Newsletter April 2015CN1
... Too much inflation is not good. Too little inflation is not good. In looking at inflation for the first quarter, we notice something rather disturbing. While the final numbers have not yet been released, it appears the core consumer rate, which excludes food and energy, will rise in March about the ...
... Too much inflation is not good. Too little inflation is not good. In looking at inflation for the first quarter, we notice something rather disturbing. While the final numbers have not yet been released, it appears the core consumer rate, which excludes food and energy, will rise in March about the ...
FedViews
... Measures of longer-term inflation expectations remain stable. Both the market-based measure of TIPS implied inflation compensation five-to-ten years ahead and the projections of long-term inflation by Thomson Reuters/University of Michigan Surveys of Consumers and the Survey of Professional Forecast ...
... Measures of longer-term inflation expectations remain stable. Both the market-based measure of TIPS implied inflation compensation five-to-ten years ahead and the projections of long-term inflation by Thomson Reuters/University of Michigan Surveys of Consumers and the Survey of Professional Forecast ...
CH 20 Introduction to Macroeconomics
... fluctuations in output during a business cycle but also to increase the growth rate of output in the long-run. ...
... fluctuations in output during a business cycle but also to increase the growth rate of output in the long-run. ...
Review of Final Exam Study Guide
... the money supply. When the reserve requirement is decreased, this allows banks to loan out more of their funds to businesses and consumers, which will increase the money supply. 30. If the Federal Reserve increases interest rates, will this cause the aggregate demand curve to increase or decrease? D ...
... the money supply. When the reserve requirement is decreased, this allows banks to loan out more of their funds to businesses and consumers, which will increase the money supply. 30. If the Federal Reserve increases interest rates, will this cause the aggregate demand curve to increase or decrease? D ...
Inflation DataPost Measuring Price Changes Federal Reserve Bank of San Francisco
... • Consumer Price Index (CPI) • Producer Price Index (PPI) • Personal Consumption Expenditures Price Index (PCEPI) ...
... • Consumer Price Index (CPI) • Producer Price Index (PPI) • Personal Consumption Expenditures Price Index (PCEPI) ...
Chap010
... Relative versus Average Prices • It is possible for individual prices to rise or fall continuously without changing the average price level. • Relative changes can occur in a period of stable average prices. • Changes in relative prices are market signals which help reallocate resources in the econ ...
... Relative versus Average Prices • It is possible for individual prices to rise or fall continuously without changing the average price level. • Relative changes can occur in a period of stable average prices. • Changes in relative prices are market signals which help reallocate resources in the econ ...
Chapter 1
... An empirical discipline • Discussions about macroeconomics are often influenced by personal opinions, since they affect the amount of money that each individual has. As a result, what passes for “facts” is often weighted by personal bias. • As a result, whenever possible, we try and test theories t ...
... An empirical discipline • Discussions about macroeconomics are often influenced by personal opinions, since they affect the amount of money that each individual has. As a result, what passes for “facts” is often weighted by personal bias. • As a result, whenever possible, we try and test theories t ...
Ch. 14 Inflation Ppt.
... CPI is a measure of the general changes in market prices of a selected group of goods & services (< 400) purchased by the typical urban (> 30,000) family Products are weighted according their proportion of total household expenditures with seven components (food 18.1, housing 36.3, clothing 8.7, t ...
... CPI is a measure of the general changes in market prices of a selected group of goods & services (< 400) purchased by the typical urban (> 30,000) family Products are weighted according their proportion of total household expenditures with seven components (food 18.1, housing 36.3, clothing 8.7, t ...
Worksheet #4 - The Digital Economist
... Calculate the rate of inflation between 1999 & 2000, derive the real rate of interest (return) for the year 2000 if nominal interest rates are 7%: Is this real rate of interest above or below the rate of economic growth for the same period of time?____________ Is this to the benefit of lenders or bo ...
... Calculate the rate of inflation between 1999 & 2000, derive the real rate of interest (return) for the year 2000 if nominal interest rates are 7%: Is this real rate of interest above or below the rate of economic growth for the same period of time?____________ Is this to the benefit of lenders or bo ...
Lecture 20
... consumer Demand. Policy solution - government spending? Pump up the economy with temporary spending and tax cuts to create more disposable income and consumer demand and investment. ...
... consumer Demand. Policy solution - government spending? Pump up the economy with temporary spending and tax cuts to create more disposable income and consumer demand and investment. ...
