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ISBN:0867846909
Author: Alan G Green
ISBN13: 978-0867846904
Title: Policy options in a small open economy: Canada during the Great Depression (Working papers in economic history)
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Language: English
Category: Economics
Publisher: Australian National University (1985)
Pages: 5

Policy options in a small open economy: Canada during the Great Depression (Working papers in economic history) by Alan G Green



NBER Working Paper No. 4515 (Also Reprint No. r2098) Issued in November 1993 NBER Program(s):Monetary Economics. This paper tests the hypothesis that idiosyncratic . Exploiting common stochastic trends in . and Canadian interwar data, we estimate a small open economy model for Canada that decomposes output fluctuations into sources identifiable with world and country-specific disturbances. We find that the onset, depth and duration of output collapse in both Canada and the .

This paper studies the Great Depression in Belgium within the open-economy dynamic general equilibrium approach. The data mimicking ability of the model is good along other dimensions as well, most notably hours worked, the consumption price index and the terms of trade. Monetary Policy and Exchange Rate Volatility in a Small Open Economy," Working Papers 11, Barcelona Graduate School of Economics. Schmitt-Grohe, Stephanie & Uribe, Martin, 2003.

During the Great Depression of the 1930’s, Canada’s Prairie provinces suffered more than any other area in Canada. In the Prairie provinces of Canada, in addition to economic depression was the effect of the nine years of drought and crop failures. When the Great Depression plagued Canada, the country was not ready for it; there are three main reasons why: 1) Seasonal unemployment was predictable since wages for seasonal labour were high enough. 2) Cyclical unemployment and recovery in the past always occurred eventually. Canada was a new world society, with a developing farm frontier. 3) There was a working class political pressure.

This paper provides a quantification of the relative importance of export industries in a small open economy using new data provided by input–output tables describing the Finnish economy in 1928. The Finnish analysis of the Great Depression of the 1930s has been particularly focused on the importance of foreign trade. Despite the lack of quantified evidence, it is commonly accepted that the export industries had a major role in the economic development. C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models.

Arrow K (1997) Economic growth policy for a small country. In: Gray AW (ed) International perspectives on the Irish economy. Indecon, DublinGoogle Scholar. Baldwin RE, Krugman P (2004) Agglomeration, integration and tax harmonisation. Working Paper No. 5958Google Scholar. Carlton DW (1983) The location and employment choices of new firms. Rev Econ Stat 65:440–449CrossRefGoogle Scholar.

In an open economy where foreign shocks may be passed into the domestic economy the task of the monetary policy becomes even more complicated. Under high pass-through of exchange rate onto the domestic prices, monetary policy stops to be independent and should adjust to exchange rate shocks. Such a policy of smoothing exchange rate fluctuations is common in western economies (.

In his authoritative history of the Great Depression era, David Kennedy admiringly wrote that Hoover’s 1932 program of activist policies helped lay the groundwork for a broader restructuring of government’s role in many other sectors of American life, a restructuring known as the New Deal. 17 In a later discussion of the beginning of the Roosevelt administration, Kennedy observed (emphasis added): Roosevelt intended to preside over a government even more vigorously interventionist and directive than Hoover’s.

output dynamics in an open economy characterized by a monopolistic competitive market structure in which pricing decisions incur costs that lead producers to pre-set the price path for several periods. The paper derives an optimal pricing rule, including the optimal pre-setting horizon. It does so for a rational expectations equilibrium, characterized by staggered, unsynchronized price setting, for which the degree of staggering is endogenously determined. Tobin's q theory of. University. TI A Positive Theory of Fiscal Policy in Open Economies. AU Backus, David; Devereux, Michael; Purvis, Douglas. AA Backus and Purvis: Queen's University.

Unfortunately, during the Great Depression, the Great Plains were hit hard with both a drought and horrendous dust storms, creating what became known as the Dust Bowl. Years and years of overgrazing combined with the effects of a drought caused the grass to disappear. With just topsoil exposed, high winds picked up the loose dirt and whirled it for miles. During the 1932 presidential election, Hoover did not stand a chance at reelection and Franklin D. Roosevelt won in a landslide. People of the United States had high hopes that President Roosevelt would be able to solve all their woes. As soon as Roosevelt took office, he closed all the banks and only let them reopen once they were stabilized.

The great depression of the 1930s has had a profound influence on both economic and political thinking. The consequences of this event turned out to be of such a dimension that broad consensus emerged on governments doing their best to prevent such disasters from happening again. But even beyond this extreme case, there is general agreement that a stable and predictable economic environment contributes substantially to social and economic welfare. However, the benefits from expansionary policies in a recession must still be assessed against the risks to long-term sustainability or the persistent adverse effects on the structure of public finances, such as a permanently higher tax level, as well as the economic costs of an eventual policy reversal.