經濟學講義(97
... (1)GDP Deflator reflects the prices of all goods and services produced domestically. CPI reflects the prices of all goods and services bought by consumers. ex1. If the price of airplane produced by Boeing and sold to Air Force rises, then GDP Deflator rises, but CPI does not rise.(the airplane is no ...
... (1)GDP Deflator reflects the prices of all goods and services produced domestically. CPI reflects the prices of all goods and services bought by consumers. ex1. If the price of airplane produced by Boeing and sold to Air Force rises, then GDP Deflator rises, but CPI does not rise.(the airplane is no ...
Chapter 26 - Inflation and Monetary Policy
... • This is why financial press speculates constantly about likelihood of changes in interest rate target – Good news about the economy sometimes leads to expectations that Fed—fearing inflation—will raise its interest rate target • This is why good economic news sometimes causes stock and bond prices ...
... • This is why financial press speculates constantly about likelihood of changes in interest rate target – Good news about the economy sometimes leads to expectations that Fed—fearing inflation—will raise its interest rate target • This is why good economic news sometimes causes stock and bond prices ...
Real GDP - West Essex High School
... unemployment is not counted in unemployment rates. Most workers will be retained (out of the labor force) until they can find a new job. Also structural changes are good for economic growth. ...
... unemployment is not counted in unemployment rates. Most workers will be retained (out of the labor force) until they can find a new job. Also structural changes are good for economic growth. ...
Reflections On Hayek’s Business Cycle Theory
... is a deviation of the actual structure of prices and wages from its equilibrium structure, which brings about maladjustments and structural unemployment.”50 He acknowledges that the theory has “the unfortunate property of not being verifiable by statistical methods.” In his Alfred Nobel Memorial Lec ...
... is a deviation of the actual structure of prices and wages from its equilibrium structure, which brings about maladjustments and structural unemployment.”50 He acknowledges that the theory has “the unfortunate property of not being verifiable by statistical methods.” In his Alfred Nobel Memorial Lec ...
ON INFLATION - Wiley Online Library
... edition of his popular text on macroeconomics, identifies the following as one of the four most important unresolved questions of macroeconomics: “How costly is inflation, and how costly is reducing inflation?” (Mankiw, 2003:524-525). In discussing the question he emphasises that the cost of inflati ...
... edition of his popular text on macroeconomics, identifies the following as one of the four most important unresolved questions of macroeconomics: “How costly is inflation, and how costly is reducing inflation?” (Mankiw, 2003:524-525). In discussing the question he emphasises that the cost of inflati ...
Speech - Bank of England
... Good evening. It is a pleasure to be at the LSE and an honour to share the podium with Amartya Sen. Professor Sen is rightly recognised for his many contributions, not least to welfare economics and social choice theory. He has posed, and in many cases answered, some of the most fundamental questio ...
... Good evening. It is a pleasure to be at the LSE and an honour to share the podium with Amartya Sen. Professor Sen is rightly recognised for his many contributions, not least to welfare economics and social choice theory. He has posed, and in many cases answered, some of the most fundamental questio ...
IV. Globalization and The Efficiency of Equilibrium
... increased openness exerts a negative and significant impact on sectoral prices. They show further that this effect of openness on prices occurs both through lower markups and increases in productivity. Their results suggest that the increase in the trade volume can account for as much as a quarter o ...
... increased openness exerts a negative and significant impact on sectoral prices. They show further that this effect of openness on prices occurs both through lower markups and increases in productivity. Their results suggest that the increase in the trade volume can account for as much as a quarter o ...
File
... Between Price and Quantity Supplied Supply schedule: a table that shows the relationship between the price of a good and the quantity supplied Supply curve: a graph of the relationship between the price of a good and the quantity supplied ...
... Between Price and Quantity Supplied Supply schedule: a table that shows the relationship between the price of a good and the quantity supplied Supply curve: a graph of the relationship between the price of a good and the quantity supplied ...
Macroeconomics in Russia - The University of Chicago Booth
... from figure that inflation during this period was typically above 20% per month. During this period, credit was rather loose, although it is apparent from figure 3 that credit growth slowed during 1993. The interenterprise debts that had accumulated in the first period were basically monetized (paid ...
... from figure that inflation during this period was typically above 20% per month. During this period, credit was rather loose, although it is apparent from figure 3 that credit growth slowed during 1993. The interenterprise debts that had accumulated in the first period were basically monetized (paid ...
