Principles of Economics

Author: N. Gregory Mankiw
Publisher: Cengage Learning
ISBN: 9780538453059
Release Date: 2011-02-10
Genre: Business & Economics

PRINCIPLES OF ECONOMICS, Sixth Edition, became a best seller after its introduction and continues to be the most popular and widely used text in the economics classroom. Instructors found it the perfect complement to their teaching. A text by a superb writer and economist that stressed the most important concepts without overwhelming students with an excess of detail was a formula that was quickly imitated, but has yet to be matched. The sixth edition features a strong revision of content in all thirty-six chapters. Dozens of new applications emphasize the real-world relevance of economics for today’s students through interesting news articles, realistic case studies, and engaging problems. The premier ancillary package is the most extensive in the industry, using a team of instructors/preparers that have been with the project since the first edition. The text material is again fully integrated into Aplia, the best-selling online homework solution. I have tried to put myself in the position of someone seeing economics for the first time. My goal is to emphasize the material that students should and do find interesting about the study of the economy.--N. Gregory Mankiw. Important Notice: Media content referenced within the product description or the product text may not be available in the ebook version.

Banks As Coordinators of Economic Growth Epub

Author: Kenichi Ueda
Publisher: International Monetary Fund
ISBN: 9781452725918
Release Date: 2006-11-01
Genre: Business & Economics

This paper formally identifies an important role of banks: Banks competitively internalize production externalities and facilitate economic growth. I formulate a canonical growth model with externalities as a game among consumers, firms, and banks. Banks compete for deposits to seek monopoly profits, including externalities. Using loan contracts that specify price and quantity, banks control firms' investments. Each bank forms a firm group endogenously and internalizes externalities directly within a firm group and indirectly across firm groups. This unique equilibrium requires a condition that separates competition for sources and uses of funds. I present a realistic institution that satisfies this condition.

The Flat Tax es Principles and Evidence EPub

Author: Ricardo Varsano
Publisher: International Monetary Fund
ISBN: 9781452771328
Release Date: 2006-10-01
Genre: Business & Economics

One of the most striking tax developments in recent years, and one that continues to attract considerable attention, is the adoption by several countries of a form of "flat tax." Discussion of these quite radical reforms has been marked, however, more by assertion and rhetoric than by analysis and evidence. This paper reviews experience with the flat tax, seeking to redress the balance. It stresses that the flat taxes that have been adopted differ fundamentally, and that empirical evidence on their effects is very limited. This precludes simple generalization, but several lessons emerge: there is no sign of Laffer-type behavioral responses generating revenue increases from the tax cut elements of these reforms; their impact on compliance is theoretically ambiguous, but there is evidence for Russia that compliance did improve; the distributional effects of the flat taxes are not unambiguously regressive, and in some cases they may have increased progressivity, including through the impact on compliance; adoption of the flat tax has not resolved common challenges in taxing capital income; and it may have strengthened, not weakened, the automatic stabilizers. Looking forward, the question is not so much whether more countries will adopt a flat tax as whether those that have will move away from it.

What Should Macroeconomists Know about Health Care Policy EPub

Author: Mr. Peter S. Heller
Publisher: International Monetary Fund
ISBN: 9781452759210
Release Date: 2007-01-01
Genre: Business & Economics

This primer aims to provide IMF macroeconomists with the essential information they need to address issues concerning health sector policy, particularly when they have significant macroeconomic implications. Such issues can also affect equity and growth and are fundamental to any strategy of poverty reduction. The primer highlights the appropriate roles for the state and market in health care financing and provision. It also suggests situations in which macroeconomists should engage health sector specialists in policy formulation exercises. Finally, it reviews the different health policy issues that confront countries at alternative stages of economic development and the range of appropriate policy options.

Public Private Partnerships A Public Economics Perspective EPub

Author: Efraim Sadka
Publisher: International Monetary Fund
ISBN: 9781452776385
Release Date: 2006-03-01
Genre: Business & Economics

Public-private partnerships (PPPs) involve the supply by the private sector of infrastructure and services deriving from infrastructure assets which have traditionally been supplied by the public sector. PPPs are spreading all over the world. It may be quite plausible that such arrangements were initially an attempt to evade expenditure controls and hide public budget deficits. But if they are properly designed and transparently reported, PPPs can enhance the efficiency of the provision of services that were formerly supplied solely by the public sector. This paper provides a public economics perspective on PPPs.

