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Money and Inflation
Money and Inflation

... his famous proposition that “inflation is always and everywhere a monetary phenomenon.” He postulates that the source of all inflation episodes is a high growth rate of the money supply: Simply by reducing the growth rate of the money supply to low levels, inflation can be prevented. In this chapter ...
economic theory in transition
economic theory in transition

... cycle. In particular interest rates became more dependent of global financial markets than national monetary policy.8 3) In a world of increasing globalization Keynesian demand-management did not have the same national impact that it used to have and became futile. ...
Articles The Triumph of Monetarism?
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... Other economists became exasperated with monetarist analyses of events made by their colleagues in the immediate aftermath of World War I. This exasperation led one of the very best of this first subspecies of monetarists--John Maynard Keynes, Mark I--to declare in his Tract on Monetary Reform (1923 ...
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... 1965, to describe the simultaneous occurrence of inflationary period during stagnation. On those days, the United Kingdom was experiencing an inflationary period accompanied by rising unemployment and lack of growth in market demand and business activities. Since then the worldwide economy has faced ...
THE LAGS IN EFFECT OF MONETARY POLICY: A CASE STUDY
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... to output. 75 percent of the effect of shock on CPI was realized during 12 months and 90 percent was realized during one and half year. The response pattern of CPI and IPI (Industrial Product Index used to measure economic growth) remained same for other specifications as well. Review of the above s ...
an economic analysis of unemployment in trinidad and tobago
an economic analysis of unemployment in trinidad and tobago

... between the government and the labour unions to freeze wages and salaries as part of the stabilization program to bring inflation under control and preserve existing jobs. A structural adjustment loan was obtained from the World Bank to assist with the reform program. The Government maintained its t ...
Monetary Policy in Japan Since the Late 1980s
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... The fourth deviation was the focus of debate at the time. The BOJ finally adopted the so-called zero interest rate policy in February 1998. However, the result suggests that it should have done so in early 1997, when the short-lived recovery, which was caused mainly by the unusual fiscal policy, end ...
The Wizard Test Maker
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... An accurate description of the nation's business cycle between 1960 and 1980 is that it (A) experienced numerous periods of prosperity and depression (B) was most similar to the business cycle between 1930 and 1940 (C) remained generally prosperous (D) stayed at the average business level (E) destro ...
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Chapter 14: Dynamic AD-AS
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...  The parameters of the monetary policy rule influence the slope of the DAS curve, so they determine whether a supply shock has a greater effect on output or inflation. Thus, the central bank faces a tradeoff between output variability and inflation variability. ...
UNIVERSITY OF CALICUT Abstract
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... • An understanding of the institutions, social, political and economic. that influence economic issues • An ability to present one’s own analysis of the problems and issues in the language of an ‘Economist’ Teaching of Economics lack relevance if they do not help in the understanding of the laws of ...
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... mon in the literature (see e.g. Eggertsson and Krugman (2012), Guerrieri and Lorenzoni (2011), Philippon and Midrigin (2011), Hall (2011), Mian and Sufi (2011) and Mian and Sufi (2012) for both theoretical and empirical analysis). In that work, typically, this shock leads to a temporary reduction i ...
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... how do the short-run Phillips curve and the long-run Phillips curve change? A 10 percentage point increase in the expected inflation rate shifts the short-run Phillips curve vertically upward by 10 percentage points. (Each point on the new short-run Phillips curve lies 10 percentage points above the ...
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... asymmetric information may give rise to over employment rather than underemployment, and the forms of contracts to be expected, were asymmetric information considerations paramount, are not observed. Other versions of the asymmetric information implicit contract model, explicitly long term in nature ...
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... Growth is conceived by politicians to be the standard key recipe to improve the difficult unemployment situation in Europe. On the other hand, the basic notion used by economists to explain the persistent high unemployment is the hypothesis of the NAIRU or the equilibrium rate of unemployment, the m ...
Reflating Japan: Time to Get Unconventional?
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... monetization of the fiscal deficit as a cure for the present malaise. He notes, however, that, while the technical aspects are straightforward, it would be difficult to rein in the incentives for politicians to abuse monetization in the future—especially in a high debt context such as in Japan. In t ...
Full Employment Policies Must Consider Effective Demand and
Full Employment Policies Must Consider Effective Demand and

... Other heterodox economists have focused on one or the other of Sraffa’s ‘negative’ and ‘positive’ contributions. The former regards the critique of the neoclassical (or marginalist) theory of value and distribution, the latter the revival of Classical and Marxian approaches to the same topic. Both o ...
Economics - University of Mysore
Economics - University of Mysore

Cost-push inflation
Cost-push inflation

... (currently 1982 is used). The inflation rate is determined by finding the difference between price levels for the current year and previous given year. The answer is then divided by the given year and then multiplied by 100. To measure the price level, economists select a variety of goods and constr ...
Unemployment Trends in Ireland, 1997-2002
Unemployment Trends in Ireland, 1997-2002

... on the same period last year. In 2001 the metals and engineering, and business and financial services, sectors experienced the largest numerical rises in redundancy notifications (2,300 and 1,700 respectively). A significant proportion of the metals and engineering sector is accounted for by hi-tech ...
Institutional Factors in Domestic Inflation
Institutional Factors in Domestic Inflation

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Edmund Phelps



Edmund Strother Phelps, Jr. (born July 26, 1933) is an American economist and the winner of the 2006 Nobel Memorial Prize in Economic Sciences. Early in his career he became renowned for his research at Yale's Cowles Foundation in the first half of the 1960s on the sources of economic growth. His demonstration of the Golden Rule savings rate, a concept first devised by John von Neumann and Maurice Allais, started a wave of research on how much a nation ought to spend on present consumption rather than save and invest for future generations. His most seminal work inserted a microfoundation—one featuring imperfect information, incomplete knowledge and expectations about wages and prices—to support a macroeconomic theory of employment determination and price-wage dynamics. This led to his development of the natural rate of unemployment—its existence and the mechanism governing its size.Phelps has been McVickar Professor of Political Economy at Columbia University since 1982. He is also the director of Columbia's Center on Capitalism and Society.
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