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5th Edition
5th Edition

macroeconomic outcomes of changing bargaining
macroeconomic outcomes of changing bargaining

... profits stimulates capital accumulation, a partial refutation of stagnationism. A serie of qualifications emerges, however, that tends to redifine this result. Firstly, in order become profit-led, an economy must possess both these requirements. Larger economies, not to say of the world economy, rem ...
MONETARY POLICY TRANSMISSION MECHANISM IN ROMANIA
MONETARY POLICY TRANSMISSION MECHANISM IN ROMANIA

... level of eurorization and despite of the fact that the most of banks are foreign owned. Franta et al. (2011) investigates the evolution of monetary policy transmission mechanism in Czech Republic over the period 1996 to 2010 using a BVAR model. The results showed that financial shocks are less impo ...
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Real business cycle theory
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... (1973); President of the Atlantic Economic Society (1979-80), and President of the Western Economic Association (1983; deceased: James Buchanan, Acting President). Lerner was also named a Member of the National Academy of Sciences in 1974. Keynes, in a letter written at sea on a voyage to the United ...
Microfoundations: a decisive dividing line between Keynesian and
Microfoundations: a decisive dividing line between Keynesian and

... (Friedman 1968) and Lucas (Lucas [1972] 1981) recounted the story of the real effects of monetary expansion in a non-Keynesian way, thereby disqualifying the policy-menu idea associated with the Phillips curve. The emergence of stagflation in the 1970s was proclaimed to be a real-time experiment tha ...
The Unemployment Bias of the New Consensus View of
The Unemployment Bias of the New Consensus View of

... derived form a rather unsuspected source. In late 1995, members of the Federal Open Market Committee (FOMC) at the Federal Reserve Board discussed alternative interest rate strategies in order to achieve the long-run aim of price stability. Since the different views about these strategies seemed to ...
Stabilization policy, output, and employment
Stabilization policy, output, and employment

Credibility and Monetary Policy - Federal Reserve Bank of Kansas City
Credibility and Monetary Policy - Federal Reserve Bank of Kansas City

... The objective of the present paper is to describe and consider the most important existing ideas concerning credibility of monetary policy. Special emphasis will be given to matters pertaining to the U.S. economy and the practices and procedures of the Fed. The main discussion begins in the next sec ...
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Chapter 18 - The Citadel

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The Labor Market, Unemployment, and Inflation

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Output Gaps: Uses and Limitations

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... © 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. ...
On the Problematic State of Economic `Science`
On the Problematic State of Economic `Science`

... The founder of modern macroeconomics, John Maynard Keynes, known for his often pithy remarks, once (1936) noted that the ideas of economists were much more influential than is usually thought. In fact, according to Keynes, the ideas of economists govern the world. The truth is that economics is esse ...
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... Increasing , Constant and Decreasing Returns to Scale - Optimum Factor Combination – Producer’s Equilibrium – Principles of Least Cost Combination. ...
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Risk of deflation?
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... • a negative annual rate of consumer price inflation over a prolonged period; • a negative rate of change in the prices of a broad set of items in the basket of goods and services; • longer-term inflation expectations becoming unanchored and falling clearly below levels consistent with the central b ...
Worker Insecurity and US Macroeconomic Performance
Worker Insecurity and US Macroeconomic Performance

... Moffitt 2001). According to this modified mainstream view, the U.S. economy must eventually sacrifice either the low unemployment or the low inflation experienced during the late 1990s as the benefits of favorable supply shocks dissipate.2 The purpose of this article is to present an alternative to ...
Finding the Equilibrium Real Interest Rate in a
Finding the Equilibrium Real Interest Rate in a

... of the DSGE studies have focused on short-run equilibria that depend on economic shocks rather than the mediumor longer-run levels that are reached when the effects of shocks have been partly or fully resolved. ...
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Policy options at the zero lower bound
Policy options at the zero lower bound

SEMESTER I  1
SEMESTER I 1

... Growth models: Solow Growth model – Infinite Horizon and Overlapping Generations models: The Ramsey-Cass-Koopmans model – The Diamond Model Unit III Beyond the Solow Model: New Growth Theory – Research and Development models – A model of Human Capital and Growth Unit IV Real-Business cycle theory, T ...
Real Business Cycles: A New Keynesian Perspective
Real Business Cycles: A New Keynesian Perspective

... T h e course then builds up to Walrasian general equilibrium. In this Walrasian equilibrium, prices ad,just to equate supply and demand in every market simultaneously. The general equilibrium system determines the quantities of all goods and services sold and their relative prices. The most importan ...
Chapter 10
Chapter 10

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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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