Lecture 2: New Keynesian Model in Continuous Time
... RBC model: cannot even think about these issues! Real variables are completely separate from nominal variables (“monetary neutrality”, “classical dichotomy”). Corollary: monetary policy has no effect on any real variables. Sticky prices break “monetary neutrality” Workhorse model at central banks (s ...
... RBC model: cannot even think about these issues! Real variables are completely separate from nominal variables (“monetary neutrality”, “classical dichotomy”). Corollary: monetary policy has no effect on any real variables. Sticky prices break “monetary neutrality” Workhorse model at central banks (s ...
The Politics of Economics
... believed that a country’s national wealth would grow if it generated large trade surpluses: that is, if it exported more than it imported. Mercantilists were also forceful advocates of strong central government, in part to strengthen colonial power and hence boost the trade surplus. Even today, the ...
... believed that a country’s national wealth would grow if it generated large trade surpluses: that is, if it exported more than it imported. Mercantilists were also forceful advocates of strong central government, in part to strengthen colonial power and hence boost the trade surplus. Even today, the ...
macro98b
... Economics is the starting point of this year's work so you are urged to revise introductory principles as we proceed. Macroeconomics is a controversial subject. There are disagreements among economists about the sources of economic growth, the causes of unemployment, the effectiveness of fiscal poli ...
... Economics is the starting point of this year's work so you are urged to revise introductory principles as we proceed. Macroeconomics is a controversial subject. There are disagreements among economists about the sources of economic growth, the causes of unemployment, the effectiveness of fiscal poli ...
PDF Download
... the Tinbergen Lecture, held on October 22nd, 2004. The lecture was instituted by the Royal Netherlands Economic Association as a memorial to Holland’s first Nobel laureate in economics, Prof. Jan Tinbergen. Amongst previous lecturers were Lawrence Klein, James Tobin, Robert Solow, Franco Modigliani, ...
... the Tinbergen Lecture, held on October 22nd, 2004. The lecture was instituted by the Royal Netherlands Economic Association as a memorial to Holland’s first Nobel laureate in economics, Prof. Jan Tinbergen. Amongst previous lecturers were Lawrence Klein, James Tobin, Robert Solow, Franco Modigliani, ...
Notes on government policy
... Rules versus discretion. One of the ways unintended consequences were explored was through the issue of rules versus discretion. What was argued was that there can be unintended consequences if policy makers have discretion instead of following set rules. The unintended consequence is manipulation. ...
... Rules versus discretion. One of the ways unintended consequences were explored was through the issue of rules versus discretion. What was argued was that there can be unintended consequences if policy makers have discretion instead of following set rules. The unintended consequence is manipulation. ...
macroeconomic policy
... Neutral fiscal policy - Modest fiscal policy. Generally not a common stance to take as there is no intention of affecting economic activity - this is rare, especially in contemporary times. If revenues > expenses → surplus of national budget If revenues < expenses → deficit of national budget ...
... Neutral fiscal policy - Modest fiscal policy. Generally not a common stance to take as there is no intention of affecting economic activity - this is rare, especially in contemporary times. If revenues > expenses → surplus of national budget If revenues < expenses → deficit of national budget ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER International Seminar on Macroeconomics 2008
... very stylized, focusing on the terms of trade as the main international transmission channel. International risk sharing is assumed to be perfect. In the second part of the paper, Clarida then performs an empirical analysis of recent Fed behavior. This exercise is in the spirit of Taylor’s (1993) or ...
... very stylized, focusing on the terms of trade as the main international transmission channel. International risk sharing is assumed to be perfect. In the second part of the paper, Clarida then performs an empirical analysis of recent Fed behavior. This exercise is in the spirit of Taylor’s (1993) or ...
99下總經考試2
... 7. According to the efficiency wage model, firms will pay the real wage that （Ch 11） A) maximizes workers' marginal productivity. B) maximizes the marginal productivity of capital and the marginal productivity of labor together. C) maximizes effort per dollar of real wage. D) minimizes hiring and tr ...
... 7. According to the efficiency wage model, firms will pay the real wage that （Ch 11） A) maximizes workers' marginal productivity. B) maximizes the marginal productivity of capital and the marginal productivity of labor together. C) maximizes effort per dollar of real wage. D) minimizes hiring and tr ...
Activity questions
... the value of the GDP deflator has risen from 100 to 120. In this case: a) Real GDP has risen by 20%. b) Real GDP has fallen by 20%. c) Real GDP has stayed the same. d) Real GDP has risen more quickly than nominal GDP. 2. Why isn’t the natural rate of unemployment equal to zero? a) Both c and d answe ...
... the value of the GDP deflator has risen from 100 to 120. In this case: a) Real GDP has risen by 20%. b) Real GDP has fallen by 20%. c) Real GDP has stayed the same. d) Real GDP has risen more quickly than nominal GDP. 2. Why isn’t the natural rate of unemployment equal to zero? a) Both c and d answe ...
