paper - Pascal Michaillat
... describes the consumption-saving decision of households, an interest-rate rule that describes how monetary policy responds to inflation and unemployment, and a Phillips curve relating inflation to unemployment. The mechanism behind the Phillips curve is the following. When unemployment is high, sell ...
... describes the consumption-saving decision of households, an interest-rate rule that describes how monetary policy responds to inflation and unemployment, and a Phillips curve relating inflation to unemployment. The mechanism behind the Phillips curve is the following. When unemployment is high, sell ...
From bimetallism to monetarism
... and was formulated as a menu for policy choice in the 1960s, discussions about anti-inflation policies focussed not so much on picking an optimal point on the curve and using monetary policy to get there, as on finding means, usually involving structural policies, or wage-price guideposts, to shift ...
... and was formulated as a menu for policy choice in the 1960s, discussions about anti-inflation policies focussed not so much on picking an optimal point on the curve and using monetary policy to get there, as on finding means, usually involving structural policies, or wage-price guideposts, to shift ...
Simple and Robust Rules for Monetary Policy by
... research is conceptually different from previous work by economists in that it is based on quantitative macroeconomic models with rational expectations and frictions/rigidities, usually in wage and price setting. We focus on the research based on such models because it seems to have led to an explos ...
... research is conceptually different from previous work by economists in that it is based on quantitative macroeconomic models with rational expectations and frictions/rigidities, usually in wage and price setting. We focus on the research based on such models because it seems to have led to an explos ...
will there be deflation and current account surpluses?
... monetary policy assessments are based on relatively permanent rules regarding the policy instrument; •in the short run, output fluctuations stem from aggregate demand, which is sensitive to interest rate changes; •most aggregate economic fluctuations do not derive from monetary policy shocks; •finan ...
... monetary policy assessments are based on relatively permanent rules regarding the policy instrument; •in the short run, output fluctuations stem from aggregate demand, which is sensitive to interest rate changes; •most aggregate economic fluctuations do not derive from monetary policy shocks; •finan ...
How Does the Economy Shape Policy
... Unlike inflation, unemployment has continued to be salient in political discourse in recent years, and has considerable short-term effects on policy mood for our full time period. A standard-deviation change in unemployment over this period (.35) has a predicted effect of moving policy mood approxim ...
... Unlike inflation, unemployment has continued to be salient in political discourse in recent years, and has considerable short-term effects on policy mood for our full time period. A standard-deviation change in unemployment over this period (.35) has a predicted effect of moving policy mood approxim ...
A world without inflation
... those fears have not materialized. Quite the opposite, as in most of these countries the inflation rate remains below or well below the official targets of the main central banks (typically 2% or just below). Global inflation has been on a downward trend since the early 1980s. ...
... those fears have not materialized. Quite the opposite, as in most of these countries the inflation rate remains below or well below the official targets of the main central banks (typically 2% or just below). Global inflation has been on a downward trend since the early 1980s. ...
Macroeconomics Chapter 13W Disputes Over Macro Theory and
... The contrast between mainstream macroeconomics and monetarism on the causes of instability thus comes into sharp focus. Mainstream economists view the instability of investment as the main cause of the economy’s instability. They see monetary policy as a stabilizing factor. Changes in the money supp ...
... The contrast between mainstream macroeconomics and monetarism on the causes of instability thus comes into sharp focus. Mainstream economists view the instability of investment as the main cause of the economy’s instability. They see monetary policy as a stabilizing factor. Changes in the money supp ...
Document
... At the beginning of the 21st century most economists (a) urged the Fed to focus on its goal of high employment. (b) urged central banks to focus their energy on low inflation. (c) believed the underlying inflation rate in the U.S. was higher than it had been in the late 1970s. (d) were critical of t ...
... At the beginning of the 21st century most economists (a) urged the Fed to focus on its goal of high employment. (b) urged central banks to focus their energy on low inflation. (c) believed the underlying inflation rate in the U.S. was higher than it had been in the late 1970s. (d) were critical of t ...
