New approaches to business cycle theory in current economic science
... have no effect whatsoever, since individuals are concerned with real, rather than nominal variables: once they anticipate sustained inflation, they will adjust their decisions on prices and employment levels accordingly, which means that inflation cannot incur a permanent reduction in unemployment. ...
... have no effect whatsoever, since individuals are concerned with real, rather than nominal variables: once they anticipate sustained inflation, they will adjust their decisions on prices and employment levels accordingly, which means that inflation cannot incur a permanent reduction in unemployment. ...
Problem Set #4: Aggregate Supply and Aggregate Demand
... of 6 percent for some period of time. We can write the Phillips curve in the form πt − πt−1 = 0.5(u0.06). Since we want inflation to fall by 5 percentage points, we want πt − πt−1 = 0.05. Plugging this into the left-hand side of the above equation, we find −0.05 = −0.5(u − 0.06). – We can now solve ...
... of 6 percent for some period of time. We can write the Phillips curve in the form πt − πt−1 = 0.5(u0.06). Since we want inflation to fall by 5 percentage points, we want πt − πt−1 = 0.05. Plugging this into the left-hand side of the above equation, we find −0.05 = −0.5(u − 0.06). – We can now solve ...
Microfoundational Programs
... microfoundations remain a steady topic of special interest, hence the level path when the base is all articles. To get a further handle on the filiation of microfoundational ideas, Table 1 displays the number of articles that use terms in the microfoundational family and various economists, some ...
... microfoundations remain a steady topic of special interest, hence the level path when the base is all articles. To get a further handle on the filiation of microfoundational ideas, Table 1 displays the number of articles that use terms in the microfoundational family and various economists, some ...
Ch. 14 Inflation
... and those who borrowed money are the winners. Declining industries, workers in weak bargaining positions, and those on fixed incomes lose. Inflation shifts benefits from creditors to debtors Hyperinflation or extremely high rates of inflation devastates an economy causing money to become worthle ...
... and those who borrowed money are the winners. Declining industries, workers in weak bargaining positions, and those on fixed incomes lose. Inflation shifts benefits from creditors to debtors Hyperinflation or extremely high rates of inflation devastates an economy causing money to become worthle ...
A race without a finish
... integration, migration and ethnicity) or cognitive research (at the interface of molecular and neurosciences, psychology, philosophy and computer science). There is hardly any individual country which has the resources to acquire a world leading position on its own in any of such new fields. The Eur ...
... integration, migration and ethnicity) or cognitive research (at the interface of molecular and neurosciences, psychology, philosophy and computer science). There is hardly any individual country which has the resources to acquire a world leading position on its own in any of such new fields. The Eur ...
Monetary Policy Decision Making - Federal Reserve Bank of New York
... Why maximum employment and what can the Fed do? Obviously social welfare improves as human resources are utilized more fully and efficiently Long-run employment and output are determined by: Population growth, technological progress, preferences for saving, risk and work effort Not by monet ...
... Why maximum employment and what can the Fed do? Obviously social welfare improves as human resources are utilized more fully and efficiently Long-run employment and output are determined by: Population growth, technological progress, preferences for saving, risk and work effort Not by monet ...
How Did Economists Get It So Wrong? By PAUL KRUGMAN
... not simply evils,” declared Joseph Schumpeter in 1934 — 1934! They are, he added, “forms of something which has to be done.” But many, and eventually most, economists turned to the insights of John Maynard Keynes for both an explanation of what had happened and a solution to future depressions. ...
... not simply evils,” declared Joseph Schumpeter in 1934 — 1934! They are, he added, “forms of something which has to be done.” But many, and eventually most, economists turned to the insights of John Maynard Keynes for both an explanation of what had happened and a solution to future depressions. ...
introduction and measurement
... Opening Discussion Macroeconomics is the study of the economy and its major variables: GDP, unemployment, inflation, etc. The issues discussed by macroeconomists have wide ranging effects on people’s standards of living, political environment, social structure, personal and business futures, as well ...
... Opening Discussion Macroeconomics is the study of the economy and its major variables: GDP, unemployment, inflation, etc. The issues discussed by macroeconomists have wide ranging effects on people’s standards of living, political environment, social structure, personal and business futures, as well ...
ANNIVERSARY - Marietta College
... satisfaction and the subsequent retention of customers a company will not exist for very long. This is why, Fitzgerald says, customer satisfaction, and what she refers to as customer "Delight," are so important. Fitzgerald explained that customer "Delight" means going beyond simply satisfying the cu ...
... satisfaction and the subsequent retention of customers a company will not exist for very long. This is why, Fitzgerald says, customer satisfaction, and what she refers to as customer "Delight," are so important. Fitzgerald explained that customer "Delight" means going beyond simply satisfying the cu ...
6 Aggregate Supply: Wages, Prices, and Unemployment
... used in this way, they are considered accommodating policies. There is a cost associated with their use, however: an appropriately sized outward shift in the AD curve will return output to its previous value, but is likely also to cause considerable inflation. Supply shocks can be favorable as well ...