The Classical-Keynesian Paradigm: Policy Debate in Contemporary
... determining the prices, as prices were considered to be directly proportional to supply of money in the market (Mishkin, 2004). Classical economics dominated the study of economics for more than 150 years, and continues doing so even till now. Over this period, classical economics was improved conce ...
... determining the prices, as prices were considered to be directly proportional to supply of money in the market (Mishkin, 2004). Classical economics dominated the study of economics for more than 150 years, and continues doing so even till now. Over this period, classical economics was improved conce ...
Types of Unemployment
... • High inflation is a major economic problem, especially when inflation rates change greatly from year to year. Purchasing Power – In an inflationary economy, a dollar loses value. It will not buy the same amount of goods that it did in years past. Interest Rates – When a bank's interest rate matche ...
... • High inflation is a major economic problem, especially when inflation rates change greatly from year to year. Purchasing Power – In an inflationary economy, a dollar loses value. It will not buy the same amount of goods that it did in years past. Interest Rates – When a bank's interest rate matche ...
Phoenix Society of Financial Analysts and Arizona State University Business... ASU, Memorial Union - Ventana Room
... The western economy has expanded rapidly during the past year, due in large part to California's growing strength. ...
... The western economy has expanded rapidly during the past year, due in large part to California's growing strength. ...
Economics Revision: Conflicts between Macro Objectives
... Stagflation is a period of economic stagnation accompanied by rising inflation. In other words, both of these key macro objectives are worsening. It can happen when an economy goes into a downturn or ...
... Stagflation is a period of economic stagnation accompanied by rising inflation. In other words, both of these key macro objectives are worsening. It can happen when an economy goes into a downturn or ...
Three Items for the Macroeconomic Agenda
... proportions in comparison. Economic reform in Mexico first attracted large capital inflows and created a consumption boom. When doubts about the sustainability of the current account deficit began to spread in the market, the capital inflow reversed and the boom collapsed7. Drastic devaluations spar ...
... proportions in comparison. Economic reform in Mexico first attracted large capital inflows and created a consumption boom. When doubts about the sustainability of the current account deficit began to spread in the market, the capital inflow reversed and the boom collapsed7. Drastic devaluations spar ...
ECON366 - KONSTANTINOS KANELLOPOULOS
... different times in different areas. (Ski instructors are only needed in winter; college students tend to enter the labor force temporarily during the summer, etc.) Cyclical unemployment refers to the unemployment that occurs as the economy enters a downturn. ...
... different times in different areas. (Ski instructors are only needed in winter; college students tend to enter the labor force temporarily during the summer, etc.) Cyclical unemployment refers to the unemployment that occurs as the economy enters a downturn. ...
Macroeconomics Theory - Future University in Egypt
... Appraise the relevance of Economics to society and appreciate how the laws of Economics are developed. Identify the underlying economic forces that drive economic growth and policy decisions. Acquire sufficient knowledge of methods of macroeconomic analysis engaging in analysis using common econo ...
... Appraise the relevance of Economics to society and appreciate how the laws of Economics are developed. Identify the underlying economic forces that drive economic growth and policy decisions. Acquire sufficient knowledge of methods of macroeconomic analysis engaging in analysis using common econo ...
Has the resurgence of Keynesianism already peaked?
... money should be increased at a predetermined yearly—or even monthly!—percentage rate. Even the rule’s originator, Milton Friedman, had long since abandoned this extreme tenet. Yet other insights, derived at least partly from monetarist critiques of what demand-management policy could achieve, should ...
... money should be increased at a predetermined yearly—or even monthly!—percentage rate. Even the rule’s originator, Milton Friedman, had long since abandoned this extreme tenet. Yet other insights, derived at least partly from monetarist critiques of what demand-management policy could achieve, should ...
University of the West Indies, Mona Campus Council Luncheon
... The reduction in foreign exchange inflows severely challenged the central bank efforts to maintain stability in the foreign exchange market. Additionally, the global financial crisis had an impact on the domestic financial system as the international credit markets became increasingly tight. Some in ...
... The reduction in foreign exchange inflows severely challenged the central bank efforts to maintain stability in the foreign exchange market. Additionally, the global financial crisis had an impact on the domestic financial system as the international credit markets became increasingly tight. Some in ...
Unit 3 concept objectives outline
... The purpose of this unit is to provide students with the opportunity for a detailed examination of the major macroeconomic issues facing countries' economic growth, economic development, unemployment, inflation and income distribution. The economic strategies available to governments - demand side p ...
... The purpose of this unit is to provide students with the opportunity for a detailed examination of the major macroeconomic issues facing countries' economic growth, economic development, unemployment, inflation and income distribution. The economic strategies available to governments - demand side p ...
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.