The Cyclically Adjusted Budget: History and Exegesis of a Fateful
... was concerned with the definition of a fiscal policy able to smooth economic fluctuations: they believed that the government should provide fiscal stimulus during depressions and, symmetrically, implement restrictive measures during expansions, thereby constraining inflationary pressures and ensuri ...
... was concerned with the definition of a fiscal policy able to smooth economic fluctuations: they believed that the government should provide fiscal stimulus during depressions and, symmetrically, implement restrictive measures during expansions, thereby constraining inflationary pressures and ensuri ...
Fiscal Policy in an Unemployment Crisis
... multipliers can arise from equilibrium unemployment dynamics. The key mechanism underlying the main results in this paper stems from the interaction between two widely accepted premises. First, at a zero rate of nominal interest, output is largely determined by demand. If households wish to consume ...
... multipliers can arise from equilibrium unemployment dynamics. The key mechanism underlying the main results in this paper stems from the interaction between two widely accepted premises. First, at a zero rate of nominal interest, output is largely determined by demand. If households wish to consume ...
Chapter 19
... and inflation from their respective targets, in some configurations, do seem to capture the broad contours of what we did over the past decade and a half.”[1] [1] Greenspan, Alan, “Risk and Uncertainty in Monetary Policy,” American Economic Review, May 2004, pp. 33-40. The quoted passage appears on ...
... and inflation from their respective targets, in some configurations, do seem to capture the broad contours of what we did over the past decade and a half.”[1] [1] Greenspan, Alan, “Risk and Uncertainty in Monetary Policy,” American Economic Review, May 2004, pp. 33-40. The quoted passage appears on ...
Objectives for Chapter 24: Monetarism (Continued)
... in the long-run (when people are no longer fooled by inflation), there is no trade-off between inflation and unemployment. In the long-run, the economy will operate at Potential Real GDP (and at the natural rate of unemployment). In the long-run, the only result of an increase in the money supply is ...
... in the long-run (when people are no longer fooled by inflation), there is no trade-off between inflation and unemployment. In the long-run, the economy will operate at Potential Real GDP (and at the natural rate of unemployment). In the long-run, the only result of an increase in the money supply is ...
Objectives for Chapter 24: Monetarism (Continued) Chapter 24: The
... in the long-run (when people are no longer fooled by inflation), there is no trade-off between inflation and unemployment. In the long-run, the economy will operate at Potential Real GDP (and at the natural rate of unemployment). In the long-run, the only result of an increase in the money supply is ...
... in the long-run (when people are no longer fooled by inflation), there is no trade-off between inflation and unemployment. In the long-run, the economy will operate at Potential Real GDP (and at the natural rate of unemployment). In the long-run, the only result of an increase in the money supply is ...
The Effect of Macroeconomic Instability on Economic Growth in Iran
... institutions in macroeconomic instability and all of them have emphasized that democratic institutions can reduce instability. In other words, macroeconomic instability in democratic governments is less than the nondemocratic governments. According to them: 1. The countries with democratic governmen ...
... institutions in macroeconomic instability and all of them have emphasized that democratic institutions can reduce instability. In other words, macroeconomic instability in democratic governments is less than the nondemocratic governments. According to them: 1. The countries with democratic governmen ...
Document
... causing a slowdown in inflation to somewhere between the old one and the new target. The economy must now move to its new steady state by the principle of transition dynamics. The change in the rate of inflation causes the AS curve to shift during the following period. Firms adjust their expec ...
... causing a slowdown in inflation to somewhere between the old one and the new target. The economy must now move to its new steady state by the principle of transition dynamics. The change in the rate of inflation causes the AS curve to shift during the following period. Firms adjust their expec ...
Money in Economic Analysis
... asserts, money is said to be ‘neutral’. On the other hand, money is not neutral if it affects the real variables as well as the general price level. In what follows, we shall consider both of the situations in which money becomes neutral and those in which money does not become neutral. First, we co ...
... asserts, money is said to be ‘neutral’. On the other hand, money is not neutral if it affects the real variables as well as the general price level. In what follows, we shall consider both of the situations in which money becomes neutral and those in which money does not become neutral. First, we co ...
Where Did Economics Go Wrong?
... even crude versions of the quantity theory of money had displaced) and to an economics of abundance, which denied that capital resources were scarce. But here the Austrians were mistaken.2 Certainly Keynes made fundamental errors in economic reasoning, but in many other respects, he had penetrated c ...
