Intra-national Purchasing Power Parity and Balassa
... inflation rates will converge to the same value in the long-run. We depart from standard ways of testing for PPP or for Balassa-Samuelson effects. We build on the literature on inflation persistence (Lünnemann and Mathä, 2004 and Vaona and Ascari, 2007), but we move beyond the short-run. We first sp ...
... inflation rates will converge to the same value in the long-run. We depart from standard ways of testing for PPP or for Balassa-Samuelson effects. We build on the literature on inflation persistence (Lünnemann and Mathä, 2004 and Vaona and Ascari, 2007), but we move beyond the short-run. We first sp ...
Measuring the Stance of Monetary Policy in Vietnam: A Structural
... One of the most important challenges for policy makers as well as monetary authority is to determine how to conduct the monetary policy to meet development goals of a country. Among them, measuring a stance of monetary policy has become an increasingly important issue which is the premise to not onl ...
... One of the most important challenges for policy makers as well as monetary authority is to determine how to conduct the monetary policy to meet development goals of a country. Among them, measuring a stance of monetary policy has become an increasingly important issue which is the premise to not onl ...
The Validity of Okuns law in Curacao
... investigate the presence of Okun’s relationship in the Swedish economy, while the co-integration and ECM were used to test the relationship between unemployment and GDP in both the short run and the long run. The study shows that Okun’s Law existed in the Swedish economy for the period starting from ...
... investigate the presence of Okun’s relationship in the Swedish economy, while the co-integration and ECM were used to test the relationship between unemployment and GDP in both the short run and the long run. The study shows that Okun’s Law existed in the Swedish economy for the period starting from ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... apt question: “Where Have All the Flowers Gone?” The Debate over the Causes of the Great Inflation The Great Inflation posed a major intellectual challenge because considerable disagreement prevailed as to its immediate causes in both policy and academic circles, both while it was happening and in t ...
... apt question: “Where Have All the Flowers Gone?” The Debate over the Causes of the Great Inflation The Great Inflation posed a major intellectual challenge because considerable disagreement prevailed as to its immediate causes in both policy and academic circles, both while it was happening and in t ...
UNIVERSITY OF CALICUT Abstract
... An understanding of the institutions, social, political and economic. that influence Economic issues An ability to present one’s own analysis of the problems and issues in the language of an ‘Economist’ ...
... An understanding of the institutions, social, political and economic. that influence Economic issues An ability to present one’s own analysis of the problems and issues in the language of an ‘Economist’ ...
Measuring Systematic Monetary Policy
... of the new classical analysis itself. Initial empirical tests of Lucas’s analysis appeared to support the surprise-only hypothesis (Lucas, 1973, and Barro, 1977, 1978). Lucas (1973) himself realized that monetary surprises alone could not describe the serial correlation of output characteristics of ...
... of the new classical analysis itself. Initial empirical tests of Lucas’s analysis appeared to support the surprise-only hypothesis (Lucas, 1973, and Barro, 1977, 1978). Lucas (1973) himself realized that monetary surprises alone could not describe the serial correlation of output characteristics of ...
Wages, Prices, and Employment: Von Mises and the
... had arrived. Or had it? Subsequent events, marked by the simultaneous existence of high rates of unemployment and price inflation, call into question the "optimistic" view that pervaded the 1960s. The foregoing discussion suggests the extent of variation in perceptions of the relationship between wa ...
... had arrived. Or had it? Subsequent events, marked by the simultaneous existence of high rates of unemployment and price inflation, call into question the "optimistic" view that pervaded the 1960s. The foregoing discussion suggests the extent of variation in perceptions of the relationship between wa ...
Dynamic Asymmetries in the Australian Labour Market Philip M. Bodman School of Economics
... Chauvet, Juhn and Potter (2001) and others have all documented nonlinearities and asymmetries in labour market data for various countries in North America and Europe. Others, such as Andolfatto (1997) have tried to explain these asymmetries through modelling the optimal search activities of individu ...
... Chauvet, Juhn and Potter (2001) and others have all documented nonlinearities and asymmetries in labour market data for various countries in North America and Europe. Others, such as Andolfatto (1997) have tried to explain these asymmetries through modelling the optimal search activities of individu ...
Expectations Traps and Coordination Failures with Discretionary
... Second, drawing on Cohen and Michel (1988) and Oudiz and Sachs (1985), we reinterpret the control problem as a dynamic game between policymakers at different points in time. Feedback equilibria of the discretionary control problem correspond to Markov-perfect Nash equilibria of the dynamic game. We ...
... Second, drawing on Cohen and Michel (1988) and Oudiz and Sachs (1985), we reinterpret the control problem as a dynamic game between policymakers at different points in time. Feedback equilibria of the discretionary control problem correspond to Markov-perfect Nash equilibria of the dynamic game. We ...
Macroeconomic Shocks and Monetary Policy
... Electronic sources.............................................................................................................................. 33 ...
... Electronic sources.............................................................................................................................. 33 ...
