Long-Run and Short-Run Concerns: Growth, Productivity
... during inflations. People therefore hold less cash and need to stop at the bank more often. • People are not fully informed about price changes and may make mistakes that lead to a misallocation of resources. ...
... during inflations. People therefore hold less cash and need to stop at the bank more often. • People are not fully informed about price changes and may make mistakes that lead to a misallocation of resources. ...
NBER WORKING PAPER SERIES
... workers occur because either the union wage rate falls (relative to what it would otherwise have been) or there are employment displacements, which may be associated with unusually long unemployment spells and/or wage reductions on ...
... workers occur because either the union wage rate falls (relative to what it would otherwise have been) or there are employment displacements, which may be associated with unusually long unemployment spells and/or wage reductions on ...
This PDF is a selection from a published volume from
... understanding the volatility of capital taxes is investment adjustment costs. Intuitively, the higher the impediments to adjusting the level of investment, the lower the elasticity of capital with respect to temporary changes in tax rates. In the absence of investment adjustment costs, the optimal v ...
... understanding the volatility of capital taxes is investment adjustment costs. Intuitively, the higher the impediments to adjusting the level of investment, the lower the elasticity of capital with respect to temporary changes in tax rates. In the absence of investment adjustment costs, the optimal v ...
Teacher Notes - Georgia Standards
... The student should be able to define opportunity cost as the value of the next best alternative given up when making a choice. Although trade-offs are not discussed until SSEF2, students should recognize that trade-offs are all the possible alternatives while the opportunity cost is only based on th ...
... The student should be able to define opportunity cost as the value of the next best alternative given up when making a choice. Although trade-offs are not discussed until SSEF2, students should recognize that trade-offs are all the possible alternatives while the opportunity cost is only based on th ...
Inflation Targeting
... which was approved by the DBCC on 9 July 2010 under Resolution No. 2010-3. This shift from a range target to a point target with a tolerance interval effectively widens the BSP’s target band. A broader target band is seen to provide added flexibility to monetary authorities in steering inflation. It ...
... which was approved by the DBCC on 9 July 2010 under Resolution No. 2010-3. This shift from a range target to a point target with a tolerance interval effectively widens the BSP’s target band. A broader target band is seen to provide added flexibility to monetary authorities in steering inflation. It ...
Mankiw 5/e Chapter 4: Money and Inflation
... 1. Money the stock of assets used for transactions serves as a medium of exchange, store of value, and unit of account. Commodity money has intrinsic value, fiat money does not. Central bank controls money supply. 2. Quantity theory of money assumption: velocity is stable conclusion: the ...
... 1. Money the stock of assets used for transactions serves as a medium of exchange, store of value, and unit of account. Commodity money has intrinsic value, fiat money does not. Central bank controls money supply. 2. Quantity theory of money assumption: velocity is stable conclusion: the ...
Chapter 16 - Central Web Server 2
... • When unemployment is low, firms compete for workers and bid up wages sharply. • When unemployment is high, it is more difficult for firms to cut wages because workers tend to resist wage cuts. Result: Even if the total unemployment rate in the country appears to be at the natural rate of unemploym ...
... • When unemployment is low, firms compete for workers and bid up wages sharply. • When unemployment is high, it is more difficult for firms to cut wages because workers tend to resist wage cuts. Result: Even if the total unemployment rate in the country appears to be at the natural rate of unemploym ...
Short description of models available in MMB 2.0
... amount of hours. Clarida et al. (2002) introduce an exogenous time-varying elasticity of labor demand to vary the wage-mark-up over time. The system of equations is collapsed into an IS equation and a Phillips curve, which determine the output gap and inflation, conditional on the path of the nomina ...
... amount of hours. Clarida et al. (2002) introduce an exogenous time-varying elasticity of labor demand to vary the wage-mark-up over time. The system of equations is collapsed into an IS equation and a Phillips curve, which determine the output gap and inflation, conditional on the path of the nomina ...
Part III A Critique of Self-adjusting Full Employment
... In the previous three chapters four versions of the neoclassical macro model were presented with a running critique. In this chapter I provide a synthesis of the critiques by focusing upon the neutrality of money and full employment. The discussion is more easily followed by referring to Table 8.1, ...
... In the previous three chapters four versions of the neoclassical macro model were presented with a running critique. In this chapter I provide a synthesis of the critiques by focusing upon the neutrality of money and full employment. The discussion is more easily followed by referring to Table 8.1, ...
NBER WORKING PAPER SERIES ON THE OR IRRELEVANCE OF PUBLIC
... the effect of public financial policy on the relative prices of different assets does not arise. 2. The original papers by Tobin (1965) and Johnson (1966) gave rise to a large literature; see, for instance, Shell, Sidrauski, and Stiglitz (1967). Although much of this literature employed ad hoc savin ...
... the effect of public financial policy on the relative prices of different assets does not arise. 2. The original papers by Tobin (1965) and Johnson (1966) gave rise to a large literature; see, for instance, Shell, Sidrauski, and Stiglitz (1967). Although much of this literature employed ad hoc savin ...
Chapter 10
... – Most macroeconomic models (including the IS–LM and AD–AS models), key variables are economy-wide averages of income, the wage rate, wealth, money holdings, etc. – But some issues in macroeconomics are better addressed in models in which agents in the model act in different ways or face different w ...
... – Most macroeconomic models (including the IS–LM and AD–AS models), key variables are economy-wide averages of income, the wage rate, wealth, money holdings, etc. – But some issues in macroeconomics are better addressed in models in which agents in the model act in different ways or face different w ...
Chapter 7 PowerPoint Presentation
... Measuring Prices • Market Basket: what average people buy and in what quantities they buy it • Base Year: year in which the market basket is established and year to which all other prices are compared • Price of the Market Basket in the Base Year: (PBYMB) national average of the total cost of the m ...
... Measuring Prices • Market Basket: what average people buy and in what quantities they buy it • Base Year: year in which the market basket is established and year to which all other prices are compared • Price of the Market Basket in the Base Year: (PBYMB) national average of the total cost of the m ...
Monopoly Power and Endogenous Product Variety: Distortions and
... possible for our model to match several important features of the data. ...
... possible for our model to match several important features of the data. ...
Targeting Nominal GDP or Prices: Expectation Dynamics and the Interest Rate
... where government spending is assumed to be constant over time. The expectations are formed at time and variables at time are assumed to be in the information set of the agents. We will treat (13), together with (12), as the temporary equilibrium equations that determine given expectations ...
... where government spending is assumed to be constant over time. The expectations are formed at time and variables at time are assumed to be in the information set of the agents. We will treat (13), together with (12), as the temporary equilibrium equations that determine given expectations ...
Study Questions (with Answers) Lecture 5 Tariffs Part 1: Multiple
... Ans: An action by a group of individuals that will benefit them all by small amounts, and that none individually has an incentive to undertake. ...
... Ans: An action by a group of individuals that will benefit them all by small amounts, and that none individually has an incentive to undertake. ...
Chapter 10 - The Citadel
... • Several times during the period known as the “Roaring Twenties” the price level declined in the United States? • In the meantime, average prices of shares of stock more than doubled, and real GDP increased? • Why did the United States experience deflation even as the nation experienced economic gr ...
... • Several times during the period known as the “Roaring Twenties” the price level declined in the United States? • In the meantime, average prices of shares of stock more than doubled, and real GDP increased? • Why did the United States experience deflation even as the nation experienced economic gr ...