I came across a few different views on this topic. I'd like to know if there ...
-2
votes
2answers
81 views

Breaking Up The Big Banks [closed]

How can banks break themselves up? If they refuse to how can the federal government force them to break up or break them up themselves?
0
votes
0answers
18 views

Denominator for the Labor Force Participation By group

I want to check that I am using the correct definition for labor force participation rates by gender or income group. For instance, if we have the following: 1- Working age population of 800 people, ...
7
votes
3answers
295 views

How did reducing the employment gender gap impact the US economy?

Premise In the United States, women have been replacing men in the workforce, or rather were from sometime prior to 1976 until the mid-90's. (The general upward trend is from the recent recession, ...
2
votes
0answers
29 views

Do you know how to compute the IRF of a GARCH (1,1)

We have the following model (GARCH (1,1) ) $y_t=\sigma_t\epsilon_t$ $\sigma_t^2 = \omega + \beta*\sigma_{t-1}^2 + \gamma*y_{t-1}^2$ Note that we can rewrite the latter as: $\sigma_t^2=\frac{\omega}{1-\...
-2
votes
1answer
63 views

How does one country peg its currency to another's? [closed]

For example, Belize has pegged its currency to the US dollar at an exchange rate of 2 Belize dollars to 1 US dollar. How does Belize do that?
4
votes
2answers
126 views

Competitive equilibrium with IRTS

Suppose we have a static economy with one firm and one consumer. Consumer owns the firm and decides on how much to consume and to work: $$\max U(c,1-n_s)\ \text{s.t.} \ pc\leq wn_s+\pi$$ The firm is ...
0
votes
1answer
60 views

Is there a book or notes that explain all about inflation? [closed]

Is there a book or notes or papers (but for easy understanding please) that explain all about inflation? Not at a research level but student level. From what is previously needed to define and ...
7
votes
1answer
195 views

M2-M1: what's left in the delta?

If you subtract M2SL - M1SL, the chart looks as follows: The change is due to re-classification: M1 before: (3) other checkable deposits (OCDs), consisting of negotiable order of withdrawal, or NOW, ...
1
vote
1answer
99 views

What would be the consequences of Downsizing on the economy? [closed]

In the 2017 movie Downsizing, a chunk of the population decides to reduce their body size to just a few inches. What would be the consequences of this on the economy? I'd like to know chronologically ...
0
votes
1answer
49 views

Seemingly contradictory relationship between bond yields and economic growth?

I have a few seemingly contradictory ways of viewing the relationship between economic growth and bond yields: Reductions in FFR are largely induced by IOER. Since IOER and bonds are competing ...
0
votes
0answers
24 views

Is it feasible for another country to attack the US dollar via counterfeiting? [duplicate]

Assuming, for the sake of the question, that a well-resourced adversary (another country, most likely) had the means and motive to conduct economic warfare against the United States through large-...
0
votes
1answer
71 views

Does net exports has to do with borrowing and lending?

In my course notes, it says that "when net exports is negative it means that the country is borrowing from other countries" but I do not get it if net exports is negative that only means ...
3
votes
0answers
94 views

Social Planner problem: two period

The production function is $F(K_t,N_t)=AK_t^\alpha N_t^{1-\alpha}$ and depreciation $(\delta)$ is equal to 1. The given preferences are as follows: $$U(c_1,l_1,c_2,l_2)=\gamma log(c_1)+(1-\gamma)log(...
2
votes
0answers
35 views

Remove seasonality in R

I have data of total exports of fish from my country in the time period 2010-2020. Since our currency (NOK) has gotten weaker to the currencies we are trading with, we have gotten a lot more value ...
2
votes
1answer
47 views

What is business cycle frequency?

