Understanding Inflation and the Implications for
... In other words, to what extent would a Phillips curve-type mechanism come into play? How would the rapid rise and subsequent decline in the relative prices of food and energy feed through to the general price level? Could one see signs of relative price pass-through in inflation expectations or wage ...
... In other words, to what extent would a Phillips curve-type mechanism come into play? How would the rapid rise and subsequent decline in the relative prices of food and energy feed through to the general price level? Could one see signs of relative price pass-through in inflation expectations or wage ...
Search theory and applied economic research
... result in particularly large differences. In the first model, a steady increase in bond sales on the open market raises inflation while real output and consumption remain unchanged. By contrast, in the second model a sale of bonds has an impact in real terms. As money is withdrawn from the economy, ...
... result in particularly large differences. In the first model, a steady increase in bond sales on the open market raises inflation while real output and consumption remain unchanged. By contrast, in the second model a sale of bonds has an impact in real terms. As money is withdrawn from the economy, ...
Abstract for AEA Meetings 1997 - American Economic Association
... The utility of the concept of long-run aggregate supply in introductory macroeconomics, however, is questionable. Indeed, the LRAS curve may be confusing to the economic principles students trying to relate microeconomics to macroeconomic analysis. In the microeconomic theory of the firm at least on ...
... The utility of the concept of long-run aggregate supply in introductory macroeconomics, however, is questionable. Indeed, the LRAS curve may be confusing to the economic principles students trying to relate microeconomics to macroeconomic analysis. In the microeconomic theory of the firm at least on ...
PDF
... alternative estimates within the context of the simulated farm economy. It is possible to predict shifts in the domestic demand for farm products with considerable accuracy. The annual increment in domestic demand is divided into a population effect and an income effect. In the decade preceding 1968 ...
... alternative estimates within the context of the simulated farm economy. It is possible to predict shifts in the domestic demand for farm products with considerable accuracy. The annual increment in domestic demand is divided into a population effect and an income effect. In the decade preceding 1968 ...
Document
... To countervail the Aggregate Demand Shocks and thus to eliminate any impact on the equilibrium national income, the government may control G, T, and M in counter-cyclical ways. This is called ‘the Counter-cyclical policy’ or ‘Income stabilization policy’. ...
... To countervail the Aggregate Demand Shocks and thus to eliminate any impact on the equilibrium national income, the government may control G, T, and M in counter-cyclical ways. This is called ‘the Counter-cyclical policy’ or ‘Income stabilization policy’. ...
NBER WORKING PAPER SERIES MONETARY-FISCAL POLICY INTERACTIONS BEYOND
... Microeconomic public finance economists should care about the fiscal theory because it identifies a new channel by which fiscal policies can affect economic activity. This channel is typically absent from both micro and macro models of taxation. Whether the channel shows up entirely in inflation or i ...
... Microeconomic public finance economists should care about the fiscal theory because it identifies a new channel by which fiscal policies can affect economic activity. This channel is typically absent from both micro and macro models of taxation. Whether the channel shows up entirely in inflation or i ...
CH_10_13th - Florida State University
... • Consider an unanticipated, temporary, increase in SRAS, such as may result from a bumper crop from good weather. • The increase in aggregate supply (to SRAS2) would lead to a lower price level P95 and an increase in current GDP to Y2. • As the supply conditions are temporary,Copyright LRAS persist ...
... • Consider an unanticipated, temporary, increase in SRAS, such as may result from a bumper crop from good weather. • The increase in aggregate supply (to SRAS2) would lead to a lower price level P95 and an increase in current GDP to Y2. • As the supply conditions are temporary,Copyright LRAS persist ...
Inflation Features
... 1. It can benefit the inflators (those responsible for the inflation) 2. It is benefit early and first recipients of the inflated money (because the negative effects of inflation are not there yet). 3. It can benefit the cartels (it benefits big cartels, destroys small sellers, and can cause price c ...
... 1. It can benefit the inflators (those responsible for the inflation) 2. It is benefit early and first recipients of the inflated money (because the negative effects of inflation are not there yet). 3. It can benefit the cartels (it benefits big cartels, destroys small sellers, and can cause price c ...
... devaluation into import prices and then into wages. There is an entire separate literature on import price "pass-through" which appears (to this outsider) to be less than perfectly integrated with the conventional distinction between the short-run and long-run validity of PPP. The important survey b ...
