Document
... Money allows people to trade their labor for money, then use the money to buy goods and services in separate transactions Money thus permits people to trade with less cost in time and effort Money also allows specialization, since trading is much easier, so people don't have to produce their own ...
... Money allows people to trade their labor for money, then use the money to buy goods and services in separate transactions Money thus permits people to trade with less cost in time and effort Money also allows specialization, since trading is much easier, so people don't have to produce their own ...
12INFLATION*
... and supply curves? A) Decreased aggregate demand, increased shortrun aggregate supply, constant long-run aggregate supply. B) Decreased aggregate demand, decreased shortrun aggregate supply, decreased long-run aggregate supply. C) Increased aggregate demand, increased short-run aggregate supply, inc ...
... and supply curves? A) Decreased aggregate demand, increased shortrun aggregate supply, constant long-run aggregate supply. B) Decreased aggregate demand, decreased shortrun aggregate supply, decreased long-run aggregate supply. C) Increased aggregate demand, increased short-run aggregate supply, inc ...
A Primer on Inflation
... a sustained increase in the aggregate price level causing a fall in the purchasing power of money. The analysis of the price mechanism is a fundamental contribution of economists to the understanding of the workings of our society. Adam Smith helped us understand the price mechanism. If workers, lan ...
... a sustained increase in the aggregate price level causing a fall in the purchasing power of money. The analysis of the price mechanism is a fundamental contribution of economists to the understanding of the workings of our society. Adam Smith helped us understand the price mechanism. If workers, lan ...
Contents
... There is no evidence that aiming for price stability is aiming ‘too low’, or that price stability can only be maintained by suppressing growth. Although money wages are commonly found to be fairly ‘sticky’ in a downward direction, this does not appear to have created a ‘floor’ under inflation, even ...
... There is no evidence that aiming for price stability is aiming ‘too low’, or that price stability can only be maintained by suppressing growth. Although money wages are commonly found to be fairly ‘sticky’ in a downward direction, this does not appear to have created a ‘floor’ under inflation, even ...
Monetary Policy Statement June 2007 Contents
... employment and investment intentions, have been strong. As we have noted recently, government spending continues to increase, which is contributing to domestic demand. Following several years of strong growth, firms have indicated that capacity remains stretched and that finding both skilled and uns ...
... employment and investment intentions, have been strong. As we have noted recently, government spending continues to increase, which is contributing to domestic demand. Following several years of strong growth, firms have indicated that capacity remains stretched and that finding both skilled and uns ...
W Globalization and U.S. Inflation
... concerns the increasing sensitivity of the U.S. economy to foreign economic conditions; specifically, since capacity utilization abroad has been slack in recent years, U.S. inflation has remained mild. This study uses a variety of approaches to examine whether U.S. inflation depends on foreign, rath ...
... concerns the increasing sensitivity of the U.S. economy to foreign economic conditions; specifically, since capacity utilization abroad has been slack in recent years, U.S. inflation has remained mild. This study uses a variety of approaches to examine whether U.S. inflation depends on foreign, rath ...
Sample Chapter 13
... (Extending the life of the machine beyond 1 year complicates the economic calculation but does not change the fundamental analysis.) Suppose the net expected revenue from the machine (that is, after such operating costs as power, lumber, labor, and certain taxes have been subtracted) is $1100. Then ...
... (Extending the life of the machine beyond 1 year complicates the economic calculation but does not change the fundamental analysis.) Suppose the net expected revenue from the machine (that is, after such operating costs as power, lumber, labor, and certain taxes have been subtracted) is $1100. Then ...
NBER WORKING PAPER SERIES THE CONDUCT OF DOMESTIC ICY Robert J. Gordon
... in nominal GNP growth will be divided between inflation and real GNP growth. The results from the equation estimated through 1980 are used to examine the behavior of inflation during the 1981—82 recession, and to predict the behavior of inflation and unemployment that would accompany alternative pat ...
... in nominal GNP growth will be divided between inflation and real GNP growth. The results from the equation estimated through 1980 are used to examine the behavior of inflation during the 1981—82 recession, and to predict the behavior of inflation and unemployment that would accompany alternative pat ...
Taxation and the Taylor Principle
... the central bank’s inflation target. When depreciation allowances are incorporated into the model, the results are modified in an interesting way. The discounted present value of depreciation allowances enters the user cost of capital. However, because the tax system measures depreciation in histori ...
... the central bank’s inflation target. When depreciation allowances are incorporated into the model, the results are modified in an interesting way. The discounted present value of depreciation allowances enters the user cost of capital. However, because the tax system measures depreciation in histori ...
The Evolution of Economic Understanding and Postwar Stabilization Policy Christina D. Romer
... We document this evolution of economic understanding in two ways. First, we consider narrative evidence. In particular, we use the records of the Council of Economic Advisers (CEA) and the Federal Reserve to examine the model of the economy underlying the actions of fiscal and monetary policymakers ...