I am reading a paper by Michal Andrle, Jan Brůha, Serhat Solmaz (On the sources of business cycles: implications for DSGE models). The authors use data at a quarterly frequency for their empirical ...
1
vote
1answer
36 views

Risks asscoiated short term stimulus as interest rates approach zero

TL;DR Government interest rates are approaching zero. What are the risks to borrowing large sums in the current enviroment? Would inflation occur? Full Story I was recently reading an article about ...
1
vote
0answers
15 views

Simple worked-out example of computing future cashflows of other countries' assets?

I read through a research note from Bridgewater and a lot of the discussion centered on finding attractive cashflows of global stocks in USD terms. Here is a line for ease of reference: Across a ...
1
vote
1answer
48 views

Constant to the power of t in steady state

I am wondering how to get the steady-state for the following Euler equation. I know that we can get rid of time in subscripts. However, here I have a constant (a) to the power of $t$. Does anyone know ...
4
votes
1answer
2k views

A country borrowing from the rest of the world

Well I'm having a some difficulty in understanding completely what the following sentence means and I would like to be sure. «(...) a country running a trade deficit is buying more from the rest of ...
4
votes
1answer
62 views

Bellman Equation with Two Discount Factors

For the following social planner's problem $$ \max \mathbb{E_{0}}\sum_{s=0}^{\infty}\beta_{1}^{s}(\alpha U(C_{s}^{1}))+\beta_{2}^{s}((1-\alpha)U(C_{s}^{2})) $$ $$ s.t.\ \text{some constraints ...
0
votes
0answers
41 views

Mathematical question in macroeconomic task

I am currently working on a project where I want to explore how changes in a couple of currencies affects the income for my countrys exported fish. My country (Norway) sells it fish in 4 different ...
1
vote
1answer
66 views

Did the Bank Of England say QE doesn't work?

https://www.bankofengland.co.uk/working-paper/2020/does-quantitative-easing-boost-bank-lending-to-the-real-economy Staff Working Paper No. 883 Published on 14 August 2020 From the conclusion: If the ...
3
votes
2answers
521 views

Does Modern Monetary Theory (MMT) provide a useful insight into how to manage the economy?

According to advocates of MMT, the primary risk once the economy reaches full employment is inflation, which can be addressed by gathering taxes to reduce the spending capacity of the private sector. ...
1
vote
0answers
50 views

What does the economic collapse of a country mean and what are its consequences?

I live in Iran, a country that has been under sanctions since 1979. After the US sanctions on Iranian oil, everything got worse and the price of everything increased four times in just three months. ...
0
votes
0answers
10 views

Help to find China Data

do you know where can I find data about the R&D expenditure of china from 1976 until 2020?
0
votes
1answer
17 views

Why does US equities valuation have the downward pressure on USD?

While making readings on economics I came across a sentence: ..large valuation gap that has opened up between US equities and the rest of the world. This could help bid up non-US equity valuations and ...
1
vote
1answer
26 views

What is the resolution down to which the annual inflation value can be controlled?

Judging by previous posts in the site, the inflation target is set annually to 2% by the Federal Reserve. Regardless of the reasons behind this choice, I am curious to understand how precisely can the ...
1
vote
1answer
29 views

Is GDP the market value of goods consumed or goods produced in a time period?

Definitions across various resources state that GDP is the market vaue of all goods 'produced' in a certain time period. But while calculating GDP by expenditure method, consumers' spending is one of ...
1
vote
3answers
115 views

Why is deflation bad for economy? [duplicate]

As now many people are talking about the inflation of US dollar on the account of the COVID-19 pandemic and the printing of trillions of US dollar bills, the price of decentralized cryptocurrencies ...
0
votes
0answers
16 views

Increase in money supply when price are flexible in the basic new keynesian model

I would like to know what would be the effect on price and quantities of an increase in money supply in the basic new keyensian model. What happen if price are fully flexible ? What if prices are ...
-2
votes
1answer
53 views

Help with AP Macroeconomics FRQ [closed]

I am a senior in High school and am taking an AP Macroeconomics course. I just took an FRQ and received an F on it. I asked my teacher multiple times to explain why my answers were wrong, but to no ...
2
votes
1answer
37 views

How to define the natural rate output

I'm following Woodford's Interest & Prices to derive the microfundations for a New Keynesian model with staggereed prices. I defined the utility function and disutility function (1.1 at page 144) ...
16
votes
3answers
2k views

Should Finland leave the eurozone?

