Macro2 Exercise #2
... _____________. How can such a high inflation rate potentially cause a redistribution of income in terms of creditors versus debtors and how does this question relate to the indexing of loans? _ ______________________________________________________________________________ ___________________________ ...
... _____________. How can such a high inflation rate potentially cause a redistribution of income in terms of creditors versus debtors and how does this question relate to the indexing of loans? _ ______________________________________________________________________________ ___________________________ ...
Week 20
... The following game is a fun way to look at the relationship between unemployment and inflation (the Phillips Curve). It allows you to pretend that you are the Central Bank and can set interest rates as a tool to control inflation and unemployment. A high interest rate will attract people to purchasi ...
... The following game is a fun way to look at the relationship between unemployment and inflation (the Phillips Curve). It allows you to pretend that you are the Central Bank and can set interest rates as a tool to control inflation and unemployment. A high interest rate will attract people to purchasi ...
NBER WORKING PAPER SERIES THEORY AND EVIDENCE
... consumers respond to permanent income, or wealth, and not to transitory income. My work explains why high unemployment can persist for long periods of time. Although my explanation is rooted in Keynesian ideas, it goes beyond The General Theory (Keynes, 1936) by providing an original microfounded ex ...
... consumers respond to permanent income, or wealth, and not to transitory income. My work explains why high unemployment can persist for long periods of time. Although my explanation is rooted in Keynesian ideas, it goes beyond The General Theory (Keynes, 1936) by providing an original microfounded ex ...
... points out that this "is a problem of reading not so much between the lines as off the edge of the page"; indicating that Clower's assumptions may have been at times ambiguous in their nature (ibid). Leijonhufvud, in his famous On Keynesian Economics and the Economics of Keynes (1968) tried to prove ...
NBER WORKING PAPER SERIES MODIGLIANIESQUE MACRO MODELS Stanley Fischer Working Paper No. 1797
... the 1944 and 1963 papers in placing the main leverage of monetary policy in price stickiness rather than equilibrium non-neutralities. ...
... the 1944 and 1963 papers in placing the main leverage of monetary policy in price stickiness rather than equilibrium non-neutralities. ...
Course Student Name
... Shock.” As a result of this increase in government spending, the inflation rate increased (increased, decreased, remained unchanged). State the actual new inflation rate here: 8.8%. Given that the stated policy goal was to combat inflation, was this a wise policy? No (Yes, No). Did this policy have ...
... Shock.” As a result of this increase in government spending, the inflation rate increased (increased, decreased, remained unchanged). State the actual new inflation rate here: 8.8%. Given that the stated policy goal was to combat inflation, was this a wise policy? No (Yes, No). Did this policy have ...
Expectations, Taylor Rules and Liquidity Traps
... gives rise to explosive solutions. It includes the rule in a continuous-time version of the basic New-Keynesian model with an adverse natural real interest rate shock that puts the model economy into a liquidity trap, and finds that the three equilibrium paths (Christiano et al. 2011; Werning 2012; ...
... gives rise to explosive solutions. It includes the rule in a continuous-time version of the basic New-Keynesian model with an adverse natural real interest rate shock that puts the model economy into a liquidity trap, and finds that the three equilibrium paths (Christiano et al. 2011; Werning 2012; ...
What can civil society expect from academic macroeconomics?
... criteria enunciated in the introduction? The answer is 'No'. The IS-LM model is wanting in this respect because when described narratively, it comprises four markets (goods, money, labor, and bonds), while only three of these are part of the analytical device. As far as they are concerned, Keynesian ...
... criteria enunciated in the introduction? The answer is 'No'. The IS-LM model is wanting in this respect because when described narratively, it comprises four markets (goods, money, labor, and bonds), while only three of these are part of the analytical device. As far as they are concerned, Keynesian ...
ECO120-Midterm2 Answ..
... Increase the supply of ESAs and raise the cash rate. Increase the supply of ESAs and lower the cash rate. Reduce the supply of ESAs and raise the cash rate. Reduce the supply of ESAs and lower the cash rate. ...
... Increase the supply of ESAs and raise the cash rate. Increase the supply of ESAs and lower the cash rate. Reduce the supply of ESAs and raise the cash rate. Reduce the supply of ESAs and lower the cash rate. ...
department of economics
... of the models Samualson’s multiplier – accelerator interaction theory of trade cycles, Kaldor’s model of the business cycle. Hicks’s theory of business cycle, AD-AS theories of output functions. b) Basic neoclassical growth model/Solow growth model – the accumulation of capital, determination of ste ...
