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The recent volatility in global commodity prices and in the price of oil, in particular, has created renewed interest in the question of how monetary policy makers should respond to oil price fluctuations. In this paper, we discuss why this question is ill-posed and has no general answer. The...
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The paper describes the framework used in long-term economic scenarios for the projection of the saving rate, investment, capital stock and current account. The saving rate is determined according to an estimated equation which suggests that demographics, captured by the old-age dependency rate...
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We provide a simple framework connecting the distribution of excess savings across households to the dynamics of … aggregate demand. Deficit-financed fiscal transfers generate excess savings. The poorest households with the highest MPCs spend … down their excess savings the fastest, increasing other households' incomes and their excess savings. This leads to a long …
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Turkey recovered swiftly from the global financial crisis but sizeable macroeconomic imbalances arose in the process. High consumer price inflation and a wide current account deficit are sources of vulnerability. Even though below-potential growth helps rebalancing and disinflation, these...
Persistent link: https://www.econbiz.de/10010464946