The Collapse of Monetarism and the Irrelevance of the New
... 16. Third, can we safely state that a “well-timed aggressive tightening” can avert inflation “without creating a recession”? That statement is surely the lynchpin of the new monetary consensus. It was published in the Journal of Economic Perspectives – a flagship journal of the American Economic Ass ...
... 16. Third, can we safely state that a “well-timed aggressive tightening” can avert inflation “without creating a recession”? That statement is surely the lynchpin of the new monetary consensus. It was published in the Journal of Economic Perspectives – a flagship journal of the American Economic Ass ...
The Phillips Curve
... government directly controls prices, as it did during WWII. • We use new-Keynesian theory to show that a model in which expectations are fixed cannot account for the experiences of the 1970s and 1980s. ...
... government directly controls prices, as it did during WWII. • We use new-Keynesian theory to show that a model in which expectations are fixed cannot account for the experiences of the 1970s and 1980s. ...
Mr - 4J Blog Server
... 1. _________ the money supply in order to _________ interest rates, thus _________ investment in the short-term and adding to the capital stock 2. _________ the money supply in order to _________ interest rates, thus fighting inflation and __________ investment in the long-term Advantage: #2 success ...
... 1. _________ the money supply in order to _________ interest rates, thus _________ investment in the short-term and adding to the capital stock 2. _________ the money supply in order to _________ interest rates, thus fighting inflation and __________ investment in the long-term Advantage: #2 success ...
Document
... If efficiency wages prevail and workers are paid their real wage, already employed workers will reduce their effect, thereby reducing output. It ignores the fact that leisure increases during a recession. It ignores the loss of government revenue and additional government expenditures that occur whe ...
... If efficiency wages prevail and workers are paid their real wage, already employed workers will reduce their effect, thereby reducing output. It ignores the fact that leisure increases during a recession. It ignores the loss of government revenue and additional government expenditures that occur whe ...
1 1) Consider I = b +b Y-b
... All variables and functions are defined as they were in lectures and the textbook. Develop an Aggregate Supply (AS) relationship that relates the price level in the economy to the expected price level, the level of firm competition (m), labor market conditions (z), and the output level in the econom ...
... All variables and functions are defined as they were in lectures and the textbook. Develop an Aggregate Supply (AS) relationship that relates the price level in the economy to the expected price level, the level of firm competition (m), labor market conditions (z), and the output level in the econom ...
document
... A banking panic triggered the worst Depression in history up until this time, which was mainly ...
... A banking panic triggered the worst Depression in history up until this time, which was mainly ...
Policy Statement - Bank of Botswana
... One of the main factors which drives expansion in expenditure is the growth of bank lending, as a means of financing both private consumption and investment. As indicated in last year’s Monetary Policy Statement, credit rose by 55 percent in 1998, a rate of increase that was excessive, unsustainable ...
... One of the main factors which drives expansion in expenditure is the growth of bank lending, as a means of financing both private consumption and investment. As indicated in last year’s Monetary Policy Statement, credit rose by 55 percent in 1998, a rate of increase that was excessive, unsustainable ...
PDF
... Zealand’s for the first time in over a decade; indicating that investors considered Australia’s prospects for low inflation superior to the once lauded New Zealand model (Macfarlane 2006: 87). As outlined above, part of this new stability was derived from the fact that the RBA was now dealing with a ...
... Zealand’s for the first time in over a decade; indicating that investors considered Australia’s prospects for low inflation superior to the once lauded New Zealand model (Macfarlane 2006: 87). As outlined above, part of this new stability was derived from the fact that the RBA was now dealing with a ...
FedViews
... judge to be the natural rate of unemployment. Other signs of progress include lower unemployment insurance claims and declines in broader measures of unemployment that include discouraged and marginally attached workers. However, some measures of labor market slack, such as the labor force participa ...
... judge to be the natural rate of unemployment. Other signs of progress include lower unemployment insurance claims and declines in broader measures of unemployment that include discouraged and marginally attached workers. However, some measures of labor market slack, such as the labor force participa ...
14.02 Principles of Macroeconomics Problem Set 4 Fall 2004
... increase/decrease government spending to achieve the natural level of output. 6. The Keynesian government decides not to listen to you, and raises government spending by more than would be required to achieve the natural level of output. Its argument is that higher output is better. The voters appar ...
... increase/decrease government spending to achieve the natural level of output. 6. The Keynesian government decides not to listen to you, and raises government spending by more than would be required to achieve the natural level of output. Its argument is that higher output is better. The voters appar ...
The Phillips Curve and the Short-Run Aggregate Supply Curve This
... related to wage growth in the United Kingdom. 1. Other economists have found this same negative relationship in many other countries. 2. The intuition behind this relationship is a strong economy increases labor demand, which pushes up nominal wages and reduces unemployment. The higher wages raise f ...
