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... 18. The neutrality of money is consistent with which of the following statements? a. Changes in the money supply will not affect employment in the short run. b. Changes in the money supply will not affect the price level in the medium run. c. Changes in the money supply will not affect the price lev ...
... 18. The neutrality of money is consistent with which of the following statements? a. Changes in the money supply will not affect employment in the short run. b. Changes in the money supply will not affect the price level in the medium run. c. Changes in the money supply will not affect the price lev ...
Berlin paper, draft 1.02
... by the financial crisis: increased demand for safe assets, an increased wedge between borrowing and lending rates as financial institutions seek to restore their profitability.2 Given that there is a lower bound of zero, or possibly slightly above zero, on the market rate of interest, implies that ...
... by the financial crisis: increased demand for safe assets, an increased wedge between borrowing and lending rates as financial institutions seek to restore their profitability.2 Given that there is a lower bound of zero, or possibly slightly above zero, on the market rate of interest, implies that ...
Richard PAPER SERIES
... ply under central planning, so supply must determine everything. For the household sector, I have challenged the factual premise on a wide variety of empirical grounds (1974, 1977) and, with David Winter, on econometric evidence (1980). Those who start from this assumption often find it hard to impl ...
... ply under central planning, so supply must determine everything. For the household sector, I have challenged the factual premise on a wide variety of empirical grounds (1974, 1977) and, with David Winter, on econometric evidence (1980). Those who start from this assumption often find it hard to impl ...
Pre-Test Chap 15 Handout Page
... If the Fed wants to decrease unemployment, it will (a) decrease interest rates which causes the quantity of money demanded to fall and aggregate demand to increase. (b) increase interest rates which causes the quantity of money demanded to rise and aggregate demand to increase. (c) decrease interest ...
... If the Fed wants to decrease unemployment, it will (a) decrease interest rates which causes the quantity of money demanded to fall and aggregate demand to increase. (b) increase interest rates which causes the quantity of money demanded to rise and aggregate demand to increase. (c) decrease interest ...
integrating the complexity vision into mathematical economics
... for nonstochastic reasons do not converge to either a unique equilibrium point or to a periodic limit cycle or that explode. This implies some form of erratic oscillations of an endogenous ...
... for nonstochastic reasons do not converge to either a unique equilibrium point or to a periodic limit cycle or that explode. This implies some form of erratic oscillations of an endogenous ...
FRBSF L CONOMIC
... should affect stock prices in that industry to a greater extent than would temporary changes, because permanent changes will affect the industry’s profits for longer than temporary ones. Thus, when crossindustry differences in stock returns are very large, we would expect some industries to be shrin ...
... should affect stock prices in that industry to a greater extent than would temporary changes, because permanent changes will affect the industry’s profits for longer than temporary ones. Thus, when crossindustry differences in stock returns are very large, we would expect some industries to be shrin ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research Volume Title: Conference on Business Cycles
... (physical volume of productivity, real national income), employment (measured by the number of labor hours) and unemployment".3 2There are a few interesting cases. The planned economy of Nazi Germany did not show any trace of the short but sharp depression of 1938 that visited the United States and ...
... (physical volume of productivity, real national income), employment (measured by the number of labor hours) and unemployment".3 2There are a few interesting cases. The planned economy of Nazi Germany did not show any trace of the short but sharp depression of 1938 that visited the United States and ...
Discussion of Fuhrer, “The Role of Expectations
... I now turn to variations on Fuhrer‟s NKPC estimates, with an eye on robustness and strength of identification. Fuhrer estimates the NKPC using core CPI inflation, the SPF 1-year ahead CPI inflation forecast, two measures of trend inflation (the Cogley-Sbordone trend and SPF 10-year expectations), an ...
... I now turn to variations on Fuhrer‟s NKPC estimates, with an eye on robustness and strength of identification. Fuhrer estimates the NKPC using core CPI inflation, the SPF 1-year ahead CPI inflation forecast, two measures of trend inflation (the Cogley-Sbordone trend and SPF 10-year expectations), an ...
The Emergence of Complexity in Economics
... for his conceptualization of bounded rationality. But this is not what most economists think of when they think of complex economic dynamics, although reality of complexity in economics has come full circle to Simon in implying the inevitability of bounded rationality. Economic complexity is not si ...
... for his conceptualization of bounded rationality. But this is not what most economists think of when they think of complex economic dynamics, although reality of complexity in economics has come full circle to Simon in implying the inevitability of bounded rationality. Economic complexity is not si ...
