Inflation Cycles
... If aggregate demand grows faster than expected, real GDP moves above potential GDP, the inflation rate exceeds its expected rate, and the economy behaves like it does in a demand-pull inflation. If aggregate demand grows more slowly than expected, real GDP falls below potential GDP, the inflation ra ...
... If aggregate demand grows faster than expected, real GDP moves above potential GDP, the inflation rate exceeds its expected rate, and the economy behaves like it does in a demand-pull inflation. If aggregate demand grows more slowly than expected, real GDP falls below potential GDP, the inflation ra ...
Is There Any Tradeoff Between Inflation And Unemployment?
... can encourage the production of goods and services and also realize the need of labor workers in the economy which can reduce the unemployment rate from the economy, so in this scenario short run Phillips curve also holds and suggests that there is inflation-unemployment tradeoff, as it is mentioned ...
... can encourage the production of goods and services and also realize the need of labor workers in the economy which can reduce the unemployment rate from the economy, so in this scenario short run Phillips curve also holds and suggests that there is inflation-unemployment tradeoff, as it is mentioned ...
BA_Semesters_I_to_VI.pdf
... revenue analysis – profit determination, normal and supernormal profits – price and cost under imperfect competition (monopoly) UNIT IV : Global Economic Issues ...
... revenue analysis – profit determination, normal and supernormal profits – price and cost under imperfect competition (monopoly) UNIT IV : Global Economic Issues ...
New Monetary Policy and Keynes
... We do so by drawing on, and adapting appropriately, Meyer (2004, Table 1, p. 152). In Table 1 we give relevant examples. Australia has an explicit numerical inflation target and a dual mandate, under which “monetary policy is directed at promoting both full employment and price stability, with no pr ...
... We do so by drawing on, and adapting appropriately, Meyer (2004, Table 1, p. 152). In Table 1 we give relevant examples. Australia has an explicit numerical inflation target and a dual mandate, under which “monetary policy is directed at promoting both full employment and price stability, with no pr ...
capital theory, inflation and deflation: the austrians and monetary
... quickly and obviously reveal the problem. The problems inflation generates are masked within the capital strwcture and are not easily revealed by macroeconomic aggregates. This presents a crucial problem for monetary policy makers. By the time most of the problems of inflation have become obvious, i ...
... quickly and obviously reveal the problem. The problems inflation generates are masked within the capital strwcture and are not easily revealed by macroeconomic aggregates. This presents a crucial problem for monetary policy makers. By the time most of the problems of inflation have become obvious, i ...
The problem of a full employment economy
... The perspective of this paper may seem strange to those who see unemployment as a problem. Those of us with personal exposure to the issue, because we have been unemployed or have known unemployed people, either socially or through our work, have little doubt that it is a demoralising phenomenon. In ...
... The perspective of this paper may seem strange to those who see unemployment as a problem. Those of us with personal exposure to the issue, because we have been unemployed or have known unemployed people, either socially or through our work, have little doubt that it is a demoralising phenomenon. In ...
DOWNLOAD PAPER
... under Frictions: Role of Imperfect Infrastructural Development Jongheuk Kim∗ Department of Economics, University of Colorado at Boulder ...
... under Frictions: Role of Imperfect Infrastructural Development Jongheuk Kim∗ Department of Economics, University of Colorado at Boulder ...
Introduction to Macroeconomics
... overall price level. Hyperinflations are rare, but have been used to study the costs and consequences of even moderate inflation. • Hyperinflation is a situation in which prices and wages rise very fast, causing damage to a country’s economy: ...
... overall price level. Hyperinflations are rare, but have been used to study the costs and consequences of even moderate inflation. • Hyperinflation is a situation in which prices and wages rise very fast, causing damage to a country’s economy: ...
The Evolution of US Monetary Policy: 2000 - 2007
... from a rules-based framework to one relying more on discretionary actions.4 Either interpretation, however, would suggest a potentially important departure from the desirable features of policy that held sway during the Great Moderation. These considerations are reinforced by the additional data pl ...
... from a rules-based framework to one relying more on discretionary actions.4 Either interpretation, however, would suggest a potentially important departure from the desirable features of policy that held sway during the Great Moderation. These considerations are reinforced by the additional data pl ...
Part III A Critique of Self-adjusting Full Employment
... model this inconsistency is eliminated, but the introduction of the real balance effect results in no autonomous real solution. Money is strictly neutral, so the values of real variables are not altered in full employment equilibrium by a change in the nominal money supply alone. Unlike in the False ...
... model this inconsistency is eliminated, but the introduction of the real balance effect results in no autonomous real solution. Money is strictly neutral, so the values of real variables are not altered in full employment equilibrium by a change in the nominal money supply alone. Unlike in the False ...
MERCATUS RESEARCH THE CASE FOR NOMINAL GDP TARGETING Scott Sumner
... short-term changes. Since the price level is inversely related to the value of money, changes in the supply or demand for gold caused the price level to fluctuate in the short run when gold was used as money. Although the long-run trend in prices under a gold standard is roughly flat, the historical ...
... short-term changes. Since the price level is inversely related to the value of money, changes in the supply or demand for gold caused the price level to fluctuate in the short run when gold was used as money. Although the long-run trend in prices under a gold standard is roughly flat, the historical ...
The Evolution of US Monetary Policy: 2000-2007
... from a rules-based framework to one relying more on discretionary actions.4 Either interpretation, however, would suggest a potentially important departure from the desirable features of policy that held sway during the Great Moderation. These considerations are reinforced by the additional data pl ...
... from a rules-based framework to one relying more on discretionary actions.4 Either interpretation, however, would suggest a potentially important departure from the desirable features of policy that held sway during the Great Moderation. These considerations are reinforced by the additional data pl ...
NBER WORKING PAPER SERIES A MODEL OF GROWTH THROUGH CREATIVE DESTRUCTION
... future can deter research today by threatening the fruits of that research with rapid obsolescence. In normative terms, obsolescence creates a negative externality from innovations, and hence a tendency for laissez-faire economies to generate too many innovations, i.e too much growth. This "business ...
... future can deter research today by threatening the fruits of that research with rapid obsolescence. In normative terms, obsolescence creates a negative externality from innovations, and hence a tendency for laissez-faire economies to generate too many innovations, i.e too much growth. This "business ...
Unemployment and Economic Recovery
... Unemployment often does not fall appreciably when economic growth first picks up because some firms may have underutilized labor that they kept on their payrolls during the recession to avoid incurring costs related to layoffs and rehiring. At the end of a recession as demand increases, some firms m ...
... Unemployment often does not fall appreciably when economic growth first picks up because some firms may have underutilized labor that they kept on their payrolls during the recession to avoid incurring costs related to layoffs and rehiring. At the end of a recession as demand increases, some firms m ...
Metroeconomica paper outline proposal (10-04-03)
... long-run trade-off between inflation and unemployment. The main policy implication of this principle is that inflation targeting strategies, namely aggregate demand fine-tuning through interest-rate management with a view to hitting inflation targets, do not affect unemployment, output or any other ...
... long-run trade-off between inflation and unemployment. The main policy implication of this principle is that inflation targeting strategies, namely aggregate demand fine-tuning through interest-rate management with a view to hitting inflation targets, do not affect unemployment, output or any other ...
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.