The change of paradigm of Milton Friedman
... So Milton Friedman came on and explained his theory of the causes of inflation. The first step to understand Friedman’s theory, is to accept that inflation is always a monetary phenomenon. It’s always a result of too much money, of more rapid increase in the quantity of money than in an output. More ...
... So Milton Friedman came on and explained his theory of the causes of inflation. The first step to understand Friedman’s theory, is to accept that inflation is always a monetary phenomenon. It’s always a result of too much money, of more rapid increase in the quantity of money than in an output. More ...
Mankiw 5/e Chapter 2: The Data of Macroeconomics
... • The inflation rate is the percentage increase in the overall level of prices. • One measure of the price level is the GDP Deflator, defined as ...
... • The inflation rate is the percentage increase in the overall level of prices. • One measure of the price level is the GDP Deflator, defined as ...
Monetary policy rules in economies with traded and non
... We then consider the implications of alternative simple policy rules for the performance of the economy in response to empirically relevant shocks, including supply shocks, demand shocks, and risk premium shocks to the exchange rate. Our analysis suggests that a rule that places a large weight on a ...
... We then consider the implications of alternative simple policy rules for the performance of the economy in response to empirically relevant shocks, including supply shocks, demand shocks, and risk premium shocks to the exchange rate. Our analysis suggests that a rule that places a large weight on a ...
Answers to Key Questions
... a. Show these data graphically. Upon what specific assumptions is this production possibilities curve based? b. If the economy is at point C, what is the cost of one more automobile? One more rocket? Explain how this curve reflects increasing opportunity costs. c. What must the economy do to operate ...
... a. Show these data graphically. Upon what specific assumptions is this production possibilities curve based? b. If the economy is at point C, what is the cost of one more automobile? One more rocket? Explain how this curve reflects increasing opportunity costs. c. What must the economy do to operate ...
budget 2015 economic and fiscal outlook
... Source: OECD Interim Economic Assessment September 2014; projections beyond 2015 are taken from the IMF World Economic Outlook October2014 Note: Exchange rates and oil prices (futures) calculated on the basis of a ten-day moving average to 18 September 2014 and unchanged thereafter. ...
... Source: OECD Interim Economic Assessment September 2014; projections beyond 2015 are taken from the IMF World Economic Outlook October2014 Note: Exchange rates and oil prices (futures) calculated on the basis of a ten-day moving average to 18 September 2014 and unchanged thereafter. ...
The impact of government spending on demand
... (eg education services). The government’s demand for inputs adds directly to the demand for private sector output, and absorbs scarce resources (in the form of labour inputs) that could have been used to produce private sector output. In doing so it affects the balance of demand and supply of market ...
... (eg education services). The government’s demand for inputs adds directly to the demand for private sector output, and absorbs scarce resources (in the form of labour inputs) that could have been used to produce private sector output. In doing so it affects the balance of demand and supply of market ...
Rudiger von Arnim Daniele Tavani Laura Barbosa de Carvalho
... call it A—starts off in autarky with wage–led demand. As soon as A opens up to trade, it can increase sales to other localities by improving its cost competitiveness. In a vertically integrated one sector economy, such improvements in cost competitiveness are equivalent to a reduction in real unit l ...
... call it A—starts off in autarky with wage–led demand. As soon as A opens up to trade, it can increase sales to other localities by improving its cost competitiveness. In a vertically integrated one sector economy, such improvements in cost competitiveness are equivalent to a reduction in real unit l ...
Chapter 14
... When the price level rises, the real interest rate rises. An increase in the price level increases the amount of money that people want to hold—increases the demand for money. When the demand for money increases, the nominal interest rate rises. In the short run, the inflation rate doesn’t change, s ...
... When the price level rises, the real interest rate rises. An increase in the price level increases the amount of money that people want to hold—increases the demand for money. When the demand for money increases, the nominal interest rate rises. In the short run, the inflation rate doesn’t change, s ...
ch28
... the aggregate supply curve from AS0 to AS1, lower output from Y0 to Y1, and raise the price level from P0 to P1. Monetary or fiscal policy could be changed enough to have the AD curve shift from AD0 to AD1. This policy would raise aggregate output Y again, but it would raise the price level further, ...
... the aggregate supply curve from AS0 to AS1, lower output from Y0 to Y1, and raise the price level from P0 to P1. Monetary or fiscal policy could be changed enough to have the AD curve shift from AD0 to AD1. This policy would raise aggregate output Y again, but it would raise the price level further, ...
Government Chapter 7
... Third, if big government impedes growth, how do countries like Sweden do so well? The reason is that size is not the only feature of government that matters. What government does and how it finances its activities are as important. European governments regulate the largest economic area in the world ...
... Third, if big government impedes growth, how do countries like Sweden do so well? The reason is that size is not the only feature of government that matters. What government does and how it finances its activities are as important. European governments regulate the largest economic area in the world ...
Debt, Deficits, and the Economy John J. Seater When conversation
... banks, credit card companies, and so forth. The situation with respect to intragovernment debt is exactly the same: as far as the economy is concerned, that debt doesn’t exist. It has no implications at all for the economy or public welfare. Unfortunately, popular discussions of the debt frequently ...
... banks, credit card companies, and so forth. The situation with respect to intragovernment debt is exactly the same: as far as the economy is concerned, that debt doesn’t exist. It has no implications at all for the economy or public welfare. Unfortunately, popular discussions of the debt frequently ...
