Macroeconomics

This forecasting analysis makes use of a structural model (NEMO), but this model is primarily suited for medium term analysis of the effects of monetary policy on the macroeconomy. Norges Bank’s forecasts for the first few quarters are largely based on current statistics, information from Norges Bank’s regional network and forecasts obtained from a number of short-term statistical and econometric models. The published projections in the monetary policy reports are the result of an overall…

The world consists of various economies with their different growth margins. These economies have been classified based on level of development, growth stages and emergence. These classifications are inspired by GROWTH THEORIES/MODELS. Growth theories are speculations used overtime to classify economies or determine development in an economy. Under Growth theories we have:  Endogenous Theory/ New Growth Theory  Exogenous Theory/Solow Growth Theory The above theories are used in illuminating…

privatization of many state-owned enterprises, including mining, steel, aeronautics, banking, energy production that happened in the 90’s and early 2000’s. This change alone was proving extremely effective until recently when continual interference in macroeconomic policies and the micromanagement of private industry has caused the misallocation of capital, and limited the growth which was once flourishing. One example of this is the effect of agricultural subsidies, which have doubled since…

Achieving unobstructed economic activities by efforts of ultimate economic liberalization Over the past two decades, economic liberalisation by global productivities has been increasingly expanding and persisting the advancements of western economic growth (Stehr & Strasser, 2004, p. 4). Many people from developed countries have prospered from ‘globalism’ (Robertson, 2003, p. 4) as a result of cross-border trade and investments. However for developing countries, that are not sizeable enough to…

Aggregate demand represents the inverse correlation between the total amount of real output demanded within the economy at various price levels in a particular period of time (Investopedia). Essentially, if the price of a product fluctuates, the rate of total spending will change along with the quantity of real output demanded (Brue, McConnell, & Flynn, 2014). The determinants, which affect the aggregate demand include consumer spending, investment spending, government spending, and net export…

The only glaring reductions in the cold war occurred at the end of the major wars like descalation for the war in Vietnam before 1973, and decrease in military spending when dress from the cold war to the post-cold war (Sawhney, DiPietro and Anoruo 2007). These reductions were temporary after the 9/11 attacks. The United States military spending escalated, and the country was spending more on the military by 2008, even more than it did during the cold war. In addition, before Iraq invaded Kuwait…

In this study, a TVP-VAR model with stochastic volatility is used. Initially, the TVP-VAR model was introduced by Primiceri (2005) and Nakajima (2011) to examine the changes in the transmission of monetary policy and the changes in the variances of the exogenous shocks. This study is the first to examine the changes in the transmission of remittances shocks on inflation, savings and TFP in Saudi Arabia over the period 1970-2012. Following Nakajima (2011), we set up the TVP-VAR model with…

WHAT IS ECONOMIC GROWTH From two perspective we can interpret economic growth of an economies (Mankiw & N. G. R. E. G. O. R. Y, 2014). 1. The most popular way to define economic growth as the total increase of output which an economy produce over a given period of time , but time constraints at least two year . 2. Secondly we can define economic growth as increase in what a nation can produce if it is using all the scarce resources it has. Economic growth can be shown by an outward shift in…

At the beginning of the 20th century, the country of Australia became unified and The Commonwealth of Australia officially came into being on January 1, 1901. Today, Australia’s economy is one of the largest mixed market economies in the world, and has since the Commonwealth’s establishment over hundred years ago experienced numerous changes to its economy in terms of its focus. Often regarded as primarily a producer of agricultural commodities, minerals and energy but all of these products…

financial institutions and the U.S. Federal Reserve Bank making disbursements in dollars. At the same time, fixed currency exchanges stabilized countries’ domestic interest rates and, therefore, their economies. Governments could thus implement macroeconomic policy "without interference from the ebb and flow of international capital movements or flights of hot money," said J. M. Keynes, father of Keynesianism and architect of the postwar world economic order (McMichael, 2016). Although, as the…