Price Level Convergence and Inflation in Europe
... two years, both headline and core inflation have risen throughout the area, and sizable cross-country differences in inflation have re-emerged. This is illustrated by Figure 1, which shows the headline consumer price inflation rate for the euro area as a whole and for select member countries. As of ...
... two years, both headline and core inflation have risen throughout the area, and sizable cross-country differences in inflation have re-emerged. This is illustrated by Figure 1, which shows the headline consumer price inflation rate for the euro area as a whole and for select member countries. As of ...
Economic Policies for the 1980`s - Scholarly Commons
... employed. By the same token, some manufacturing plans and equipment are expected to be idle at any given time for a variety of reasons. Consequently, capacity is said to be fully utilized when plant utilization throughout the economy averages somewhat less than 90 percent. At times of excessively hi ...
... employed. By the same token, some manufacturing plans and equipment are expected to be idle at any given time for a variety of reasons. Consequently, capacity is said to be fully utilized when plant utilization throughout the economy averages somewhat less than 90 percent. At times of excessively hi ...
"Great Inflation" Lessons for Monetary Policy
... a strong nominal anchor and thus stabilised inflation expectations: “In earlier periods before roughly 1965, the monetary regime guaranteed some long-run stability in monetary growth, and therefore in long-term inflation, which in turn restricted the effects of shifting inflationary expectations […] ...
... a strong nominal anchor and thus stabilised inflation expectations: “In earlier periods before roughly 1965, the monetary regime guaranteed some long-run stability in monetary growth, and therefore in long-term inflation, which in turn restricted the effects of shifting inflationary expectations […] ...
Causes of Inflation
... - Real wage are higher than the market-equilibrium wage. In simple terms, institutions such as "the minimum wage" deter employers from hiring all of the available workers, because the cost would exceed the technologically-determined benefit of hiring them. Some economists theorize that this type of ...
... - Real wage are higher than the market-equilibrium wage. In simple terms, institutions such as "the minimum wage" deter employers from hiring all of the available workers, because the cost would exceed the technologically-determined benefit of hiring them. Some economists theorize that this type of ...
Refocusing the Fed
... those securities that their prices no longer reveal much of anything about macroeconomic fundamentals? These are tough questions that underscore the need for more research on the links between government policies, macroeconomic uncertainty, and long-term interest rates. But they also serve quite use ...
... those securities that their prices no longer reveal much of anything about macroeconomic fundamentals? These are tough questions that underscore the need for more research on the links between government policies, macroeconomic uncertainty, and long-term interest rates. But they also serve quite use ...
FRBSF WEEKLY LETTER Is There a Cost to Having an Independent Central Bank?
... Is There a Cost to Having an Independent Central Bank? In recent years, many economists have argued that average inflation can be kept low if central banks are insulated from political pressures. Politically independent central banks, it is argued, will be less likely to give in to pressures to adop ...
... Is There a Cost to Having an Independent Central Bank? In recent years, many economists have argued that average inflation can be kept low if central banks are insulated from political pressures. Politically independent central banks, it is argued, will be less likely to give in to pressures to adop ...
Taylor Rules and Potential Output
... aggregate supply relationship exists) has long been a central concern of macroeconomic research. Lucas (1973) proposes a model in which the effect arises because agents in the economy are unable to distinguish perfectly between aggregate and idiosyncratic shocks. He tests this model at the aggregate ...
... aggregate supply relationship exists) has long been a central concern of macroeconomic research. Lucas (1973) proposes a model in which the effect arises because agents in the economy are unable to distinguish perfectly between aggregate and idiosyncratic shocks. He tests this model at the aggregate ...
Nicholas C Garganas: Macroeconomic management
... clauses” in contracts. Evidence from the US and Europe suggests that this time lag is around one year1 in those currency areas. The above analysis leads to the conclusion that policy makers face a particularly difficult challenge when dealing with supply-side shocks, unlike demand shocks, which inf ...
