Climate change has profound consequences for the agriculture of south-eastern Australia and its climate-induced water shortage in the Murray-Darling Basin. Post Keynesian Economics (PKE) macro-dynamics, along with Kaleckian investment and growth theory, are used to develop an ecological-economic system dynamics model of this complex nonlinear river basin system. The MurrayDarling Basin Simulati...

This study investigates monetary and financial shocks on macroeconomic variables, focusing on the role of banking intervention. For this purpose, a Keynesian dynamic stochastic general equilibrium (DSGE) model is designed for Iran’s economy that involves financial and banking sectors. The results of the model simulation show that the financial accelerator theory works in the Iranian economy. Al...

This paper examines the design of macroeconomic policies after the enlargement of the EU by Central and Eastern European countries (CEECs). We consider scenarios with and without CEECs being members of the European Economic and Monetary Union (EMU). For the European Central Bank, we analyze consequences of monetary versus inflation targeting. For European fiscal policies, we assume that the gov...

In this paper we empirically examine the effect of various banking policies on financial sector development. To this end, an econometric model in the context of Co-integrated VAR is employed. The results show that financial liberalization and reforms have a significant and positive effect on the banking sector development while inflation rate has a negative effect. Furthermore, the high GDP...

This paper develops and simulates a dynamic general equilibrium macroeconomic model to analyze the likely impact of oil production and revenue rehabilitation on the Libyan economy, under different government fiscal policy responses. The model is ideally appropriate to analyze macroeconomic issues in oil-producing developing countries. In particular, it is capable of incorporating alternative go...

• Canada’s lengthy experience with a flexible exchange rate regime has had an important impact on the development of macroeconomic theory and policy in open economies. • This article focuses on the 1950–62 floating-rate period because the flexible exchange rate, combined with a high degree of capital mobility between Canada and the United States, provided an unprecedented experiment for macroec...

Many developing countries experiencing poor domestic economic performance view migrant labor as an alternative. We employ a macrodynamic model of two small open economies—a host country and labor-exporting country—to address this issue. analyze how both economies are impacted by alternative tax policies, structural changes occurring in the economies, plausible fiscal policy responses. The most ...

T he world economy has experienced a bulk of positive and negative shocks in crude oil prices and exchange rates over the years, and that global inflation has undergone some changes. Such shocks have affected the macroeconomic variables in the countries of the world and have challenged the economies of these countries, and have led them to take different measures to protect themselves agai...

a r t i c l e i n f o JEL classification: E31 E44 E52 Keywords: Monetary policy rule Nonlinear model Stock market Structural break Time-varying coefficient This paper introduces nonlinearity and a structural break to the US forward-looking Taylor rule with a stock price gap, thereby alleviating the robustness problem that the linear Taylor rule is sensitive to minor changes of the sample period...