monetary policy in a cost - push inflation
... economic slack is our strongest and surest weapon. We may wish that it was not necessary to tolerate high unemployment in order to reduce inflation. But the facts suggest otherwise. ...
... economic slack is our strongest and surest weapon. We may wish that it was not necessary to tolerate high unemployment in order to reduce inflation. But the facts suggest otherwise. ...
Letter of Intent, Memorandum of Economic and Financial
... PFM reform strategy (2008–12). To-date the IFMIS has been successfully implemented in over 2001 government entities. With this effort, the integrated financial management information system (IFMIS) now forms the centre piece of the government financial management processes for budget preparation, bu ...
... PFM reform strategy (2008–12). To-date the IFMIS has been successfully implemented in over 2001 government entities. With this effort, the integrated financial management information system (IFMIS) now forms the centre piece of the government financial management processes for budget preparation, bu ...
3. Aggregate Supply and Aggregate Demand. Internal Balance
... recessionary gap exists. Firms are not selling as much as they would like to and so they slow down the rate at which they increase their prices. How they do this? Firms do not fully reflect in the product prices the growth in input cost. So, the price of their products relative to the prices of othe ...
... recessionary gap exists. Firms are not selling as much as they would like to and so they slow down the rate at which they increase their prices. How they do this? Firms do not fully reflect in the product prices the growth in input cost. So, the price of their products relative to the prices of othe ...
External Sector Accounts, Analysis, and Forecasting
... continued current account deficits, reflecting the behavior of the government and the private sector, require drastic adjustment of economic policies in order to avoid a crisis, e.g., Collapse of exchange rate Default on external debt payments ...
... continued current account deficits, reflecting the behavior of the government and the private sector, require drastic adjustment of economic policies in order to avoid a crisis, e.g., Collapse of exchange rate Default on external debt payments ...
NBER WORKING PAPER SERIES GLOBALIZATION, MACROECONOMIC PERFORMANCE, AND MONETARY POLICY Frederic S. Mishkin
... These effects from the greater price flexibility and increased competition in domestic markets that have arisen from globalization, while theoretically plausible, are often at variance with salient features of the world economy, and so they do not explain why inflation has declined in recent years. ...
... These effects from the greater price flexibility and increased competition in domestic markets that have arisen from globalization, while theoretically plausible, are often at variance with salient features of the world economy, and so they do not explain why inflation has declined in recent years. ...
AP Macroeconomics Unit III Fall 2011
... – If the quality of a good rises from one year to the next, the value of a dollar rises, even if the price of the good stays the same. – If the quality of a good falls from one year to the next, the value of a dollar falls, even if the price of the good stays the same. – The BLS tries to adjust the ...
... – If the quality of a good rises from one year to the next, the value of a dollar rises, even if the price of the good stays the same. – If the quality of a good falls from one year to the next, the value of a dollar falls, even if the price of the good stays the same. – The BLS tries to adjust the ...
Working Paper - Hans-Böckler
... large increase in subprime mortgage debt produced a deterioration of the income of these type of households, not yet considered in the present model, and soaring debt default. In this paper, we leave aside the role played by real estate prices, risky financial innovations and subprime debt default. ...
... large increase in subprime mortgage debt produced a deterioration of the income of these type of households, not yet considered in the present model, and soaring debt default. In this paper, we leave aside the role played by real estate prices, risky financial innovations and subprime debt default. ...
FRBSF E L CONOMIC ETTER
... is set to approximate the time-series behavior of the one-year-ahead inflation forecast from the Survey of Professional Forecasters. The figure shows that the E/P ratio is more strongly correlated with movements in the nominal yield than with the real yield, particularly since the mid1960s.This resu ...
... is set to approximate the time-series behavior of the one-year-ahead inflation forecast from the Survey of Professional Forecasters. The figure shows that the E/P ratio is more strongly correlated with movements in the nominal yield than with the real yield, particularly since the mid1960s.This resu ...
Mankiw 5e Chapter 4
... A. inflation causes restaurants to update their menus more often. B. inflation reduces distortions to relative prices. C. if nominal wages are fixed, inflation decreases real wages. D. if nominal wages are fixed, inflation increases real wages. ...
