Core inflation: a critical guide
... interpret. The ‘noise’ might be a reflection of movements in relative prices, or it may reflect one-off price level effects that will affect the annual inflation rate for a year. A key task for policymakers, as with all economic variables they monitor, is to read through the volatility or ‘noise’ in ...
... interpret. The ‘noise’ might be a reflection of movements in relative prices, or it may reflect one-off price level effects that will affect the annual inflation rate for a year. A key task for policymakers, as with all economic variables they monitor, is to read through the volatility or ‘noise’ in ...
Economic Strength
... assessment. Criteria for economic strength are described in the document. “Economic strength in a spatial context expresses the relative (international, national and regional) economic position of a city, town or area, the ability to sustain or improve its position and the intensity of spin-off effe ...
... assessment. Criteria for economic strength are described in the document. “Economic strength in a spatial context expresses the relative (international, national and regional) economic position of a city, town or area, the ability to sustain or improve its position and the intensity of spin-off effe ...
International Doctorate in Economic Analysis Departament d’Economia i d’Història Econòmica
... stimulating private activity during times of financial stress. This debate is partly based on the theoretical intuition that, during periods of adverse financial conditions, private agents are more likely to become liquidity constrained thus finding it hard to optimally smoothen their consumption al ...
... stimulating private activity during times of financial stress. This debate is partly based on the theoretical intuition that, during periods of adverse financial conditions, private agents are more likely to become liquidity constrained thus finding it hard to optimally smoothen their consumption al ...
Inflation Scares and Forecast-Based Monetary Policy
... self-sustaining expectations, [the inflationary process] has come to have a life of its own.” Fears of inflation or deflation, whether entirely justified from the policymakers’ perspective or not, seemed to have influenced actual decision-making and economic behavior at times, presenting real compli ...
... self-sustaining expectations, [the inflationary process] has come to have a life of its own.” Fears of inflation or deflation, whether entirely justified from the policymakers’ perspective or not, seemed to have influenced actual decision-making and economic behavior at times, presenting real compli ...
The output gap and inflation - Bank for International Settlements
... In the event of a (positive) output gap caused by a positive demand shock, firms will employ more labour in the short-run for a given capital stock to produce the extra output to meet demand. To induce a greater supply of labour, firms must bid up the real wage rate (this is consistent with a large ...
... In the event of a (positive) output gap caused by a positive demand shock, firms will employ more labour in the short-run for a given capital stock to produce the extra output to meet demand. To induce a greater supply of labour, firms must bid up the real wage rate (this is consistent with a large ...
Mankiw 5/e Chapter 10: Aggregate Demand I
... What is the Fed’s policy instrument? Why does the Fed target interest rates instead of the money supply? 1) They are easier to measure than the money supply 2) The Fed might believe that LM shocks are more prevalent than IS shocks. If so, then targeting the interest rate stabilizes income better th ...
... What is the Fed’s policy instrument? Why does the Fed target interest rates instead of the money supply? 1) They are easier to measure than the money supply 2) The Fed might believe that LM shocks are more prevalent than IS shocks. If so, then targeting the interest rate stabilizes income better th ...
The Science of Monetary Policy
... however, that there may be gains from commitment simply if current price setting depends on expectations of the future. In this instance, a credible commitment to fight inflation in the future can improve the current output/inflation trade-off that a central bank faces. Specifically, it can reduce t ...
... however, that there may be gains from commitment simply if current price setting depends on expectations of the future. In this instance, a credible commitment to fight inflation in the future can improve the current output/inflation trade-off that a central bank faces. Specifically, it can reduce t ...
Kirjallisen työn pohja
... they may confront during an inflationary period. The main aim of this thesis is to clarify the potential effects of inflation on SMEs. In order to achieve this goal, theoretical background of inflation, current context of inflation in Vietnam and information about the Case Company are studied. The m ...
... they may confront during an inflationary period. The main aim of this thesis is to clarify the potential effects of inflation on SMEs. In order to achieve this goal, theoretical background of inflation, current context of inflation in Vietnam and information about the Case Company are studied. The m ...
