Macroeconomics Commons^™

Designing Monetary Policy Committees, Volker Hahn

Volker Hahn

Public Actors In Private Markets: Toward A Developmental Finance State, Robert Hockett, Saule Omarova

Saule T. Omarova

The recent financial crisis brought into sharp relief fundamental questions about the social function and purpose of the financial system, including its relation to the “real” economy. This Article argues that, to answer these questions, we must recapture a distinctively American view of the proper relations among state, financial market, and development. This programmatic vision – captured in what we call a “developmental finance state” – is based on three key propositions: (1) that economic and social development is not an “end-state” but a continuing national policy priority; (2) that the modalities of finance are the most potent means of …

Why Do Countries Adopt Fiscal Rules?, John Thornton, Yener Altunbas

John Thornton

This paper examines which economic, institutional and political charac- teristics of countries affect the likelihood that a numeral rule will be adopted as part of a fiscal strategy to limit the level of public debt. We estimate a panel binary response model over the period 1970–2012 for 110 countries, of which 58 opted to adopt such a rule. Our results suggest that the probability such a rule will be adopted is greater if a country has a high level of public debt, a relatively inflexible exchange rate regime, has already adopted inflation targeting, has deep credit markets and if other …

Why Over-Financialization In The Eurozone Periphery Was Inevitable: A Crisis Of Flawed Legislation And Competitive Imbalances, Maximilian Bevan

Maximilian Bevan

Over the past three years, the heads of state in the Euro area have argued over the proper monetary mechanisms to alleviate the protracted European debt crisis. This paper illuminates the often-overlooked aspects of this crisis – the fundamental failures of the monetary union from its inception. It expands the scope of analysis on the Eurozone crisis by addressing the over-financialization in the Eurozone periphery (Greece, Portugal, and Spain) within a political-economy framework. It explicates the direct relationship between the political manipulations of the legislation by Germany (analyzed from a public choice perspective) and the resulting economic consequences that the …

Principles Of Macroeconomics: Activist Vs. Austerity Policies, Howard Sherman, Mike Meeropol

HOWARD J SHERMAN

This is an economics textbook comparing Neoclassical economic theories with Progressive economic theories, written in extremely accessible prose.

Vita, Howard J. Sherman

HOWARD J SHERMAN

Full vita for Howard J. Sherman. Many of the articles and books are also listed in this selectedworks site, and more metadata and full content will be added soon.

Human Capital Formation And Economic Development In Pakistan: An Empirical Analysis, Muhammad Irfan Chani, Mahboob Ul Hassan, Muhammad Shahid

Muhammad Irfan Chani

This study investigates the casual relationship between economic development and formation of human capital in Pakistan. Based on endogenous growth theory, this study empirically tests the standard growth model consisting of gross domestic product (GDP) per capita as a dependent variable and human capital formation, investment in physical capital and labor force as independent variables. Autoregressive distributive lag (ARDL) bound testing approach to cointegration is used to check the long-run equilibrium relationship between the variables included in the model. For checking the causal relationship between economic development and human capital formation, pair-wise Granger causality test is used for time series …

Dynamics Of The Current Crisis, Howard Sherman, Mike Meeropol

HOWARD J SHERMAN

Sometimes, it is useful to take a step back and remind ourselves why recessions occur and why recoveries usually follow shortly thereafter. Having done that, we can try to understand the causes of far more serious recessions and what must be done to recover. The authors point out how such severe recessions, including the Great Recession of 2007 to 2009, differ profoundly from most others

Some Socio Economic Determinants Of Fertility In Pakistan: An Empirical Analysis, Muhammad Irfan Chani, Muhammad Shahid, Mahboob Ul Hassan

Muhammad Irfan Chani

This study aims to investigate the role that various socioeconomic factors like female education, urbanization and female labour force participation play in determining fertility of women in Pakistan. ARDL bound test approach to cointegration is used to analyze the long-run relationship of the variables by using the data for the period from 1980 to 2009. The empirical results show that there exists a long-run as well as short-run relationship between fertility and urbanization, female labour force participation and female education in Pakistan. The analysis indicates there is a negative relationship between all 3 determinants with fertility. Female education and urbanization …

Dialogue Between Friedman And Keynes, Howard J. Sherman

HOWARD J SHERMAN

This is an imaginary dialogue between Milton Friedman, the greatest conservative economist of the 20th century, and John Maynard Keynes, the greatest liberal economist of the 20th century.

Dialogue Between Friedman And Marx On Income Inequality, Howard J. Sherman

HOWARD J SHERMAN

Imaginary dialogue between Milton Friedman, the greatest conservative economist of the 20th century, and Karl Marx, the greatest radical economist, on income inequality.

