What was the primary factor encouraging mainstream economists to
... attack on Tarshis’s text. This neoclassical synthesis terminology, however, does appears prominently in the later editions of Samuelson’s textbook. From hindsight it would appear that Samuelson’s assertion that his brand of Keynesian macroeconomics is synthesized with (and based on ) traditional ne ...
... attack on Tarshis’s text. This neoclassical synthesis terminology, however, does appears prominently in the later editions of Samuelson’s textbook. From hindsight it would appear that Samuelson’s assertion that his brand of Keynesian macroeconomics is synthesized with (and based on ) traditional ne ...
Recession
... But as the major lesson in history on how monetary policy disturb the coordination process in economic life, both through expansion and contraction of the money supply ...
... But as the major lesson in history on how monetary policy disturb the coordination process in economic life, both through expansion and contraction of the money supply ...
FULL EMPLOYMENT, THE VALUE OF MONEY AND DEFICIT
... identical to the exogenously determined money wage-rate in a state of perfect full employment. The money wage rate determines the value of the fundamental resource, labor. Therefore, the higher the level of the fixed base wage rate the higher is the real value of the currency. This fair wage-rate is ...
... identical to the exogenously determined money wage-rate in a state of perfect full employment. The money wage rate determines the value of the fundamental resource, labor. Therefore, the higher the level of the fixed base wage rate the higher is the real value of the currency. This fair wage-rate is ...
by Richard G. Lipsey - canadian economics association
... From 1970 to 1981 I taught graduate stabilisation policy and undergraduate macro economics at Queens University. At the end of that time, I decided that the new-classical macroeconomics with its surprises-only aggregate supply curve and its accompanying real business cycle theory was a blind alley. ...
... From 1970 to 1981 I taught graduate stabilisation policy and undergraduate macro economics at Queens University. At the end of that time, I decided that the new-classical macroeconomics with its surprises-only aggregate supply curve and its accompanying real business cycle theory was a blind alley. ...
The comparative statics of effective demand
... Effective demand is a nasty subject. So much ink has been spilled over it already and still you cannot be sure what your colleague means when she uses the term. Most people probably think of effective demand as suggesting that aggregate demand determines aggregate supply as in Samuelson’s model of t ...
... Effective demand is a nasty subject. So much ink has been spilled over it already and still you cannot be sure what your colleague means when she uses the term. Most people probably think of effective demand as suggesting that aggregate demand determines aggregate supply as in Samuelson’s model of t ...
Chapter 21. IS-LM Aggregate Output and Keynesian Cross Diagrams
... aggregate output are determined by that intersection. We can then shift the IS and LM curves around to see how they affect interest rates and output, i* and Y*. In the next chapter, we’ll see how policymakers manipulate those curves to increase output. But we still won’t be done because, as mentione ...
... aggregate output are determined by that intersection. We can then shift the IS and LM curves around to see how they affect interest rates and output, i* and Y*. In the next chapter, we’ll see how policymakers manipulate those curves to increase output. But we still won’t be done because, as mentione ...
Aggregate Demand File
... • Occurs when firms spend on capital to increase their output, which is in response to higher demand in the economy. ...
... • Occurs when firms spend on capital to increase their output, which is in response to higher demand in the economy. ...
The IS-LM model
... The goods market, which is at equilibrium when investments equal savings, hence IS. The money market, which is at equilibrium when the demand for liquidity equals money supply, hence LM. Examining the joint equilibrium in these two markets allows us to determine two variables : output Y and the inte ...
... The goods market, which is at equilibrium when investments equal savings, hence IS. The money market, which is at equilibrium when the demand for liquidity equals money supply, hence LM. Examining the joint equilibrium in these two markets allows us to determine two variables : output Y and the inte ...
The IS-LM model
... The goods market, which is at equilibrium when investments equal savings, hence IS. The money market, which is at equilibrium when the demand for liquidity equals money supply, hence LM. Examining the joint equilibrium in these two markets allows us to determine two variables : output Y and the inte ...
... The goods market, which is at equilibrium when investments equal savings, hence IS. The money market, which is at equilibrium when the demand for liquidity equals money supply, hence LM. Examining the joint equilibrium in these two markets allows us to determine two variables : output Y and the inte ...
