PDF
... government intervention through fiscal and monetary policy to rebuild aggregate demand and economic confidence – also be reinterpreted in a more ecological sense? It is worth considering the essential vision of Keynes concerning the causes of economic disruptions such as recession and depression, be ...
... government intervention through fiscal and monetary policy to rebuild aggregate demand and economic confidence – also be reinterpreted in a more ecological sense? It is worth considering the essential vision of Keynes concerning the causes of economic disruptions such as recession and depression, be ...
The Simplest Model of Financial Crisis
... economy, perturbed by noise. This is the simplest way to integrate chaos theory to model financial crises, causing business cycles to emerge. Unlike standard models, the proposed theory proves that monetary policy can destabilize financial markets by raising interest rates too high, when preventing ...
... economy, perturbed by noise. This is the simplest way to integrate chaos theory to model financial crises, causing business cycles to emerge. Unlike standard models, the proposed theory proves that monetary policy can destabilize financial markets by raising interest rates too high, when preventing ...
On the Complexities of Complex Economic Dynamics
... older theory of dynamical systems. A catastrophe is a particular kind of discontinuity in a dynamical system. The discontinuities depend on distinct multiple equilibria and involve jumping from one to another as some control parameter gradually changes. Figure 1 shows a canonical version due to Vari ...
... older theory of dynamical systems. A catastrophe is a particular kind of discontinuity in a dynamical system. The discontinuities depend on distinct multiple equilibria and involve jumping from one to another as some control parameter gradually changes. Figure 1 shows a canonical version due to Vari ...
Dangerous currents flowing against full employment
... vulnerable to increases in interest rates and any declines in asset values. A far more sensible strategy is to use budget deficits more generally and not force the private sector into debt accumulation. Overall, we conclude that in terms of providing the conditions for full employment, the neo-libe ...
... vulnerable to increases in interest rates and any declines in asset values. A far more sensible strategy is to use budget deficits more generally and not force the private sector into debt accumulation. Overall, we conclude that in terms of providing the conditions for full employment, the neo-libe ...
Domestic Origins of the Monetary Approach to the Balance of
... and surplus spending financed through the sale and retirement of bonds, also is unable to stabilize aggregate demand over the business cycle because of political difficulties in getting tax and expenditure decisions through democratic legislatures quickly and in the right magnitudes. Furthermore, fi ...
... and surplus spending financed through the sale and retirement of bonds, also is unable to stabilize aggregate demand over the business cycle because of political difficulties in getting tax and expenditure decisions through democratic legislatures quickly and in the right magnitudes. Furthermore, fi ...
1 KEYNES, MINSKY AND THE POST KEYNESIANS by Paul
... [1] the elasticity of production associated with all liquid assets including money is zero or negligible 4 , and [2] the elasticity of substitution between all liquid assets (including money) and reproducible goods is zero or negligible 5 .. The zero elasticity of production means that when some por ...
... [1] the elasticity of production associated with all liquid assets including money is zero or negligible 4 , and [2] the elasticity of substitution between all liquid assets (including money) and reproducible goods is zero or negligible 5 .. The zero elasticity of production means that when some por ...
Dynamic General-Equilibrium Models and Why the Bank of Canada
... of reality that are used by economists to help them understand the functioning of the economy, to identify the essential economic mechanisms, and to forecast (as well as possible) its future behaviour. For example, the Bank of Canada has to anticipate events that are likely to affect its conduct of ...
... of reality that are used by economists to help them understand the functioning of the economy, to identify the essential economic mechanisms, and to forecast (as well as possible) its future behaviour. For example, the Bank of Canada has to anticipate events that are likely to affect its conduct of ...
“Debating an appropriate macroeconomic policy for South Africa`s
... In theory it could be possible that the International Panel’s proposal could be modified to suggest that the rand could follow a ‘crawling peg’ model, that is, a gradual depreciation within limits in an attempt to obviate the ‘one way bet’ problem. Although this is likely to lead to another problem, ...
... In theory it could be possible that the International Panel’s proposal could be modified to suggest that the rand could follow a ‘crawling peg’ model, that is, a gradual depreciation within limits in an attempt to obviate the ‘one way bet’ problem. Although this is likely to lead to another problem, ...
Name 1 In The General Theory of Employment, Interest, and Money
... Suppose the United States were a small open economy under floating exchange rates. If the U.S. government imposes a quota on German cars in an effort to reduce the trade deficit, then A. the exchange rate goes up and the trade deficit goes down.*B. the exchange rate B. the exchange rate goes up and ...
... Suppose the United States were a small open economy under floating exchange rates. If the U.S. government imposes a quota on German cars in an effort to reduce the trade deficit, then A. the exchange rate goes up and the trade deficit goes down.*B. the exchange rate B. the exchange rate goes up and ...
Chapter 6-The Business Cycle
... Periods of deflation have been rather rare in most countries of the world. During the great depression of the 1930's, prices did go down. The consequences were quite devastating: many companies went out of business for lack of revenues. DEMAND-PULL INFLATION One of the possible explanations of infl ...
... Periods of deflation have been rather rare in most countries of the world. During the great depression of the 1930's, prices did go down. The consequences were quite devastating: many companies went out of business for lack of revenues. DEMAND-PULL INFLATION One of the possible explanations of infl ...
Chapter 11 Aggregate Supply with Imperfect Information
... complicated ways by affecting the embodied expectations parameters. Since Lucas’s work, most academic macroeconomic models have been based on carefully worked-out microeconomic assumptions. Microeconomics tells us that decision-making is nearly always dynamic, so modern micro-based macro models have ...
... complicated ways by affecting the embodied expectations parameters. Since Lucas’s work, most academic macroeconomic models have been based on carefully worked-out microeconomic assumptions. Microeconomics tells us that decision-making is nearly always dynamic, so modern micro-based macro models have ...
Anna Jacobson Schwartz: In Memoriam George S. Tavlas
... historical study of the relationship between money and other variables in the United States. The authors did not envisage that the proposed research project would turn out to be anything like the massive study that would eventually be published in 1963. At the time that they started their work on A ...
... historical study of the relationship between money and other variables in the United States. The authors did not envisage that the proposed research project would turn out to be anything like the massive study that would eventually be published in 1963. At the time that they started their work on A ...
Macroeconomics
... Name three different groups who care about how whether the CPI overstates inflation. Explain the basis of their concern. (7) ...
... Name three different groups who care about how whether the CPI overstates inflation. Explain the basis of their concern. (7) ...
Video Program Transcript
... PAUL SAMUELSON: “To be a Keynesian in 1937-1938 was to be not able to get a job in an American university. One of my professors was talking at lunch, and we were talking about certain effects, and he said, ‘Gee that sounds very sensible. Whose ideas are those?’ And my friend, who became a vice presi ...
... PAUL SAMUELSON: “To be a Keynesian in 1937-1938 was to be not able to get a job in an American university. One of my professors was talking at lunch, and we were talking about certain effects, and he said, ‘Gee that sounds very sensible. Whose ideas are those?’ And my friend, who became a vice presi ...
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.