Consumer Tendency Survey Based Inflation Expectations Ece ORAL February 2013
... The assumption is that the estimated relationship between survey data and inflation holds not only for realizations, but also for expectations. This can be thought to be a strong assumption. Pesaran (1987) points out that a regression like (5) “is not a causal explanation of price changes but simply ...
... The assumption is that the estimated relationship between survey data and inflation holds not only for realizations, but also for expectations. This can be thought to be a strong assumption. Pesaran (1987) points out that a regression like (5) “is not a causal explanation of price changes but simply ...
Unemployed
... only result in higher prices and no reduction in unemployment. Suppose China’s economy is operating at an unemployment level of 6.1% with an inflation rate of 3.5%. This inflation rate is both the actual rate of inflation and what people expect the inflation rate to be. ...
... only result in higher prices and no reduction in unemployment. Suppose China’s economy is operating at an unemployment level of 6.1% with an inflation rate of 3.5%. This inflation rate is both the actual rate of inflation and what people expect the inflation rate to be. ...
FRBSF L CONOMIC
... perceived uncertainty of these businesses by the fraction of survey respondents reporting that uncertainty is a limiting factor. The sample ranges from the fourth quarter of 1979 to the second quarter of 2011. Although our U.S. measure of uncertainty is based on a consumer survey and our British mea ...
... perceived uncertainty of these businesses by the fraction of survey respondents reporting that uncertainty is a limiting factor. The sample ranges from the fourth quarter of 1979 to the second quarter of 2011. Although our U.S. measure of uncertainty is based on a consumer survey and our British mea ...
Cohn - SFU.ca
... In this chapter we will see that there is indeed some truth behind this view. However it is also substantially false. As has been discussed in the introductory chapter to this volume (Dobuzinskis, Howlett and Laycock 2006), the two communities argument is itself problematic as it ignores the large ...
... In this chapter we will see that there is indeed some truth behind this view. However it is also substantially false. As has been discussed in the introductory chapter to this volume (Dobuzinskis, Howlett and Laycock 2006), the two communities argument is itself problematic as it ignores the large ...
Is the Phillips curve still dead?
... trade-off between inflation and unemployment”. Nobel laureate Joseph Stiglitz (2008: 3) argues that inflation targeting brings a “weaker economy and higher unemployment”. Rochon and Rossi (2006: 616) question “why inflation targeting [is] seen as a superior policy over a policy of, say, supporting e ...
... trade-off between inflation and unemployment”. Nobel laureate Joseph Stiglitz (2008: 3) argues that inflation targeting brings a “weaker economy and higher unemployment”. Rochon and Rossi (2006: 616) question “why inflation targeting [is] seen as a superior policy over a policy of, say, supporting e ...
Keynes and Development Economics: a Sixty Year
... personally, but nevertheless nurtured a view of him as a towering economist and a powerful role model of some sort – even when they rejected particular economic doctrines of his. Ironically, what Keynes himself had written earlier on economic development topics failed to shape the new subject, being ...
... personally, but nevertheless nurtured a view of him as a towering economist and a powerful role model of some sort – even when they rejected particular economic doctrines of his. Ironically, what Keynes himself had written earlier on economic development topics failed to shape the new subject, being ...
J. 1050
... having rational expectations actually results, in certain situations, in the multipliers associated with government fiscal policy being greater ...
... having rational expectations actually results, in certain situations, in the multipliers associated with government fiscal policy being greater ...
7. Medium-Term Projections
... not diplay a stable outlook, whereas economic policy uncertainty in advanced economies has continued. The policy framework designed by the CBRT and the instruments developed in this respect provide a flexible framework to contain the adverse impact of the global shocks on the domestic economy. Capit ...
... not diplay a stable outlook, whereas economic policy uncertainty in advanced economies has continued. The policy framework designed by the CBRT and the instruments developed in this respect provide a flexible framework to contain the adverse impact of the global shocks on the domestic economy. Capit ...
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.