The IS-LM model
... The goods market, which is at equilibrium when investments equal savings, hence IS. The money market, which is at equilibrium when the demand for liquidity equals money supply, hence LM. Examining the joint equilibrium in these two markets allows us to determine two variables : output Y and the inte ...
... The goods market, which is at equilibrium when investments equal savings, hence IS. The money market, which is at equilibrium when the demand for liquidity equals money supply, hence LM. Examining the joint equilibrium in these two markets allows us to determine two variables : output Y and the inte ...
Reflections On Hayek’s Business Cycle Theory
... goes so far as to say that “the whole notion that he [Keynes] has made popular, macroeconomics,” must be “set aside.”” 1-layek now says there are two exceptions to the rule that changes in aggregate demand do not affect the level of employment. The first one was “an accidental historic situation.” I ...
... goes so far as to say that “the whole notion that he [Keynes] has made popular, macroeconomics,” must be “set aside.”” 1-layek now says there are two exceptions to the rule that changes in aggregate demand do not affect the level of employment. The first one was “an accidental historic situation.” I ...
Principles of Macroeconomics
... Understand the importance of thinking in terms of marginal analysis. Appreciate the concept of ‘Opportunity Cost’ and ‘Production Possibilities Frontier’. Appreciate that gain from trade can accrue to all parties engaged in trade. Understand why countries gain from trade – ‘Absolute Advantage’ and ‘ ...
... Understand the importance of thinking in terms of marginal analysis. Appreciate the concept of ‘Opportunity Cost’ and ‘Production Possibilities Frontier’. Appreciate that gain from trade can accrue to all parties engaged in trade. Understand why countries gain from trade – ‘Absolute Advantage’ and ‘ ...
New Macroeconomics and Credibility Analysis
... thought is relevant to the extent that it leads to the adoption of alternative methods of macroeconomic analysis. While the new Keynesian approach resorts to an examination of the microeconomic theory of imperfect competition and market distortions, the new classical macroeconomics maintains the Wal ...
... thought is relevant to the extent that it leads to the adoption of alternative methods of macroeconomic analysis. While the new Keynesian approach resorts to an examination of the microeconomic theory of imperfect competition and market distortions, the new classical macroeconomics maintains the Wal ...
High Priests and Lowly Philosophers
... caught in a liquidity trap, attempts to get out of that trap through a monetary policy stimulus will be ineffective. If investment is not rational, but instead based on "animal spirits," then private markets cannot be relied upon to assess the marginal efficiency of capital allocations among competi ...
... caught in a liquidity trap, attempts to get out of that trap through a monetary policy stimulus will be ineffective. If investment is not rational, but instead based on "animal spirits," then private markets cannot be relied upon to assess the marginal efficiency of capital allocations among competi ...
12. New-Classical Macroeconomic
... and all the rules that govern the decisions of all other agents – The values of all exogenous variables till present moment (including all probability distributions, if some of the exogenous are stochastic) – Realized values of all endogenous variables (and eventual stochastic exogenous) till the pr ...
... and all the rules that govern the decisions of all other agents – The values of all exogenous variables till present moment (including all probability distributions, if some of the exogenous are stochastic) – Realized values of all endogenous variables (and eventual stochastic exogenous) till the pr ...
International Conference on Draft of remarks prepared by Jan Kregel,
... contention that the economy could achieve an equilibrium state at any level of output, so in monetarist terms the natural rate of unemployment was not unique, just as the natural rate of interest was not unique. If output was constrained by demand, then policy could improve the outcome of the marke ...
... contention that the economy could achieve an equilibrium state at any level of output, so in monetarist terms the natural rate of unemployment was not unique, just as the natural rate of interest was not unique. If output was constrained by demand, then policy could improve the outcome of the marke ...
lesson 8
... 6. True, false or uncertain, and explain why? “When the economy experiences an increase in aggregate demand, it will discover that its production possibilities curve has shifted outward.” False. The nation’s production possibilities curve shifts outward when it finds more resources or develops new t ...