PRESS RELEASE SUMMARY OF THE MONETARY POLICY COMMITTEE MEETING No: 2016-17
... employment, on the other hand, was slightly down in January for the second month in a row. In view of production and survey indicators, employment is expected to remain on a modest track in the short term. 11. To sum up, current indicators suggest that the economy continues to grow at a steady and m ...
... employment, on the other hand, was slightly down in January for the second month in a row. In view of production and survey indicators, employment is expected to remain on a modest track in the short term. 11. To sum up, current indicators suggest that the economy continues to grow at a steady and m ...
The monetary theory of unemployment and inflation or why there
... outcome of a converging set of events which dismissed my previous doubts. There was first a conference made with Jean-Gabriel Bliek at the European Investment Bank (Luxembourg). It convinced me that it was possible to shake the faith of true policy makers in “hard-squeeze economic policy” by explain ...
... outcome of a converging set of events which dismissed my previous doubts. There was first a conference made with Jean-Gabriel Bliek at the European Investment Bank (Luxembourg). It convinced me that it was possible to shake the faith of true policy makers in “hard-squeeze economic policy” by explain ...
Implications-of-diff..
... desired limit, whichever was higher. Second, Wicksell (1898) emphasized the importance of money as technological and institutional structure showing that a credit economy works differently from a simple monetary economy producing in particular a strong short-term non-neutrality. As mentioned before, ...
... desired limit, whichever was higher. Second, Wicksell (1898) emphasized the importance of money as technological and institutional structure showing that a credit economy works differently from a simple monetary economy producing in particular a strong short-term non-neutrality. As mentioned before, ...
Consistently wrong: Neoclassical micro
... fiscal or monetary. All expansionary macroeconomic policy can achieve is a higher price level. These are the major conclusions of the PIH, widely accepted among central bankers, politicians, and many economists. Unfortunately the PIH did not remain in academics but guided and still guides economic p ...
... fiscal or monetary. All expansionary macroeconomic policy can achieve is a higher price level. These are the major conclusions of the PIH, widely accepted among central bankers, politicians, and many economists. Unfortunately the PIH did not remain in academics but guided and still guides economic p ...
A New Monetary and Fiscal Framework for Economic Stability CEF, July 2011
... A second large fiscal expansion is unlikely ...
... A second large fiscal expansion is unlikely ...
The General Theory After 80 Years
... Chamberlin, was a leading contributor. But to do so would have avoided the central question of whether any such new theory was necessary, which brings us to the second goal of Keynes’s revolutionary project. If the problem lay in monopoly or other departures from the ideal of perfect competition, pe ...
... Chamberlin, was a leading contributor. But to do so would have avoided the central question of whether any such new theory was necessary, which brings us to the second goal of Keynes’s revolutionary project. If the problem lay in monopoly or other departures from the ideal of perfect competition, pe ...
Notes on Unemployment Chapter:
... better workers or making workers more loyal. Labor unions can also raise wages above equilibrium, but this would only cause unemployment for an entire economy if the labor union(s) controlled most wages in that economy. In the US, labor unions control a small fraction of wage rates so labor unions c ...
... better workers or making workers more loyal. Labor unions can also raise wages above equilibrium, but this would only cause unemployment for an entire economy if the labor union(s) controlled most wages in that economy. In the US, labor unions control a small fraction of wage rates so labor unions c ...
Modern Perspectives on Fiscal Stabilization Policies 1 Introduction
... The previous evidence raises an interesting issue closely connected with Keynes’ own perspective on the nature of recessions. It is clear that the well documented rigidity of nominal wages, together with the non-Walrasian nature of contractual relationships between workers and firms, may explain why ...
... The previous evidence raises an interesting issue closely connected with Keynes’ own perspective on the nature of recessions. It is clear that the well documented rigidity of nominal wages, together with the non-Walrasian nature of contractual relationships between workers and firms, may explain why ...
can be found here
... calculation. The idea of bounded rationality acknowledges the time and effort involved in calculation. Behavioural economics uses much greater psychological realism. I’ll say more about this shortly. Still, I would defend using the assumption of rational choice as long as one realises that it is not ...
... calculation. The idea of bounded rationality acknowledges the time and effort involved in calculation. Behavioural economics uses much greater psychological realism. I’ll say more about this shortly. Still, I would defend using the assumption of rational choice as long as one realises that it is not ...
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.