Aggregate Demand and Aggregate Supply
... raised prices and lowered output, including spikes in oil prices. • Increases in oil prices shift the aggregate supply curve. However, they also have an adverse effect on aggregate demand. • Because the United States is a net importer of foreign oil, an increase in oil prices is just like a tax that ...
... raised prices and lowered output, including spikes in oil prices. • Increases in oil prices shift the aggregate supply curve. However, they also have an adverse effect on aggregate demand. • Because the United States is a net importer of foreign oil, an increase in oil prices is just like a tax that ...
MacroPolicy - Purdue Agriculture
... Chapter 1: Demand and Supply would be cut right down to the cost of making the meal. Self-interest and competition combined to deliver the goods that people wanted. And it all happened automatically, in Smith’s famous phrase, as if directed by an “invisible hand.” Usually we don’t put numbers on ou ...
... Chapter 1: Demand and Supply would be cut right down to the cost of making the meal. Self-interest and competition combined to deliver the goods that people wanted. And it all happened automatically, in Smith’s famous phrase, as if directed by an “invisible hand.” Usually we don’t put numbers on ou ...
Working papers - Federal Reserve Bank of Cleveland
... algorithm and applying it to U.S. data suggests that the United States faced two bouts of stagflation in the postwar era, 1974Q3–1975Q1 and 1980Q2–1980Q3. The stagflation algorithm allows for a more exhaustive analysis of the factors that can generate stagflation than visual analysis alone. Thus, we ...
... algorithm and applying it to U.S. data suggests that the United States faced two bouts of stagflation in the postwar era, 1974Q3–1975Q1 and 1980Q2–1980Q3. The stagflation algorithm allows for a more exhaustive analysis of the factors that can generate stagflation than visual analysis alone. Thus, we ...
Lecture Eight
... Some economists challenge the need for the Fed to change the money supply over the seasons. If the Fed did not increase the money supply in the fall, for example, the seasonal demand for currency due to holiday shopping would cause interest rates to rise. Some economists see the rise in interest rat ...
... Some economists challenge the need for the Fed to change the money supply over the seasons. If the Fed did not increase the money supply in the fall, for example, the seasonal demand for currency due to holiday shopping would cause interest rates to rise. Some economists see the rise in interest rat ...
Document
... Notice that we begin at point A where short-run aggregate supply curve 1 meets the long-run aggregate supply curve and aggregate demand curve 1. The point where the short-run aggregate supply curve and the aggregate demand curve meet is always the short-run equilibrium. The point where the long-run ...
... Notice that we begin at point A where short-run aggregate supply curve 1 meets the long-run aggregate supply curve and aggregate demand curve 1. The point where the short-run aggregate supply curve and the aggregate demand curve meet is always the short-run equilibrium. The point where the long-run ...
O'Sullivan Sheffrin Peres 6e
... prices is just like a tax that decreases the income of consumers. • An increase in taxes will shift the aggregate demand curve to the left. Between 1997 and 1998, the price of oil on the world market fell from $22 a barrel to less than $13 a barrel. The result: gasoline prices were lower than they h ...
... prices is just like a tax that decreases the income of consumers. • An increase in taxes will shift the aggregate demand curve to the left. Between 1997 and 1998, the price of oil on the world market fell from $22 a barrel to less than $13 a barrel. The result: gasoline prices were lower than they h ...
This PDF is a selection from a published volume from
... Asymmetric policy preferences also underlie the opportunistic disinflation argument of Orphanides and Wilcox (2002). In this paper, all asymmetries arise from nonlinearities in the monetary policy process. Nonlinearities stem from discrete shifts in policy rules that are triggered by changes in the ...
... Asymmetric policy preferences also underlie the opportunistic disinflation argument of Orphanides and Wilcox (2002). In this paper, all asymmetries arise from nonlinearities in the monetary policy process. Nonlinearities stem from discrete shifts in policy rules that are triggered by changes in the ...
Chapter 9
... prices is just like a tax that decreases the income of consumers. • An increase in taxes will shift the aggregate demand curve to the left. Between 1997 and 1998, the price of oil on the world market fell from $22 a barrel to less than $13 a barrel. The result: gasoline prices were lower than they h ...
... prices is just like a tax that decreases the income of consumers. • An increase in taxes will shift the aggregate demand curve to the left. Between 1997 and 1998, the price of oil on the world market fell from $22 a barrel to less than $13 a barrel. The result: gasoline prices were lower than they h ...
