![This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Money in Historical Perspective](http://s1.studyres.com/store/data/008232248_1-c52ed8f515ffd9423375b45ec7437b61-300x300.png)
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Money in Historical Perspective
... in activity was irrefutable. We now turn to the simulation studies that compare the hypothetical behavior of the U.S.economy under an assumed constant money growth rate rule with actual economic performance. The evidence is mixed. Friedman (1960) found that a rule would have outperformed discretiona ...
... in activity was irrefutable. We now turn to the simulation studies that compare the hypothetical behavior of the U.S.economy under an assumed constant money growth rate rule with actual economic performance. The evidence is mixed. Friedman (1960) found that a rule would have outperformed discretiona ...
out-infl-dyn-partI
... In BJM, Aggregate Prices, which is our variable, P, don’t fall. That is, the BJM model is New Keynesian. BJM “model” this fact by having Prices set by mark-up pricing. See Figures 9-4, 9-5, and Figure 1 in the “Focus” at the end of Chapter 9. So the MAS curve we use exclusively is the New Keynsian c ...
... In BJM, Aggregate Prices, which is our variable, P, don’t fall. That is, the BJM model is New Keynesian. BJM “model” this fact by having Prices set by mark-up pricing. See Figures 9-4, 9-5, and Figure 1 in the “Focus” at the end of Chapter 9. So the MAS curve we use exclusively is the New Keynsian c ...
MONETARY POLICY AND THE ECONOMY First
... naturally ask, “In which of the three branches of government does the Fed lie?” The answer is interesting. Although nominally a corporation owned by the commercial banks that are members of the Federal Reserve System, the Federal Reserve is in practice a public agency. It is directly responsible to ...
... naturally ask, “In which of the three branches of government does the Fed lie?” The answer is interesting. Although nominally a corporation owned by the commercial banks that are members of the Federal Reserve System, the Federal Reserve is in practice a public agency. It is directly responsible to ...
Olivier J. Blanchard
... 2 The behavior of the Massachusetts economy over the last five years - which because of labor mobility within the US, largely takes its after tax real wage as given, is perhaps an actual example of such a virtuous circle. While obviously other factors than taxes are at work, Massachusetts' relative ...
... 2 The behavior of the Massachusetts economy over the last five years - which because of labor mobility within the US, largely takes its after tax real wage as given, is perhaps an actual example of such a virtuous circle. While obviously other factors than taxes are at work, Massachusetts' relative ...
Week 4
... British pound and the euro are always quoted as the number of dollars per one unit of the foreign currencies - for example, $1.58 for one British pound and $0.9597 for one euro. In the period from 1870 to 1930 when the international gold standard was in place, the United Kingdom was the center of th ...
... British pound and the euro are always quoted as the number of dollars per one unit of the foreign currencies - for example, $1.58 for one British pound and $0.9597 for one euro. In the period from 1870 to 1930 when the international gold standard was in place, the United Kingdom was the center of th ...
Inflation
... information on the past behavior of economic variables. – Adaptive Expectations base expectations for next period’s values on an average of actual values during previous periods. Copyright © 2009 Pearson Addison-Wesley. All rights reserved. ...
... information on the past behavior of economic variables. – Adaptive Expectations base expectations for next period’s values on an average of actual values during previous periods. Copyright © 2009 Pearson Addison-Wesley. All rights reserved. ...
AP-Macro-Unit-2-Summary
... Capital (like robots) can produce more than people Countries with more capital, can produce more products than countries without a lot of capital. ...
... Capital (like robots) can produce more than people Countries with more capital, can produce more products than countries without a lot of capital. ...
Barry P. Bosworth CRR WP 2015-8 Submitted: October 2014
... suffered severe financial disruptions in the early 1990s that have some parallels with the current crisis. They had their origins in the financial liberalization of the late 1980s that removed quantitative restrictions on bank lending and led to excessive flows of funds into real estate and equity m ...
... suffered severe financial disruptions in the early 1990s that have some parallels with the current crisis. They had their origins in the financial liberalization of the late 1980s that removed quantitative restrictions on bank lending and led to excessive flows of funds into real estate and equity m ...
MacroIntro
... • During 1970’s, oil price shocks led to rapid price rises and low production levels called stagflation. • In many country’s, inflationary expectations led to wage-price spirals and historically high inflation rates. • Developed economies begin 20 year slowdown in productivity growth rates. ...
... • During 1970’s, oil price shocks led to rapid price rises and low production levels called stagflation. • In many country’s, inflationary expectations led to wage-price spirals and historically high inflation rates. • Developed economies begin 20 year slowdown in productivity growth rates. ...
WHY THE FEDERAL RESERVE SHOULD ADOPT INFLATION TARGETING
... inflation, monetary policy needs to be forward-looking and preemptive: that is, depending on the lags from monetary policy to inflation, monetary policy needs to act well before inflationary or deflationary pressures appear in the economy. For example, suppose it takes roughly two years for monetary ...
... inflation, monetary policy needs to be forward-looking and preemptive: that is, depending on the lags from monetary policy to inflation, monetary policy needs to act well before inflationary or deflationary pressures appear in the economy. For example, suppose it takes roughly two years for monetary ...
