Speech to the Hong Kong Association of Northern California
... played at least some role in recent core inflation movements. Now that energy prices have fallen a fair bit from recent highs and are expected by futures markets to remain at those lower levels, this upward pressure on core inflation is likely to dissipate and could even turn into modest downward pr ...
... played at least some role in recent core inflation movements. Now that energy prices have fallen a fair bit from recent highs and are expected by futures markets to remain at those lower levels, this upward pressure on core inflation is likely to dissipate and could even turn into modest downward pr ...
Week 1 - People Pages
... the end of this course you should understand current debates concerning macroeconomic policies and should be able to anticipate some future macroeconomic problems. Lectures - Since most of the material in this course will be presented in the lectures, it is essential that you attend class regularly. ...
... the end of this course you should understand current debates concerning macroeconomic policies and should be able to anticipate some future macroeconomic problems. Lectures - Since most of the material in this course will be presented in the lectures, it is essential that you attend class regularly. ...
Vocabulary Exercises for
... 3. The type of inflation that is caused by people wanting to buy more goods and services is ………………………….. inflation. 4. If a worker's nominal income stays the same, but her real income decreases, then her ………………………….. of money will also decrease. 5. The consumer price ………………………….. was up 3.4%. 6. Any ...
... 3. The type of inflation that is caused by people wanting to buy more goods and services is ………………………….. inflation. 4. If a worker's nominal income stays the same, but her real income decreases, then her ………………………….. of money will also decrease. 5. The consumer price ………………………….. was up 3.4%. 6. Any ...
Aggregate Supply, Aggregate Demand, and Inflation: Putting It All
... resources produces no pressure for inflation to rise, and the stickiness of wages and prices (their tendency to be slow in adjusting downwards) produces little pressure for inflation to fall. 26. There is no immediate response to inflation in the short run, because it takes time for people to notice ...
... resources produces no pressure for inflation to rise, and the stickiness of wages and prices (their tendency to be slow in adjusting downwards) produces little pressure for inflation to fall. 26. There is no immediate response to inflation in the short run, because it takes time for people to notice ...
CSC Volume 1, Section 2 (Chapter 4, 5) Total score: 11/14 = 78
... General Feedback: There are three general types of unemployment: cyclical, frictional and structural. Unemployment rises when the economy weakens and firms lay off workers in response to lower sales. This type of unemployment is called cyclical unemployment. The other three statements can lead to an ...
... General Feedback: There are three general types of unemployment: cyclical, frictional and structural. Unemployment rises when the economy weakens and firms lay off workers in response to lower sales. This type of unemployment is called cyclical unemployment. The other three statements can lead to an ...
What Have We Learned since October 1979?
... seems strange to harbor contrary thoughts today, but back then many people believed that 10% inflation was so deeply ingrained in the U.S. economy that we might to doomed to, say, 6-10% inflation for a very long time. For example, Otto Eckstein (1981, pp. 3-4) wrote in a well-known 1981 book that “T ...
... seems strange to harbor contrary thoughts today, but back then many people believed that 10% inflation was so deeply ingrained in the U.S. economy that we might to doomed to, say, 6-10% inflation for a very long time. For example, Otto Eckstein (1981, pp. 3-4) wrote in a well-known 1981 book that “T ...
Money
... Anything people will accept in place of the goods and services they seek to obtain. Money is a stock of assets that can be readily used to make transactions. Examples from history: salt in Egypt; rice in Japan; dried fish in Iceland; cigarettes in Romania in the 1970s; liquor in Germany after World ...
... Anything people will accept in place of the goods and services they seek to obtain. Money is a stock of assets that can be readily used to make transactions. Examples from history: salt in Egypt; rice in Japan; dried fish in Iceland; cigarettes in Romania in the 1970s; liquor in Germany after World ...
Inflation and deflation
... What is inflation? Inflation is a sustained rise in the price level. This means that, on average, the prices of products in an economy are going up over time. As the price level rises each pound buys fewer products. This means the value or purchasing power of money falls. What is deflation? Deflatio ...
... What is inflation? Inflation is a sustained rise in the price level. This means that, on average, the prices of products in an economy are going up over time. As the price level rises each pound buys fewer products. This means the value or purchasing power of money falls. What is deflation? Deflatio ...
