A Working Solution to the Question of Nominal GDP
... Although stabilizing nominal GDP has been suggested before as an objective for monetary policy actions, an increasing number of economists have tried to revive the idea since the financial crisis of 2008 and the apparent ineffectiveness of manipulating the federal funds rate when the zero bound cons ...
... Although stabilizing nominal GDP has been suggested before as an objective for monetary policy actions, an increasing number of economists have tried to revive the idea since the financial crisis of 2008 and the apparent ineffectiveness of manipulating the federal funds rate when the zero bound cons ...
NBER WORKING PAPER SERIES RULE-OF-THUMB CONSUMERS AND THE Jordi Galí
... a locally unique rational expectations equilibrium and, hence, for the avoidance of indeterminacy and fluctuations driven by self-fulfilling expectations. For a large number of models used in applications that determinacy condition can be stated in a way that is both precise and general: the policy ...
... a locally unique rational expectations equilibrium and, hence, for the avoidance of indeterminacy and fluctuations driven by self-fulfilling expectations. For a large number of models used in applications that determinacy condition can be stated in a way that is both precise and general: the policy ...
Command Economy - Pennsylvania State University
... • Expected profits are thus – Price minus costs, multiplied by probability that production takes place ...
... • Expected profits are thus – Price minus costs, multiplied by probability that production takes place ...
Chapter 5 PPT
... The natural rate of unemployment (NRU) The frictional and structural unemployment associated with the full employment level of output ...
... The natural rate of unemployment (NRU) The frictional and structural unemployment associated with the full employment level of output ...
On the sources of macroeconomic stability
... more stable after 1992. But monetary policy makers have been at pains to stress that a continuation of such ‘nice’ (Non-Inflationary Consistently Expansionary) economic conditions could not be taken for granted.(1) Indeed, the major economies are currently experiencing a set of shocks that may mean ...
... more stable after 1992. But monetary policy makers have been at pains to stress that a continuation of such ‘nice’ (Non-Inflationary Consistently Expansionary) economic conditions could not be taken for granted.(1) Indeed, the major economies are currently experiencing a set of shocks that may mean ...
19.3 aggregate demand
... quantity of real GDP demanded and the price level when all other influences on expenditure plans remain the same. Other things remaining the same, • When the price level rises, the quantity of real GDP demanded decreases. • When the price level falls, the quantity of real GDP demanded increases. ...
... quantity of real GDP demanded and the price level when all other influences on expenditure plans remain the same. Other things remaining the same, • When the price level rises, the quantity of real GDP demanded decreases. • When the price level falls, the quantity of real GDP demanded increases. ...
Powerpoint - DebtDeflation
... – Does the market demand curve obey the law of downwardsloping demand? – It certainly does. – If prices drop, for example, the lower prices attract new customers through the substitution effect. – In addition; a price reduction will induce extra purchases of goods by existing consumers through both ...
... – Does the market demand curve obey the law of downwardsloping demand? – It certainly does. – If prices drop, for example, the lower prices attract new customers through the substitution effect. – In addition; a price reduction will induce extra purchases of goods by existing consumers through both ...
Anna Jacobson Schwartz: In Memoriam George S. Tavlas
... historical study of the relationship between money and other variables in the United States. The authors did not envisage that the proposed research project would turn out to be anything like the massive study that would eventually be published in 1963. At the time that they started their work on A ...
... historical study of the relationship between money and other variables in the United States. The authors did not envisage that the proposed research project would turn out to be anything like the massive study that would eventually be published in 1963. At the time that they started their work on A ...
(AS) Curve
... Consider the vertical portion of the AS curve. At some level the overall economy is using all its capital and all the labor that wants to work at the market wage. At this level (Ȳ), increased demand for labor and output can be met only by increased prices. Neither wages nor prices are likely to be s ...
... Consider the vertical portion of the AS curve. At some level the overall economy is using all its capital and all the labor that wants to work at the market wage. At this level (Ȳ), increased demand for labor and output can be met only by increased prices. Neither wages nor prices are likely to be s ...
PDF
... and Sullivan, 1986; Kouka, 1995). Market power at the processor level could have adverse ramifications for the catfish industry in that it could lead to market inefficiencies and a reduction in welfare of catfish farmers. In aquaculture, several studies have tested for market power related to the sa ...
... and Sullivan, 1986; Kouka, 1995). Market power at the processor level could have adverse ramifications for the catfish industry in that it could lead to market inefficiencies and a reduction in welfare of catfish farmers. In aquaculture, several studies have tested for market power related to the sa ...