Dynamic Change, Economic Fluctuations, and the AD
... • an increase (decline) in the expected rate of inflation • higher (lower) real incomes abroad • a reduction (increase) in the exchange rate value of the nation’s currency Copyright ©2017 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessi ...
... • an increase (decline) in the expected rate of inflation • higher (lower) real incomes abroad • a reduction (increase) in the exchange rate value of the nation’s currency Copyright ©2017 Cengage Learning. All rights reserved. May not be scanned, copied or duplicated, or posted to a publicly accessi ...
Implications for the Australian Economy of Strong
... relatively high levels of unemployment to bring down nominal wages), and there is some substitutability across sectors, but it may not be not perfect, in which case relative wages across the different sectors might change over time. Similarly, we assume that tradable and non-tradable goods and servi ...
... relatively high levels of unemployment to bring down nominal wages), and there is some substitutability across sectors, but it may not be not perfect, in which case relative wages across the different sectors might change over time. Similarly, we assume that tradable and non-tradable goods and servi ...
On the Macroeconomic Determinants of the Housing Market in Greece: A VECM Approach
... number of newborns (baby booms) has a small short-term effect on the housing market but it increases demand for new houses twenty years later. A decrease in the number of births or an increase in the average age of population has a strong influence on demand and on the housing prices. ...
... number of newborns (baby booms) has a small short-term effect on the housing market but it increases demand for new houses twenty years later. A decrease in the number of births or an increase in the average age of population has a strong influence on demand and on the housing prices. ...
Output, Business Cycles, and Employment
... time periods. Furthermore, because supplies of factor inputs and technology are fixed, there is no growth in real GDP. We leave that topic for a later chapter. The national accounts we studied in Chapter 4 describe and measure economic activity in terms of aggregate expenditures, outputs, and income ...
... time periods. Furthermore, because supplies of factor inputs and technology are fixed, there is no growth in real GDP. We leave that topic for a later chapter. The national accounts we studied in Chapter 4 describe and measure economic activity in terms of aggregate expenditures, outputs, and income ...
CHAP1.WP (Word5)
... sloping. It also indicates that as the price level falls and the real wage rises, firms will employ fewer workers and thus produce less output (all other things being equal). As the price level rises, the real wage falls and firms hire more workers and produce more output. Thus, there is a positive ...
... sloping. It also indicates that as the price level falls and the real wage rises, firms will employ fewer workers and thus produce less output (all other things being equal). As the price level rises, the real wage falls and firms hire more workers and produce more output. Thus, there is a positive ...
Graduate School of Management
... equivalent of the Federal Reserve System) independent of the government. The government also resumed the gold standard. These measures had credibility. Inflation halted almost overnight, and there were few effects on unemployment and GDP. In sum, credibility matters. Summary What then should Upper B ...
... equivalent of the Federal Reserve System) independent of the government. The government also resumed the gold standard. These measures had credibility. Inflation halted almost overnight, and there were few effects on unemployment and GDP. In sum, credibility matters. Summary What then should Upper B ...
GTAP Resource 4992 - Global Trade Analysis Project
... years (IEA, 2015:100). The reason is that for the past few years, there was no incentive to reform energy pricing due to the high oil price. Higher oil prices meant higher government revenues from oil exports which allowed for increased government spending often on social support programmes and subs ...
... years (IEA, 2015:100). The reason is that for the past few years, there was no incentive to reform energy pricing due to the high oil price. Higher oil prices meant higher government revenues from oil exports which allowed for increased government spending often on social support programmes and subs ...
Bade_Parkin_Macro_Lecture_CH14
... 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. ...
A Dynamic Model of Aggregate Demand and Aggregate Supply
... Chapter 10. An increase in the real interest rate lowers demand through a reduction in both investment spending by business firms and consumption spending by households, with the response depending on the size of the parameter (a higher interest rate might also appreciate the real exchange rate, d ...
... Chapter 10. An increase in the real interest rate lowers demand through a reduction in both investment spending by business firms and consumption spending by households, with the response depending on the size of the parameter (a higher interest rate might also appreciate the real exchange rate, d ...
Insert C, Chapter 24
... supplied by national accounts provide a basis for designing and applying public policies to improve the performance of the economy. Without national accounts, economic policy would be guesswork. National income accounting allows us to assess the health of an economy and formulate policies to maintai ...
... supplied by national accounts provide a basis for designing and applying public policies to improve the performance of the economy. Without national accounts, economic policy would be guesswork. National income accounting allows us to assess the health of an economy and formulate policies to maintai ...