The Evolution of US Monetary Policy: 2000-2007
... came to be known as the “Great Moderation.”1 December 2007, on the other hand, marked the beginning of the “Great Recession,” a period of economic and financial turmoil of a kind not seen in the U.S. since the Great Depression. The timing of these events, and the sharp contrast between them, suggest ...
... came to be known as the “Great Moderation.”1 December 2007, on the other hand, marked the beginning of the “Great Recession,” a period of economic and financial turmoil of a kind not seen in the U.S. since the Great Depression. The timing of these events, and the sharp contrast between them, suggest ...
NBER WORKING PAPER SERIES SEPARATING THE BUSINESS CYCLE FROM OTHER ECONOMIC FLUCTUATIONS
... Much of that volatility, in fact, appears to come from the neoclassical mechanisms embodied in the RBC model and not from the transitory departures from neoclassical equilibrium that might be called the business cycle. Another branch, particularly active in the past few years, builds a coherent view ...
... Much of that volatility, in fact, appears to come from the neoclassical mechanisms embodied in the RBC model and not from the transitory departures from neoclassical equilibrium that might be called the business cycle. Another branch, particularly active in the past few years, builds a coherent view ...
The Aggregate Supply Curve
... to an increase in output, a decrease in the interest rate, and an increase in the price level. In the medium run, the increase in nominal money is reflected entirely in a proportional increase in the price level. The neutrality of money refers to the fact that an increase in the nominal money stoc ...
... to an increase in output, a decrease in the interest rate, and an increase in the price level. In the medium run, the increase in nominal money is reflected entirely in a proportional increase in the price level. The neutrality of money refers to the fact that an increase in the nominal money stoc ...
National income accounting:
... policy (a higher G or a lower T) on the real interest rate, private investment, output, and private consumption in the short run (when the price level is assumed to be fixed)? Assume a simple Keynesian consumption function, which means that private consumption only depends on private disposable inco ...
... policy (a higher G or a lower T) on the real interest rate, private investment, output, and private consumption in the short run (when the price level is assumed to be fixed)? Assume a simple Keynesian consumption function, which means that private consumption only depends on private disposable inco ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Currency Crises
... views, “monetarist” and “classical,” both of which deny any policy role for the real exchange rate. In the better articulated classical view, the real exchange rate is a market price, and any increase in the real exchange rate is a market response to a positive economic performance. “It is the rewar ...
... views, “monetarist” and “classical,” both of which deny any policy role for the real exchange rate. In the better articulated classical view, the real exchange rate is a market price, and any increase in the real exchange rate is a market response to a positive economic performance. “It is the rewar ...
Aggregate Demand and Aggregate Supply
... Short-run fluctuations in output and price level should be viewed as deviations from the continuing long-run trends. In the short run, an increase in the overall level of prices in the economy tends to raise the quantity of goods and services supplied. A decrease in the level of prices tends to ...
... Short-run fluctuations in output and price level should be viewed as deviations from the continuing long-run trends. In the short run, an increase in the overall level of prices in the economy tends to raise the quantity of goods and services supplied. A decrease in the level of prices tends to ...
Ch. 12: Economic Fluctuations (Handout)
... Aggregate supply factors: variables that change total output at all price levels Short-run increase in aggregate supply: an increase in total output at all price levels, with no change in potential output Short-run decrease in aggregate supply: a decrease in total output at all price level, with no ...
... Aggregate supply factors: variables that change total output at all price levels Short-run increase in aggregate supply: an increase in total output at all price levels, with no change in potential output Short-run decrease in aggregate supply: a decrease in total output at all price level, with no ...
Emerging Asia and global inflation Chris Hunt
... impulse from lower import prices, which may have made the achievement of domestic inflation objectives easier to achieve than might otherwise have been the case. However, this positive supply shock has more recently been matched by the headwinds of higher commodity prices. ...
... impulse from lower import prices, which may have made the achievement of domestic inflation objectives easier to achieve than might otherwise have been the case. However, this positive supply shock has more recently been matched by the headwinds of higher commodity prices. ...
Real Interest Rate
... (52%) 27. Which of the following events will most likely cause an increase in both the price level and real gross domestic product? a. The prime rate increases. b. Exports increase. This would cause an increase in AD, incr PL and Y. c. Income taxes increase. d. Crude oil prices decrease. e. Inflatio ...
... (52%) 27. Which of the following events will most likely cause an increase in both the price level and real gross domestic product? a. The prime rate increases. b. Exports increase. This would cause an increase in AD, incr PL and Y. c. Income taxes increase. d. Crude oil prices decrease. e. Inflatio ...
Economic Survey of Singapore 2008 Prices Box 4.1
... China and Hong Kong resulted in a price equalisation process, putting downward pressure on prices in Hong Kong1. Second, deflation was also thought to reflect a process of internal price adjustment in response to cyclical shocks caused by the bursting of the property bubble. In addition, the pegged ...
