Vlandas , Tim. 'The impact of the elderly on inflation rates in developed countries' LEQS Paper No. 107, March 2016
... political parties are influenced by the share of elderly in their electorate. Using panel data regression analysis of party manifesto data, I find that political parties in countries with a larger share of elderly have more economically orthodox manifestos. The third step is a logical implication of ...
... political parties are influenced by the share of elderly in their electorate. Using panel data regression analysis of party manifesto data, I find that political parties in countries with a larger share of elderly have more economically orthodox manifestos. The third step is a logical implication of ...
Budget deficits and inflation feedback
... hyperinflation (a monthly inflation rate that remains above 50 percent for at least a year) and have rather similar characteristics of the dynamics of fiscal and monetary variables. However, they are different in one important aspect. In general, classical hyperinflations took place when a previousl ...
... hyperinflation (a monthly inflation rate that remains above 50 percent for at least a year) and have rather similar characteristics of the dynamics of fiscal and monetary variables. However, they are different in one important aspect. In general, classical hyperinflations took place when a previousl ...
The Evolution of Economic Understanding and Postwar Stabilization Policy Christina D. Romer
... controls and incomes policies, because they were so pessimistic about the effectiveness of slack in reducing inflation. In contrast, after 1979 policymakers pursued very tight policy because they were convinced that the natural rate of unemployment was relatively high, that slack was necessary to re ...
... controls and incomes policies, because they were so pessimistic about the effectiveness of slack in reducing inflation. In contrast, after 1979 policymakers pursued very tight policy because they were convinced that the natural rate of unemployment was relatively high, that slack was necessary to re ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Reducing Inflation: Motivation and Strategy
... number of studies, it is not clear if this applies at the low levels of inflation that are the subject of the current research. ...
... number of studies, it is not clear if this applies at the low levels of inflation that are the subject of the current research. ...
The AD-AS Model and Monetary Policy
... Just because the Bank of Canada drops interest rates, that does not necessarily mean that people or businesses will go out and borrow money. ...
... Just because the Bank of Canada drops interest rates, that does not necessarily mean that people or businesses will go out and borrow money. ...
NBER WORKING PAPER SERIES US AFTER 2001 Lawrence Christiano
... A third factor also helps to account for the differences between the US and the EA. Our estimates indicate that wages and prices are more flexible in the US than in the EA. If the EA were instead characterized by the same price flexibility as the US, inflation in the EA would have exhibited more of ...
... A third factor also helps to account for the differences between the US and the EA. Our estimates indicate that wages and prices are more flexible in the US than in the EA. If the EA were instead characterized by the same price flexibility as the US, inflation in the EA would have exhibited more of ...
Lec_notes_1021
... price (most of the time). Perhaps government services are worth more or less to society than they actually cost. If this is the case, the actual measure of this component of GDP could be a distorted measure of the true “money value” of government goods and services. o Useless things produced by the ...
... price (most of the time). Perhaps government services are worth more or less to society than they actually cost. If this is the case, the actual measure of this component of GDP could be a distorted measure of the true “money value” of government goods and services. o Useless things produced by the ...
NBER WORKING PAPER SERIES Peter N. Ireland Working Paper 16420
... 2009 will always be remembered for its extreme severity. By many measures, in fact, it appears even now as the worst downturn the US economy has experienced since the Great Depression. It brought to an abrupt close the relatively tranquil period, lasting more than twenty years, that had become known ...
... 2009 will always be remembered for its extreme severity. By many measures, in fact, it appears even now as the worst downturn the US economy has experienced since the Great Depression. It brought to an abrupt close the relatively tranquil period, lasting more than twenty years, that had become known ...
Were 364 Economists All Wrong? - Institute of Economic Affairs
... and Professor Patrick Minford, as well as Professor Sir Alan Walters, an IEA Honorary Fellow, were vocal in support of the policies underlying the 1981 Budget and were close to the heart of their development. The open letter from the 364 economists was, indirectly, an attack on their academic statur ...
... and Professor Patrick Minford, as well as Professor Sir Alan Walters, an IEA Honorary Fellow, were vocal in support of the policies underlying the 1981 Budget and were close to the heart of their development. The open letter from the 364 economists was, indirectly, an attack on their academic statur ...
The Role of Expectations in the FRB/US Macroeconomic Model
... The lack of adequate data has meant that builders of macroeconomic models have had to specify a priori how individuals form expectations (see box ‘‘Assumptions about the Ways in Which Expectations Are Formed’’). Most models developed in the 1960s and 1970s, including MPS, incorporated the simplifyin ...
