MERCATUS RESEARCH THE CASE FOR NOMINAL GDP TARGETING Scott Sumner
... short-term changes. Since the price level is inversely related to the value of money, changes in the supply or demand for gold caused the price level to fluctuate in the short run when gold was used as money. Although the long-run trend in prices under a gold standard is roughly flat, the historical ...
... short-term changes. Since the price level is inversely related to the value of money, changes in the supply or demand for gold caused the price level to fluctuate in the short run when gold was used as money. Although the long-run trend in prices under a gold standard is roughly flat, the historical ...
Aggregate Supply
... In any model with an unchanging labor demand curve, such as the model we just discussed, employment rises when the real wage falls. In the sticky-wage model, an unexpected rise in the price level lowers the real wage and thereby raises the quantity of labor hired and the amount of output produced.Th ...
... In any model with an unchanging labor demand curve, such as the model we just discussed, employment rises when the real wage falls. In the sticky-wage model, an unexpected rise in the price level lowers the real wage and thereby raises the quantity of labor hired and the amount of output produced.Th ...
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
... those that are principally light nianufacturers, sucir as the Republic of Korea. The former are usually rich in natural resources. The latter are usually poor in resources, but have relatively skilled labor forces who are able to produce exportable light manufactures with imported raw materials and ...
... those that are principally light nianufacturers, sucir as the Republic of Korea. The former are usually rich in natural resources. The latter are usually poor in resources, but have relatively skilled labor forces who are able to produce exportable light manufactures with imported raw materials and ...
Economic Foundations for Entertainment, Media, and Technology
... productivity increases. Yes: Conscious decision to take higher income in the form of more leisure! ...
... productivity increases. Yes: Conscious decision to take higher income in the form of more leisure! ...
Lecture 12: The Great Depression - personal.kent.edu
... the bill. Alas, he did not. We will talk more about this tariff when we turn to the international sector. Ostensibly designed to increase domestic consumption by restricting imports, the tariff led to a trade war, restricting the demand for American products as well. The reduction in aggregate suppl ...
... the bill. Alas, he did not. We will talk more about this tariff when we turn to the international sector. Ostensibly designed to increase domestic consumption by restricting imports, the tariff led to a trade war, restricting the demand for American products as well. The reduction in aggregate suppl ...
Sample
... used to produce other goods and services. Consumer price index (CPI), p. 42. An average of the prices of the goods and services purchased by the typical urban family of four. Consumption, p. 29. The purchase of new goods and services by households. Factor of production, p. 27. Any input used to prod ...
... used to produce other goods and services. Consumer price index (CPI), p. 42. An average of the prices of the goods and services purchased by the typical urban family of four. Consumption, p. 29. The purchase of new goods and services by households. Factor of production, p. 27. Any input used to prod ...
NBER WORKING PAPER SERIES Oleksiy Kryvtsov
... to aggregate shocks, are key ingredients in New Keynesian sticky price models necessary to account for the inertia of aggregate prices, inflation and output in the data with the fairly rapid rate at which individual price setters update their nominal prices (once every two to three quarters)1 . Two ...
... to aggregate shocks, are key ingredients in New Keynesian sticky price models necessary to account for the inertia of aggregate prices, inflation and output in the data with the fairly rapid rate at which individual price setters update their nominal prices (once every two to three quarters)1 . Two ...
Inflation Report 4/2000
... inflation in Norway is gradually reduced to the level aimed at by the European Central Bank (ECB). At the same time, monetary policy must not in itself contribute to deflationary recessions as this could undermine confidence in the krone. The labour market is tight. The rate of increase in labour co ...
... inflation in Norway is gradually reduced to the level aimed at by the European Central Bank (ECB). At the same time, monetary policy must not in itself contribute to deflationary recessions as this could undermine confidence in the krone. The labour market is tight. The rate of increase in labour co ...
lecture notes
... The Economic Perspective A. Scarcity and choice 1. Resources can only be used for one purpose at a time. 2. Scarcity requires that choices be made. 3. The cost of any good, service, or activity is the value of what must be given up to obtain it. (opportunity cost). B. Rational Behavior 1. Rational s ...
... The Economic Perspective A. Scarcity and choice 1. Resources can only be used for one purpose at a time. 2. Scarcity requires that choices be made. 3. The cost of any good, service, or activity is the value of what must be given up to obtain it. (opportunity cost). B. Rational Behavior 1. Rational s ...
