Chapter30
... and firms to expect an increase in the price level (eventually by the full 5 percent). This expected inflation should lead some wages and other factor prices to rise now, thus shifting the AS curve upward and to the left. The extent to which this shift occurs depends on how forward-looking are peopl ...
... and firms to expect an increase in the price level (eventually by the full 5 percent). This expected inflation should lead some wages and other factor prices to rise now, thus shifting the AS curve upward and to the left. The extent to which this shift occurs depends on how forward-looking are peopl ...
Re - WordPress.com
... (c) The 2012 Olympic Games are to be held in London. They are to be funded mainly by the UK government. (i) With the aid of an example, explain what is meant by direct taxation. (2) (ii) Apart from direct taxation identify one method by which the government can fund the 2012 Olympics. (1) (iii) Whic ...
... (c) The 2012 Olympic Games are to be held in London. They are to be funded mainly by the UK government. (i) With the aid of an example, explain what is meant by direct taxation. (2) (ii) Apart from direct taxation identify one method by which the government can fund the 2012 Olympics. (1) (iii) Whic ...
The International Implications of October 1979 (7 Oct 04).
... monetary policy, the specific measures would represent a true "regime" change. However, armed with monetary policy models that incorporated both inflation momentum and rational expectations, I also realized that tighter control of money was going to be associated with considerable economic strain fo ...
... monetary policy, the specific measures would represent a true "regime" change. However, armed with monetary policy models that incorporated both inflation momentum and rational expectations, I also realized that tighter control of money was going to be associated with considerable economic strain fo ...
How Did Economists Get It So Wrong?
... “Depressions are 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 are 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 ...
FRBSF E L CONOMIC ETTER
... ease the funds rate only about half as much as the policy rule recommends. It is also persistent.According to the historical policy rule and FOMC economic forecasts, the funds rate should be near its zero lower bound not just for the next six or nine months, but for several years. The policy shortfa ...
... ease the funds rate only about half as much as the policy rule recommends. It is also persistent.According to the historical policy rule and FOMC economic forecasts, the funds rate should be near its zero lower bound not just for the next six or nine months, but for several years. The policy shortfa ...
How Did Economists Get It So Wrong?
... 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. Keynes did not, despite ...
... 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. Keynes did not, despite ...
THE EMPLOYMENT ACT OF 1946: THE ANALYSIS OF
... than they are about unemployment. Part of the reason is that the conservatives don't believe that unemployment is a long term problem. Another reason is that inflation generally occurs during periods of high employment. Inflation leads to higher costs of doing business which, in turn, leads to a los ...
... than they are about unemployment. Part of the reason is that the conservatives don't believe that unemployment is a long term problem. Another reason is that inflation generally occurs during periods of high employment. Inflation leads to higher costs of doing business which, in turn, leads to a los ...
Chapter 17. Expectations, Output
... Now consider an increase in the current period money supply. Such an increase shifts the LM curve to the right, increasing output and reducing the interest rate. In the absence of changes in expectations, the increase in output will be relatively small since the IS curve is steep. If, however, an in ...
... Now consider an increase in the current period money supply. Such an increase shifts the LM curve to the right, increasing output and reducing the interest rate. In the absence of changes in expectations, the increase in output will be relatively small since the IS curve is steep. If, however, an in ...
Money Demand and the Quantity Theory
... useful. Think, by contrast, of how a more ordinary research article in monetary economics is organized. After an introductory section, with motivation and a review of the literature, comes the description of the model: a set of equations, at least some of which might have the variable M in them. The ...
... useful. Think, by contrast, of how a more ordinary research article in monetary economics is organized. After an introductory section, with motivation and a review of the literature, comes the description of the model: a set of equations, at least some of which might have the variable M in them. The ...
Stagnation Traps Gianluca Benigno and Luca Fornaro May 2015
... The zero lower bound constraint and the dependence of growth from the current output gap are both crucial in generating a stagnation trap ...
... The zero lower bound constraint and the dependence of growth from the current output gap are both crucial in generating a stagnation trap ...
Economics: Principles and Applications, 2e by Robert E. Hall & Marc
... When inflation continues for some time, the public develops expectations that the inflation rate in the future will be similar to the inflation rates of the recent past. ...
... When inflation continues for some time, the public develops expectations that the inflation rate in the future will be similar to the inflation rates of the recent past. ...
Behavioral economics and macroeconomic models1
... version. Steinar Holden acknowledges financial support from Hans Böckler Foundation for the project. The paper is part of the research activities at the centre of Equality, Social Organization, and Performance (ESOP) at the Department of Economics at the University of Oslo. ESOP is supported by the ...
... version. Steinar Holden acknowledges financial support from Hans Böckler Foundation for the project. The paper is part of the research activities at the centre of Equality, Social Organization, and Performance (ESOP) at the Department of Economics at the University of Oslo. ESOP is supported by the ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Rational Expectations and Economic Policy
... fluctuates about trend. In the postwar period some of these deviations of measured output from trend have exceeded 5% of trend output. The rate of capital accumulation, in particular the production of producer and consumer durables, is highly correlated with output (all variables are measured as per ...
... fluctuates about trend. In the postwar period some of these deviations of measured output from trend have exceeded 5% of trend output. The rate of capital accumulation, in particular the production of producer and consumer durables, is highly correlated with output (all variables are measured as per ...
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.