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A practical guide to understanding economic forecasts In Inside the Crystal Ball: How to Make and Use Forecasts, UBS Chief U.S. Economist Maury Harris helps readers improve their own forecasting abilities by examining the elements and processes that characterize successful and failed forecasts. The book: Provides insights from Maury Harris, named among Bloomberg's 50 Most Influential People in Global Finance. Demonstrates "best practices" in the assembly and evaluation of forecasts. Harris walks readers through the real-life steps he and other successful forecasters take in preparing their projections. These valuable procedures can help forecast users evaluate forecasts and forecasters as in...
How China’s economic development combines a veneer of unprecedented progress with the increasingly despotic rule of surveillance over all aspects of life Since the mid-2000s, the Chinese state has increasingly shifted away from labor-intensive, export-oriented manufacturing to a process of socioeconomic development centered on science and technology. Ya-Wen Lei traces the contours of this techno-developmental regime and its resulting form of techno-state capitalism, telling the stories of those whose lives have been transformed—for better and worse—by China’s rapid rise to economic and technological dominance. Drawing on groundbreaking fieldwork and a wealth of in-depth interviews wi...
Public debt-to-GDP ratios have undergone substantial fluctuations over both the short and long term. Most recently, global debt-to-GDP ratios peaked at 100% on average in 2020 due to COVID-19, retracting substantially by 2022. To understand what drives these movements, we propose a structural approach to debt decompositions based on a SVAR identified with narrative sign restrictions. We find that GDP growth shocks and the corresponding comovements of macroeconomic variables are the key drivers of debt to GDP, accounting for 40% of the observed yearly variation in 17 advanced economies since the 1980s. Discretionary fiscal policy changes, in turn, account for less than 20% of the observed changes. The analysis also finds the primary balance multiplier on GDP to be very small. We reconcile our results with the literature, underscoring the importance of accurate shock identification and accounting for cross-country heterogeneity.
A central bank¿s transparency about its objectives, economic outlook, & policy changes may affect the public¿s views about future economic & financial conditions. In keeping with this theory, since 1994 the Fed. Open Market Comm. has gradually increased the transparency of its statements accompanying changes in the fed. funds rate target. This article investigates whether private agents¿ ability to predict the economy¿s direction has improved since 1994. The analysis focuses on forecasts of macroecon. variables such as inflation, gross domestic product growth, & unemployment & policy variables such as short-term interest rates. There is little evidence that transparent monetary policy enhances the public¿s ability to predict bus. cycles. Tables.
"The Chinese economy is now easily one of the most important and closely scrutinized economies in the world. Relatively minuscule changes in predictions of how the Chinese economy will perform can drive up or down stocks and the price of oil and other commodities. At the heart of how the Chinese economy works is its financial system-but the Chinese financial system is vastly different than most people in the West can understand. How do house prices work, for example, in a country where the very concept of property ownership is significantly different than our own? This edited volume will serve as a standard reference guide to China's financial system. With eighteen chapters, the handbook fea...
The Chairman of the State Planning Commission of the PRC, in 1955, attributed the economic problems countering the development of the socialist economy to "the anarchy of capitalist economy. " However, after three decades of central planning, the President of the Chinese Academy of Social Sciences exclaimed, "Today we are all recognizing the irrationality of an economic structure that has built up over the years." The author of this book examines the economic policies and performances that brought such a radical transformation to the world outlook of China's leaders. The book contains three parts. The first part traces the historical roots of China's chaotic economic condition and hyperinflation in the 1940s and the early 1950s. The second part deals with how the “irrational” economic system was formed. The third part deals with the reasons for the emergence of economic “irrationality”, resource misallocation, the necessity of economic reforms, and industrial restructuring.
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A unified and comprehensive introduction to the analytical and numerical tools for solving dynamic economic problems; substantially revised for the second edition. This book offers a unified, comprehensive, and up-to-date treatment of analytical and numerical tools for solving dynamic economic problems. The focus is on introducing recursive methods—an important part of every economist's set of tools—and readers will learn to apply recursive methods to a variety of dynamic economic problems. The book is notable for its combination of theoretical foundations and numerical methods. Each topic is first described in theoretical terms, with explicit definitions and rigorous proofs; numerical m...