Welfare Economics Economic Systems Pareto Optimality General
... So don’t these results imply that planning cannot make things better? We know that under competition we arrive at a Pareto Optimal allocation (if M holds); and if we can redistribute income, we can end up with any Pareto-Optimal allocation we like. Can planning improve on that? That is, can we …nd a ...
... So don’t these results imply that planning cannot make things better? We know that under competition we arrive at a Pareto Optimal allocation (if M holds); and if we can redistribute income, we can end up with any Pareto-Optimal allocation we like. Can planning improve on that? That is, can we …nd a ...
Parkin-Bade Chapter 22
... Understand cause & consequences of change in AS/AD • Short run vs Long run • Effects on economic growth, prices, unemployment. ...
... Understand cause & consequences of change in AS/AD • Short run vs Long run • Effects on economic growth, prices, unemployment. ...
Economics for Today 2nd edition Irvin B. Tucker
... exchange are relatively constant. Given this assumption, changes in the money supply yield proportionate changes in the price level. ...
... exchange are relatively constant. Given this assumption, changes in the money supply yield proportionate changes in the price level. ...
EU Economic governance: monitoring, prevention, correction
... the surveillance of public debt is limited to its contribution to macroeconomic imbalances as the sustainability of public finances is already covered by the Stability and Growth Pact9. Indicative thresholds have been set at prudent levels a view to avoid excessive numbers of 'false alarms' but whic ...
... the surveillance of public debt is limited to its contribution to macroeconomic imbalances as the sustainability of public finances is already covered by the Stability and Growth Pact9. Indicative thresholds have been set at prudent levels a view to avoid excessive numbers of 'false alarms' but whic ...
The Contemporaneous Correlation Between
... Sharp attention has recently been re-focused on the correlation between the price level and aggregate output. For many years it was well accepted that prices were procyclical. Lucas (1977), following Burns and Mitchell (1946), took procyclical prices as one of the facts that models of the business ...
... Sharp attention has recently been re-focused on the correlation between the price level and aggregate output. For many years it was well accepted that prices were procyclical. Lucas (1977), following Burns and Mitchell (1946), took procyclical prices as one of the facts that models of the business ...
11.2 Limitations of GDP Estimation
... Nominal GDP Versus Real GDP Nominal GDP is the economy’s output based on the prices at the time of the transaction; current-dollar GDP. Real GDP is the economy’s aggregate output measured in dollars of constant purchasing power; GDP measured in terms of the goods and services produced. ...
... Nominal GDP Versus Real GDP Nominal GDP is the economy’s output based on the prices at the time of the transaction; current-dollar GDP. Real GDP is the economy’s aggregate output measured in dollars of constant purchasing power; GDP measured in terms of the goods and services produced. ...
Meeting the Challenge of Asia
... seasonal factors, such as sales in the shops at certain times of the year. This makes the measure more difficult to interpret. However, it is possible to take account of these factors by comparing the proportion of items with negative inflation rates in any given month with the historical average fo ...
... seasonal factors, such as sales in the shops at certain times of the year. This makes the measure more difficult to interpret. However, it is possible to take account of these factors by comparing the proportion of items with negative inflation rates in any given month with the historical average fo ...
Robert Philip Flood Nancy Peregriin Marion Working Paper No. 500 1050
... capital-account transactions (TTF). Several versions of this system have been tried, or are now used, by major countries,3 and apart from brief treatments in Lanyi (1975) and Marion (1977), we are unaware of any existing analysis of this system. ...
... capital-account transactions (TTF). Several versions of this system have been tried, or are now used, by major countries,3 and apart from brief treatments in Lanyi (1975) and Marion (1977), we are unaware of any existing analysis of this system. ...
DIVERGENT INFLATION RATES BETWEEN MEMBERS OF THE EURO B
... undoubtedly relevant, do not seem sufficient to explain the observed levels of differentials (ECB, 2003). The Balassa-Samuelson Effect and the convergence of living standards As we will see in later parts of this essay (sector structure) there are a number of reasons for which member economies might ...
... undoubtedly relevant, do not seem sufficient to explain the observed levels of differentials (ECB, 2003). The Balassa-Samuelson Effect and the convergence of living standards As we will see in later parts of this essay (sector structure) there are a number of reasons for which member economies might ...