... used in this way, they are considered accommodating policies. There is a cost associated with their use, however: an appropriately sized outward shift in the AD curve will return output to its previous value, but is likely also to cause considerable inflation. Supply shocks can be favorable as well ...
Workshop 6 The Building Blocks of Macroeconomics
... Macroeconomics is the study of the behavior of the economy as a whole—and the whole often behaves differently than the individual parts. This workshop illustrates activities that teach about the basic measurement tools of any economy: gross domestic product (GDP), unemployment, and inflation. These ...
... Macroeconomics is the study of the behavior of the economy as a whole—and the whole often behaves differently than the individual parts. This workshop illustrates activities that teach about the basic measurement tools of any economy: gross domestic product (GDP), unemployment, and inflation. These ...
Embargoed for release at 2:00 p.m., EDT, March 20, 2013
... The charts show actual values and projections for three economic variables, based on FOMC participants’ individual assessments of appropriate monetary policy: Change in Real Gross Domestic Product (GDP)—as measured from the fourth quarter of the previous year to the fourth quarter of the year indi ...
... The charts show actual values and projections for three economic variables, based on FOMC participants’ individual assessments of appropriate monetary policy: Change in Real Gross Domestic Product (GDP)—as measured from the fourth quarter of the previous year to the fourth quarter of the year indi ...
What is Macroeconomics - Katsuhito Iwai`s Webpage.
... no more than a symptom of the economy's deviation from neoclassical equilibrium. If there is a place for 'macroeconomics', which is not a mere aggregation of microeconomics, it can be found only in the analysis of 'disequilibrium' situations of the market economy. Macroeconomics is in other words a ...
... no more than a symptom of the economy's deviation from neoclassical equilibrium. If there is a place for 'macroeconomics', which is not a mere aggregation of microeconomics, it can be found only in the analysis of 'disequilibrium' situations of the market economy. Macroeconomics is in other words a ...
Questions Chapter 14
... 13. The rise in volatility in the late 1960s was caused by the large positive shock to demand that came from military spending on the Vietnam War. That shock resulted in a positive output gap and drove up volatility as shown in Figure 14-3. Figure 14-3 shows that the jumps in volatility in the early ...
... 13. The rise in volatility in the late 1960s was caused by the large positive shock to demand that came from military spending on the Vietnam War. That shock resulted in a positive output gap and drove up volatility as shown in Figure 14-3. Figure 14-3 shows that the jumps in volatility in the early ...
Reaganomics and the Supply-Side: A Rationale
... liberalism had dominated economic thought and american public policy in all fairness the importance of what was happening was really unknown to most economic observers and policy makers until the 1970s most economists had been swept into the keynesian tide and it was not until that decade that they ...
... liberalism had dominated economic thought and american public policy in all fairness the importance of what was happening was really unknown to most economic observers and policy makers until the 1970s most economists had been swept into the keynesian tide and it was not until that decade that they ...
B.A. I(Hons) Economics
... twelve short answer type questions. Out of the remaining eight questions (each carrying 18 marks), the candidate will be required to attempt four questions selecting one from each unit. Unit-1 Keynesian multiplier: concept, backward and forward action, static and dynamic multiplier, working of multi ...
... twelve short answer type questions. Out of the remaining eight questions (each carrying 18 marks), the candidate will be required to attempt four questions selecting one from each unit. Unit-1 Keynesian multiplier: concept, backward and forward action, static and dynamic multiplier, working of multi ...
Chapter 33 — TRADEOFF BETWEEN INFLATION AND
... If the Fed acts on its belief that the natural rate of unemployment is 6 percent, when the natural rate is in fact 5.5 percent, the result will be a spiraling down of the inflation rate, as shown in Figure 33-16. Starting from a point on the long-run Phillips curve, with an unemployment rate of 5.5 ...
... If the Fed acts on its belief that the natural rate of unemployment is 6 percent, when the natural rate is in fact 5.5 percent, the result will be a spiraling down of the inflation rate, as shown in Figure 33-16. Starting from a point on the long-run Phillips curve, with an unemployment rate of 5.5 ...
REFLECTIONS ON SUPPLY-SIDE ECONOMICS Introduction Morgan 0. Reynolds
... how to explain the current recession. They were so convinced about the soundness of supply-side measures, based on theoretical arguments and evidence from the Mellon cuts in the 1920s, the Kennedy cuts in the early 1960s, Puerto Rico, Hong Kong, California’s Proposition 13, and so on, that they were ...
... how to explain the current recession. They were so convinced about the soundness of supply-side measures, based on theoretical arguments and evidence from the Mellon cuts in the 1920s, the Kennedy cuts in the early 1960s, Puerto Rico, Hong Kong, California’s Proposition 13, and so on, that they were ...
Macroeconomic Theories of Inflation
... underlying decision-making of households and firms and that these relations consequently involve expectations about the future in a central manner. The IS curve relates expected output growth to the real interest rate, which is a central implication of the modern theory of consumption. The aggregate ...
... underlying decision-making of households and firms and that these relations consequently involve expectations about the future in a central manner. The IS curve relates expected output growth to the real interest rate, which is a central implication of the modern theory of consumption. The aggregate ...
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.