International Economics
Download 7.1 Mb. Pdf ko'rish
|
Dominick-Salvatore-International-Economics
.3
0 .8 1 − 3 Canada 1991 6 .9 0 .3 2 +/−1 United Kingdom 1992 4 .0 2 .2 2 +/−1 Sweden 1993 1 .8 −0.3 2 +/−1 Australia 1993 2 .0 1 .9 2 −3 Czech Republic 1997 6 .8 1 .0 3 +/−1 Israel 1997 8 .1 3 .3 2 +/−1 Poland 1998 10 .6 3 .8 2.5 +/−1 Brazil 1999 3 .3 4 .9 4.5 +/−2 Chile 1999 3 .2 1 .5 3 +/−1 Colombia 1999 9 .3 4 .2 2 − 4 South Africa 2000 2 .6 7 .1 3 − 6 Thailand 2000 0 .8 −0.9 0.5 − 3 Korea 2001 2 .9 2 .8 3 +/−1 Mexico 2001 9 .0 5 .3 3 +/−1 Iceland 2001 4 .1 12 .0 2.5 +/−1.5 Norway 2001 3 .6 2 .2 2.5 +/−1 Hungary 2001 10 .8 4 .2 3 +/−1 Peru 2002 −0.1 2 .9 2 +/−1 Philippines 2002 4 .5 1 .6 4.5 +/−1 Guatemala 2005 9 .2 1 .8 5 +/−1 Indonesia 2005 7 .4 4 .6 4 − 6 Romania 2005 9 .3 5 .6 3.5 +/−1 Turkey 2006 7 .7 6 .3 6.5 +/−1 Serbia 2006 10 .8 7 .8 4 − 8 Ghana 2007 10 .5 19 .3 14.5 +/−1 Source: S. Roger, ‘‘Inflation Targeting Turns 20’’, Finance & Development, March 2010, pp. 47. the medium term (usually over a two- to three-year horizon) rather than at all times. Table 19.1 indicates the nations that adopted inflation targeting, the date that they adopted it, the inflation rate at the adoption date, the average inflation rate in 2009, and the target inflation rate (given either as a range or as a rate, plus or minus a specified percentage, usually 1 percent). Although inflation and growth rates improved in most coun- tries over the 1991–2009 period, inflation targeters improved more, experienced less volatility in infla- tion and growth, and were less adversely affected by global economic crises than other countries. Salvatore c19.tex V2 - 11/15/2012 6:52 A.M. Page 634 634 Prices and Output in an Open Economy: Aggregate Demand and Aggregate Supply however, is that if prices are sticky and not too flexible downward, then the process may take too long. In that case, the cost of inflation from easy monetary policy may be lower than the large opportunity cost of lost output and employment from a protracted recession. There is some evidence that nations with more independent central banks suffer less inflation than nations with central banks that are less independent and more responsive to political pressures (see Case Study 19-2) and so do nations that adopt inflation targeting (see Case Study 19-3). 19.6 Macroeconomic Policies to Stimulate Growth and Adjust to Supply Shocks In this section, we examine fiscal and monetary policies to stimulate long-run growth and adjust to supply shocks in open economies with flexible prices. 19.6 A Macroeconomic Policies for Growth Although fiscal and monetary policies are used primarily to affect aggregate demand in the short and medium runs, they can also be used to stimulate long-run growth in the economy (i.e., to shift the LRAS curve to the right). Governments can stimulate long-run growth by increasing expenditures on education, infrastructures, basic research, and to improve the functioning of markets. Governments can also stimulate long-run growth by tax incentives and low long-term interest rates to encourage private investment. It must be pointed out, however, that the process of long-run growth is not yet entirely understood. To the extent that efforts to stimulate long-run growth in the economy are successful, however, they will shift the nation’s LRAS curve to the right, leading to more employment, higher incomes, lower prices, and possibly an appreciated currency in the long run. The use of expansionary macroeconomic (i.e., fiscal and monetary) policies to stimulate growth can be examined with Figure 19.11. We begin at long-run equilibrium point E where the nation’s AD and SRAS curves intersect on the LRAS curve at P Download 7.1 Mb. Do'stlaringiz bilan baham: |
Ma'lumotlar bazasi mualliflik huquqi bilan himoyalangan ©fayllar.org 2024
ma'muriyatiga murojaat qiling
ma'muriyatiga murojaat qiling