tailieunhanh - World Economic Outlook October 2012: Coping with High Debt and Sluggish Growth

What follows is similar to Burdett and Judd (1983). Consider a market with N retailers selling two homogeneous goods labeled A and B. Marginal cost of production ci (i = a; b) is assumed to be constant, independent of a production level of the other good and equal among the retailers. Cost of producing a bundle of one unit of each good will be denoted by cab and is equal to ca + cb. All consumers have identical tastes and their mass per retailer is normalized to one. The consumers demand exactly one unit of each good and the triplet (va; vb; vab) describes their reservation. | World Economic and Financial Surveys WORLD ECONOMIC OUTLOOK October 2012 Coping with High Debt and Sluggish Growth International Monetary Fund 2012 International Monetary Fund Cover and Design Luisa Menjivar and Jorge Salazar Composition Maryland Composition Cataloging-in-Publication Data World economic outlook International Monetary Fund World economic outlook a survey by the staff of the International Monetary Fund. Washington DC International Monetary Fund 1980 v. 28 cm. 1981 1984 Occasional paper International Monetary Fund 0251-6365 . 1986 World economic and financial surveys 0256-6877 Semiannual. Some issues also have thematic titles. Has occasional updates 1984 1. Economic development Periodicals. 2. Economic forecasting Periodicals. 3. Economic policy Periodicals. 4. International economic relations Periodicals. I. International Monetary Fund. II. Series Occasional paper International Monetary Fund . III. Series World economic and financial surveys. ISBN 978-1-61635-389-6 Publication orders may be placed online by fax or through the mail International Monetary Fund Publication Services . Box 92780 Washington DC 20090 . Tel. 202 623-7430 Fax 202 623-7201 E-mail publications@ CONTENTS Assumptions and Conventions xi Further Information and Data xii Preface xiii Foreword xv Executive Summary xvii Chapter 1. Global Prospects and Policies 1 Recent Developments 1 Prospects Are for Sluggish and Bumpy Growth 5 Cyclical Indicators Point to Slack in Advanced Economies 11 Policy Requirements 19 Special Feature Commodity Market Review 29 Box . Are We Underestimating Short-Term Fiscal Multipliers 41 Box . The Implications of High Public Debt in Advanced Economies 44 Box . How Does Uncertainty Affect Economic Performance 49 Box . Unconventional Energy in the United States 54 Box . Food Supply Crunch Who Is Most Vulnerable 56 References 59 Chapter 2. Country and Regional Perspectives 61 Europe