Panel Discussion James Tobin*
... real macroeconomic outcomes? Fiscal policy confronts increasing barriers to its use in management of aggregate demand. Insisting on fiscal prudence in bad weather and good, the Maastricht Treaty formally rules out the use of fiscal policy for macroeconomic stabilization. I do not see evidence that m ...
... real macroeconomic outcomes? Fiscal policy confronts increasing barriers to its use in management of aggregate demand. Insisting on fiscal prudence in bad weather and good, the Maastricht Treaty formally rules out the use of fiscal policy for macroeconomic stabilization. I do not see evidence that m ...
SECTION 6: Inflation, Unemployment, & Stabilization Policies Need to Know Budget balance—savings by government—is defined by:
... MV = PY (If we assume that V, the velocity of money, is constant then a slow increase in M will increase PY or nominal GDP) In the latter half of the 20th century, economists continued to develop and modify versions of classical and Keynesian economic models. ...
... MV = PY (If we assume that V, the velocity of money, is constant then a slow increase in M will increase PY or nominal GDP) In the latter half of the 20th century, economists continued to develop and modify versions of classical and Keynesian economic models. ...
ECON-4.9-10.12 Inflation
... Impossible, you say! That is the case, though, when prices are adjusted for inflation. Back in 1980, a gallon of gas cost about $1.13. More recently, in 2005 a gallon of gas cost $1.66. Yes, $1.66 is more than $1.13, but when the rate of inflation is figured in, the cost of a gallon of gas in 1980 w ...
... Impossible, you say! That is the case, though, when prices are adjusted for inflation. Back in 1980, a gallon of gas cost about $1.13. More recently, in 2005 a gallon of gas cost $1.66. Yes, $1.66 is more than $1.13, but when the rate of inflation is figured in, the cost of a gallon of gas in 1980 w ...
Could stagflation be the bigger threat?
... currencies look significantly undervalued based on the gap between purchasing power parity and market exchange rate based measure of GDP, so there is room to let currencies appreciate. But because many countries are wary that that tighter monetary policy will attract further “hot money” inflows, tha ...
... currencies look significantly undervalued based on the gap between purchasing power parity and market exchange rate based measure of GDP, so there is room to let currencies appreciate. But because many countries are wary that that tighter monetary policy will attract further “hot money” inflows, tha ...
Final Review Chapters 5-15
... Shocks to spending are neutralized by the interest rate (abstinence theory of interest) Supply and demand will be balanced because S creates D (Say’s Law) Thus, a shock may cause an economy to be inflationary or recessionary temporarily, but the economy will naturally return to FE. This implies a v ...
... Shocks to spending are neutralized by the interest rate (abstinence theory of interest) Supply and demand will be balanced because S creates D (Say’s Law) Thus, a shock may cause an economy to be inflationary or recessionary temporarily, but the economy will naturally return to FE. This implies a v ...
The Business Cycle - McGraw Hill Higher Education
... • Relative changes can occur in a period of stable average prices. • Changes in relative prices are market signals that help reallocate resources in the economy. • In a general inflation – when all prices are rising – prices do not help to reallocate resources. ...
... • Relative changes can occur in a period of stable average prices. • Changes in relative prices are market signals that help reallocate resources in the economy. • In a general inflation – when all prices are rising – prices do not help to reallocate resources. ...
Chapter 32 Inflation and Growth: The Phillips Curve
... When unemployment and inflation were both falling in the 1990s, it was because aggregate supply was increasing at an unusually rapid rate-in response to a series of favorable supply shocks (low oil prices, advances in technology, strong U.S. dollar). This extraordinary economic performance does not ...
... When unemployment and inflation were both falling in the 1990s, it was because aggregate supply was increasing at an unusually rapid rate-in response to a series of favorable supply shocks (low oil prices, advances in technology, strong U.S. dollar). This extraordinary economic performance does not ...
Economics Revision: Conflicts between Macro Objectives
... costs and also leads to higher real wages which boosts consumer demand Innovation allows businesses to produce new products at cheaper cost per unit Expectations of inflation remain stable – a credible ...
... costs and also leads to higher real wages which boosts consumer demand Innovation allows businesses to produce new products at cheaper cost per unit Expectations of inflation remain stable – a credible ...
宏观经济学（双语教学）教学大纲 Macroeconomics syllabus 一、课程的
... (2) Explain whether the following statements are true, false, or uncertain. a. “Inflation hurts borrowers and helps lenders, because borrowers must pay a higher rate of interest”. b. “If prices change in way that leaves the overall price level unchanged, then no one is made better or worse off.” c. ...
