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Economics : Recent Questions and Answers (Page 10)

Find answers to your questions about Economics or help others by answering their Economics questions.

How can non-US banks issue USD loans?

I understand, commercial banks are entitled by the Central Bank to "create new money" when they issue a loan and correspondingly "destroy the money" when the loan is paid back...

Asked on 09/01/2021 by elemolotiv

1 answer

Pure-Strategy Bayesian Nash equilibrium with general common prior

I'm doing a problem set on the subject of Bayesian Nash equilibrium. I'm asked to find the pure-strategy BNE of the following. I've calculated to matrix shown below. My first...

Asked on 08/31/2021 by Justin Malik

2 answer

Does the concept of Capitalism increase the net wealth?

I am currently going through a video by Peter Schiff from the occupy Wallstreet period where he is talking with the protestors at the time. I'm pretty...

Asked on 08/25/2021 by akozi

2 answer

How can a government save, if it has deficit?

I am reading an IMF paper about China's debt (link) which says: ❝ Despite a large augmented fiscal deficit of 10 percent, fiscal savings remain higher than...

Asked on 08/25/2021

1 answer

How to determine covariant stationary values?

I am trying to determine the values for when this ARMA model is covariance stationary. I have the model: $z_t = a + Bz_{t-1} + u_t + u_{t-1}$ I...

Asked on 08/20/2021

1 answer

How to optimize this dynamical system? Needing guidelines

I'm trying to solve a growth model, where the author indicates is a dynamical system.I want to ask if someone would help me with some guidelines of how to...

Asked on 08/20/2021 by RLF

0 answer

Solving a HJB with additional constraints on control and state variables

I am trying to solve a Hamiltonian-Jacobi-Bellman equation with additional constraints on the state and control variables, but I am a bit confused on how to do that. In ...

Asked on 08/20/2021

0 answer

Is Adam Smith's "stock" an archaic version of "capital"?

In The Wealth of Nations, Adam Smith uses the word "stock" many times, but not with the meaning we ascribe to it today (supply of an asset, inventory). I take...

Asked on 08/20/2021

1 answer

Are business cycle fluctuations usually studied in a (New Keynesian) DSGE model, or can they also be studied in a growth model?

I wonder if business cycle fluctuations are usually studied in a (New Keynesian) DSGE model, or can they also be studied in a growth model?...

Asked on 08/20/2021

1 answer

Policy ineffectiveness proposition

Suppose, the Aggregate supply is given by the Lucas Supply Curve - $y_t = ȳ + b(P_t - E_{t-1}P_t) + μ_t$ where $μ_t$ is stochastic supply shock (following...

Asked on 08/20/2021

0 answer

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