The Accountability of Financial Sector Supervisors Principles and Practice EPub

Author: Mr. Michael Taylor
Publisher: International Monetary Fund
ISBN: 9781452768335
Release Date: 2005-03-01
Genre: Business & Economics

Policymakers' uneasiness about granting independence to financial sector regulators stems to a large extent from the lack of familiarity with, and elusiveness of, the concept of accountability. This paper gives operational content to accountability and argues that it is possible to do so in a way that encourages and supports agency independence. The paper first elaborates on the role and purposes of accountability. Second, it shows that the unique features of financial sector supervision point to a more complex system of accountability arrangements than, for instance, the conduct of monetary policy. Finally, the paper discusses specific arrangements that can best secure the objectives of accountability and, thus, independence. Our findings have a wider application than financial sector supervision.

Central Bank Collateral Frameworks Principles and Policies EPub

Author: Rebecca McCaughrin
Publisher: International Monetary Fund
ISBN: 9781451986273
Release Date: 2008-09-01
Genre: Business & Economics

Central bank collateral policies came under pressure with the 2007-08 financial market crisis. This paper addresses the rationale for and constraints in taking collateral, and recent practices in different collateral frameworks. It then considers the risks of adverse selection. The paper concludes that (i) the collateral framework needs to include market incentives; (ii) central banks face trade-offs between risk and counterparty access; (iii) emerging markets may see pressure on collateral policies in coming years; and (iv) further work is required to develop pricing incentives and the structure of central bank facilities, both during normal times and in periods of market stress.

Who Controls the Budget The Legislature or the Executive EPub

Author: Mr. Ian Lienert
Publisher: International Monetary Fund
ISBN: 9781452755212
Release Date: 2005-06-01
Genre: Business & Economics

Country-specific factors prevent a strong linear relationship between the legislature's budgetary powers and the extent of its separation from the executive. Electoral and voting systems, bicameralism, constitutional and legal constraints, voluntary contracts of political parties, and long-standing traditions all influence the relative budgetary powers of executives and legislatures. Differences in the legislature's budgetary authority in twenty-eight countries with five different forms of government are examined. It is concluded that differences in budgetary powers within a particular form of government are as great as those between different forms of government.

The Economics of Islamic Finance and Securitization EPub

Author: Andreas Jobst
Publisher: International Monetary Fund
ISBN: 9781452784427
Release Date: 2007-05-01
Genre: Business & Economics

Islamic lending transactions are governed by the precepts of the shariah, which bans interest and stipulates that income must be derived as return from entrepreneurial investment. Since Islamic finance is predicated on asset backing and specific credit participation in identified business risk, structuring shariah-compliant securitization seems straightforward. This paper explains the fundamental legal principles of Islamic finance, which includes the presentation of a valuation model that helps distil the essential economic characteristics of shariah-compliant synthetication of conventional finance. In addition to a brief review of the current state of market development, the examination of pertinent legal and economic implications of shariah compliance on the configuration of securitization transactions informs a discussion of the most salient benefits and drawbacks of Islamic securitization.

Quality of Financial Policies and Financial System Stress EPub

Author: Mr. Udaibir S. Das
Publisher: International Monetary Fund
ISBN: 9781452707785
Release Date: 2005-09-01
Genre: Business & Economics

In this paper, we develop multi-country indices of financial system stress and quality of financial policies and use them in regression analysis of the determinants of financial stress. We find that countries with higher quality of financial policies are better able to contain the effects of macroeconomic pressures on the overall level of stress in the financial system. They are also in a better position to ensure sustainable development of the financial system.

Banking on the Principles Compliance with Basel Core Principles and Bank Soundness EPub

Author: Ms. Enrica Detragiache
Publisher: International Monetary Fund
ISBN: 9781452710785
Release Date: 2006-10-01
Genre: Business & Economics

This paper studies whether compliance with the Basel Core Principles for Effective Banking Supervision (BCPs) improves bank soundness. The authors find a significant and positive relationship between bank soundness (measured with Moody's financial strength ratings) and compliance with principles related to information provision2. Specifically, countries that require banks to regularly and accurately report their financial data to regulators and market participants have sounder banks. This relationship is robust to controlling for broad indexes of institutional quality, macroeconomic variables, sovereign ratings, and reverse causality. Measuring soundness through Z-scores yields similar results. These findings emphasize the importance of transparency in making supervisory processes effective and strengthening market discipline. Countries aiming to upgrade banking regulation and supervision should consider giving priority to information provision over other elements of the core principles.