Business Cycle Theories
... (Y N ) and generate business cycles. Because the level of output is always equal to the natural real GDP (Y N ) when expectations are accurate, the long-run aggregate supply curve is vertical. The model, which obeys the natural rate hypothesis (shifts in aggregate demand have no long-run effect on r ...
... (Y N ) and generate business cycles. Because the level of output is always equal to the natural real GDP (Y N ) when expectations are accurate, the long-run aggregate supply curve is vertical. The model, which obeys the natural rate hypothesis (shifts in aggregate demand have no long-run effect on r ...
understanding stagflation
... In my opinion, the suitable approach for macroeconomics is somewhere in between: to explain the broad principles, drawing upon economic history. An analogy may help explain my approach. A seismologist could write a book about soil formation and earthquake risk in the Terai region, with enormous deta ...
... In my opinion, the suitable approach for macroeconomics is somewhere in between: to explain the broad principles, drawing upon economic history. An analogy may help explain my approach. A seismologist could write a book about soil formation and earthquake risk in the Terai region, with enormous deta ...
FISCAL POLICY IN AN ENDOGENOUS GROWTH
... The analysis in this study is based on the assumption that the government has recourse to lump-sum household taxes and raises tax revenue equal to the total value of 11 subsidies in every period. In such a setting the first-best policy can be pursued in all cases. However, if lump-sum taxes are abse ...
... The analysis in this study is based on the assumption that the government has recourse to lump-sum household taxes and raises tax revenue equal to the total value of 11 subsidies in every period. In such a setting the first-best policy can be pursued in all cases. However, if lump-sum taxes are abse ...
Implications of insights from behavioral economics for
... the economics profession. Moreover, behavioral features have been introduced in all parts of macroeconomics. Where has this development led us? Which assumptions should one now make when analyzing macroeconomic questions? This is the topic of the present paper. The aim of the paper is to provide a s ...
... the economics profession. Moreover, behavioral features have been introduced in all parts of macroeconomics. Where has this development led us? Which assumptions should one now make when analyzing macroeconomic questions? This is the topic of the present paper. The aim of the paper is to provide a s ...
Classical Economics and the Business Cycles
... • Big debate in the profession, on how to interpret the Solow residual. • What is a negative A shock? Why should positive A shocks across industries be correlated? Recall in a business cycle all the sectors of the economy move together. ...
... • Big debate in the profession, on how to interpret the Solow residual. • What is a negative A shock? Why should positive A shocks across industries be correlated? Recall in a business cycle all the sectors of the economy move together. ...
Economic Schools of Thought – Monetarism
... Many critics characterized the “experiment” as a macroeconomic disaster. Some believed, moreover, that it provided strong and definitive evidence invalidating monetarism—partly by showing how undesirable it was to have money growth targets and partly in showing how poor are operating procedures for ...
... Many critics characterized the “experiment” as a macroeconomic disaster. Some believed, moreover, that it provided strong and definitive evidence invalidating monetarism—partly by showing how undesirable it was to have money growth targets and partly in showing how poor are operating procedures for ...
stabilization policy.notebook - S Hoyt
... prices (low inflation) and more unemployment. • Unemployment goes up because there is a decrease in spending. • Governments want to regulate this to keep it in balance. • Too much growth leads to higher and higher prices. • Very high prices leads to an economic collapse. • No growth at al ...
... prices (low inflation) and more unemployment. • Unemployment goes up because there is a decrease in spending. • Governments want to regulate this to keep it in balance. • Too much growth leads to higher and higher prices. • Very high prices leads to an economic collapse. • No growth at al ...
Study Questions concerning the Phillips Curve
... the same d. Inflation will increase, and unemployment might go up, might go down, or might stay the same e. Inflation will stay the same, but unemployment will ...
... the same d. Inflation will increase, and unemployment might go up, might go down, or might stay the same e. Inflation will stay the same, but unemployment will ...
