David K.H. Begg, Gianluigi Vernasca-Economics-McGraw Hill Higher Education (2011)

Index
fiscal drag
inflation 516
taxation 516
fiscal federalism 676-7
fiscal policy 398-9, 463-79
see also monetary policy
2009 crash 668-9
automatic stabilizers 409-10
confidence 403-5
demand shocks 410
discretionary fiscal policy 409-10
economic slumps 668-9
fixed exchange rates 578
floating exchange rates 586-8
IS-LM model 465-73
Japan 403-5
limits 410
PIGS might fly 466-7
policy mix 472-5
unemployment rate 410
fiscal stability, responsibility 412-13
fiscal stance 407-9
deficits 407-9
Fisher hypothesis 504-5
fixed costs 149
fixed exchange rates 552-3
see also floating exchange rates
adjustable peg 662-3
adjustment to shocks 576-8
balance of payments 555-6
capital controls 664-5
capital mobility 573-5
currency boards 665
devaluation 579-81
financial discipline 667-9
fiscal policy 578
vs floating exchange rates 665-9
macroeconomic policy 578
monetary policy 578
open economies 571-81
robustness 666
speculative attacks 664-5
volatility 666
fixed factor of production,
production function 145
flexible inflation targeting 496-8
flight from cash, hyperinflation 506
floating exchange rates 553-4,
663-4
see also fixed exchange rates
balance of payments 555-6
financial discipline 667-9
fiscal policy 586-8
vs fixed exchange rates 665-9
long run 582-3
managed float 663-4
monetary policy 585-8
monetary sovereignty 582
open economies 582-8
price jumps 584-5
purchasing power parity (PPP)
583, 663
robustness 666
short run 583-5
volatility 583-5, 666
flows 255
flows and stocks, labour market
528-9
foreign assets, real exchange rate
566-7
foreign countries, national income
accounting 368-70
foreign debt, real exchange rate
566-7
foreign direct investment (FDI)
559-61
foreign exchange market 549-52
appreciation/ depreciation 551
central banks 552-4
exchanging currencies 550-2
measuring exchange rates 549-50
foreign exchange reserves 553
foreign trade, income determination
413-17
forward markets 294-6
free markets 15, 55-9
competitive equilibrium 310-12
free-riders
externalities 321
government spending 339
frictional unemployment 531
functional income distribution 269
future taxes effect 475-7
G
game theory
commitment 207
credible threat 208
dominant strategy 206-8
interdependent decisions 206-8
Nash equilibrium 206
Prisoner's Dilemma game 206-7
GDP see gross domestic product
Giffen goods, price changes 109
gilt-edged securities 425
globalization
see also international trade
international trade 63 7
multinationals 201
scale economies 164-5
GNP see gross national product
GNP deflator 374-5
gold standard 660-2
balance of payments adjustment
660-2
capital flows 661
monetary union 660
goods market equilibrium, IS
schedule 465
government, aggregate demand
399-405
government budget 406-7
government production,
government spending 340-1
government solvency 475-7
government spending
circular flow 399, 400
crowding out 469-70, 488
decision-making 350-3
economic sovereignty 349-50
free-riders 339
government production 340-1
local government 348-9
marginal social benefit 339-40
market economy 338-42
median voters 351, 352
merit goods/demerit goods 342,
345
output 402
political economy 350-3
public goods 338-41
revelation of preferences 340
taxation 337-8, 402-3
transfer payments 337-8, 341-2
government spending increases 407
governments, domestic, national
income accounting 368-70
green piece, environment 16
gross domestic product (GDP) 18,
365
business cycles 614-15
economic growth 593-4
economic output 593-4
706