The Rise of Mass Consumption Societies*
... Third, the dynamic evolution of the economy depends critically on income distribution. Some income inequality is needed for the economy to take off; with too much equality, the economy stagnates in a poverty trap. This is because, in order to trigger the process, the economy needs a critical mass of ...
... Third, the dynamic evolution of the economy depends critically on income distribution. Some income inequality is needed for the economy to take off; with too much equality, the economy stagnates in a poverty trap. This is because, in order to trigger the process, the economy needs a critical mass of ...
14THE BUSINESS CYCLE*
... economy returns to potential GDP. A rational expectation is a forecast based on all available information. Rational expectations theories of business cycles focus on the rationally expected money wage rate. The two rational expectations theories are the new classical theory and new Keynesian theory. ...
... economy returns to potential GDP. A rational expectation is a forecast based on all available information. Rational expectations theories of business cycles focus on the rationally expected money wage rate. The two rational expectations theories are the new classical theory and new Keynesian theory. ...
Economics R. Glenn Hubbard, Anthony Patrick O`Brien, 2e.
... Government Consumption and Gross Investment, or “Government Purchases” Government purchases Spending by federal, state, and local governments on goods and services. Net Exports of Goods and Services, or “Net Exports” ...
... Government Consumption and Gross Investment, or “Government Purchases” Government purchases Spending by federal, state, and local governments on goods and services. Net Exports of Goods and Services, or “Net Exports” ...
Reforming the New York Tax Code
... households struggle to pay property tax bills that represent an inordinate share of their incomes. And, in the aftermath of the Great Recession, far too many New Yorkers are still looking for jobs as good as the ones they used to have. What can be done? What strategies can we pursue that will increa ...
... households struggle to pay property tax bills that represent an inordinate share of their incomes. And, in the aftermath of the Great Recession, far too many New Yorkers are still looking for jobs as good as the ones they used to have. What can be done? What strategies can we pursue that will increa ...
Deficits, Interest Rates, And Monetary Policy
... public statements. The media and “Wall Street” dominantly interpret our financial affairs in terms of this argument. It appears to explain plausibly how a larger borrowing requirement by the government sector competes with the private demand for a scarce flow of investable funds supplied by househol ...
... public statements. The media and “Wall Street” dominantly interpret our financial affairs in terms of this argument. It appears to explain plausibly how a larger borrowing requirement by the government sector competes with the private demand for a scarce flow of investable funds supplied by househol ...
Appendix J What is needed in a cost-benefit analysis? (PDF
... policy that gets children from the lowest income brackets into ECEC services (who would not otherwise attend) is estimated to be $13.3 billion, but only $2.7 billion in net present value terms. While the cumulative estimates are useful to grab headlines, it is the net present value numbers that are ...
... policy that gets children from the lowest income brackets into ECEC services (who would not otherwise attend) is estimated to be $13.3 billion, but only $2.7 billion in net present value terms. While the cumulative estimates are useful to grab headlines, it is the net present value numbers that are ...
13.2 measuring us gdp
... Measures GDP by using data on consumption expenditure, investment, government purchases, and net exports. ...
... Measures GDP by using data on consumption expenditure, investment, government purchases, and net exports. ...
National Economy Indicators
... base. At marginal tax rates greater than t, the tax base shrinks at a faster rate than the increases in marginal tax rate. The net result is that increases in marginal tax rates beyond t result in reduced tax revenues. ...
... base. At marginal tax rates greater than t, the tax base shrinks at a faster rate than the increases in marginal tax rate. The net result is that increases in marginal tax rates beyond t result in reduced tax revenues. ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... the benefits, but for reasoned policy decisions the cost estimates are useful.11 I estimate the cost to the economy of raising the $2.25 billion per year to be at least $2.36 billion (in addition to the $2.25 billion of tax revenue), so that the efficiency loss to the economy for every $1 raised to ...
... the benefits, but for reasoned policy decisions the cost estimates are useful.11 I estimate the cost to the economy of raising the $2.25 billion per year to be at least $2.36 billion (in addition to the $2.25 billion of tax revenue), so that the efficiency loss to the economy for every $1 raised to ...
NBER WORKING PAPER SERIES A RESOURCE BELIEF-CURSE? OIL AND INDIVIDUALISM Juan Dubra
... oil.3 However, it is perhaps signi…cant that oil is visible in political debates and occupies a place of some importance in popular imagination (a¤ecting for example, the perception of whether individuals are living in a rich country), so the dynamics a¤ecting oil might be di¤erent than those a¤ect ...
... oil.3 However, it is perhaps signi…cant that oil is visible in political debates and occupies a place of some importance in popular imagination (a¤ecting for example, the perception of whether individuals are living in a rich country), so the dynamics a¤ecting oil might be di¤erent than those a¤ect ...
Problems with Current EMU Arrangements
... ECB in the long-term link between money (M3 in this case) and inflation. This focus, of course, reflects the notion that inflation is a monetary phenomenon to be tackled by both manipulating the rate of interest and watching movements in M3. Short-term volatility of inflation is allowed but not in t ...
... ECB in the long-term link between money (M3 in this case) and inflation. This focus, of course, reflects the notion that inflation is a monetary phenomenon to be tackled by both manipulating the rate of interest and watching movements in M3. Short-term volatility of inflation is allowed but not in t ...