An Analysis Of Different Approaches To Women Empowerment: A Case Study Of Pakistan, Amatul R. Chaudhary, Muhammad Irfan Chani, Zahid Pervaiz

Muhammad Irfan Chani

Understanding The Legitimacy Of Both Dissension And Acceptance Of Accommodative Monetary Policy, Maximilian Bevan

Maximilian Bevan

No abstract provided.

Impacts Of Social Upbringing On Family Integration In Military Life In Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

In a country on the eve of losing one third of its land, 80% of potential natural resources and 75% of external exports value, economic future seems gloomy. Many opinions were given for economic solutions after the Southern Sudan secession. However, that does not support a theoretical framework that those are the only reasons for the expected economic collapse. Our theory here is that such collapse already happened because of economic mismanagement, corruption and hoarding initiated by the calls for empowerment and carried out by the regime's members. Such acts extended to the banks, economic institutions and randomized privatization. The …

Impacts Of Formal Financing On The Development Of The Sudanese Agricultural Sector, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

The agricultural sector of Sudan is faced by many problems. In the irrigated schemes, the government who officially owns most of them there are entrenched managerial problems that brewed for more than six decades. Moreover, the privatization policies of those schemes provoked many outcries and protests. Large schemes like Gezira have collapsed, this year 2011, only 10% of its over one million hectares were cultivated. The rainfed farming is not different with lack of machineries, shortages of available labor and high priced agricultural inputs, it is not expected to fare better than the irrigated schemes. However, even if those problems …

Impacts Of Sudan Macroeconomic Policy On Agriculture, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

The crisis of Southern Sudan and eminent secession in 9 July 2011 is a nightmare to the Sudanese national economy. The dependence on oil revenue that controlled the country for the past 11 years and negligence of the other real economy's economic sectors, agriculture and industry severely threatens the country. That is not only with diminished returns but with also with economic nightmarish economic catastrophe, famine and internal implosion. Short-sightedness on utilizing the oil money that bubbled the economy atrophied the real economic sectors and disabled it from responding to secession consequences of parting with 75% of revenues from oil …

Effects Of Social Edification And Family Integration In Military Life In Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The Sudanese army human components are unique in its composition. That is reflected in the country's political and social life. The independence of 1956 means fifty five of turmoil and turbulences. Democratically elected governments controlled the country for only ten years while the military institution's coup de etats took the rest. This paper studies the impacts of social upbringing on the families, military or civilians in order too shed lights on why all military, seemingly are possessed by the illusion of grasping power. The military seems built into the Sudanese society in superior form, i.e., above the law. Thus if …

Challenges Of Formal Social Security Systems In Sudan, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

The present paper discusses issues of challenges of social security systems in Sudan. Following parameters advanced by ILO and UNCOSOC, those systems are analyzed. The conclusions focus on their applicability that faces axial difficulties mainly presented in the state of institutional interregnum facing the country. Moreover, it is important to revisit aspects of social cohesion that serves greater role in traditional social security in the Sudan.

Analysis Of The Impact Of Cash Out-Flow From The Banking Sector On The Sudanese Economy, Issam A.W. Mohamed Professor

Professor Issam A.W. Mohamed

Sudan as an example of LDCs the banking sector has been suffering from the problem of cash outflow over the last three decades, generating the following impacts: Loss of banking sector of its role of financial inter-mediation, cash scarcity in the banking sector, large government borrowings from unreal source of finance, thus, more inflation. The research attempts to specify the main determinants of cash outflow from the banking sector in Sudan (during the period 1972-2001). Hence, those revealing the major impacts of the cash outflow on the economic activity and rates of inflation. The research hypotheses were: (1) the Banks …

Effects Of Multicollinearity On The Estimation Of Macroeconomic Variables: Using Data From Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The problem of multicollinearity in the assessments of coefficients is well established. However, it is rarely researched in the estimations of macroeconomic variables and economic performance of developing countries. Predicatively, it has impacts on the estimations of coefficients that should be used in economic decisions, strategic planning and if researchers are more industrious estimations of monetary supplies and demands. All such parameters are very basic and essential in economic plannings and their applications should be done not only in research but in ground applications of the specialized authorities, e.g., Ministries of Finance, Central Banks, Pricing Units, etc. However, that is …

Business Cycle Program, Howard J. Sherman

HOWARD J SHERMAN

No abstract provided.

Humanitarian Aid, Internal Displacement And Social Impacts In Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

The study presented here reviews activities of NGOs in Sudan by surveying and studying the activities of Save the Children of United Kingdom. Activities of NGOs in Sudan were always a controversial issue that resulted in the expulsion of many in 2009. There were also precedents of such expulsions in previous and following years. The paper discusses humanitarian work in Sudan, positive and negative sides. The case study's activities of the Save the Children efforts in Jebel Aulia Internally Displaced People, specially their efforts in education were investigated. It is concluded that introduce invaluable help in educational field, building classes …

Radical Economics In The 21st Century, Howard J. Sherman

HOWARD J SHERMAN

No abstract provided.