... 6. True, false or uncertain, and explain why? “When the economy experiences an increase in aggregate demand, it will discover that its production possibilities curve has shifted outward.” False. The nation’s production possibilities curve shifts outward when it finds more resources or develops new t ...
Arne Heise - WiSo-Fakultät
... the refutation needed to be rigorous. Before we start scrutinizing the arguments put forward in that debate, let us first take a closer look at the meaning and derivation of Walras’ law. Leon Walras’ intention was to show (or, rather, to prove mathematically) that there may exist a system of relativ ...
... the refutation needed to be rigorous. Before we start scrutinizing the arguments put forward in that debate, let us first take a closer look at the meaning and derivation of Walras’ law. Leon Walras’ intention was to show (or, rather, to prove mathematically) that there may exist a system of relativ ...
From the Short Run to the Long Run
... APPLYING THE CONCEPTS #1: Why have some economists revived the idea of “secular stagnation”? • In the 1930s Alvin Hansen, argued the economy suffered fro secular stagnation. According to this theory, there was not enough aggregate demand to bring the economy t full employment and the natural adjustm ...
... APPLYING THE CONCEPTS #1: Why have some economists revived the idea of “secular stagnation”? • In the 1930s Alvin Hansen, argued the economy suffered fro secular stagnation. According to this theory, there was not enough aggregate demand to bring the economy t full employment and the natural adjustm ...
VII Keynesian revolution
... – Does not dispute classical demand for labor – Refuses the construction of the labor supply • Workers do not adjust to real, but to nominal wage • Nominal wage much less flexible: – general political reasons after WWI (workers not ready to accept wage cuts) – during Great Depression it was possible ...
... – Does not dispute classical demand for labor – Refuses the construction of the labor supply • Workers do not adjust to real, but to nominal wage • Nominal wage much less flexible: – general political reasons after WWI (workers not ready to accept wage cuts) – during Great Depression it was possible ...
Shanghai American School
... >>Horizontal range: where the price level remains constant with substantial output variation. In this range substantial unemployment and excess capacity exist. Economy is far below full-employment output level. >>Intermediate (upsloping) range: where the expansion of real output is accompanied by r ...
... >>Horizontal range: where the price level remains constant with substantial output variation. In this range substantial unemployment and excess capacity exist. Economy is far below full-employment output level. >>Intermediate (upsloping) range: where the expansion of real output is accompanied by r ...
Microfoundations
... observed phenomenon of unemployment. From a market-clearing perspective, unemployment simply means that at the current (real) wage rate people do not want to supply more labor to the market. If there is registered unemployment it is thus either of a ‘voluntary’ nature, or a short-run phenomenon that ...
... observed phenomenon of unemployment. From a market-clearing perspective, unemployment simply means that at the current (real) wage rate people do not want to supply more labor to the market. If there is registered unemployment it is thus either of a ‘voluntary’ nature, or a short-run phenomenon that ...
Aadland – Spring 2015
... According to the figure above, if investment spending increases in this economy, then the: a. AE will shift up, increasing the income–expenditure equilibrium. b. AE will shift down, decreasing the income–expenditure equilibrium. c. economy will move upward along the AE, increasing the income–expendi ...
... According to the figure above, if investment spending increases in this economy, then the: a. AE will shift up, increasing the income–expenditure equilibrium. b. AE will shift down, decreasing the income–expenditure equilibrium. c. economy will move upward along the AE, increasing the income–expendi ...
Economics: Principles and Applications, 2e by Robert E. Hall & Marc
... market -like all other markets - is assumed to clear: The interest rate will rise or fall until the quantities of funds supplied and demanded are equal. ...
... market -like all other markets - is assumed to clear: The interest rate will rise or fall until the quantities of funds supplied and demanded are equal. ...
Macroeconomics of Keynesian and Marxian inspirations: Toward a
... still the object of much interest among the minority of economists politically leaning to the Left. The relationship between Keynesian and Marxian economics has always been ambiguous, but there is a lot in common concerning the macroeconomics. During the last few decades, one of the fields of our re ...
... still the object of much interest among the minority of economists politically leaning to the Left. The relationship between Keynesian and Marxian economics has always been ambiguous, but there is a lot in common concerning the macroeconomics. During the last few decades, one of the fields of our re ...