Government Intervention in International Trade Activity 51
... producing Q2. With the subsidy to the domestic industry, the equilibrium would result in a price of PS and a quantity of QS, and the domestic economy would be producing Q3. With the subsidy, domestic production increases. The exact impact on imports depends on the extent of the subsidy and the deman ...
... producing Q2. With the subsidy to the domestic industry, the equilibrium would result in a price of PS and a quantity of QS, and the domestic economy would be producing Q3. With the subsidy, domestic production increases. The exact impact on imports depends on the extent of the subsidy and the deman ...
PDF version
... pass-through effect of an upward adjustment in transport costs. The April 2016 release, however, showed disinflation following some moderation in non-food inflation. The monthly price changes also moderated on account of stability in the exchange rate. Core inflation reflected the trends in headline ...
... pass-through effect of an upward adjustment in transport costs. The April 2016 release, however, showed disinflation following some moderation in non-food inflation. The monthly price changes also moderated on account of stability in the exchange rate. Core inflation reflected the trends in headline ...
Parkin-Bade Chapter 22
... are the efficient responses of a well-functioning market economy that is bombarded by shocks that arise from the uneven pace of technological change. ...
... are the efficient responses of a well-functioning market economy that is bombarded by shocks that arise from the uneven pace of technological change. ...
1 Overlapping Generations
... – Conclusion: A pay-as-you-go pension system is, on the margin, a gain, in terms of the present value of consumption, if ht+1 > rt+1 . Conversely, if ht+1 < rt+1 , the pension system works as a tax (i.e. mandatory savings at a below-market rate of return). – The aggregate annual growth rate of wages ...
... – Conclusion: A pay-as-you-go pension system is, on the margin, a gain, in terms of the present value of consumption, if ht+1 > rt+1 . Conversely, if ht+1 < rt+1 , the pension system works as a tax (i.e. mandatory savings at a below-market rate of return). – The aggregate annual growth rate of wages ...
IS THERE A TRADE-OFF BETWEEN INFLATION AND OUTPUT STABILIZATION?
... Our results are based on an estimated dynamic stochastic general equilibrium (DSGE) model, which is built around neoclassical growth foundations, but assumes that …rms and workers enjoy some monopoly power and cannot set prices freely every period. Relative to an environment with perfect competition ...
... Our results are based on an estimated dynamic stochastic general equilibrium (DSGE) model, which is built around neoclassical growth foundations, but assumes that …rms and workers enjoy some monopoly power and cannot set prices freely every period. Relative to an environment with perfect competition ...
Introduction to Economics
... always downward sloping, the aggregate-supply curve shows a relationship that depends crucially on the time horizon being examined • In the long run, the aggregate-supply curve is vertical, whereas in the short run, the aggregatesupply curve is upward sloping ...
... always downward sloping, the aggregate-supply curve shows a relationship that depends crucially on the time horizon being examined • In the long run, the aggregate-supply curve is vertical, whereas in the short run, the aggregatesupply curve is upward sloping ...
Oil Price Shocks, Monetary Policy and Stagflation
... not to the price of oil (which is merely a symptom rather than a cause), but directly to the underlying demand and supply shocks that drive the real price of oil along with other macroeconomic variables. This does not mean that we should not take Bernanke et al’s (1997) explanation seriously. Even i ...
... not to the price of oil (which is merely a symptom rather than a cause), but directly to the underlying demand and supply shocks that drive the real price of oil along with other macroeconomic variables. This does not mean that we should not take Bernanke et al’s (1997) explanation seriously. Even i ...
18.3 aggregate demand
... quantity of real GDP demanded and the price level when all other influences on expenditure plans remain the same. Other things remaining the same, • When the price level rises, the quantity of real GDP demanded decreases. • When the price level falls, the quantity of real GDP demanded increases. ...
... quantity of real GDP demanded and the price level when all other influences on expenditure plans remain the same. Other things remaining the same, • When the price level rises, the quantity of real GDP demanded decreases. • When the price level falls, the quantity of real GDP demanded increases. ...
Chapter 11: Aggregate Demand II, Applying the IS
... The intersection determines the unique combination of Y and r that satisfies equilibrium in both markets. CHAPTER 11 ...
... The intersection determines the unique combination of Y and r that satisfies equilibrium in both markets. CHAPTER 11 ...
Optimal Monetary Policy in Open Economies
... Research in the international dimensions of optimal monetary policy has long been inspired by a set of fascinating questions, shaping the policy debate in at least two eras of progressive cross-border integration of goods, factors, and assets markets — in the years after World War I and from Bretton ...
... Research in the international dimensions of optimal monetary policy has long been inspired by a set of fascinating questions, shaping the policy debate in at least two eras of progressive cross-border integration of goods, factors, and assets markets — in the years after World War I and from Bretton ...