... (2) Explain whether the following statements are true, false, or uncertain. a. “Inflation hurts borrowers and helps lenders, because borrowers must pay a higher rate of interest”. b. “If prices change in way that leaves the overall price level unchanged, then no one is made better or worse off.” c. ...
WSJ: Hitting the Limits of Monetary Policy
... limits of what monetary policy can do to help the European Union reach its target of 2% inflation. This should come as no surprise. Interest rates at zero or below, combined with an expanded central-bank balance sheet through QE, has been a strategy employed by central banks in the eurozone, U.K., J ...
... limits of what monetary policy can do to help the European Union reach its target of 2% inflation. This should come as no surprise. Interest rates at zero or below, combined with an expanded central-bank balance sheet through QE, has been a strategy employed by central banks in the eurozone, U.K., J ...
Stagflation Definition www.AssignmentPoint.com In economics
... [notes 3] After inflation rates began to fall in 1982, economists' focus shifted from the causes of stagflation to the "determinants of productivity growth and the effects of real wages on the demand for labor". ...
... [notes 3] After inflation rates began to fall in 1982, economists' focus shifted from the causes of stagflation to the "determinants of productivity growth and the effects of real wages on the demand for labor". ...
Inflation – Different Types and Impacts
... Inflation is nothing but the more price we pay for goods. It is the persistent rise of all goods and services over a period of time. There are several factors that influences inflation in India. The major factors to be taken into account is the population, unbalanced economic growth, demand for more ...
... Inflation is nothing but the more price we pay for goods. It is the persistent rise of all goods and services over a period of time. There are several factors that influences inflation in India. The major factors to be taken into account is the population, unbalanced economic growth, demand for more ...
Inflation
In economics, inflation is a sustained increase in the general price level of goods and services in an economy over a period of time.When the price level rises, each unit of currency buys fewer goods and services. Consequently, inflation reflects a reduction in the purchasing power per unit of money – a loss of real value in the medium of exchange and unit of account within the economy. A chief measure of price inflation is the inflation rate, the annualized percentage change in a general price index (normally the consumer price index) over time. The opposite of inflation is deflation.Inflation affects an economy in various ways, both positive and negative. Negative effects of inflation include an increase in the opportunity cost of holding money, uncertainty over future inflation which may discourage investment and savings, and if inflation were rapid enough, shortages of goods as consumers begin hoarding out of concern that prices will increase in the future.Inflation also has positive effects: Fundamentally, inflation gives everyone an incentive to spend and invest, because if they don't, their money will be worth less in the future. This increase in spending and investment can benefit the economy. However it may also lead to sub-optimal use of resources. Inflation reduces the real burden of debt, both public and private. If you have a fixed-rate mortgage on your house, your salary is likely to increase over time due to wage inflation, but your mortgage payment will stay the same. Over time, your mortgage payment will become a smaller percentage of your earnings, which means that you will have more money to spend. Inflation keeps nominal interest rates above zero, so that central banks can reduce interest rates, when necessary, to stimulate the economy. Inflation reduces unemployment to the extent that unemployment is caused by nominal wage rigidity. When demand for labor falls but nominal wages do not, as typically occurs during a recession, the supply and demand for labor cannot reach equilibrium, and unemployment results. By reducing the real value of a given nominal wage, inflation increases the demand for labor, and therefore reduces unemployment.Economists generally believe that high rates of inflation and hyperinflation are caused by an excessive growth of the money supply. However, money supply growth does not necessarily cause inflation. Some economists maintain that under the conditions of a liquidity trap, large monetary injections are like ""pushing on a string"". Views on which factors determine low to moderate rates of inflation are more varied. Low or moderate inflation may be attributed to fluctuations in real demand for goods and services, or changes in available supplies such as during scarcities. However, the consensus view is that a long sustained period of inflation is caused by money supply growing faster than the rate of economic growth.Today, most economists favor a low and steady rate of inflation. Low (as opposed to zero or negative) inflation reduces the severity of economic recessions by enabling the labor market to adjust more quickly in a downturn, and reduces the risk that a liquidity trap prevents monetary policy from stabilizing the economy. The task of keeping the rate of inflation low and stable is usually given to monetary authorities. Generally, these monetary authorities are the central banks that control monetary policy through the setting of interest rates, through open market operations, and through the setting of banking reserve requirements.