Principles Of Economics
... into Chapter 1, to more clearly and efficiently prepare students for the economic way of thinking and the approach to learning economics used in the text. Chapter 2 presents comparative advantage as the basis for exchange (this was Chapter 3 in the First Edition) and Chapter 3 introduces supply and ...
... into Chapter 1, to more clearly and efficiently prepare students for the economic way of thinking and the approach to learning economics used in the text. Chapter 2 presents comparative advantage as the basis for exchange (this was Chapter 3 in the First Edition) and Chapter 3 introduces supply and ...
Inflation Persistence: Alternative Interpretations and Policy Implications
... evolution of inflation persistence across countries and historical monetary regimes and observes that the degree of inflation persistence appears to have varied significantly and to have been lower in periods in which there was a clearly defined nominal anchor. To understand the source of inflation ...
... evolution of inflation persistence across countries and historical monetary regimes and observes that the degree of inflation persistence appears to have varied significantly and to have been lower in periods in which there was a clearly defined nominal anchor. To understand the source of inflation ...
Principles of Macroeconomics - Test Item File 1 Ninth Edition by
... A) could not persist because wages would rise to eliminate the excess supply of labor. B) could not persist because wages would fall to eliminate the excess supply of labor. C) could be eliminated through fiscal and monetary policies. D) could be eliminated only through government intervention. ...
... A) could not persist because wages would rise to eliminate the excess supply of labor. B) could not persist because wages would fall to eliminate the excess supply of labor. C) could be eliminated through fiscal and monetary policies. D) could be eliminated only through government intervention. ...
chapter overview - Amazon Web Services
... and China, pushed oil prices above $60 per barrel (and over $70 per barrel in July 2006). Canadian inflation rose in 2005, but not core inflation (inflation rate minus price changes in food and energy). D. In 2007 oil prices again increased to $50 per barrel and in July of 2008 prices increased to $ ...
... and China, pushed oil prices above $60 per barrel (and over $70 per barrel in July 2006). Canadian inflation rose in 2005, but not core inflation (inflation rate minus price changes in food and energy). D. In 2007 oil prices again increased to $50 per barrel and in July of 2008 prices increased to $ ...
Full employment
Full employment, in macroeconomics, is the level of employment rates where there is no cyclical or deficient-demand unemployment. It is defined by the majority of mainstream economists as being an acceptable level of unemployment somewhere above 0%. The discrepancy from 0% arises due to non-cyclical types of unemployment, such as frictional unemployment (there will always be people who have quit or have lost a seasonal job and are in the process of getting a new job) and structural unemployment (mismatch between worker skills and job requirements). Unemployment above 0% is seen as necessary to control inflation in capitalist economies, to keep inflation from accelerating, i.e., from rising from year to year. This view is based on a theory centering on the concept of the Non-Accelerating Inflation Rate of Unemployment (NAIRU); in the current era, the majority of mainstream economists mean NAIRU when speaking of ""full"" employment. The NAIRU has also been described by Milton Friedman, among others, as the ""natural"" rate of unemployment. Having many names, it has also been called the structural unemployment rate.The 20th century British economist William Beveridge stated that an unemployment rate of 3% was full employment. Other economists have provided estimates between 2% and 13%, depending on the country, time period, and their political biases. For the United States, economist William T. Dickens found that full-employment unemployment rate varied a lot over time but equaled about 5.5 percent of the civilian labor force during the 2000s. Recently, economists have emphasized the idea that full employment represents a ""range"" of possible unemployment rates. For example, in 1999, in the United States, the Organisation for Economic Co-operation and Development (OECD) gives an estimate of the ""full-employment unemployment rate"" of 4 to 6.4%. This is the estimated unemployment rate at full employment, plus & minus the standard error of the estimate.The concept of full employment of labor corresponds to the concept of potential output or potential real GDP and the long run aggregate supply (LRAS) curve. In neoclassical macroeconomics, the highest sustainable level of aggregate real GDP or ""potential"" is seen as corresponding to a vertical LRAS curve: any increase in the demand for real GDP can only lead to rising prices in the long run, while any increase in output is temporary.