... The lack of adequate data has meant that builders of macroeconomic models have had to specify a priori how individuals form expectations (see box ‘‘Assumptions about the Ways in Which Expectations Are Formed’’). Most models developed in the 1960s and 1970s, including MPS, incorporated the simplifyin ...
aggregate supply curve
... A relatively flat aggregate supply curve that represents the idea that prices do not change very much in the short run and that firms adjust production to meet demand. ...
... A relatively flat aggregate supply curve that represents the idea that prices do not change very much in the short run and that firms adjust production to meet demand. ...
NBER WORKING PAPER SERIES MACROECONOMIC POLICY DESIGN IN AN INTERDEPENDENT WORLD ECONOMY-
... rate, perfect capital mobility, rational exchange ...
... rate, perfect capital mobility, rational exchange ...
This PDF is a selection from a published volume from
... projection on two factors extracted from our large panel produces forecasts of the GDP growth rate and inflation comparable with the Greenbook forecasts and a forecast of the federal funds rate up to two quarters ahead, which is in line with that of the future market. Our analysis extends the foreca ...
... projection on two factors extracted from our large panel produces forecasts of the GDP growth rate and inflation comparable with the Greenbook forecasts and a forecast of the federal funds rate up to two quarters ahead, which is in line with that of the future market. Our analysis extends the foreca ...
Inflation Targeting with a backward Bending Phillips Curve
... remain in the orbit of natural rate thinking where there is no welfare justification for monetary policy aimed at reducing unemployment. In contrast, explaining the Phillips curve by reference to incorporation of inflation expectations breaks that orbit and provides a welfare economics rationale for ...
... remain in the orbit of natural rate thinking where there is no welfare justification for monetary policy aimed at reducing unemployment. In contrast, explaining the Phillips curve by reference to incorporation of inflation expectations breaks that orbit and provides a welfare economics rationale for ...
ExamView - CH 28 sample test questions.tst
... b. lowers the price level. c. decreases uncertainty. d. makes it easier to use money as a standard of account. e. makes money function less well as a store of value. ____ 61. During an inflation, a household with savings of $100,000 a. gains because inflation increases the value of their savings. b. ...
... b. lowers the price level. c. decreases uncertainty. d. makes it easier to use money as a standard of account. e. makes money function less well as a store of value. ____ 61. During an inflation, a household with savings of $100,000 a. gains because inflation increases the value of their savings. b. ...
This PDF is a selection from an out-of-print volume from... of Economic Research
... Shih (1990), Chiu and Hou (1993), and Wu and Shea (1993), emphasize that prosperous stock and real estate transactions in this period created a great deal of transactional demand for money.3Although there are no official data on the value of real estate transactions, table 8.2 shows that the total t ...
... Shih (1990), Chiu and Hou (1993), and Wu and Shea (1993), emphasize that prosperous stock and real estate transactions in this period created a great deal of transactional demand for money.3Although there are no official data on the value of real estate transactions, table 8.2 shows that the total t ...
Economics 1
... •The prices of related goods (such as tapes, portable CD players, and CDs) •Expected future prices •The number of suppliers ...
... •The prices of related goods (such as tapes, portable CD players, and CDs) •Expected future prices •The number of suppliers ...
NBER WORKING PAPER SERIES MARKETS Rahul Anand
... The global financial crisis has led to a vigorous debate about the appropriate objectives for monetary policy. For instance, it has been posited that a narrow version of inflation targeting (IT) could pose risks if it implies that potential asset bubbles are ignored by central banks. The emerging co ...
... The global financial crisis has led to a vigorous debate about the appropriate objectives for monetary policy. For instance, it has been posited that a narrow version of inflation targeting (IT) could pose risks if it implies that potential asset bubbles are ignored by central banks. The emerging co ...
ANALYSIS OF THE ZIMBABWEAN HYPERINFLATION CRISIS: A
... Cagan defines hyperinflations as “beginning in the month the rise in prices exceeds 50 per cent and ending in the month before the monthly rise in prices drops below that amount and stays below for at least a year” (Cagan, 1956, pg. 25). The equivalent annual inflation rate is 12,975 percent. This ...
... Cagan defines hyperinflations as “beginning in the month the rise in prices exceeds 50 per cent and ending in the month before the monthly rise in prices drops below that amount and stays below for at least a year” (Cagan, 1956, pg. 25). The equivalent annual inflation rate is 12,975 percent. This ...
" For a closed economy, the national income identity is written as Y
... The economy begins in a long-run equilibrium, point A When aggregate demand increases unexpectedly, the price level rises from P1 to P2. Because the price level P2 is above the expected price level P2e , the economy moves along the short-run aggregate supply curve from point A to point B In the long ...
... The economy begins in a long-run equilibrium, point A When aggregate demand increases unexpectedly, the price level rises from P1 to P2. Because the price level P2 is above the expected price level P2e , the economy moves along the short-run aggregate supply curve from point A to point B In the long ...
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.