... A. inflation causes restaurants to update their menus more often. B. inflation reduces distortions to relative prices. C. if nominal wages are fixed, inflation decreases real wages. D. if nominal wages are fixed, inflation increases real wages. ...
ECON 102 Spring 2014 Homework 3 Due March 26, 2014 1. For this
... Instead, consumers switched into other goods, in this example into ice cream. The GDP deflator takes this into account, but not the CPI. From 2001 to 2002, the quality of ice cream has increased due to the availability of coolers. The increase in price of ice cream is not just due to inflation, but ...
... Instead, consumers switched into other goods, in this example into ice cream. The GDP deflator takes this into account, but not the CPI. From 2001 to 2002, the quality of ice cream has increased due to the availability of coolers. The increase in price of ice cream is not just due to inflation, but ...
The Economic Decline of Zimbabwe
... many times in an effort to manage inflation, so that when such efforts are made, measures of GDP can be ambiguous if they do not account for these changes. a) Civil unrest In 1997, Zimbabwe’s economic decline began to visibly take place. It began with the crash of the stock market on November 14, ...
... many times in an effort to manage inflation, so that when such efforts are made, measures of GDP can be ambiguous if they do not account for these changes. a) Civil unrest In 1997, Zimbabwe’s economic decline began to visibly take place. It began with the crash of the stock market on November 14, ...
error correction model of gdp and inflation based on one long
... measure of changes in value of the goods and services produced by an economy. Nigeria is one of the most developed economies in Africa. The petroleum industry provides 95% of foreign trade earnings and about 80% of budget revenues. Yet, agriculture is the main source of revenue for two-thirds of the ...
... measure of changes in value of the goods and services produced by an economy. Nigeria is one of the most developed economies in Africa. The petroleum industry provides 95% of foreign trade earnings and about 80% of budget revenues. Yet, agriculture is the main source of revenue for two-thirds of the ...
Monetary Policy
... GDP and unemployment • In the long run, monetary policy affects only the price level • Phillips curve: short-run inverse relationship between unemployment and inflation • Rational expectations negate the effects of active monetary policy ...
... GDP and unemployment • In the long run, monetary policy affects only the price level • Phillips curve: short-run inverse relationship between unemployment and inflation • Rational expectations negate the effects of active monetary policy ...
A.1. Reflecting on new developmentalism and classical
... developmentalism? In rich countries it began as absolutist, changed into the liberal state, changed again into liberal democracy as people acquired the right to universal suffrage. A little later, with the pressure of the people for less inequality, it changed again, this time into a social-democrat ...
... developmentalism? In rich countries it began as absolutist, changed into the liberal state, changed again into liberal democracy as people acquired the right to universal suffrage. A little later, with the pressure of the people for less inequality, it changed again, this time into a social-democrat ...
Money and Inflation - The Economics Network
... will be. Let “π” denote the actual future inflation and “πe” the expectation of future inflation. This gives us the ex ante real interest rate… We call our original formula for real interest rate the ex post real interest rate. ...
... will be. Let “π” denote the actual future inflation and “πe” the expectation of future inflation. This gives us the ex ante real interest rate… We call our original formula for real interest rate the ex post real interest rate. ...
NBER WORKING PAPER SERIES MONETARY POLICY IN AN UNCERTAIN ECONOMY Martin Feldstein
... higher unemployment? If actual aggregate demand grows more slowly than potential GDP, will inflation decline even if the economy is growing rapidly? If inflation declines to less than zero, will that start a destructive deflationary spiral or could deflation stabilize at a low negative rate? If fast ...
... higher unemployment? If actual aggregate demand grows more slowly than potential GDP, will inflation decline even if the economy is growing rapidly? If inflation declines to less than zero, will that start a destructive deflationary spiral or could deflation stabilize at a low negative rate? If fast ...
File
... Curve analysis that when the actual rate of inflation is greater than the expected rate, the unemployment rate will: A) rise temporarily, but decreases in nominal wages will decrease unemployment to its natural rate and bring the expected and actual rates of inflation into balance. B) rise temporari ...
