The NAIRU and the Natural Rate of Unemployment
... Although they do not directly specify in their paper links to individual types of unemployment and certainly do not define in theoretical terms this „non-inflationary“ or „stable“ rate of unemployment, the relationship between their discussion and later concepts in the form of the natural rate of un ...
... Although they do not directly specify in their paper links to individual types of unemployment and certainly do not define in theoretical terms this „non-inflationary“ or „stable“ rate of unemployment, the relationship between their discussion and later concepts in the form of the natural rate of un ...
Chapter 8. The Natural Rate of Unemployment and the Phillips Curve
... do with the slow adjustment of wage demands to declines in productivity growth. This interpretation is presented in Chapter 13. Note that the interpretations of the changes in the natural rate tend to come after the fact. Such changes are difficult to predict. Third, the relationship between inflati ...
... do with the slow adjustment of wage demands to declines in productivity growth. This interpretation is presented in Chapter 13. Note that the interpretations of the changes in the natural rate tend to come after the fact. Such changes are difficult to predict. Third, the relationship between inflati ...
HW6-sol
... High actual inflation will cause firms and households to raise their inflation expectations. When inflation expectations increase workers will demand higher wage increases, which makes costs rise faster, and therefore firms raise prices more quickly. So inflation becomes persistent, that is, the hi ...
... High actual inflation will cause firms and households to raise their inflation expectations. When inflation expectations increase workers will demand higher wage increases, which makes costs rise faster, and therefore firms raise prices more quickly. So inflation becomes persistent, that is, the hi ...
es09 Wickens 11213611 en
... These are very old criticisms of macroeconomics which extend to economics in general. It is surprising that they should be resurrected once more as an explanation of the current financial crisis. The use of mathematics is easily justified. It simply ensures that the logic of the argument is carried ...
... These are very old criticisms of macroeconomics which extend to economics in general. It is surprising that they should be resurrected once more as an explanation of the current financial crisis. The use of mathematics is easily justified. It simply ensures that the logic of the argument is carried ...
paper - Institute for New Economic Thinking
... interest" rate" setting" that" would" ensure" that" domestic" inflation" rates" would" converge" towards" the" desired" target" rate?" None" of" the" neo0Wicksellian" IT0central" bankers" of" the" pre0financial" crisis" era" ever" imagined" that" they" would" find" themselves" cast" in" a" scenario" ...
... interest" rate" setting" that" would" ensure" that" domestic" inflation" rates" would" converge" towards" the" desired" target" rate?" None" of" the" neo0Wicksellian" IT0central" bankers" of" the" pre0financial" crisis" era" ever" imagined" that" they" would" find" themselves" cast" in" a" scenario" ...
The quantity theory of money and Friedmanian monetary
... same as for the first category, but the relationships are weaker and there is a propensity to focus on the instability of the short-run effects of monetary changes. The third category is monetary theory. He first analyses how often the words ‘money’, or ‘inflation’ appear in the titles of the main a ...
... same as for the first category, but the relationships are weaker and there is a propensity to focus on the instability of the short-run effects of monetary changes. The third category is monetary theory. He first analyses how often the words ‘money’, or ‘inflation’ appear in the titles of the main a ...
Unemployment
... X Labor Force Try on your own… •Labor force has 154,082,000 people •Unemployed number 15,100,000 people •What is our unemployment rate? *Is that measure accurate? ...
... X Labor Force Try on your own… •Labor force has 154,082,000 people •Unemployed number 15,100,000 people •What is our unemployment rate? *Is that measure accurate? ...
Macroeconomic revolution on shaky grounds
... prices as consumers. Agents do not notice price changes for the products they buy but rather interpret a general rise in prices as specific for the goods they supply? (3) Applying comparative statics – applying isolated equilibrium analysis for different situations in ‘logical time’ (Robinson 1980) ...
... prices as consumers. Agents do not notice price changes for the products they buy but rather interpret a general rise in prices as specific for the goods they supply? (3) Applying comparative statics – applying isolated equilibrium analysis for different situations in ‘logical time’ (Robinson 1980) ...
Document
... According to the classical dynamic aggregate supply curve, output growth is constant and equal to the rate of productivity growth, g, regardless of the level of inflation. As a result, the classical dynamic aggregate supply curve is simply a vertical line that is consistent with an output growth rat ...
... According to the classical dynamic aggregate supply curve, output growth is constant and equal to the rate of productivity growth, g, regardless of the level of inflation. As a result, the classical dynamic aggregate supply curve is simply a vertical line that is consistent with an output growth rat ...
Rational and Irrational Bubbles
... in explaining hyperinflations is evidence that there was not a bubble in these cases. The first lesson about bubbles is that all explosive movements are not bubbles. It was entirely rational for people to observe the Reichsbank's monetary acceleration and conclude that the price level would accelera ...
... in explaining hyperinflations is evidence that there was not a bubble in these cases. The first lesson about bubbles is that all explosive movements are not bubbles. It was entirely rational for people to observe the Reichsbank's monetary acceleration and conclude that the price level would accelera ...
Comparative Interpretation of Classical and Keynesian Fiscal
... Yuzuncu Yil University, Faculty of Economics and Administrative Sciences, Van, 65080, Turkey ...
... Yuzuncu Yil University, Faculty of Economics and Administrative Sciences, Van, 65080, Turkey ...
forEquitable Growth
... consequently not react to expansionary macroeconomic policy in the future once they experience the inflationary cycle laid out in the writings of the new macroeconomics. Rising prices is all that expansionary macroeconomic policy can achieve; it pushes the economy out of the general equilibrium but ...
... consequently not react to expansionary macroeconomic policy in the future once they experience the inflationary cycle laid out in the writings of the new macroeconomics. Rising prices is all that expansionary macroeconomic policy can achieve; it pushes the economy out of the general equilibrium but ...
Full employment and a wage policy of solidarity, report to the 2016
... obvious investment needs in several parts of the economy that would lead to higher growth and higher employment if they were attended to. An expansionary fiscal policy has major effects on output when the interest rate is zero or lower and unemployment is high. In a normal economic situation monetar ...
... obvious investment needs in several parts of the economy that would lead to higher growth and higher employment if they were attended to. An expansionary fiscal policy has major effects on output when the interest rate is zero or lower and unemployment is high. In a normal economic situation monetar ...
How high is the natural rate of unemployment in Hong Kong? (A
... unemployment. A system of simultaneous equations is developed to explain aggregate wage and price setting behavior, whilst also taking into account the supply side factors as well as the structural aspects in Hong Kong’s labour market. The use of simultaneous equation system has the merit that the n ...
... unemployment. A system of simultaneous equations is developed to explain aggregate wage and price setting behavior, whilst also taking into account the supply side factors as well as the structural aspects in Hong Kong’s labour market. The use of simultaneous equation system has the merit that the n ...
Stagflation - Annenberg Learner
... DAVID SCHOUMACHER: In 1973, food shocks and oil shocks battered the economy…and stagflation settled over the land. Was the federal government any better prepared to face the tough challenges ahead than business or labor had been? Coming out of the 1960’s, inflation was the nation’s number one econom ...
... DAVID SCHOUMACHER: In 1973, food shocks and oil shocks battered the economy…and stagflation settled over the land. Was the federal government any better prepared to face the tough challenges ahead than business or labor had been? Coming out of the 1960’s, inflation was the nation’s number one econom ...
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.