NBER WORKING PAPER SERIES RECONCILING POLICY DECISIONS AND DATA OUTCOMES
... 1969−70 in which both policy decisions and the principles guiding them were largely modern and appropriate (i.e.: natural rate/long-run-vertical Phillips curve ideas had been rapidly incorporated into policy thinking; and the monetary authorities deliberately made real interest rates positive in ord ...
... 1969−70 in which both policy decisions and the principles guiding them were largely modern and appropriate (i.e.: natural rate/long-run-vertical Phillips curve ideas had been rapidly incorporated into policy thinking; and the monetary authorities deliberately made real interest rates positive in ord ...
Optimal Interest Rate Rules and Inflation Stabilization versus Price
... We assume that the central bank is able to credibly commit to a policy rule. The desirability of price-level stabilization stems essentially from the fact that the central bank’s credible commitment to eventually undo unexpected changes in the price-level induces …rms to maintain relatively stable ...
... We assume that the central bank is able to credibly commit to a policy rule. The desirability of price-level stabilization stems essentially from the fact that the central bank’s credible commitment to eventually undo unexpected changes in the price-level induces …rms to maintain relatively stable ...
1 Principles of Macroeconomics, 9e
... 26) Assume that the demand for money depends on the interest rate. A decrease in the money supply will cause A) the interest rate to increase, the quantity demanded of money to decrease, and the velocity of money to decrease. B) the interest rate to increase, the quantity demanded of money to decre ...
... 26) Assume that the demand for money depends on the interest rate. A decrease in the money supply will cause A) the interest rate to increase, the quantity demanded of money to decrease, and the velocity of money to decrease. B) the interest rate to increase, the quantity demanded of money to decre ...
Working papers - Federal Reserve Bank of Cleveland
... Shujaat Khan is at Johns Hopkins University. Edward S. Knotek II is at the Federal Reserve Bank of Cleveland (edward.knotek@clev.frb.org). The authors thank Troy Davig for extensive discussions during the development of this paper; ...
... Shujaat Khan is at Johns Hopkins University. Edward S. Knotek II is at the Federal Reserve Bank of Cleveland (edward.knotek@clev.frb.org). The authors thank Troy Davig for extensive discussions during the development of this paper; ...
INFLATION DYNAMICS IN VIETNAM Hien Thi Thu Le
... nonconvertible currency. However, GDP growth declined sharply. The average annual rate of real economic growth for two years before the crisis was 9.4%, but it fell markedly in 1998 and 1999, from 5.8 to 4.7%. To prevent an economic downturn, the government returned to expansionary fiscal policy and ...
... nonconvertible currency. However, GDP growth declined sharply. The average annual rate of real economic growth for two years before the crisis was 9.4%, but it fell markedly in 1998 and 1999, from 5.8 to 4.7%. To prevent an economic downturn, the government returned to expansionary fiscal policy and ...
Drifting Inflation Targets and Stagflation
... are solely those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of Kansas City or the Federal Reserve System. ...
... are solely those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of Kansas City or the Federal Reserve System. ...
Inflation and Economic Growth in India – An Empirical Analysis
... production costs and hence higher prices. This conclusion has been supported by empirical findings. Gerloch and Smets (1999), for instance, show that 1% increase over potential output raises inflation by 0.2% in the subsequent quarter in the EMU-5 countries. Moreover, since inflation is serially cor ...
... production costs and hence higher prices. This conclusion has been supported by empirical findings. Gerloch and Smets (1999), for instance, show that 1% increase over potential output raises inflation by 0.2% in the subsequent quarter in the EMU-5 countries. Moreover, since inflation is serially cor ...
Inflation
... rate is 5%. This means the bank expects to make a real profit of 2% (7% - 5%). • Suppose there is unexpected inflation, adding another 1% to inflation (6% total). The bank will now make a profit of just 1%. Inflation hurt the bank! • Borrowers, in this case, expected to pay a real interest rate of 2 ...
... rate is 5%. This means the bank expects to make a real profit of 2% (7% - 5%). • Suppose there is unexpected inflation, adding another 1% to inflation (6% total). The bank will now make a profit of just 1%. Inflation hurt the bank! • Borrowers, in this case, expected to pay a real interest rate of 2 ...
NBER WORKING PAPER SERIES THE PHILLIPS CURVE IS BACK? USING
... is well within the range of more recent estimates (see the symposium in the Journal of Economic Perspectives (especially Gordon (1997) and Staiger, Stock and Watson (1997)). Over the entire sample period, the point estimate is -0.82. The intellectual history of the Phillips curve is familiar to most ...
... is well within the range of more recent estimates (see the symposium in the Journal of Economic Perspectives (especially Gordon (1997) and Staiger, Stock and Watson (1997)). Over the entire sample period, the point estimate is -0.82. The intellectual history of the Phillips curve is familiar to most ...