... China and Hong Kong resulted in a price equalisation process, putting downward pressure on prices in Hong Kong1. Second, deflation was also thought to reflect a process of internal price adjustment in response to cyclical shocks caused by the bursting of the property bubble. In addition, the pegged ...
The costs of inflation – what have we learned?
... poor and less well educated. They also divert resources from ...
... poor and less well educated. They also divert resources from ...
Chapter 1: Introduction
... The IS curve of the previous chapter gave us enough tools to allow us to calculate the sticky-price equilibrium level of real GDP, as long as the central bank followed a policy of pegging the real interest rate to a fixed value. But what if the central bank does not follow a policy of pegging the in ...
... The IS curve of the previous chapter gave us enough tools to allow us to calculate the sticky-price equilibrium level of real GDP, as long as the central bank followed a policy of pegging the real interest rate to a fixed value. But what if the central bank does not follow a policy of pegging the in ...
NBER WORKING PAPER SERIES GLOBALIZATION AND INFLATION DYNAMICS: Argia M. Sbordone
... main themes: that globalization has contributed to bring down US inflation, and that it has affected the sensitivity of inflation to output fluctuations. Several recent policymakers speeches have addressed the issue of whether more intense competition, generated by the increase in trade experienced s ...
... main themes: that globalization has contributed to bring down US inflation, and that it has affected the sensitivity of inflation to output fluctuations. Several recent policymakers speeches have addressed the issue of whether more intense competition, generated by the increase in trade experienced s ...
Forecasting Mexico`s Inflation: the Effects of an
... Government support helped control the contagion of the crisis. Insofar as these entities were successful, the rippling effect of the crisis reached several continents earning the title: “the Tequila effect.” In addition, “the peso devaluation and subsequent inflation surge severely damaged the Bank ...
... Government support helped control the contagion of the crisis. Insofar as these entities were successful, the rippling effect of the crisis reached several continents earning the title: “the Tequila effect.” In addition, “the peso devaluation and subsequent inflation surge severely damaged the Bank ...
CENTRAL INSTITUTE FOR ECONOMIC MANAGEMENT CENTER
... relevant services accounts for 42.85 percent (of which, grains – 9,86 percent, and food – 25 percent); housing, electricity, water, fuels, and construction materials: 9.99 percent; transportation and tele-communication: 9.04 percent; household appliances: 8.62 percent; garments, hats, and food wares ...
... relevant services accounts for 42.85 percent (of which, grains – 9,86 percent, and food – 25 percent); housing, electricity, water, fuels, and construction materials: 9.99 percent; transportation and tele-communication: 9.04 percent; household appliances: 8.62 percent; garments, hats, and food wares ...
ECN 111 Chapter 7 Lecture Notes
... 1. In calculating real GDP (and hence the GDP deflator) the Commerce Department does not directly measure the physical quantities produced but uses estimates by dividing expenditures by price indexes. One of those price indexes is the CPI. So the biased CPI injects a bias into the GDP deflator. 2. T ...
... 1. In calculating real GDP (and hence the GDP deflator) the Commerce Department does not directly measure the physical quantities produced but uses estimates by dividing expenditures by price indexes. One of those price indexes is the CPI. So the biased CPI injects a bias into the GDP deflator. 2. T ...
Price Level
... • Most economists believe that classical theory describes the world in the long run but not in the short run. • In the short run, real and nominal variables are highly intertwinded, and changes in the money supply can temporarily push real GDP away from its long run trend. • Our new model focuses on ...
... • Most economists believe that classical theory describes the world in the long run but not in the short run. • In the short run, real and nominal variables are highly intertwinded, and changes in the money supply can temporarily push real GDP away from its long run trend. • Our new model focuses on ...
Real Interest Rate
... (59%) 8. Econ can produce either 2 tons of cocoa or 4 cars with 10 units of labor. Nomics can produce either 5 tons of cocoa or 25 cars with 10 units of labor. Based on this information, which of the following is true. a. Econ has an absolute advantage in the production of cocoa, while Nomics has a ...
... (59%) 8. Econ can produce either 2 tons of cocoa or 4 cars with 10 units of labor. Nomics can produce either 5 tons of cocoa or 25 cars with 10 units of labor. Based on this information, which of the following is true. a. Econ has an absolute advantage in the production of cocoa, while Nomics has a ...
Economics 100 Spring 2015 Answers to Homework #5 Due May 7
... Human capital refers to the educational attainment, skill acquisition, and development of talent that humans undergo. With greater human capital, the individual worker is a more productive worker. In college you may be acquiring very specific professional skills (for instance if you are studying eng ...
... Human capital refers to the educational attainment, skill acquisition, and development of talent that humans undergo. With greater human capital, the individual worker is a more productive worker. In college you may be acquiring very specific professional skills (for instance if you are studying eng ...
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.