DIVERGENT INFLATION RATES BETWEEN MEMBERS OF THE EURO B
... The ECB in both 1999 and 2003 emphasised the importance of the BalassaSamuelson effect in explaining inflation rate differentials but attaches greater weight to the catch-up nature of productivity, income and price level convergence as opposed to purely cyclical causes in its 2003 report (ECB, 2003) ...
... The ECB in both 1999 and 2003 emphasised the importance of the BalassaSamuelson effect in explaining inflation rate differentials but attaches greater weight to the catch-up nature of productivity, income and price level convergence as opposed to purely cyclical causes in its 2003 report (ECB, 2003) ...
Document
... purchasing power of fixed value financial assets and inflation, which causes a shift in the ...
... purchasing power of fixed value financial assets and inflation, which causes a shift in the ...
Chapter 13 power point
... rate of inflation even higher (above 7%) and may get trapped in an inflationary spiral. • Lowering the inflation rate by reducing the growth rate of money may cause a recession due to prices being more sticky downward. Let’s use the model to see this. ...
... rate of inflation even higher (above 7%) and may get trapped in an inflationary spiral. • Lowering the inflation rate by reducing the growth rate of money may cause a recession due to prices being more sticky downward. Let’s use the model to see this. ...
Notes on Classical Economics
... demand) is not only a positive function of current Y but also a function of future expected income denoted Yf. The idea is that if firms expect higher output in the future, they will demand more money now for raw materials, wages, etc. The increase in economic activity will not show up in data until ...
... demand) is not only a positive function of current Y but also a function of future expected income denoted Yf. The idea is that if firms expect higher output in the future, they will demand more money now for raw materials, wages, etc. The increase in economic activity will not show up in data until ...
lecture notes
... run, only price level rises. (See Figure 16-3) B. Cost push inflation arises from factors that increase the cost of production at each price level; the increase in the price of a key resource, for example. This shifts the short run supply to the left, not as a response to a price level increase, but ...
... run, only price level rises. (See Figure 16-3) B. Cost push inflation arises from factors that increase the cost of production at each price level; the increase in the price of a key resource, for example. This shifts the short run supply to the left, not as a response to a price level increase, but ...
Document
... households to work or save depends largely on which of the following? a. What philosophies are taught in school b. The nature of the people in a particular geographic area c. The government’s tax policy and the economic outlook d. The availability of government subsides ANSWER: c 24. An unstable eco ...
... households to work or save depends largely on which of the following? a. What philosophies are taught in school b. The nature of the people in a particular geographic area c. The government’s tax policy and the economic outlook d. The availability of government subsides ANSWER: c 24. An unstable eco ...
This PDF is a selection from a published volume from... Bureau of Economic Research
... to recognize that inflation is driven by real marginal costs, and that they are generally not proportional to the output gap (Galí and Gertler 1999). Under this qualification, the NKPC provides a reasonable fit of the data. While this observation weakens the evidence of BP in favor of noninflationar ...
... to recognize that inflation is driven by real marginal costs, and that they are generally not proportional to the output gap (Galí and Gertler 1999). Under this qualification, the NKPC provides a reasonable fit of the data. While this observation weakens the evidence of BP in favor of noninflationar ...
Session 6 Inflation - University of Reading
... wages and other incomes, this should not be a problem for consumers! But there are several reasons why inflation is a problem for people and for the economy: 1. Wages and pensions often rise by less than the CPI, and/or lag behind inflation, so that real incomes (nominal incomes minus inflation) fal ...
... wages and other incomes, this should not be a problem for consumers! But there are several reasons why inflation is a problem for people and for the economy: 1. Wages and pensions often rise by less than the CPI, and/or lag behind inflation, so that real incomes (nominal incomes minus inflation) fal ...
Shanghai American School
... --Demand-pull inflation: Shifts in the intermediate and vertical ranges will cause demand-pull inflation with an increase in aggregate demand (Figures 11.7). >>Shifts in the horizontal range will cause quantity changes but only mild price level changes --Decreases in AD: If AD decreases, recession a ...
... --Demand-pull inflation: Shifts in the intermediate and vertical ranges will cause demand-pull inflation with an increase in aggregate demand (Figures 11.7). >>Shifts in the horizontal range will cause quantity changes but only mild price level changes --Decreases in AD: If AD decreases, recession a ...
MBA3
... How Long Does it Take to Find a New Job? Why are teenage unemployment rates so high? Two reasons: Teenagers are still discovering what they are good at, so they try different jobs and leave their jobs more frequently than older workers. Teenagers have little job experience, so firms often hire them ...
... How Long Does it Take to Find a New Job? Why are teenage unemployment rates so high? Two reasons: Teenagers are still discovering what they are good at, so they try different jobs and leave their jobs more frequently than older workers. Teenagers have little job experience, so firms often hire them ...
Parkin-Bade Chapter 21
... replace lost wages, and not everyone receives benefits. Prolonged unemployment permanently damages a person’s job prospects by destroying human capital. © 2010 Pearson Education Canada ...
... replace lost wages, and not everyone receives benefits. Prolonged unemployment permanently damages a person’s job prospects by destroying human capital. © 2010 Pearson Education Canada ...
Document
... – Categories of goods whose prices are rising most rapidly tend to be given exaggerated importance in CPI – Categories of goods whose prices are rising most slowly tend to be given too little importance in CPI ...
... – Categories of goods whose prices are rising most rapidly tend to be given exaggerated importance in CPI – Categories of goods whose prices are rising most slowly tend to be given too little importance in CPI ...
Course Calendar - North Charleston High School
... a. The Laffer Curve and Supply-Side Economics (See Figure 7 P.171, Mankiw) III. Application: International Trade (Mankiw, Ch 9) A. Determinants of Trade B. Equilibrium Without Trade ECON-8 C. World Price and Comparative Advantage. D. Winners and Losers from Trade a. Gains and Losses of an Exporting ...
... a. The Laffer Curve and Supply-Side Economics (See Figure 7 P.171, Mankiw) III. Application: International Trade (Mankiw, Ch 9) A. Determinants of Trade B. Equilibrium Without Trade ECON-8 C. World Price and Comparative Advantage. D. Winners and Losers from Trade a. Gains and Losses of an Exporting ...
14.02 Principles of Macroeconomics Problem Set 3 Fall 2005 ***Solution***
... equilibrium is perturbed by a shock that decreases the consumption parameter c 0 . The initial decrease in consumption shifts AD to the left. The new equilibrium corresponds to lower levels of price and output. In the medium run, AS shifts down and the price level drops even more which leads to an i ...
... equilibrium is perturbed by a shock that decreases the consumption parameter c 0 . The initial decrease in consumption shifts AD to the left. The new equilibrium corresponds to lower levels of price and output. In the medium run, AS shifts down and the price level drops even more which leads to an i ...
Stagnation Traps Gianluca Benigno and Luca Fornaro May 2015
... Weak aggregate demand has a negative impact on firms’ profits and investment, resulting in low growth ...
... Weak aggregate demand has a negative impact on firms’ profits and investment, resulting in low growth ...
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.