... of the models Samualson’s multiplier – accelerator interaction theory of trade cycles, Kaldor’s model of the business cycle. Hicks’s theory of business cycle, AD-AS theories of output functions. b) Basic neoclassical growth model/Solow growth model – the accumulation of capital, determination of ste ...
This PDF is a selec on from a published volume... Bureau of Economic Research
... policy regime dichotomy described in the Leeper-Walker chapter. Under regime M (for “monetary,” and using the Leeper-Walker terminology) fiscal policy is passive, meaning that taxes and / or transfers are endogenously adjusted so that (1) is satisfied for any price level path. In that environment (1 ...
... policy regime dichotomy described in the Leeper-Walker chapter. Under regime M (for “monetary,” and using the Leeper-Walker terminology) fiscal policy is passive, meaning that taxes and / or transfers are endogenously adjusted so that (1) is satisfied for any price level path. In that environment (1 ...
Article 10
... The paper explored the interaction of monetary and fiscal policy through game theory. In the first part of the paper it isin short presented theoretical basis of fiscal and monetary policy, and then explained the theoretical part of game theory also in short. After theoretical part, the analysis was ...
... The paper explored the interaction of monetary and fiscal policy through game theory. In the first part of the paper it isin short presented theoretical basis of fiscal and monetary policy, and then explained the theoretical part of game theory also in short. After theoretical part, the analysis was ...
EC108 Macroeconomics 1 Review Class
... Consider the simplest model of unemployment dynamics. Let Ut denote the number of unemployed workers at time t, and let s and f denote the job-separation rate and the job finding rate in this economy. Assume initially that the total size of labor force is constant (Lt−1 = Lt = Lt+1 = L, all t). (a) I ...
... Consider the simplest model of unemployment dynamics. Let Ut denote the number of unemployed workers at time t, and let s and f denote the job-separation rate and the job finding rate in this economy. Assume initially that the total size of labor force is constant (Lt−1 = Lt = Lt+1 = L, all t). (a) I ...
The Collapse of Monetarism and the Irrelevance of the New
... consensus–even those who care mainly about the stabilization of the real economy can support a low-inflation objective for monetary policy. ...[M]onetary policy should [therefore] not try to counteract fluctuations in employment and output due to real business cycles.” ...
... consensus–even those who care mainly about the stabilization of the real economy can support a low-inflation objective for monetary policy. ...[M]onetary policy should [therefore] not try to counteract fluctuations in employment and output due to real business cycles.” ...
NBER WORKING PAPER SERIES THE ROLE OF ECONOMIC POLICY Willem H. Buiter
... formalization of certain aspects of the old classical macroeconomics with white noise added. The new version compares unfavorably with the old one, however, in its unsophisticated treatment of the money supply process and of financial markets in general. The old classical macro economics was also mo ...
... formalization of certain aspects of the old classical macroeconomics with white noise added. The new version compares unfavorably with the old one, however, in its unsophisticated treatment of the money supply process and of financial markets in general. The old classical macro economics was also mo ...
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... curve shifts. The augmented MUNDELL model predicts a shift to IS1M , while the DORNBUSCH approach leads to a shift to IS1D . While the market participants in the MUNDELLDORNBUSCH model can anticipate future adjustments of the nominal exchange rate, the static speculators can not. Rational market par ...
... curve shifts. The augmented MUNDELL model predicts a shift to IS1M , while the DORNBUSCH approach leads to a shift to IS1D . While the market participants in the MUNDELLDORNBUSCH model can anticipate future adjustments of the nominal exchange rate, the static speculators can not. Rational market par ...
Edmund Phelps
Edmund Strother Phelps, Jr. (born July 26, 1933) is an American economist and the winner of the 2006 Nobel Memorial Prize in Economic Sciences. Early in his career he became renowned for his research at Yale's Cowles Foundation in the first half of the 1960s on the sources of economic growth. His demonstration of the Golden Rule savings rate, a concept first devised by John von Neumann and Maurice Allais, started a wave of research on how much a nation ought to spend on present consumption rather than save and invest for future generations. His most seminal work inserted a microfoundation—one featuring imperfect information, incomplete knowledge and expectations about wages and prices—to support a macroeconomic theory of employment determination and price-wage dynamics. This led to his development of the natural rate of unemployment—its existence and the mechanism governing its size.Phelps has been McVickar Professor of Political Economy at Columbia University since 1982. He is also the director of Columbia's Center on Capitalism and Society.