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Exact(37)
In cases where the percentage exceeds this value, the model is concluded to be insignificant, i.e., input parameters impose no significant effect on output ones.
But the company now says the manufacturing changes will have a greater effect on output than it initially thought.
In an extensive survey, economists Felipe Campante and David Yanagizawa-Drott show that Ramadan fasting has a significant negative effect on output growth in Muslim countries.
In this way, monetary forces could produce booms and busts, although they had no long-run effect on output.
A looser monetary policy would have no long-term effect on output and jobs; it would simply push up inflation.
Sceptics reckoned that it would be low, and that neither stimulus nor austerity would have much effect on output or jobs.
Similar(22)
While the results are visible and the facility to simply modify the input parameters is assured, the effect on outputs is clearly shown by the Virtual Instrument.
It said: "Staff research suggests that fiscal cutbacks had larger than expected negative short-term multiplier effects on output, which may explain some of the output falls".
Empirical research is far clearer about the harmful effects on output once inflation is in double digits.
A major risk is that the longer inflation remains above target and the more it exceeds its target, the greater the adverse effects on output of bringing it down.
But what the data actually say — see Romer and Romer lecture 3 (pdf) — is that changes in monetary policy have large and sustained effects on output and employment.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com