Answers to Homework #5
... what will happen to the new interest rate (r’), the new money supply (Ms’), the new level of investment (I’), the new short run level of Y (Y’), the new aggregate price level (P’), and the new real wage ((W/P)’) because of this monetary policy. Then, find the new interest rate (r’), the new money su ...
... what will happen to the new interest rate (r’), the new money supply (Ms’), the new level of investment (I’), the new short run level of Y (Y’), the new aggregate price level (P’), and the new real wage ((W/P)’) because of this monetary policy. Then, find the new interest rate (r’), the new money su ...
8 AM – May 17 th , 2012 AP Macroeconomics Test
... taxes to drop below govt. expenditures Taxes Surplus – Economy booms, causes taxes to increase above govt spending ...
... taxes to drop below govt. expenditures Taxes Surplus – Economy booms, causes taxes to increase above govt spending ...
macyellow2 - Harper College
... Europe's biggest economy grinds to a halt in Q2; ECB may cut rates LONDON (CNN) - Confirmation that German economic growth has stalled could give euro-zone monetary chiefs the excuse to cut interest rates next week. Growth in Europe's biggest economy ground to a halt in the second quarter, official ...
... Europe's biggest economy grinds to a halt in Q2; ECB may cut rates LONDON (CNN) - Confirmation that German economic growth has stalled could give euro-zone monetary chiefs the excuse to cut interest rates next week. Growth in Europe's biggest economy ground to a halt in the second quarter, official ...
Chapter Summary
... policies are mostly anticipated by the public, and therefore have less effect than unexpected policies. The passive approach suggests that the government should follow clear and predictable policies and avoid discretionary intervention to stimulate or dampen aggregate demand over the business cycle. ...
... policies are mostly anticipated by the public, and therefore have less effect than unexpected policies. The passive approach suggests that the government should follow clear and predictable policies and avoid discretionary intervention to stimulate or dampen aggregate demand over the business cycle. ...
NBER WORKING PAPER SERIES DEBT PROBLEMS AND THE WORLD MACRO ECONOMY Rudiger Dornbusch
... Mexico: The second oil price increase in 1978-79 provided an apparently sound basis on which to engage in a growth strategy. Petroleum export revenue increased from only $1 billion in 1977 to $14 billion in 1981. But spending increased far ahead of the increased revenues. The noninterest budget defi ...
... Mexico: The second oil price increase in 1978-79 provided an apparently sound basis on which to engage in a growth strategy. Petroleum export revenue increased from only $1 billion in 1977 to $14 billion in 1981. But spending increased far ahead of the increased revenues. The noninterest budget defi ...
Week in Focus Bubble therapy: China set to follow Japan
... Overall, the feel-good factor from BJP’s election victory is still apparently strong. We remain hopeful of continued progress, with Modi still enjoying healthy public support. This is seen by the positive reception Modi received in his speech at Madison Square Garden in September and the recent stat ...
... Overall, the feel-good factor from BJP’s election victory is still apparently strong. We remain hopeful of continued progress, with Modi still enjoying healthy public support. This is seen by the positive reception Modi received in his speech at Madison Square Garden in September and the recent stat ...
Chronic Deflation in Japan - Faculty of Business and Economics
... Japan has been hit by a series of large negative demand shocks. These include the demand shock resulting from the collapse of the asset price bubble in the early 1990s; the Japanese financial crisis and the Asian currency crisis in the latter half of the 1990s; the collapse of the US dotcom bubble i ...
... Japan has been hit by a series of large negative demand shocks. These include the demand shock resulting from the collapse of the asset price bubble in the early 1990s; the Japanese financial crisis and the Asian currency crisis in the latter half of the 1990s; the collapse of the US dotcom bubble i ...
Unit 10: Controlling Prices
... argued that there was little sign of inflationary pressure in the U.S. and that high unemployment rates would rule out inflation anytime soon. He was more worried about deflation. He suggested that period’s depression might be akin to the depression that followed the Panic of 1873 that was somewhat ...
... argued that there was little sign of inflationary pressure in the U.S. and that high unemployment rates would rule out inflation anytime soon. He was more worried about deflation. He suggested that period’s depression might be akin to the depression that followed the Panic of 1873 that was somewhat ...
Chapter 15
... The Case for Activist (or Discretionary) Monetary Policy 3. Activist monetary policy is flexible; nonactivist (rules-based) monetary policy is not. Activists argue that flexibility is a desirable quality in monetary policy; inflexibility is not. Implicitly, activists maintain that the more closely ...
... The Case for Activist (or Discretionary) Monetary Policy 3. Activist monetary policy is flexible; nonactivist (rules-based) monetary policy is not. Activists argue that flexibility is a desirable quality in monetary policy; inflexibility is not. Implicitly, activists maintain that the more closely ...
Early 1980s recession
![](https://commons.wikimedia.org/wiki/Special:FilePath/Early-80s_recession.jpg?width=300)
The early 1980s recession describes the severe global economic recession affecting much of the developed world in the late 1970s and early 1980s. The United States and Japan exited the recession relatively early, but high unemployment would continue to affect other OECD nations through to at least 1985. Long-term effects of the recession contributed to the Latin American debt crisis, the savings and loans crisis in the United States, and a general adoption of neoliberal economic policies throughout the 1980s and 1990s.