多恩布什宏观经济学第十版课后习题答案08Word格式文档下载.doc

多恩布什宏观经济学第十版课后习题答案08Word格式文档下载.doc

《多恩布什宏观经济学第十版课后习题答案08Word格式文档下载.doc》由会员分享，可在线阅读，更多相关《多恩布什宏观经济学第十版课后习题答案08Word格式文档下载.doc（7页珍藏版）》请在冰豆网上搜索。

SolutionstotheProblemsintheTextbook:

ConceptualProblems:

1. Thefirstquestionyoushouldaskyourselfasapolicymakeriswhetheradisturbanceistransitoryorpersistent.Youshouldthenaskyourselfhowlongitwouldtaketoputasuggestedpolicymeasureintoeffectandhowlongitwilltakeforthepolicytohavethedesiredeffectontheeconomy.Inaddition,youneedtoknowhowreliabletheestimatesofyouradvisorsareabouttheeffectsofthepolicy.Ifadisturbanceissmallandprobablytransitory,youmaybebestadvisedtodonothing,becauseanymeasureyoutakeislikelytohaveitseffectaftertheeconomyhasrecovered.Thereforeyouractionmightonlyfurtheraggravatetheproblem.

2.a. Theinsidelagisthetimeittakesafteraneconomicdisturbancehasoccurredtorecognizeandimplementapolicyactionthatwilladdressthedisturbance.

2.b. Theinsidelagisdividedintothreeparts.First,thereistherecognitionlag,thatis,thetimeittakesforpolicymakerstorealizethatadisturbancehasoccurredandthatapolicyresponseiswarranted.Second,thereisthedecisionlag,thatis,thetimeittakestodecideonthemostdesirablepolicyresponseafteradisturbanceisrecognized.Finally,thereistheactionlag,thatis,thetimeittakestoactuallyimplementthepolicymeasure.

2.c. InsidelagsareshorterformonetarypolicythanforfiscalpolicysincetheFOMCmeetsonaregularbasistodiscussandimplementmonetarypolicy.Fiscalpolicy,ontheotherhand,hastobeinitiatedandpassedbybothhousesoftheU.S.Congressandthiscanbealengthyprocess.Theexceptionsaretheso-calledautomaticstabilizers;

however,theyonlyworkwellforsmallandtransitorydisturbances

2.d Automaticstabilizershavenoinsidelag;

theyareendogenousandfunctionwithoutspecificgovernmentintervention.Examplesaretheincometaxsystem,thewelfaresystem,unemploymentinsurance,andtheSocialSecuritysystem.Theyallreducetheamountbywhichoutputchangesinresponsetoaneconomicdisturbance.

3.a. Theoutsidelagisthetimeittakesforapolicyaction,onceimplemented,tohaveitsfulleffectontheeconomy.

3.b. Generally,theoutsidelagisadistributedlagwithasmallimmediateeffectandalargeroveralleffectoveralongertimeperiod.Theeffectisspreadovertime,sinceaggregatedemandrespondstoanypolicychangeonlyslowlyandwithalag.

3.c. Outsidelagsarelongerformonetarypolicysincemonetarypolicyactionsaffectshort-terminterestratesmostdirectly,whileaggregatedemanddependsheavilyonlaggedvaluesofincome,interestrates,andothereconomicvariables.Achangeingovernmentspending,however,immediatelyaffectsaggregatedemand.

4. Fiscalpolicyhassmalleroutsidelags,butsignificantinsidelags.Monetarypolicy,ontheotherhandhassmallerinsidelagsandlongeroutsidelags.Thereforelargeopenmarketoperationsshouldbeundertakentogetanimmediateeffect,buttheyshouldbepartiallyreversedovertimetoavoidalargelong-runeffect.Iftheshockissufficientlytransitoryandsmall,policymakersmaybebestadvisednottoundertakeanypolicychangeatall.

5.a. Aneconometricmodelisastatisticaldescriptionofallorpartoftheeconomy.Itconsistsofasetofequationsthatarebasedonpasteconomicbehavior.

5.b. Econometricmodelsaregenerallyusedtoforecastthebehavioroftheeconomyandtheeffectsofalternativepolicymeasures.

5.c. Thereisconsiderableuncertaintyabouthowwelleconometricmodelsactuallyrepresenttheworkingsoftheeconomy.Thereisalsogreatuncertaintyabouttheexpectationsoffirmsandconsumersandtheirreactionstopolicychanges.Anypolicyisboundtofailiftheinformationonwhichitwasbasedispoor.

6.Theanswertothisquestionisstudentspecific.Themaindifficultiesofstabilizationpolicyarisefromthreesources.First,policyalwaysworkswithlags.Second,theoutcomeofanypolicydependsonthewaytheprivatesectorformsexpectationsandhowthoseexpectationsaffectthepublic'

sbehavior.Third,thereisconsiderableuncertaintyaboutthestructureoftheeconomyandtheshocksthathitit.

ItcanbearguedthatamonetarypolicyrulewouldgreatlyreduceuncertaintyabouttheFed'

spolicyresponses.Ifthegovernmentbehavedinaconsistentway,thentheprivatesectorwouldalsobehavemoreconsistentlyandeconomicfluctuationscouldbegreatlyreduced.AmonetarygrowthrulewouldalsoreduceanypoliticalpressuretheadministrationmightexertontheFed.Itisofteninitiallyunclearwhetheradisturbanceistemporaryorpersistentandamonetarypolicyrulewouldpreventpolicymistakesincaseswherethedisturbanceis,infact,temporary.Ifactivemonetarypolicyisappliedtoatemporarydisturbance,thenthelagsinvolvedwillguaranteeth