Inflation and Unemployment
... To decide when to work, people compare the return from working in the current period with the expected return from working in a later period. The when-to-work decision depends on the real interest rate. The lower the real interest rate, the smaller is the supply of labor today. Many economists belie ...
... To decide when to work, people compare the return from working in the current period with the expected return from working in a later period. The when-to-work decision depends on the real interest rate. The lower the real interest rate, the smaller is the supply of labor today. Many economists belie ...
The Baffling New Inflation: How Cost
... Even with recession enveloping the whole country, the problem of inflation did not completely disappear. Indeed, during this recession, general prices were rising rather than declining, and this peculiar phenomenon was recognized by various actors. The Washington Post financial columnist Harold Dors ...
... Even with recession enveloping the whole country, the problem of inflation did not completely disappear. Indeed, during this recession, general prices were rising rather than declining, and this peculiar phenomenon was recognized by various actors. The Washington Post financial columnist Harold Dors ...
The Economic Cycle
... The inventory or stock cycle (inventory is the US term for stocks) explains the economic cycle via changes in stock levels. Stocks in this context are raw materials, semi-finished goods or finished goods waiting to be sold (not financial stocks) and they perform an important function in the economy ...
... The inventory or stock cycle (inventory is the US term for stocks) explains the economic cycle via changes in stock levels. Stocks in this context are raw materials, semi-finished goods or finished goods waiting to be sold (not financial stocks) and they perform an important function in the economy ...
DATA WAREHOUSES
... Play with Some Economic Numbers Apply Statistical Regression Incorporate Findings in Report Intended for Your Peers at the bank ...
... Play with Some Economic Numbers Apply Statistical Regression Incorporate Findings in Report Intended for Your Peers at the bank ...
Chapter 8 - Jacob Schulman
... “Not in labor force,” and the labor force (50% total pop) - Unemployment rate is percentage of the labor force unemployed - US Bureau of Labor Statistics (BLS) conducts a nationwide random survey of 60,000 households each month to determine who is employed & who isn’t employed 1. Part-time employmen ...
... “Not in labor force,” and the labor force (50% total pop) - Unemployment rate is percentage of the labor force unemployed - US Bureau of Labor Statistics (BLS) conducts a nationwide random survey of 60,000 households each month to determine who is employed & who isn’t employed 1. Part-time employmen ...
The Demand for Base Money in Turkey: Implications for
... these measures partially restored the confidence in Turkish lira, which were severely deteriorating before 1994. The following section introduces the model. Section 4 and 5 estimate the model by using two alternative opportunity cost measures for holding money, the inflation rate and the depreciatio ...
... these measures partially restored the confidence in Turkish lira, which were severely deteriorating before 1994. The following section introduces the model. Section 4 and 5 estimate the model by using two alternative opportunity cost measures for holding money, the inflation rate and the depreciatio ...
Inflation over 300 years
... inflation. Over time, inflation expectations would adjust and unemployment would move back to its natural rate. The theory raised the question of how expectations are formed. In the extreme case, where expectations are assumed to be ‘rational’, it implied that there was no trade-off between inflatio ...
... inflation. Over time, inflation expectations would adjust and unemployment would move back to its natural rate. The theory raised the question of how expectations are formed. In the extreme case, where expectations are assumed to be ‘rational’, it implied that there was no trade-off between inflatio ...
Aggregate Supply
... • When inflation is fully anticipated there are no winners and losers – Creditors have learned to charge enough interest to take into account, or anticipate, the rate of inflation over the course of the loan • This is tacked onto the regular interest rate that the lender would charge had no inflatio ...
... • When inflation is fully anticipated there are no winners and losers – Creditors have learned to charge enough interest to take into account, or anticipate, the rate of inflation over the course of the loan • This is tacked onto the regular interest rate that the lender would charge had no inflatio ...
A) all firms announce their prices in advance. B) all firms set their
... Monetary nonneutrality occurs when changes in money affect real variables. Graphically, this is shown in the short run as the economy moves from A to B. The increase in money increases output, a real variable. This occurs because firms and workers are expecting price level P1, but the price level ri ...
... Monetary nonneutrality occurs when changes in money affect real variables. Graphically, this is shown in the short run as the economy moves from A to B. The increase in money increases output, a real variable. This occurs because firms and workers are expecting price level P1, but the price level ri ...
