NBER WORKING PAPER SERIES AN ALTERNATIVE INTERPRETATION
... subject to self-fulfilling expectations-driven fluctuations. The policy reversal enacted by Volcker and continued by Greenspan—namely the increased focus on fighting inflation—stabilized inflationary expectations and removed this source of economic instability.2 The theoretical argument is based on ...
... subject to self-fulfilling expectations-driven fluctuations. The policy reversal enacted by Volcker and continued by Greenspan—namely the increased focus on fighting inflation—stabilized inflationary expectations and removed this source of economic instability.2 The theoretical argument is based on ...
Kirjallisen työn pohja
... In 1996, a research found that inflation was the term that appeared most frequently in the popular media. At that time, there were statistically 872,000 news stories which contained the word “inflation”. Unemployment ranked second in the frequency of appearance with 603,000 stories. The public inter ...
... In 1996, a research found that inflation was the term that appeared most frequently in the popular media. At that time, there were statistically 872,000 news stories which contained the word “inflation”. Unemployment ranked second in the frequency of appearance with 603,000 stories. The public inter ...
Budget deficits and inflation feedback
... hyperinflation (a monthly inflation rate that remains above 50 percent for at least a year) and have rather similar characteristics of the dynamics of fiscal and monetary variables. However, they are different in one important aspect. In general, classical hyperinflations took place when a previousl ...
... hyperinflation (a monthly inflation rate that remains above 50 percent for at least a year) and have rather similar characteristics of the dynamics of fiscal and monetary variables. However, they are different in one important aspect. In general, classical hyperinflations took place when a previousl ...
12INFLATION*
... B) expansionary monetary policy followed by decreases in the money wage rate. C) rises in prices of raw materials followed by expansionary monetary policy. D) simultaneous expansionary aggregate demand and aggregate supply shifts. Answer: A Topic: Initial Effect of an Increase in Aggregate ...
... B) expansionary monetary policy followed by decreases in the money wage rate. C) rises in prices of raw materials followed by expansionary monetary policy. D) simultaneous expansionary aggregate demand and aggregate supply shifts. Answer: A Topic: Initial Effect of an Increase in Aggregate ...
This PDF is a selection from a published volume from
... and theoretical issues deserve attention. (1) How can the country build credibility when faced with larger shocks? And how can it balance flexibility and credibility in such an instance? (2) How does an inflation-targeting regime work in a disinflation process? And in a credibilitybuilding process? ...
... and theoretical issues deserve attention. (1) How can the country build credibility when faced with larger shocks? And how can it balance flexibility and credibility in such an instance? (2) How does an inflation-targeting regime work in a disinflation process? And in a credibilitybuilding process? ...
Varieties of uncertainty: a survey of the economic literature
... from fundamental uncertainty, some of the terms just discussed may be used to separate ambiguity from a class of situations in which what is missing are not only pieces of information but also a more complete knowledge of how to interpret the situation. 3. Procedural uncertainty in the economic lite ...
... from fundamental uncertainty, some of the terms just discussed may be used to separate ambiguity from a class of situations in which what is missing are not only pieces of information but also a more complete knowledge of how to interpret the situation. 3. Procedural uncertainty in the economic lite ...
MONETARY POLICY UNDER A NEW KEYNESIAN PERSPECTIVE
... Chapter 2 provides a New Keynesian framework to study the interaction among oil price volatility, firms’ pricing behaviour and monetary policy. We show that when oil is difficult to substitute in production, firms find optimal to charge higher relative prices as a premium in compensation for the ris ...
... Chapter 2 provides a New Keynesian framework to study the interaction among oil price volatility, firms’ pricing behaviour and monetary policy. We show that when oil is difficult to substitute in production, firms find optimal to charge higher relative prices as a premium in compensation for the ris ...
Inflation targeting, economic performance, and income distribution: a
... central bank to accommodate the demands of the government, say, by easing interest rates to achieve fiscal goals.” Hence, an inflation targeting regime forces “fiscal policy to align with monetary policy” (Mishkin 2000, p. 2). Further, advocates of the NCM require central banks to have only one poli ...
... central bank to accommodate the demands of the government, say, by easing interest rates to achieve fiscal goals.” Hence, an inflation targeting regime forces “fiscal policy to align with monetary policy” (Mishkin 2000, p. 2). Further, advocates of the NCM require central banks to have only one poli ...
Keynes`s economics and the question of public debt
... distinction between the government’s current and capital budgetary items. Keynes opposed discretionary budget deficits of current expenditures over current revenue. However, Keynes did maintain that public capital expenditures should be at least partly debt-financed. As such, Keynes’s concern was w ...
... distinction between the government’s current and capital budgetary items. Keynes opposed discretionary budget deficits of current expenditures over current revenue. However, Keynes did maintain that public capital expenditures should be at least partly debt-financed. As such, Keynes’s concern was w ...
NEER WORKING PAPER SERIES EQUILIBRIUM MODELS OF ENDOCENOUS FLUCTUATIONS: AN INTRODUCTION Michael Woodford
... the consequences of asymptotic stong detuminacy when conjoined with glc*ial weak detenninacy, but strictly speaking it is logically possible to asset asymptotic stung determinacy while denying the global weak detenninacy thesis, in which case one would allow (k, PS) to depend upon the history of rea ...