... clauses” in contracts. Evidence from the US and Europe suggests that this time lag is around one year1 in those currency areas. The above analysis leads to the conclusion that policy makers face a particularly difficult challenge when dealing with supply-side shocks, unlike demand shocks, which inf ...
the cpi and the cost of living
... biases of the CPI because it uses the price change and the public response to those price changes in the basket of goods and services produced in the current year and the preceding year. In practice, the GDP deflator suffers from some of the CPI’s problems because the Commerce Department does not di ...
... biases of the CPI because it uses the price change and the public response to those price changes in the basket of goods and services produced in the current year and the preceding year. In practice, the GDP deflator suffers from some of the CPI’s problems because the Commerce Department does not di ...
6 Aggregate Supply: Wages, Prices, and Unemployment
... markup over labor costs. For example, suppose that the unit labor costthe cost of paying someone to produce 1 unit of outputis $5. Firms might add $.50 to cover other costs, and set their price at $5 + $.50 = $5.50. Prices will rise with wages. Using these two rules to transform unemployment and w ...
... markup over labor costs. For example, suppose that the unit labor costthe cost of paying someone to produce 1 unit of outputis $5. Firms might add $.50 to cover other costs, and set their price at $5 + $.50 = $5.50. Prices will rise with wages. Using these two rules to transform unemployment and w ...
The AD curve shows the relationship between the inflation rate and
... a. For given levels of inflation and the real interest rate, an increase in government purchases raises aggregate demand and short-run equilibrium output. Thus an increase in government purchases shifts the AD curve to the right. b. Because it leads consumers to spend more, a cut in taxes stimulates ...
... a. For given levels of inflation and the real interest rate, an increase in government purchases raises aggregate demand and short-run equilibrium output. Thus an increase in government purchases shifts the AD curve to the right. b. Because it leads consumers to spend more, a cut in taxes stimulates ...
NBER WORKING PAPER SERIES THE ROLE FOR DISCRETIONARY FISCAL POLICY Martin Feldstein
... They argue, in effect, that with low interest rates, low inflation and weak demand, the risks to the economy are asymmetric. If demand continues to decline, prices might start falling and produce a condition that an expansionary monetary policy cannot correct. In contrast, if the expansionary moneta ...
... They argue, in effect, that with low interest rates, low inflation and weak demand, the risks to the economy are asymmetric. If demand continues to decline, prices might start falling and produce a condition that an expansionary monetary policy cannot correct. In contrast, if the expansionary moneta ...
the full text of the Speech
... At this point, it is perhaps worth noting that the impact on prices or inflation may differ depending on the source of the negative supply shock. In the case of an oil price shock, the impact on inflation is likely to be greater than other shocks. Aside from being an important input to the producti ...
... At this point, it is perhaps worth noting that the impact on prices or inflation may differ depending on the source of the negative supply shock. In the case of an oil price shock, the impact on inflation is likely to be greater than other shocks. Aside from being an important input to the producti ...
NBER WORKING PAPER SERIES U.S. MACROECONOMIC POLICY AND PERFORMANCE IN THE 198Os:
... The CPI series for the period before January 1983 used here is not the CPI—U index reported by the Bureau of Labor Statistics (BLS). Before 1983, the BLSc CR1—U index has serious distortions because of its treatment of housing prices. Specifically, it overstates the inflation rate when mortgage rate ...
... The CPI series for the period before January 1983 used here is not the CPI—U index reported by the Bureau of Labor Statistics (BLS). Before 1983, the BLSc CR1—U index has serious distortions because of its treatment of housing prices. Specifically, it overstates the inflation rate when mortgage rate ...
Dr. Barry Haworth University of Louisville Department of Economics
... 13. If laborers migrate from Country Y to Country X how does this affect the PPC of Country X? a. X's PPC will shift inward for all goods b. X's PPC will shift outward for all goods c. X's PPC won't shift, there will be movement from a pt on X's PPC to a pt inside the PPC d. X's PPC won't shift, bu ...
... 13. If laborers migrate from Country Y to Country X how does this affect the PPC of Country X? a. X's PPC will shift inward for all goods b. X's PPC will shift outward for all goods c. X's PPC won't shift, there will be movement from a pt on X's PPC to a pt inside the PPC d. X's PPC won't shift, bu ...