... related to wage growth in the United Kingdom. 1. Other economists have found this same negative relationship in many other countries. 2. The intuition behind this relationship is a strong economy increases labor demand, which pushes up nominal wages and reduces unemployment. The higher wages raise f ...
FedViews
... Central Bank (ECB) took aggressive steps to provide support for Greece and to protect against contagion to other countries. These actions included $140 billion of loans to Greece and the establishment of a nearly $1 trillion fund to support Greece and other EU countries as necessary. Moreover, the E ...
... Central Bank (ECB) took aggressive steps to provide support for Greece and to protect against contagion to other countries. These actions included $140 billion of loans to Greece and the establishment of a nearly $1 trillion fund to support Greece and other EU countries as necessary. Moreover, the E ...
Business Cycle/ Economic Indicators Chart
... 18. What does inflation do to the purchasing power of the dollar? __________________________________________________________________ 19. Who does inflation hurt most? _________________________________________ 20. What causes inflation? a. Cost-Push Inflation _________________________________________ ...
... 18. What does inflation do to the purchasing power of the dollar? __________________________________________________________________ 19. Who does inflation hurt most? _________________________________________ 20. What causes inflation? a. Cost-Push Inflation _________________________________________ ...
Issues related to forecasting framework and the medium term
... ¾ One baseline scenario for inflation and other relevant macroeconomic indicators; ¾ This is the most likely scenario; ¾ Must be understood in correlation with certain risk factors; → more details in Risks and uncertainties surrounding the projection section in the Inflation Report National Bank of ...
... ¾ One baseline scenario for inflation and other relevant macroeconomic indicators; ¾ This is the most likely scenario; ¾ Must be understood in correlation with certain risk factors; → more details in Risks and uncertainties surrounding the projection section in the Inflation Report National Bank of ...
14.02 Principles of Macroeconomics
... Decide whether each of the following statement is true or false, and justify your answer with a short argument. 1. Monetary policy is neutral in the medium run, but fiscal policy is not. True. In the medium run changes in the money supply affect only the price level. Changes in fiscal policy affect ...
... Decide whether each of the following statement is true or false, and justify your answer with a short argument. 1. Monetary policy is neutral in the medium run, but fiscal policy is not. True. In the medium run changes in the money supply affect only the price level. Changes in fiscal policy affect ...
Benoît Cœuré: Interview in the Leading European Newspaper Alliance
... framework (zero rates, liquidity, “forward guidance” and asset purchases) allows us to keep interest rates low, no matter what happens in the rest of the world. Our policy protects the interest rate curve for the euro area from external shocks. What interests us above all is what the Fed’s decision ...
... framework (zero rates, liquidity, “forward guidance” and asset purchases) allows us to keep interest rates low, no matter what happens in the rest of the world. Our policy protects the interest rate curve for the euro area from external shocks. What interests us above all is what the Fed’s decision ...
Teaching Modern Macroecsnornics at the Principles Level
... equation is a close approximation to the actual behavior of many central banks. When the inflation rate rises, the central bank takes actions to raise the short-term interest rate (the federalfunds rate in the United States) by enough to raise the real interest rate (b should be positive); ...
... equation is a close approximation to the actual behavior of many central banks. When the inflation rate rises, the central bank takes actions to raise the short-term interest rate (the federalfunds rate in the United States) by enough to raise the real interest rate (b should be positive); ...
Presentation to a Seattle Community Leaders Luncheon Marriott Waterfront, Seattle, Washington
... U.S. but also in emerging Asia, especially China—and that’s leading to a sharp increase in oil consumption. While oil prices are certainly high enough to grab our attention, the situation is a far cry from what happened when oil prices shot up in the 1970s. It’s true that oil prices have hit all-ti ...
... U.S. but also in emerging Asia, especially China—and that’s leading to a sharp increase in oil consumption. While oil prices are certainly high enough to grab our attention, the situation is a far cry from what happened when oil prices shot up in the 1970s. It’s true that oil prices have hit all-ti ...
Inflation IER
... Inflation in NZ pushes up the prices of domestically produced products. If inflation rates are lower in other countries then imports become relatively cheaper (ceteris paribus) so import quantities rise so the value of import payments increase (price × quantity). Achieved Idea described ...
... Inflation in NZ pushes up the prices of domestically produced products. If inflation rates are lower in other countries then imports become relatively cheaper (ceteris paribus) so import quantities rise so the value of import payments increase (price × quantity). Achieved Idea described ...
Modern Principles, Macroeconomics
... 2) Does an analysis of real shocks add to an analysis of aggregate demand shocks? Absolutely. In our view, a key problem with many textbooks is that they make fiscal and monetary policy look too easy. In the standard P,Y model the economy can always be restored to full employment by shifting the rig ...
... 2) Does an analysis of real shocks add to an analysis of aggregate demand shocks? Absolutely. In our view, a key problem with many textbooks is that they make fiscal and monetary policy look too easy. In the standard P,Y model the economy can always be restored to full employment by shifting the rig ...