... the consequences of asymptotic stong detuminacy when conjoined with glc*ial weak detenninacy, but strictly speaking it is logically possible to asset asymptotic stung determinacy while denying the global weak detenninacy thesis, in which case one would allow (k, PS) to depend upon the history of rea ...
Publication - European Commission
... Goldilocks? The Role of Expectations in Estimates of the NAIRU in the US and the UK”, Oxford Bulletin of Economics and Statistics, Volume 68, Issue 1, Pages 45-79. ..................................................................................42 ...
... Goldilocks? The Role of Expectations in Estimates of the NAIRU in the US and the UK”, Oxford Bulletin of Economics and Statistics, Volume 68, Issue 1, Pages 45-79. ..................................................................................42 ...
Economic Review, 2nd Quarter, 1999
... on the part of the Federal Reserve. Many analysts have noted that the Federal Reserve has a tendency to smooth movements of the funds rate (Goodfriend; Orphanides; Clarida, Gali, and Gertler 1998). Concern about the stability of financial markets may lead the Federal Reserve to smooth funds rate cha ...
... on the part of the Federal Reserve. Many analysts have noted that the Federal Reserve has a tendency to smooth movements of the funds rate (Goodfriend; Orphanides; Clarida, Gali, and Gertler 1998). Concern about the stability of financial markets may lead the Federal Reserve to smooth funds rate cha ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... both policy decisions and the principles guiding them were largely modern and appropriate (i.e., natural rate / long-run-vertical Phillips curve ideas had been rapidly incorporated into policy thinking; and the monetary authorities deliberately made real interest rates positive in order to move from ...
... both policy decisions and the principles guiding them were largely modern and appropriate (i.e., natural rate / long-run-vertical Phillips curve ideas had been rapidly incorporated into policy thinking; and the monetary authorities deliberately made real interest rates positive in order to move from ...
Chapter 27 Money and Inflation
... According to the monetarist view of inflation, a continually increasing money supply causes (a) the aggregate demand curve to shift right along a stationary aggregate supply curve, leading to continually increasing aggregate output and prices. (b) the aggregate supply curve to shift left along a sta ...
... According to the monetarist view of inflation, a continually increasing money supply causes (a) the aggregate demand curve to shift right along a stationary aggregate supply curve, leading to continually increasing aggregate output and prices. (b) the aggregate supply curve to shift left along a sta ...
Kad Brunner*
... that monetary impulses were transmitted in accordance with the relative borrowing costs prevailing over the spectrum of activities represented by expenditure categories in national income accounts. It appeared that housing operates within this spectrum with the largest relative borrowing costs. Majo ...
... that monetary impulses were transmitted in accordance with the relative borrowing costs prevailing over the spectrum of activities represented by expenditure categories in national income accounts. It appeared that housing operates within this spectrum with the largest relative borrowing costs. Majo ...
The Great Inflation in the United States and the United Kingdom
... 1969−70 in which both policy decisions and the principles guiding them were largely modern and appropriate (i.e.: natural rate/long-run-vertical Phillips curve ideas had been rapidly incorporated into policy thinking; and the monetary authorities deliberately made real interest rates positive in ord ...
... 1969−70 in which both policy decisions and the principles guiding them were largely modern and appropriate (i.e.: natural rate/long-run-vertical Phillips curve ideas had been rapidly incorporated into policy thinking; and the monetary authorities deliberately made real interest rates positive in ord ...
A Literature Survey with Special Reference to Theories of Inflation
... Keynes’ (1940) inflationary gap model was mainly a demand-side model with wage rigidities in the short-run but without any explicit remarks about the money market developments as in the QTM. Furthermore, his nonmonetary, demand-pull approach to inflation was influenced also by some cost-push argumen ...
... Keynes’ (1940) inflationary gap model was mainly a demand-side model with wage rigidities in the short-run but without any explicit remarks about the money market developments as in the QTM. Furthermore, his nonmonetary, demand-pull approach to inflation was influenced also by some cost-push argumen ...
Price Stability versus Full Employment: The Phillips Curve Dilemma
... Hence, even though so much has been written on this topic by much more sophisticated economists than myself, the important role of the Phillips curve in nearly any macroeconomic model and the ongoing debates, be it about theoretical or policy-related issues, prove that the Phillips curve is still a ...
... Hence, even though so much has been written on this topic by much more sophisticated economists than myself, the important role of the Phillips curve in nearly any macroeconomic model and the ongoing debates, be it about theoretical or policy-related issues, prove that the Phillips curve is still a ...
Causes of Inflation in Turkey: A Literature Survey with
... Keynes’ (1940) inflationary gap model was mainly a demand-side model with wage rigidities in the short-run but without any explicit remarks about the money market developments as in the QTM. Furthermore, his nonmonetary, demand-pull approach to inflation was influenced also by some cost-push argumen ...
... Keynes’ (1940) inflationary gap model was mainly a demand-side model with wage rigidities in the short-run but without any explicit remarks about the money market developments as in the QTM. Furthermore, his nonmonetary, demand-pull approach to inflation was influenced also by some cost-push argumen ...
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.