Chapter 12
... • The Great Depression of the 1930s • Keynes and Keynesian economics – Keynes (1936), General theory of employment, interest and money – The capitalist economy is inherently unstable and likely to achieve equilibrium with considerable unemployment or severe inflation, and the possibility of persiste ...
... • The Great Depression of the 1930s • Keynes and Keynesian economics – Keynes (1936), General theory of employment, interest and money – The capitalist economy is inherently unstable and likely to achieve equilibrium with considerable unemployment or severe inflation, and the possibility of persiste ...
PDF
... Food and non-food inflation is measured by rate of change in Consumer Price Index (CPI) for food and non-food components, respectively (NSO, 2008). Food inflation occurs when the aggregate quantity of food demanded is greater than supplied at a particular price and time. However, there are different ...
... Food and non-food inflation is measured by rate of change in Consumer Price Index (CPI) for food and non-food components, respectively (NSO, 2008). Food inflation occurs when the aggregate quantity of food demanded is greater than supplied at a particular price and time. However, there are different ...
MONETARY POLICY UNDER A NEW KEYNESIAN PERSPECTIVE
... volatility generates on their marginal costs. Chapter 3 uses the model laid out chapter 2 to investigate how monetary policy should react to oil shocks. The main result is oil price shocks generate a trade-off between inflation and output stabilisation when oil has low substitutability in production ...
... volatility generates on their marginal costs. Chapter 3 uses the model laid out chapter 2 to investigate how monetary policy should react to oil shocks. The main result is oil price shocks generate a trade-off between inflation and output stabilisation when oil has low substitutability in production ...
Chapter 15: Modern Macro - From Short-Run to Long-Run
... In the previous illustration, the increase in the supply of money had no effect on real interest rates, investment, or output Economists call this the long-run neutrality of money In the long run, changes in the supply of money are neutral with respect to “real” variables in the economy Increase of ...
... In the previous illustration, the increase in the supply of money had no effect on real interest rates, investment, or output Economists call this the long-run neutrality of money In the long run, changes in the supply of money are neutral with respect to “real” variables in the economy Increase of ...
12 INFLATION, JOBS, AND THE BUSINESS CYCLE*
... The Keynesian cycle theory regards fluctuations in investment driven by fluctuations in business confidence as the main sources of fluctuations in aggregate demand. The money wage rate is rigid. The monetarist cycle theory sees fluctuations in consumption expenditure and investment driven by flu ...
... The Keynesian cycle theory regards fluctuations in investment driven by fluctuations in business confidence as the main sources of fluctuations in aggregate demand. The money wage rate is rigid. The monetarist cycle theory sees fluctuations in consumption expenditure and investment driven by flu ...
Document
... In Chapter 3, our initial peek at the data showed that changes in money were more highly correlated with changes in nominal GDP than with changes in either real GDP or inflation. Does this finding support or refute monetarism? Explain. The conclusions of Chapter 3 support monetarism. Monetarism is t ...
... In Chapter 3, our initial peek at the data showed that changes in money were more highly correlated with changes in nominal GDP than with changes in either real GDP or inflation. Does this finding support or refute monetarism? Explain. The conclusions of Chapter 3 support monetarism. Monetarism is t ...
"Great Inflation" Lessons for Monetary Policy
... money and a commodity base, such as gold or silver, which had for centuries provided 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 infl ...
... money and a commodity base, such as gold or silver, which had for centuries provided 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 infl ...
Lecture 9 - Leona Craig Art Gallery
... However, people do not like change, especially change for the worse, and even when change would be to their benefit they are slow to do so, if at all. That is the case with accepting decreases in wages or any other financial loss. (C) Red Hill Capital Corp., Delaware, USA ...
... However, people do not like change, especially change for the worse, and even when change would be to their benefit they are slow to do so, if at all. That is the case with accepting decreases in wages or any other financial loss. (C) Red Hill Capital Corp., Delaware, USA ...
nber working paper series a theory of aggregate supply and
... it is mathematically similar to a Real Business Cycle model in which prices are replaced by tightnesses. In both models, there are two endogenous variables—a quantity and a price—in each market. These variables are determined in equilibrium by the equality of supply and demand. Our model remains an ...
... it is mathematically similar to a Real Business Cycle model in which prices are replaced by tightnesses. In both models, there are two endogenous variables—a quantity and a price—in each market. These variables are determined in equilibrium by the equality of supply and demand. Our model remains an ...
Technology, Employment, and the Business Cycle: DO Technology
... productivity in response to the same shock. In the following period, firms adjust their prices downward (since marginal cost is lower), aggregate demand and output will go up, and employment returns to its original level. The sign of the associated change in labor productivity depends again on wheth ...
... productivity in response to the same shock. In the following period, firms adjust their prices downward (since marginal cost is lower), aggregate demand and output will go up, and employment returns to its original level. The sign of the associated change in labor productivity depends again on wheth ...
essen-ch23-presentat..
... In the short run, output deviates from its natural rate when the price level is different than expected, leading to an upward-sloping short-run aggregate supply curve. The three theories proposed to explain this upward slope are the sticky wage theory, the sticky price theory, and the ...
... In the short run, output deviates from its natural rate when the price level is different than expected, leading to an upward-sloping short-run aggregate supply curve. The three theories proposed to explain this upward slope are the sticky wage theory, the sticky price theory, and the ...