... We document this evolution of economic understanding in two ways. First, we consider narrative evidence. In particular, we use the records of the Council of Economic Advisers (CEA) and the Federal Reserve to examine the model of the economy underlying the actions of fiscal and monetary policymakers ...
Monetary Policy Statement June 2013 Contents
... likely to be relatively orderly and the inflation impact relatively contained. However, if demand picks up rapidly, competition for workers and materials will likely be more intense and inflationary pressures could increase to a greater extent, both within Canterbury and across the rest of New Zeala ...
... likely to be relatively orderly and the inflation impact relatively contained. However, if demand picks up rapidly, competition for workers and materials will likely be more intense and inflationary pressures could increase to a greater extent, both within Canterbury and across the rest of New Zeala ...
NBER WORKING PAPER SERIES Christopher J. Erceg Christopher Gust
... output, and real interest rates to the inflation target change, government spending, and technology shocks we consider, the size of the changes seems quite modest given the wide range of variation in the trade share examined (from 0 to 35 percent). The main implications of openness are apparent in t ...
... output, and real interest rates to the inflation target change, government spending, and technology shocks we consider, the size of the changes seems quite modest given the wide range of variation in the trade share examined (from 0 to 35 percent). The main implications of openness are apparent in t ...
PDF
... when inflation is above a certain threshold. The predictions of these models are consistent with the empirical results of Bullard and Keating (1995) and Bruno and Easterly (1998)—starting from zero inflation, small policy-induced increases in inflation increase long-run real output, but further incr ...
... when inflation is above a certain threshold. The predictions of these models are consistent with the empirical results of Bullard and Keating (1995) and Bruno and Easterly (1998)—starting from zero inflation, small policy-induced increases in inflation increase long-run real output, but further incr ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... payments by shareholders. (4) The nominal increase in the value of the corporation's capital stock induces a capital gains tax liability for shareholders. (5) Because households pay tax on nominal interest income, inflation lowers the real net yield on bonds as an alternative to share ownership.5 (6 ...
... payments by shareholders. (4) The nominal increase in the value of the corporation's capital stock induces a capital gains tax liability for shareholders. (5) Because households pay tax on nominal interest income, inflation lowers the real net yield on bonds as an alternative to share ownership.5 (6 ...
DETERMINANT AND IMPACTS OF DYNAMIC INFLATION IN
... this relationship by using the theory of natural rate of unemployment. The theory of natural rate of unemployment suggests that there will be a level of equilibrium output, employment, and corresponding level of unemployment naturally decided based on features such as resources employment, technolog ...
... this relationship by using the theory of natural rate of unemployment. The theory of natural rate of unemployment suggests that there will be a level of equilibrium output, employment, and corresponding level of unemployment naturally decided based on features such as resources employment, technolog ...
Monetary Policy Statement March 2008 Contents
... are weaker prospects for world growth, tighter credit conditions, a sharper-than-expected slowing in the housing market, and recent dry weather conditions. On balance, we now expect GDP growth of around 2 percent over the next three years. Despite the weaker outlook for activity, we expect headline ...
... are weaker prospects for world growth, tighter credit conditions, a sharper-than-expected slowing in the housing market, and recent dry weather conditions. On balance, we now expect GDP growth of around 2 percent over the next three years. Despite the weaker outlook for activity, we expect headline ...
the evolution of economic understanding
... long-term growth and possibly precipitate a recession. Thus, if anything, the 1950s model held that there was a positive long-run relationship between inflation and unemployment.3 The notion that there was a level of production and employment above which wages and prices started to rise was well acc ...
... long-term growth and possibly precipitate a recession. Thus, if anything, the 1950s model held that there was a positive long-run relationship between inflation and unemployment.3 The notion that there was a level of production and employment above which wages and prices started to rise was well acc ...
Strategies for Controlling Inflation
... long-run trade-off between output (unemployment) and inflation; and the timeinconsistency problem. These three arguments have so strongly undercut the case for monetary-policy activism that support for it is now held by only a minority of economists. We look at each of these arguments in turn. Long ...
... long-run trade-off between output (unemployment) and inflation; and the timeinconsistency problem. These three arguments have so strongly undercut the case for monetary-policy activism that support for it is now held by only a minority of economists. We look at each of these arguments in turn. Long ...
How Likely is Hyperinflation in the US? Part One
... many of the effects described above. Following Phillip Cagan, hyperinflation is defined as beginning in a month in which price rises are over 50%%, and ending the month before price rises drop below 50% and stay there for at least one year. According to Steve H. Hanke and Nicholas Krus, academics at ...
... many of the effects described above. Following Phillip Cagan, hyperinflation is defined as beginning in a month in which price rises are over 50%%, and ending the month before price rises drop below 50% and stay there for at least one year. According to Steve H. Hanke and Nicholas Krus, academics at ...