... even crude versions of the quantity theory of money had displaced) and to an economics of abundance, which denied that capital resources were scarce. But here the Austrians were mistaken.2 Certainly Keynes made fundamental errors in economic reasoning, but in many other respects, he had penetrated c ...
NBER WORKING PAPER SERIES GLOBALIZATION, MACROECONOMIC PERFORMANCE, AND MONETARY POLICY Frederic S. Mishkin
... and inflation. As a result, central banks will be less tempted to try to exploit the short-run tradeoff between inflation and unemployment, as in the Barro-Gordon (1983) model, and so will be less likely to pursue overly expansionary monetary policy that leads to higher inflation. A major problem wi ...
... and inflation. As a result, central banks will be less tempted to try to exploit the short-run tradeoff between inflation and unemployment, as in the Barro-Gordon (1983) model, and so will be less likely to pursue overly expansionary monetary policy that leads to higher inflation. A major problem wi ...
macro - uc-davis economics
... When prices are sticky …output and employment also depend on demand for goods & services, which is affected by ...
... When prices are sticky …output and employment also depend on demand for goods & services, which is affected by ...
unemployment - Business @ UOW
... s a yi n g “it is si m p ly b e ca u s e th e sn o w is m e lti n g fa ste r a n d h a s n o th in g t o d o w it h g as es f r om p eo p le li vi n g in g r ee n h o u ses or h o w wa r m th e ir h ou s es g e t ” b ) Da n e w o r k s f o r o n e o f t h e U SA ’ s b ig g e st s h i p p in g co m p ...
... s a yi n g “it is si m p ly b e ca u s e th e sn o w is m e lti n g fa ste r a n d h a s n o th in g t o d o w it h g as es f r om p eo p le li vi n g in g r ee n h o u ses or h o w wa r m th e ir h ou s es g e t ” b ) Da n e w o r k s f o r o n e o f t h e U SA ’ s b ig g e st s h i p p in g co m p ...
Effects of Inflation
... Effects of Inflation Forecasting Inflation To minimize the costs of incorrectly anticipating inflation, people form expectations about the inflation rate. A rational expectation is one based on all relevant information and is the most accurate forecast possible, although that does not mean it is al ...
... Effects of Inflation Forecasting Inflation To minimize the costs of incorrectly anticipating inflation, people form expectations about the inflation rate. A rational expectation is one based on all relevant information and is the most accurate forecast possible, although that does not mean it is al ...
chap11
... • Economist Robert Barro argues that consumers will see the budget deficit as an increase in future taxes and cut back on consumption – what matters for the determination of consumption spending this year is not what taxes are levied on you this year, but what all the changes in government policy te ...
... • Economist Robert Barro argues that consumers will see the budget deficit as an increase in future taxes and cut back on consumption – what matters for the determination of consumption spending this year is not what taxes are levied on you this year, but what all the changes in government policy te ...
Volume 36, Issue 4
... averages of those of its member countries, that have a greater degree of sovereignty than US member states. However, the Eurozone can be considered a closed economy. Extending the analysis to its single member countries, more similar to open economies, would entail different identification assumptio ...
... averages of those of its member countries, that have a greater degree of sovereignty than US member states. However, the Eurozone can be considered a closed economy. Extending the analysis to its single member countries, more similar to open economies, would entail different identification assumptio ...
G97/2 The Inflation-Output Trade-Off: Is The Phillips Curve
... A range of models suggest that the relationship between inflation (or wageinflation) and output (or unemployment) is asymmetric. For example, Summers’ (1988) efficiency wage model; Greenwald and Stiglitz (1988) who provide an explanation relating cyclical fluctuations to credit shocks; Hall (1988) w ...
... A range of models suggest that the relationship between inflation (or wageinflation) and output (or unemployment) is asymmetric. For example, Summers’ (1988) efficiency wage model; Greenwald and Stiglitz (1988) who provide an explanation relating cyclical fluctuations to credit shocks; Hall (1988) w ...
Chapter 1 - McGraw
... Depression was a contractionary monetary policy when an expansionary monetary policy was needed. • Monetarists gained influence as a result of the Great Inflation of the 1970s that was caused by the oil shocks. Keynesian policies were not helpful in economies with both high inflation and high unempl ...
... Depression was a contractionary monetary policy when an expansionary monetary policy was needed. • Monetarists gained influence as a result of the Great Inflation of the 1970s that was caused by the oil shocks. Keynesian policies were not helpful in economies with both high inflation and high unempl ...
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.