1 SCHUMPETER ON UNEMPLOYMENT Mauro Boianovsky
... path-breaking chapter “On Machinery”. The Machinery Problem The machinery problem had attracted Schumpeter’s attention even before writing his Theory of Economic Development. Already in his first book, which dealt with economics largely from a static equilibrium standpoint, Schumpeter (1908, pp. 516 ...
... path-breaking chapter “On Machinery”. The Machinery Problem The machinery problem had attracted Schumpeter’s attention even before writing his Theory of Economic Development. Already in his first book, which dealt with economics largely from a static equilibrium standpoint, Schumpeter (1908, pp. 516 ...
The Science of Monetary Policy
... simple theoretical model. We start with a stripped-down baseline model in order to characterize a number of broad principles that underlie optimal policy management. We then consider the implications of adding various real world complications. Finally, we assess how the predictions from theory squar ...
... simple theoretical model. We start with a stripped-down baseline model in order to characterize a number of broad principles that underlie optimal policy management. We then consider the implications of adding various real world complications. Finally, we assess how the predictions from theory squar ...
Hysteresis in Unemployment and Jobless Recoveries Dmitry Plotnikov May 12, 2015
... price level (inverse of the real wage). ...
... price level (inverse of the real wage). ...
Employment, productivity and output growth
... reason, Part 3 considers three different time frames: the short, medium and long term. In addition, Part 3 deliberates the cyclical behaviour of employment and productivity. As is well known, both of these macroeconomic variables are strongly and robustly procyclical. Closely connected to this obser ...
... reason, Part 3 considers three different time frames: the short, medium and long term. In addition, Part 3 deliberates the cyclical behaviour of employment and productivity. As is well known, both of these macroeconomic variables are strongly and robustly procyclical. Closely connected to this obser ...
Chapter 29(14)
... money wage rate (and other resource prices) rising to reflect the higher price level. So, in the AD/AS model, the rise in the money wage rate shifts the SAS curve leftward. Real GDP returns to the vertical LAS curve and equals potential GDP. In terms of the Phillips curve, the unemployment rate cann ...
... money wage rate (and other resource prices) rising to reflect the higher price level. So, in the AD/AS model, the rise in the money wage rate shifts the SAS curve leftward. Real GDP returns to the vertical LAS curve and equals potential GDP. In terms of the Phillips curve, the unemployment rate cann ...
NBER WORKING PAPER SERIES LIQUIDITY TRAPS AND EXPECTATION DYNAMICS:
... The practical importance of the zero lower bound (ZLB) has become evident in the US and Europe since the 2007-9 …nancial crisis, as well as in the US during 2001-3 and in Japan since the mid 1990s.1 Recently Bullard (2010) has stressed the risk of extended periods of de‡ation. These events have led ...
... The practical importance of the zero lower bound (ZLB) has become evident in the US and Europe since the 2007-9 …nancial crisis, as well as in the US during 2001-3 and in Japan since the mid 1990s.1 Recently Bullard (2010) has stressed the risk of extended periods of de‡ation. These events have led ...
University of Economics, Prague
... Department of Political Science Faculty of International Relations The extent of the course: 32 hours Target: The aim of this subject is to offer to students comparative view of political institutions, forms of governments and their current functioning in modern political systems. Syllabus: 1. At th ...
... Department of Political Science Faculty of International Relations The extent of the course: 32 hours Target: The aim of this subject is to offer to students comparative view of political institutions, forms of governments and their current functioning in modern political systems. Syllabus: 1. At th ...
12INFLATION*
... the SAS curve. The price level rises, and real GDP increases above potential GDP. The rise in the price level means that inflation occurs, and the increase in GDP means that the unemployment rate falls. Hence the unexpected increase in aggregate demand has resulted in a movement along the short-run ...
... the SAS curve. The price level rises, and real GDP increases above potential GDP. The rise in the price level means that inflation occurs, and the increase in GDP means that the unemployment rate falls. Hence the unexpected increase in aggregate demand has resulted in a movement along the short-run ...
chapter - Princeton University
... level takes place instantaneously rather than over a long period of time. You might be concerned about this assumption given that in previous chapters we’ve emphasized the difference between the short run and the long run. However, for reasons we’ll explain shortly, this is a reasonable assumption t ...
... level takes place instantaneously rather than over a long period of time. You might be concerned about this assumption given that in previous chapters we’ve emphasized the difference between the short run and the long run. However, for reasons we’ll explain shortly, this is a reasonable assumption t ...
OCR AS Level Economics H060
... students across the ability range. The classroom is where the majority of students will be introduced to the study of economics. It’s within this environment that they will confront issues, tackle the challenges that these issues raise, and engage in debate and discussion with fellow students. ...
... students across the ability range. The classroom is where the majority of students will be introduced to the study of economics. It’s within this environment that they will confront issues, tackle the challenges that these issues raise, and engage in debate and discussion with fellow students. ...
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.