Inflation and Unemployment
... •Frictional and structural unemployment are present at all times because people will always be between jobs or replaced by technology. •So, the economy is doing great if there is only frictional and structural unemployment. Natural Rate of Unemployment (NRU)Frictional plus structural unemployment. T ...
... •Frictional and structural unemployment are present at all times because people will always be between jobs or replaced by technology. •So, the economy is doing great if there is only frictional and structural unemployment. Natural Rate of Unemployment (NRU)Frictional plus structural unemployment. T ...
chapter 9 - chass.utoronto
... nominal wages adjust very quickly to changes in the price level. This implies that the labour market is always in equilibrium and output is always at the full-employment level. If the ADcurve shifts to the right, firms try to increase output by hiring more workers, who they try to attract by offerin ...
... nominal wages adjust very quickly to changes in the price level. This implies that the labour market is always in equilibrium and output is always at the full-employment level. If the ADcurve shifts to the right, firms try to increase output by hiring more workers, who they try to attract by offerin ...
Chapter 8 – Solutions to Problem Set # 7 Analytical Problems 2
... Figure 8.9 illustrates the effects of a demand shock. The economy begins in equilibrium at point A, where the LRAS, SRAS, and AD curves intersect. The demand shock shifts the aggregate demand curve to the left to AD. In the short run, the equilibrium is at point B, where AD intersects SRAS. This i ...
... Figure 8.9 illustrates the effects of a demand shock. The economy begins in equilibrium at point A, where the LRAS, SRAS, and AD curves intersect. The demand shock shifts the aggregate demand curve to the left to AD. In the short run, the equilibrium is at point B, where AD intersects SRAS. This i ...
A rise in the price of oil imports has resulted in a decrease of short
... a. in the inflationary gap. b. in the recessionary gap. c. at natural real GDP (QN) 27. Congress and the president are directly in charge of: a. monetary policy. b. fiscal policy. c. both of the above. d. none of the above. 28. If the government did not collect taxes but simply paid for its purchase ...
... a. in the inflationary gap. b. in the recessionary gap. c. at natural real GDP (QN) 27. Congress and the president are directly in charge of: a. monetary policy. b. fiscal policy. c. both of the above. d. none of the above. 28. If the government did not collect taxes but simply paid for its purchase ...
C:\Documents and Settings\Ivan
... If we view this game as a simultaneous game (where the Fed and the Firm choose their actions simultaneously), the game has two Nash equilibria: (Raise M, Raise P) and (Don’t raise M, Don’t raise P). (Recall that a pair of actions, (s1,s2) is a Nash equilibrium if s1 is a best response to s2 and s2 ...
... If we view this game as a simultaneous game (where the Fed and the Firm choose their actions simultaneously), the game has two Nash equilibria: (Raise M, Raise P) and (Don’t raise M, Don’t raise P). (Recall that a pair of actions, (s1,s2) is a Nash equilibrium if s1 is a best response to s2 and s2 ...
dynamic AD
... • The long-run equilibrium represents the normal state around which the economy fluctuates. It occurs when there are no shocks and inflation has stabilized. • In words, the long-run equilibrium is described as follows: Output and the real interest rate are at their natural values, inflation and exp ...
... • The long-run equilibrium represents the normal state around which the economy fluctuates. It occurs when there are no shocks and inflation has stabilized. • In words, the long-run equilibrium is described as follows: Output and the real interest rate are at their natural values, inflation and exp ...
Phillips curve
In economics, the Phillips curve is a historical inverse relationship between rates of unemployment and corresponding rates of inflation that result in an economy. Stated simply, decreased unemployment, (i.e., increased levels of employment) in an economy will correlate with higher rates of inflation.While there is a short run tradeoff between unemployment and inflation, it has not been observed in the long run. In 1968, Milton Friedman asserted that the Phillips Curve was only applicable in the short-run and that in the long-run, inflationary policies will not decrease unemployment. Friedman then correctly predicted that, in the upcoming years after 1968, both inflation and unemployment would increase. The long-run Phillips Curve is now seen as a vertical line at the natural rate of unemployment, where the rate of inflation has no effect on unemployment. Accordingly, the Phillips curve is now seen as too simplistic, with the unemployment rate supplanted by more accurate predictors of inflation based on velocity of money supply measures such as the MZM (""money zero maturity"") velocity, which is affected by unemployment in the short but not the long term.