... Curve analysis that when the actual rate of inflation is greater than the expected rate, the unemployment rate will: A) rise temporarily, but decreases in nominal wages will decrease unemployment to its natural rate and bring the expected and actual rates of inflation into balance. B) rise temporari ...
Quiz: Homework 11
... D. The dynamic AD curve shifts down and to the right. Answer: B 12. What impact will increased wealth have on the dynamic AD Curve? A. There is not enough information to determine the impact on aggregate demand. B. There will be no change in aggregate demand. C. There will be an increase in aggrega ...
... D. The dynamic AD curve shifts down and to the right. Answer: B 12. What impact will increased wealth have on the dynamic AD Curve? A. There is not enough information to determine the impact on aggregate demand. B. There will be no change in aggregate demand. C. There will be an increase in aggrega ...
Long-Run Economic Growth, Part 2 Agenda The Solow Model The
... • Policies to Raise Long-Run Living Standards. ...
... • Policies to Raise Long-Run Living Standards. ...
real interest rate
... Reconciling the Two Interest Rate Models The Interest Rate in the Short Run : According to the liquidity preference model, a fall in the interest rate leads to a rise in investment spending, I, which then leads to a rise in both real GDP and consumer spending, C. The rise in real GDP leads to a ris ...
... Reconciling the Two Interest Rate Models The Interest Rate in the Short Run : According to the liquidity preference model, a fall in the interest rate leads to a rise in investment spending, I, which then leads to a rise in both real GDP and consumer spending, C. The rise in real GDP leads to a ris ...
Macroeconomics I, UPF Professor Antonio Ciccone SOLUTIONS
... nowhere near that of the US (actually, the latter was roughly twice as large that of some European economies in the interwar period). Thus, it is unlikely that both economies could be charaterized by the same level of production e¢ ciency (given that population growth and savings are assumed to be t ...
... nowhere near that of the US (actually, the latter was roughly twice as large that of some European economies in the interwar period). Thus, it is unlikely that both economies could be charaterized by the same level of production e¢ ciency (given that population growth and savings are assumed to be t ...
Optimality of Inflation and Nominal Output Targeting
... What rule should the central bank follow in the formation of monetary policy? Despite extensive research about this topic, it remains an open question. In this paper we compare two often proposed rules: nominal GDP targeting and inflation targeting. Both rules adjust the interest rate to a nominal a ...
... What rule should the central bank follow in the formation of monetary policy? Despite extensive research about this topic, it remains an open question. In this paper we compare two often proposed rules: nominal GDP targeting and inflation targeting. Both rules adjust the interest rate to a nominal a ...
The Finnish Great Depression of the 1990s
... the sudden loss of the market for specialized exports to the USSR and the surge in the relative price of imported energy that resulted from the end of the barter trade of under-priced energy. Gorondichenko et al. (2012) consider the shock in an economy with several sectors, the Soviet, non-Soviet an ...
... the sudden loss of the market for specialized exports to the USSR and the surge in the relative price of imported energy that resulted from the end of the barter trade of under-priced energy. Gorondichenko et al. (2012) consider the shock in an economy with several sectors, the Soviet, non-Soviet an ...
Belarus - Radius Group
... But export and imports both crashed have crashed through 2015 and will both be down by about 20% this year ...
... But export and imports both crashed have crashed through 2015 and will both be down by about 20% this year ...
NBER WORKING PAPER SERIES SUDDEN STOPS, FINANCIAL CRISES AND ORIGINAL
... The pattern of sudden stops in capital flows to emerging market countries in the 1990s and early 2000s has great resonance to events in the first era of globalization between 1880-1914, especially the events in the late 1880s and early 1890s. In those years many emerging countries were beset by a dr ...
... The pattern of sudden stops in capital flows to emerging market countries in the 1990s and early 2000s has great resonance to events in the first era of globalization between 1880-1914, especially the events in the late 1880s and early 1890s. In those years many emerging countries were beset by a dr ...