Found 28 article(s) for author 'Robert Barro'

Robert Barro says further monetary expansion is not necessary in Korea

Robert Barro says further monetary expansion is not necessary in Korea. Robert Barro, January 2, 2014, Video. “Boosting domestic demand has been one of the key tasks for economic policymakers here in Korea, especially… after last month’s deadly ferry disaster dented consumer sentiment. But professor Robert Barro at Harvard University says it may not be necessary for the government to step in and pump in money just yet. Hwang Ji-hye tells more. Exports have been Korea’s traditional growth engine, but balancing it with domestic demand…” Link verified August 21, 2014

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Safe Assets

Safe Assets. Robert Barro, 2014, Paper. “A safe asset is one whose real value is insulated from shocks, including declines in GDP associated with rare macroeconomic disasters. However, in a Lucas-tree world, the aggregate risk is given by the specified process for GDP and cannot be altered by the creation of safe assets. Therefore, in the equilibrium of a representative-agent version of this economy, the quantity of safe assets will effectively be nil. With heterogeneity in coefficients of relative risk aversion, safe assets may take the form of private bond issues from low-risk-aversion agents to high-risk-aversion agents…” Link

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Transfer payments and monetary expansion

Transfer payments and monetary expansion. Robert Barro, 2014, Paper. “The economic recovery since the end of the Great Recession in 2009 has been weak in the United States and elsewhere. The average growth rate of U.S. real GDP since 1948 was 3.2 percent per year. In the recession from 2007 Q3 to 2009 Q1, GDP fell by 4.3 percent. But this decline is 9 percent when gauged relative to trend; that is, after factoring in normal growth. To make up for this shortfall, the subsequent recovery has to attain growth rates averaging above 3.2 percent for several years. As an example, the GDP growth rate averaged 4.4 percent per year from 1983 to 1989…” Link

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Gold Returns

Gold Returns. Robert Barro, February 2014, Paper, “From 1836 to 2011, gold’s average annual real rate of price change is 1.1%, with a standard deviation of 13.1% and a negligible covariance with consumption growth. Because gold does not serve as a hedge against macroeconomic declines, its expected real rate of return should be close to the risk-free rate of around 1%. These properties fit an asset-pricing model with rare disasters and a high elasticity of substitution between gold services and ordinary consumption. In this scenario, gold’s expected rate of return corresponds mostly to the unobserved dividend yield, with a small part comprising expected real price appreciation.Link

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Lessons from the Fiscal Cliff

Lessons from the Fiscal Cliff. Robert Barro, January 21, 2013, Opinion. “One of the many things I learned from Milton Friedman is that the true cost of government is its spending, not its taxes. To put it another way, spending is financed either by current taxes or through borrowing, and borrowing amounts to future taxes, which have almost the same impact on economic performance as current taxes…” May require purchase or user account. Link verified August 21, 2014

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Democracy, Law and Order, and Economic Growth

Democracy, Law and Order, and Economic Growth. Robert Barro, 2013, Book Chapter. “Economic performance depends on various aspects of government policy, but no aspect is more important than the quality of political, legal, and economic institutions. Differences in institutions have proven empirically to be among the most important determinants of cross-country differences in rates of economic growth. Consequently, basic reforms that improve institutions provide one of the surest routes for transforming a country in the long run from poverty to prosperity. This view, which underlies a good deal of recent empirical research…” Link verified August 21, 2014

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Education and Economic Growth

Education and Economic Growth. Robert Barro, 2013, Paper. “Since the late 1980s, much of the attention of macroeconomists has focused on long-term issues, notably the effects of government policies on the long-term rate of economic growth. This emphasis reflects the recognition that the difference between prosperity and poverty for a country depends on how fast it grows over the long term. Although standard macroeconomic policies are important for growth, other aspects of “policy” – broadly interpreted to encompass all government activities that matter for economic performance…” Link Verified October 12, 2014

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Health and Economic Growth

Health and Economic Growth. Robert Barro, 2013, Paper. “Since the mid 1980s, research on economic growth has experienced a boom, beginning with the work of Romer (1986). The new “endogenous growth” theories have focused on productivity advances that derive from technological progress and increased human capital in the form of education. Barro and Sala-i-Martin (1995) explore these theories and also discuss extensions to allow for open economies, diffusion of technology, migration of persons, fertility choice, and variable labor supply…” Link Verified October 12, 2014

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