Money and Banking in a `New Keynesian` Model
... on the endogeneity/exogeneity of money, it has been the so-called post-Keynesian school that has been most vociferous in its rejection of the central bank’s willingness/ability to determine the path of any monetary aggregate, even the monetary base. In these circles, therefore, there has been an im ...
... on the endogeneity/exogeneity of money, it has been the so-called post-Keynesian school that has been most vociferous in its rejection of the central bank’s willingness/ability to determine the path of any monetary aggregate, even the monetary base. In these circles, therefore, there has been an im ...
Scenario Review - Mexico
... as markets started to price in an earlier reduction of monetary stimulus in the United States. In spite of higher rates in the U.S., we still see room for an appreciation of the peso, which will likely continue to benefit from the debate over structural reforms. In addition, we note that a better ou ...
... as markets started to price in an earlier reduction of monetary stimulus in the United States. In spite of higher rates in the U.S., we still see room for an appreciation of the peso, which will likely continue to benefit from the debate over structural reforms. In addition, we note that a better ou ...
Unemployment
... New Goods Bias New goods that were not available in the base year appear and, if they are more expensive than the goods they replace, they put an upward bias into the CPI. Quality Change Bias Quality improvements occur every year. Part of the rise in the price is payment for improved quality and is ...
... New Goods Bias New goods that were not available in the base year appear and, if they are more expensive than the goods they replace, they put an upward bias into the CPI. Quality Change Bias Quality improvements occur every year. Part of the rise in the price is payment for improved quality and is ...
BER,Ppt2
... • Purchasing Power Parity - adjusts for the inflationary effects of goods being non-tradeable between two or more economies, for example land prices. Used to compare standard of living purchasing power between two economies. PPP adjustments are measuring inflation in location, rather than in time. M ...
... • Purchasing Power Parity - adjusts for the inflationary effects of goods being non-tradeable between two or more economies, for example land prices. Used to compare standard of living purchasing power between two economies. PPP adjustments are measuring inflation in location, rather than in time. M ...
Bade_Parkin_Macro_Lecture_CH13
... 2. If the interest rate is 4 percent a year, the quantity of money held is less than the quantity demanded. People sell bonds, the price of a bond falls, and the interest rate rises. A rise in the nominal interest rate decreases the quantity of real money demanded. 3. If the interest rate is 5 perce ...
... 2. If the interest rate is 4 percent a year, the quantity of money held is less than the quantity demanded. People sell bonds, the price of a bond falls, and the interest rate rises. A rise in the nominal interest rate decreases the quantity of real money demanded. 3. If the interest rate is 5 perce ...
9 Money
... • Complete separation of the real economy from the monetary economy (the “classical dichotomy”) • The real variables (in particular, Yt and rt+1 ) depend only on real parameters and shocks (technology, preferences, etc.), as in the Neoclassical/RBC model • What happens in our money market equilibriu ...
... • Complete separation of the real economy from the monetary economy (the “classical dichotomy”) • The real variables (in particular, Yt and rt+1 ) depend only on real parameters and shocks (technology, preferences, etc.), as in the Neoclassical/RBC model • What happens in our money market equilibriu ...
A lower neutral rate: causes and consequences
... out hope that supporting demand can help repair at least some of the damage to potential output (by enticing more people back into the labor force and encouraging firms to invest more in productivity enhancements), they also increasingly judge that the neutral rate will remain lower for longer. That ...
... out hope that supporting demand can help repair at least some of the damage to potential output (by enticing more people back into the labor force and encouraging firms to invest more in productivity enhancements), they also increasingly judge that the neutral rate will remain lower for longer. That ...
Research and Monetary Policy Department Working Paper No:07/04
... ongoing normalization process of the economy, thanks to continued fiscal prudence. Interest rate pass-through The main policy instrument of inflation targeters is short-term interest rates. In fact, there is a consensus in the literature that aggregate demand depends more on long-term rates than sho ...
... ongoing normalization process of the economy, thanks to continued fiscal prudence. Interest rate pass-through The main policy instrument of inflation targeters is short-term interest rates. In fact, there is a consensus in the literature that aggregate demand depends more on long-term rates than sho ...
Principles of Macroeconomics Econ 202
... – If the quality of a good rises from one year to the next, the value of a dollar rises, even if the price of the good stays the same. – If the quality of a good falls from one year to the next, the value of a dollar falls, even if the price of the good stays the same. – The BLS tries to adjust the ...
... – If the quality of a good rises from one year to the next, the value of a dollar rises, even if the price of the good stays the same. – If the quality of a good falls from one year to the next, the value of a dollar falls, even if the price of the good stays the same. – The BLS tries to adjust the ...
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.