Business Cycle Program B, Howard J. Sherman

HOWARD J SHERMAN

Readers who wish to see how the business cycle calculations for this book were done, as well as how to create their own spreadsheet and graphs, can use the attached program. You need only paste the series into the appropriate date on the spreadsheet.

• The users need only paste their data at the first quarter 1970.
• The “cycle base” is the average of a variable over the whole cycle.
• The “original data” are your series, divided into nine stages of the cycle. Stage 1 is the initial trough, stages 2, 3, and 4 are the expansion; stage 5 is the …

Business Cycle Program C, Howard J. Sherman

HOWARD J SHERMAN

This spreadsheet shows exactly the same program as Program B, but it is filled in to show the behavior of Gross Domestic Product. Readers who wish to see how the business cycle calculations for this book were done, as well as how to create their own spreadsheet and graphs, can use the attached program. You need only paste the series into the appropriate date on the spreadsheet.

• The users need only paste their data at the first quarter 1970.
• The “cycle base” is the average of a variable over the whole cycle.
• The “original data” are your series, divided into …

Determination Of Import Demand In Pakistan: The Role Of Expenditure Components, Muhammad Irfan Chani, Zahid Pervaiz, Amatul R. Chaudhary

Muhammad Irfan Chani

The paper uses imperfect substitution approach to derive the aggregate import demand function on the basis of disaggregated expenditure components. This derived import demand function is then empirically tested for Pakistan by using co-integration and error correction mechanism. The empirical results show that elasticity of import demand with respect to different macro components of final expenditure is different. The import demand in Pakistan is affected positively and significantly by all expenditure components. The relative prices have negative but insignificant relationship with import demand in Pakistan. The findings indicate that use of aggregate expenditure variable in the aggregate import demand function …

Poverty, Inflation And Economic Growth: Empirical Evidence From Pakistan, Muhammad Irfan Chani, Zahid Pervaiz, Sajjad Ahmad Jan, Amjad Ali, Amatul R. Chaudhary

Muhammad Irfan Chani

This study aims to investigate the role of economic growth and inflation in explaining the prevalence of poverty in Pakistan. ARDL bound testing approach to co-integration confirms the existence of long run relationship among the variables of poverty, economic growth, inflation, investment and trade openness over the period of 1972-2008. Empirical results show that economic growth and investment have negative and inflation has positive impact on poverty. The effect of trade openness on poverty is insignificant in this study. The short run analysis reveals that economic growth has negative and inflation has positive impact on poverty whereas the role of …

Financial Crises And Economic Growth In Pakistan: A Time Series Analysis, Rauf -I- Azam, Iram Batool, Rabia Imran, Muhammad Irfan Chani, Ahmed Imran Hunjra, Javed Mahmood Jasra

Muhammad Irfan Chani

The purpose of this research is to investigate causal relationship between economic growth and major indicators of financial crisis -- inflation rate, interest rate and the volume of foreign debt-- in Pakistan. This study also highlights the stability of the relationship between indicators of financial crisis and economic growth. The annual time series data ranging from 1972 to 2010 is used for the analysis. Johansen's co-integration test is used to check the stability of long nm equilibrium relationship between the variables used in the study. The results indicate that is long nm stable equilibrium relationship between economic growth and the …

Gender Inequality And Economic Growth: A Time Series Analysis For Pakistan, Zahid Pervaiz, Muhammad Irfan Chani, Sajjad Ahmad Jan, Amatul R. Chaudhary

Muhammad Irfan Chani

This paper attempts to analyze the impact of gender inequality on economic growth of Pakistan. An annual time series data for the period of 1972-2009 has been used in this study. We have regressed growth rate of real gross domestic product (GDP) per capita on labour force growth, investment, trade openness and a composite index of gender inequality. The results reveal that labour force growth, investment and trade openness have statistically significant and positive impact whereas gender inequality has a significant and negative effect on economic growth of Pakistan.

Economic Crisis And External Trade In Sudan, Professor Issam A.W. Mohamed

Professor Issam A.W. Mohamed

Nowadays, Sudan suffers severe financial crisis with the eminent demise of 75% of its oil revenues that represented over 90% of its foreign currency after the secession of its Southern part after a constitutional referendum. The compensatory revenues generating economic sectors are not able in the short, medium or runs to function due to the lack/diminished infrastructures. Hard currency exchange rates have soured against the domestic one and inflation sky-rocketed with severe recession grasping the economic cycle in the country which assess logic assumptions of stagflation. Reforming Sudan's foreign trade sector is essential though it will not replace oil revenues …