Market Dynamics: Measuring Impact of Economic Events and Government Programs on Production and Employment

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Joshua F. Dayanim
Joshua F. Dayanim
1 Market Dynamix

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The impact of austerity, fiscal and monetary programs has been a subject of numerous studies and findings regarding the effectiveness of such government policies in combating economic downturns by stimulating growth, increasing employment, and promoting investment. The recently introduced Market Dynamics method has been extended to provide a dynamic Production model that incorporates employment, wages, consumption, investment, government spending, interest rate, taxes, and other related factors. The model is used to compare the impact of austerity, fiscal and monetary programs in response to an economic downturn and to measure the size and effectiveness of government actions including changes in spending, taxation and interest rates. A conservation of commerce principal is defined stating that money flow from wages, spending, borrowing and interest activities must match the change in production trades. The latter mechanism is responsible for a lag in response as the full impact of an event is gradually realized over its time horizon.

8 Cites in Articles

References

  1. Alan Auerbach (2012). The Fall and Rise of <scp>K</scp>eynesian Fiscal Policy.
  2. (2012). Statement on Longer-Run Goals and Monetary Policy Strategy.
  3. Joshua Dayanim (2011). Market Dynamics: Bridging Security Price Movements and Classical Physics.
  4. J Dayanim (2016). Market Dynamics: A Classical Approach to Security Price Movements.
  5. James Crotty (2011). The great austerity war: what caused the US deficit crisis and who should pay to fix it?.
  6. J Keynes (1936). The General Theory of Employment, Interest and Money.
  7. Ruge-Murcia,J Francisco (2007). Methods to Estimate Dynamic Stochastic General Equilibrium Models.
  8. Argia Sbordone,Andrea Tambalotti,Krishna Rao,Kieran Walsh (2008). Policy Analysis Using DSGE Models: An Introduction.

Funding

No external funding was declared for this work.

Conflict of Interest

The authors declare no conflict of interest.

Ethical Approval

No ethics committee approval was required for this article type.

Data Availability

Not applicable for this article.

Joshua F. Dayanim. 2017. \u201cMarket Dynamics: Measuring Impact of Economic Events and Government Programs on Production and Employment\u201d. Global Journal of Management and Business Research - B: Economic & Commerce GJMBR-B Volume 17 (GJMBR Volume 17 Issue B1): .

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Journal Specifications

Crossref Journal DOI 10.17406/GJMBR

Print ISSN 0975-5853

e-ISSN 2249-4588

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GJMBR-B Classification: JEL Code: C50, E60
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v1.2

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March 20, 2017

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English

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The impact of austerity, fiscal and monetary programs has been a subject of numerous studies and findings regarding the effectiveness of such government policies in combating economic downturns by stimulating growth, increasing employment, and promoting investment. The recently introduced Market Dynamics method has been extended to provide a dynamic Production model that incorporates employment, wages, consumption, investment, government spending, interest rate, taxes, and other related factors. The model is used to compare the impact of austerity, fiscal and monetary programs in response to an economic downturn and to measure the size and effectiveness of government actions including changes in spending, taxation and interest rates. A conservation of commerce principal is defined stating that money flow from wages, spending, borrowing and interest activities must match the change in production trades. The latter mechanism is responsible for a lag in response as the full impact of an event is gradually realized over its time horizon.

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Market Dynamics: Measuring Impact of Economic Events and Government Programs on Production and Employment

Joshua F. Dayanim
Joshua F. Dayanim Market Dynamix

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