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Can you name the Macroeconomics FHS?

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Suggest that relative EQUALITY and public EDUCATION may drive growth
Consumption is about 60% as volatile as it should be
Random walk of consumption: changes should be unpredictable
Period of reduced volatility in business cycles coinciding with greater CB independence
Endogenous growth models are near impossible to empirically test because they make assumptions about how unmeasurable things affect other unmeasurable things
If CB has a ___ loss function then it will automatically avoid inflation bias
Greece was able to borrow at low rates right up until it couldn't borrow at all
Found evidence of beta convergence
Technology is not free to use. Could explain low absorptive capacity.
Found that education investment and health were most strongly correlated with growth
Permanent fall in output due to loss of technology and skills
Greece is __th on the world ease of doing business list, behind Yemen
fiscal consolidation must be gradual because sharp shocks have sever effect on short term growth
Develop model to explain stickiness of prices from small menu costs
Hybrid Phillips curve 50% backwards looking 50% forwards
Developed Human Capital Model
Unrealistic to predict inflation bias from a CB that is aware of the phenomenon
There is little evidence for sigma convergence - perhaps even the reverse is happening
Potential problem of price path targeting
Model of pricing where lambda firms can change prices each period and factor in the future
We have to assume (contentiously) that the CB's interest rate manages to filter through to the rate offered by
__ __ targeting: alternative to PP, avoids stagflation
If __ __ holds then a real depreciation causes the trade balance to __
Suggest that POLITICAL factors such as property rights have a partial correlation with growth
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Phenomenon where exchange rates are very volatile which is explained by optimal mon. pol.
Observed a negative relationship between central bank independence and inflation
Consumption is excessively sensitive to anticipated changes. Credit constraints to blame
Developed AK model
Avoid inflation bias by appointing v inflation averse central bankers
Endogenous growth theory provides insights but is not strong enough to guide policy
Claimed that low absorptive capacity and poor access to capital markets held back poorer countries
Deficit bias not in every country - e.g. in Scandinavia expensive promises are discounted
Whether or not growth is endogenous, policy can have big impacts
Inflation bias can be avoided by having a private inflation target below public target
Distortionary taxes are not necessary bad - people should all work less because they only enjoy relative wealth
Developed the original R&D model
Growth (which will help e.g. Greece escape from its debt) requires structural reform
QE was very effective and was equivalent to lowering interest rates by a further 1.5-3%
Developed the refined R&D model
About a quarter of fiscal consolidations were found to be expansionary
Suggest that TRADE OPENNESS is an important growth factor
Said that absolute converge only happens if countries have same parameters (e.g. s,A,delta)
If it holds then fiscal policy is quite impotent
If ECB had dealt with debt better pre-crisis then austerity may not have been necessary
Suggest that INVESTMENT correlates strongly with growth
Secular stagnation could be a result of excess __ __ causing loans to be overly expensive
Tendency for budget deficits to rise in recessions but not fall in booms.
Force the MR curve in to the right position by punishing inflation deviations e.g. fining Cbankers

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