Finland's economic recovery from the shock of the global financial crisis of 2007–2008 has been very weak. The country has been in recession for the past three years, with GDP expected to expand by ...
0
votes
1answer
32 views

Macroeconomic model or knowledge base representing connected industries in the world

I'm looking for data (model, Expert system, knowledge base) that describes how different industries and countries interact with each other. And the nature of the relationship between them. An example ...
0
votes
3answers
72 views

How can an economy pay for all the products it produces?

How can the totality of an economy pay for all the products it produces, if the initial amount of money in the system (before the profits on all of the products is realized) is less than the amount of ...
1
vote
1answer
45 views

What happens to an MBS if all the underlying mortgages are fully paid back by the borrowers much before the maturity date?

What would happen to an MBS (mortgage-backed security) if hypothetically speaking all the underlying mortgages were fully paid back by the mortgagees (borrowers), much before the maturity date? I ...
2
votes
1answer
37 views

Solow model: Partial derivative of k* with respect to g

Given the solow model $sf(k)=(n+g+\delta)k$, written as $$F=sf(k^\star)-(n+g+\delta)k^\star=0$$ I am trying to find the partial derivative of k* with respect to n Here is what I've tried: I use the ...
0
votes
0answers
37 views

What is the 'gold standard methodology' in macroeconomics research?

What is the 'gold standard methodology' in applied macroeconomics research? In drug discovery research, for example, there are many methodologies, but RCTs are the gold standard, right??...like the ...
0
votes
0answers
38 views

Loosely speaking, are all modern economies 'Keynesian' in their stance on spending during downturns?

Keynesian economics is defined as: increased government expenditures and lower taxes to stimulate demand and pull the global economy out of the depression. Do all modern economies adopt a Keynesian ...
1
vote
0answers
40 views

What is the no ponzi condition for this representative consumer problem? Tags: Initial condition, no-ponzi game

This question is following Farhi et.al. 2014's consumer budget constraint modified to add a government bond and removing money. A simplified version is given below which is pertinent to the question. $...
3
votes
1answer
66 views

What does it mean to identify structural shocks in macro models?

What does it mean to identify structural shocks in macro models? Sometimes, it seems to mean just disentangling VAR innovations into 'structural' shocks which may or may not have any economic ...
0
votes
1answer
33 views

Imports not used in the country, still counting in the GDP calculation?

When we calculating GDP we use the given formula $GDP = C + I + P + X - M$ Here $M$ means the imports. My question is: What if I am not currently using the imports. For example I might have by the ...
8
votes
2answers
3k views

Is the economy a zero-sum game?

Theoretically speaking, if all the Earth's inhabitants were to save money and invest, is it possible for everybody to get, let's say, a 4% yearly return for everyone? Is the economy a zero sum game (...
0
votes
1answer
45 views

Structural shocks in economic models are unobservable and country-specific?

Let's consider an exogenous oil price shock ($e_t$) as an example in the following equation $oil_t = \rho \; oil_{t-1} + e_t$, where $oil_t$ is one variable in a VAR system. We normally want to ...
-1
votes
1answer
28 views

Government stimulus

Where does the money come from to pay Americans such a generous stimulus? What is the economic benefit? Is there something that is not visible to everyone else? If we give all this money to everybody ...
1
vote
1answer
55 views

Search and Matching model with 2 agents?

I would like to know if you know any model with Search and matching framework (Mortenses-Pisarides style) with 2 types of workers (like Ricardian and rule of thumb consumers for exemple) ? I would ...

1
3 4
5
6 7
47