Aggregate Supply
... In the short run, output deviates from its natural rate when the price level is different than expected, leading to an upward-sloping short-run aggregate supply curve. The three theories proposed to explain this upward slope are the sticky wage theory, the sticky price theory, and the ...
... In the short run, output deviates from its natural rate when the price level is different than expected, leading to an upward-sloping short-run aggregate supply curve. The three theories proposed to explain this upward slope are the sticky wage theory, the sticky price theory, and the ...
AD and AS honors version
... CHAPTER SUMMARY In the short run, output deviates from its natural rate when the price level is different than expected, leading to an upward-sloping short-run aggregate supply curve. The three theories proposed to explain this upward slope are the sticky wage theory, the sticky price theory, and ...
... CHAPTER SUMMARY In the short run, output deviates from its natural rate when the price level is different than expected, leading to an upward-sloping short-run aggregate supply curve. The three theories proposed to explain this upward slope are the sticky wage theory, the sticky price theory, and ...
Forecasting the economy - Office for Budget Responsibility
... identities, some are technical relationships and the rest are behavioural (or econometric) equations. The behavioural equations are based on economic theory and statistical analyses of how the economy has behaved in the past. For example, the equation for households’ spending says that such spending ...
... identities, some are technical relationships and the rest are behavioural (or econometric) equations. The behavioural equations are based on economic theory and statistical analyses of how the economy has behaved in the past. For example, the equation for households’ spending says that such spending ...
Chapter 9
... prices is just like a tax that decreases the income of consumers. • An increase in taxes will shift the aggregate demand curve to the left. Between 1997 and 1998, the price of oil on the world market fell from $22 a barrel to less than $13 a barrel. The result: gasoline prices were lower than they h ...
... prices is just like a tax that decreases the income of consumers. • An increase in taxes will shift the aggregate demand curve to the left. Between 1997 and 1998, the price of oil on the world market fell from $22 a barrel to less than $13 a barrel. The result: gasoline prices were lower than they h ...
The data are collected at a quarterly frequency, over a
... speech (King, 2006) that “rapid growth of money – as central banks have kept official interest rates very low – has helped to push up asset prices as investors search for yield. Data from the IMF suggest that world broad money in 2004 and 2005 was growing at its fastest rate since the late 1980s." S ...
... speech (King, 2006) that “rapid growth of money – as central banks have kept official interest rates very low – has helped to push up asset prices as investors search for yield. Data from the IMF suggest that world broad money in 2004 and 2005 was growing at its fastest rate since the late 1980s." S ...
Franz Seitz - OTH Amberg
... 1995) and the non-stationarity of the output gap in Germany also give hints for the relevance of this psychological factor. This line of reasoning may also be responsible for cyclical asymmetries (see Kakes 1998, Weise 1999). The second cause for asymmetries refers to imperfections of credit market ...
... 1995) and the non-stationarity of the output gap in Germany also give hints for the relevance of this psychological factor. This line of reasoning may also be responsible for cyclical asymmetries (see Kakes 1998, Weise 1999). The second cause for asymmetries refers to imperfections of credit market ...
Real wages, inflation and labour productivity in Australia
... manufacturing sub-sectors over the period 1980-1996 and found that profit margins (markups) are positively and significantly affected by real wage costs and price inflation; similar conclusions were obtained for Turkey by Blanchard (1985) and Metin-Ozcan et al. (2002). Empirical concerns In relation ...
... manufacturing sub-sectors over the period 1980-1996 and found that profit margins (markups) are positively and significantly affected by real wage costs and price inflation; similar conclusions were obtained for Turkey by Blanchard (1985) and Metin-Ozcan et al. (2002). Empirical concerns In relation ...
Trying to Make Sense of the Principle of Effective Demand
... edition of Money and the Real World (cf. DAVIDSON 1978, p. 381-388). There, he also makes clear why he discards this interpretation. Davidson refers to Keynes’s famous letter to Ohlin (KEYNES 1937D), in which Keynes expresses his discomfort with the “Swedish” approach of comparing ex ante plans with ...
... edition of Money and the Real World (cf. DAVIDSON 1978, p. 381-388). There, he also makes clear why he discards this interpretation. Davidson refers to Keynes’s famous letter to Ohlin (KEYNES 1937D), in which Keynes expresses his discomfort with the “Swedish” approach of comparing ex ante plans with ...
Inflation differentials in the euro area during the last decade
... differential relative to other countries, which may last for a relatively long period of time. Similarly, deregulation that increases the degree of competition in the goods and services markets can lower firms’ mark-up of prices over costs and therefore open a negative inflation differential relativ ...
... differential relative to other countries, which may last for a relatively long period of time. Similarly, deregulation that increases the degree of competition in the goods and services markets can lower firms’ mark-up of prices over costs and therefore open a negative inflation differential relativ ...
Economics EOCT Study Guide
... Take a quick break if you begin to feel tired. To do this, put your pencil down, relax in your chair, and take a few deep breaths. Then, sit up straight, pick up your pencil, and begin to concentrate on the test again. Remember that each test section is only 60 minutes. Use positive self-talk. If yo ...
... Take a quick break if you begin to feel tired. To do this, put your pencil down, relax in your chair, and take a few deep breaths. Then, sit up straight, pick up your pencil, and begin to concentrate on the test again. Remember that each test section is only 60 minutes. Use positive self-talk. If yo ...