NBER WORKING PAPER SERIES OPTIMAL SIMPLE AND IMPLEMENTABLE MONETARY AND FISCAL RULES
... inal rigidities induce inefficiencies even in the long run, and where there is a nonnegligible demand for money. Specifically, this paper characterizes monetary and fiscal policy rules that are optimal within a family of implementable, simple rules in a calibrated model of the business cycle. In th ...
... inal rigidities induce inefficiencies even in the long run, and where there is a nonnegligible demand for money. Specifically, this paper characterizes monetary and fiscal policy rules that are optimal within a family of implementable, simple rules in a calibrated model of the business cycle. In th ...
Understanding Inflation and the Implications for
... this effect was not generally present in his data, except when retail prices rose rapidly due to the effects of imported goods or domestic agricultural prices. This cost-of-living effect could mask the underlying negative correlation, and Phillips took some care to identify years in which the rate o ...
... this effect was not generally present in his data, except when retail prices rose rapidly due to the effects of imported goods or domestic agricultural prices. This cost-of-living effect could mask the underlying negative correlation, and Phillips took some care to identify years in which the rate o ...
FROM STANDARD TO David I. Fand A RANDOM-WALK MONETARY
... exponentially as the number of months or years increases. In other words, a forecast of 12 months will be more variable than a forecast of 3 months, and a forecast 10 years away is a lot more uncertain than one 5 years away. Different transactors in the market guess differently as to the state of ex ...
... exponentially as the number of months or years increases. In other words, a forecast of 12 months will be more variable than a forecast of 3 months, and a forecast 10 years away is a lot more uncertain than one 5 years away. Different transactors in the market guess differently as to the state of ex ...
Evolving post-World War II UK economic
... In recent years, a vast literature has documented an increase in the extent of stability of the US economy over the past two decades. Kim and Nelson (1999) estimate a two-state Markov-switching model for real GDP growth via Bayesian methods, identifying a break date in 1984:1, and both a decline in ...
... In recent years, a vast literature has documented an increase in the extent of stability of the US economy over the past two decades. Kim and Nelson (1999) estimate a two-state Markov-switching model for real GDP growth via Bayesian methods, identifying a break date in 1984:1, and both a decline in ...
Demand-Pull Inflation
... Aggregate Supply (AS) is the total of all the firm (market) supply curves. It shows the quantity of real GDP produced at different price levels. Short-run AS slopes upward because an increase in the price level (while production costs and capital are held constant on the short-run), means higher pro ...
... Aggregate Supply (AS) is the total of all the firm (market) supply curves. It shows the quantity of real GDP produced at different price levels. Short-run AS slopes upward because an increase in the price level (while production costs and capital are held constant on the short-run), means higher pro ...
CHAPTER ELEVEN UNEMPLOYMENT
... correction mechanism and prompted John Maynard Keynes to develop a model of the short run characteristics and workings of the economy. Following the path blazed by Keynes and his followers, much has been learned about unemployment and its causes and cures. Most economists (real business cycle school ...
... correction mechanism and prompted John Maynard Keynes to develop a model of the short run characteristics and workings of the economy. Following the path blazed by Keynes and his followers, much has been learned about unemployment and its causes and cures. Most economists (real business cycle school ...
The Effects of Government Spending Shocks on Consumption under
... Analyzing the e¤ects of changes in government spending on private consumption is important for understanding the e¤ects of …scal policy on people’s welfare. Private consumption is the largest component of aggregate demand and is also assumed to be a principal determinant of agents’welfare. Economic ...
... Analyzing the e¤ects of changes in government spending on private consumption is important for understanding the e¤ects of …scal policy on people’s welfare. Private consumption is the largest component of aggregate demand and is also assumed to be a principal determinant of agents’welfare. Economic ...
NBER WORKING PAPER SERIES INFLATION AND LABOR—MARKET ADJUSTMENT Working Paper No. 1153
... Taking logarithms in (5) and linearizing: ...
... Taking logarithms in (5) and linearizing: ...
Chapter 51: Types and causes of unemployment
... Worker programs aimed at increasing skill levels, such as apprentice programs and government run training schemes have been implemented in many European countries. A particularly Scandinavian attempt at lowering search unemployment for young people was to offer firms a “discount” on labour taxes whe ...
... Worker programs aimed at increasing skill levels, such as apprentice programs and government run training schemes have been implemented in many European countries. A particularly Scandinavian attempt at lowering search unemployment for young people was to offer firms a “discount” on labour taxes whe ...
Chapter 19 Output and Inflation in the Short Run: Aggregate Supply
... its natural rate, the corresponding ’natural’ level of output may fluctuate due to short-run fluctuations in labour productivity. Second, output will tend to fluctuate around its trend to the extent that unemployment fluctuates around its natural rate. In the previous chapter we found that the rate ...
... its natural rate, the corresponding ’natural’ level of output may fluctuate due to short-run fluctuations in labour productivity. Second, output will tend to fluctuate around its trend to the extent that unemployment fluctuates around its natural rate. In the previous chapter we found that the rate ...
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.