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2 edition of Effects of alternative sources of inflationary shocks on the budgetary position of governments found in the catalog.

Effects of alternative sources of inflationary shocks on the budgetary position of governments

Bimal K. Lodh

Effects of alternative sources of inflationary shocks on the budgetary position of governments

some simulation results with CANDIDE 1.2M /by Bimal Lodh.. --

by Bimal K. Lodh

  • 145 Want to read
  • 6 Currently reading

Published by Economic Council of Canada, 1977. in Ottawa .
Written in English

    Subjects:
  • Project CANDIDE,
  • Inflation (Finance) -- Canada -- Mathematical models,
  • Budget -- Mathematical models

  • Edition Notes

    Abstract in English and French. Bibliography: p. 31.

    SeriesDiscussion paper -- no. 77, Discussion paper (Economic Council of Canada) -- no. 77
    The Physical Object
    Paginationiii, 51 p. -- ;
    Number of Pages51
    ID Numbers
    Open LibraryOL18792590M

    The Causes of Inflation Frederic S. Mkhkin The problem of inflation has been of central concern to American poli- cymakers since the mid s. Of particular concern has been the rise in the core, or sustained, inflation rate from below the 2 percent level in the early s to near the double-digit level by the late s. Since a.   Except under very unusual economic conditions, the positive effects of inflation are restricted to a small part of the economy and they do not justify distorting the rest of the economy. In particular, the pro-cyclic inflation delivered by many central banks is very hard to excuse.

    Inflation and Debt. The Congressional Budget Office's annual Long-Term Budget Outlook is scary enough. Annual deficits are now running about $ trillion, or 10% of GDP. An increase in interest rates could also bring on inflation today, compounding the inflationary effect of a potential debt crisis through a very similar mechanism. Now, what is at stake when we weigh the impact of inflation on management? Remember that business — or, more broadly, the private sector — is the principal source of jobs: Of our total labor force of about 94 million, government furnishes only million jobs. This includes more than two million members of the armed forces.

      Question: How is government affected by inflation? When governments inflate the money supply, they do it to make their debt become less valuable or worth less. It does this after the money is initially added into market circulation. The initial pa. Other benefits of inflation to governments In addition to debt relief, governments experience a number of other benefits from inflation. Note that in the current abnormal time of below-inflation interest rates and salary rises, some of these effects are temporarily negated.


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Effects of alternative sources of inflationary shocks on the budgetary position of governments by Bimal K. Lodh Download PDF EPUB FB2

Potential Flaws in Inflationary Indices. Governments need to be aware that regional differences exist in inflation measures, so the use of a national measure should be treated with caution. Regional factors may affect items such as salary inflation, for example, due to the local unemployment rate.

The Impact of Inflation on Budgetary Discipline Joshua Aizenman, Ricardo Hausmann. NBER Working Paper No. Issued in November NBER Program(s):Monetary Economics This paper investigates budgetary rules for an economy characterized by inflation and volatile relative prices.

Deflation, on the other hand, can be thought of as the opposite of inflation, or as negative inflation, and it occurs when the supply of goods or services rises faster than the supply of money. Inflationary and Distributional Effects of Alternative Fiscal Policies: An Augmented Minskyan-Kaleckian Model Article in SSRN Electronic Journal February with 31 Reads How we measure 'reads'.

economic growth. Inflationary expectations in first regime are more effective in causing short run inflation. In expansionary regime, increase of money supply has more effects on inflation rather than production. So monetary and fiscal policies could be used to control inflation and stimulate aggregate demand in low by: 1.

finances, and the measures set out in Budget are an important step in the right direction. Short-term Economic and Budgetary Outlook While still reasonably positive, the external environment in which the Irish economy operates is somewhat less benign than at the time of the Department’s spring forecasts.3 The pace of growth in.

Inflationary effects of budget deficit financing in contemporary economies 79 Moreover, inflation as an effect of monetary financing of the budget deficit has a negative impact, as long as its level is high, all the more so, while the real monetary basis decreases, the inflation rate has to be increased in order to finance a given deficit.

Recessionary and Inflationary Gaps At any time, real GDP and the price level are determined by the intersection of the aggregate demand and short-run aggregate supply curves. If employment is below the natural level of employment, real GDP will be below potential. Inflation: Monopolies create inflation.

Since they can set any prices they want, they will raise costs for consumers. It's called cost-push inflation. A good example of how this works is the Organization of Petroleum Exporting Countries (OPEC).

The 13 oil-exporting countries in OPEC are home to nearly 80% of the world's proven oil reserves.  . Start studying Econ Final. Learn vocabulary, terms, and more with flashcards, games, and other study tools.

while Bengalia's currency is the Bengal. The price index in Steelvania is and the inflation rate is 11%. In Bengalia, the price index is and the inflation rate is 4%. The amount foreign citizens, firms, and governments.

Inflation: Causes, Costs, and Current Status Congressional Research Service Summary Since the end of World War II, the United States has experienced almost continuous inflation— the general rise in the price of goods and services.

It would be difficult to find a similar period in. vide evidence that inflation, both in the short and long run, negatively affects durable and non-durable consumption and investment, and has a positive effect on the current account.

Further, we show that consumption of durable goods is more sensitive than the consumption of non-durables during the initial periods fol-lowing inflationary shocks. Main Causes of Demand-Pull Inflation 1.

A depreciation of the exchange rate increases the price of imports and reduces the foreign price of a country's exports. If consumers buy fewer imports, while exports grow, AD in will rise – and there may be a multiplier effect on. Start studying Econ Test 2. Learn vocabulary, terms, and more with flashcards, games, and other study tools.

Search. Browse. cause the effects of shocks to aggregate demand to have a larger effect on GDP C) eliminate recessions between the beginning of the budgetary process and the final budget. Recessionary and Inflationary Gaps.

At any time, real GDP and the price level are determined by the intersection of the aggregate demand and short-run aggregate supply curves. If employment is below the natural level of employment, real GDP will be below potential. A book written in and titled ‘Is the namely the possibility that economic shocks affecting inflation in the short-term become amplified via a corresponding adjustment in inflation expectations.

discretionary policies can undermine the healthiness of budgetary positions, as governments find it easier to decrease taxes and to. Inflationary effects of oil price shocks in Indian economy.

Three alternative explanations for the dampening effects of oil price shocks, that is, a smaller share of oil in production and.

This first effect of inflation is really just a different way of stating what it is. Inflation is a decrease in the purchasing power of currency due to a rise in prices across the economy.

Within. Inflation and reflect a dozen diverse views on one of the nation's central economic problems. Our emphasis here is on diagnosis of the causes of inflation and a description of the effects of inflation, not on specific policy recommendations to end inflation.

Many of us have views on what to do. Inflationary gaps can be managed in two main ways to bring higher price levels into market equilibrium: Fiscal policy. Fiscal policies are policies enacted by the government to control the money supply. To manage inflationary gaps, governments can enact contractionary fiscal policies, which reduce the money supply and therefore reduce demand.

easy to decompose the observed inflation into its monetary, demand-pull, cost-push and structural components. The process is dynamic, and the shocks to prices are mixed. Furthermore, inflation itself may also cause future inflation.

This paper, mainly attempts to review and analyze the competing and complementary theories of inflation. The.The Impact of Budget on the Fiscal Position in Alternative Presentation of Exchequer Position 1 In line with the Governments Open Data Initiative the data underpinning charts in this document are available that the economy can absorb the increased outlays without adding to inflationary pressures.

For.But there is one essential element of this objective: governments must abandon the notion that unstable inflationary payments systems are useful wealth (and jobs) creation strategies.

The record.