Adaptive microfoundations for emergent macroeconomics
... Within just five years from the above forceful warning by Roy Weintraub against the inadequacy of the Walrasian auctioneer to logically produce any interesting real-time macroeconomic issues, the appearance of two complementary papers contributed to establish the currently dominant scientific standa ...
... Within just five years from the above forceful warning by Roy Weintraub against the inadequacy of the Walrasian auctioneer to logically produce any interesting real-time macroeconomic issues, the appearance of two complementary papers contributed to establish the currently dominant scientific standa ...
Scientific Economics: new vs old economics, or neoclassical
... world mistakenly regarded as being based on scientific method or as having the status that scientific truths now have.” OED • “... [A] body of knowledge can reasonably be called pseudoscientific when it is presented as consistent with the norms of scientific research; while failing to meet these nor ...
... world mistakenly regarded as being based on scientific method or as having the status that scientific truths now have.” OED • “... [A] body of knowledge can reasonably be called pseudoscientific when it is presented as consistent with the norms of scientific research; while failing to meet these nor ...
ECON 2020-200 Principles of Macroeconomics
... major exams = 50 questions, and the comprehensive final = 100 questions. Exemption from the First Two Exams: Students cumulatively scoring in the top 5% on the four quizzes given during each of the first two five-week modules are exempt from that major exam, with an automatic grade of 150 points. Al ...
... major exams = 50 questions, and the comprehensive final = 100 questions. Exemption from the First Two Exams: Students cumulatively scoring in the top 5% on the four quizzes given during each of the first two five-week modules are exempt from that major exam, with an automatic grade of 150 points. Al ...
Economic History - The Bleyzer Foundation
... Golden Rule ("Do unto others as you would have them do unto you"), the Scholastics decided that a person should not charge more for a good than what he would be willing to pay for it himself. This not only to make ethical sense but also seemed like a good way to estimate the "usefulness" of a good. ...
... Golden Rule ("Do unto others as you would have them do unto you"), the Scholastics decided that a person should not charge more for a good than what he would be willing to pay for it himself. This not only to make ethical sense but also seemed like a good way to estimate the "usefulness" of a good. ...
Click here to my slides
... failure of mainstream economics 80 years ago? • According to mainstream economists: the former • In reality: the latter – Many other Schools of Thought exist that CORE ignores… • Post Keynesian (see King 2003, 2012 for detailed history) ...
... failure of mainstream economics 80 years ago? • According to mainstream economists: the former • In reality: the latter – Many other Schools of Thought exist that CORE ignores… • Post Keynesian (see King 2003, 2012 for detailed history) ...
ECON 6080-001 Applied Macroeconomic Theory
... macroeconomics dominated the economics profession and policy circles . Weaknesses in the Keynesian model became apparent with the coexistence of high unemployment and price inflation during the 1970s and the failure of Keynesian based econometric models to predict macroeconomic fluctuations during t ...
... macroeconomics dominated the economics profession and policy circles . Weaknesses in the Keynesian model became apparent with the coexistence of high unemployment and price inflation during the 1970s and the failure of Keynesian based econometric models to predict macroeconomic fluctuations during t ...
Presentation to a Salt Lake City Community Leaders Luncheon
... Aggregate demand, in turn, depends on a number of factors. These include fiscal policy; the pace of growth in our main trading partners; movements in asset prices, such as stocks and housing, that influence the propensity of households to save and spend; the slope of the yield curve, which determine ...
... Aggregate demand, in turn, depends on a number of factors. These include fiscal policy; the pace of growth in our main trading partners; movements in asset prices, such as stocks and housing, that influence the propensity of households to save and spend; the slope of the yield curve, which determine ...
Macro1 Exercise #5 Answers
... Compare these last results with the initial situation. Is this economy is experiencing economic expansion, economic stagnation or economic decline? Economic decline. Considering that the economy is in a recession, should the government have increased taxes? No (Yes, No). Why or why not? The economy ...
... Compare these last results with the initial situation. Is this economy is experiencing economic expansion, economic stagnation or economic decline? Economic decline. Considering that the economy is in a recession, should the government have increased taxes? No (Yes, No). Why or why not? The economy ...
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.