|
Inflationary Bias
Inflationary bias is the outcome of discretionary monetary policy that leads to a higher than optimal level of inflation. Depending on the way expectations are formed in the private sector of the economy, there may or may not be a transitory income increase. The term may also refer to the practice of a public debt-ridden nation enacting policies which encourage inflation in the medium/long term. Explanations The Barro–Gordon model shows how the ability of government to manipulate leads to inflationary bias. In this model, it is assumed that a nation will attempt to keep the unemployment rate below its natural level. This will create an inflation in wages above their natural level, which ultimately results in an overall rate of inflation that is higher than the natural rate of inflation. Thus, the main reason of the inflationary bias would be the time inconsistency. This is what Kydland and Prescott wrote in ''Rules rather than discretion : The inconsistency of optimal plans'', ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Monetary Policy
Monetary policy is the policy adopted by the monetary authority of a nation to control either the interest rate payable for very short-term borrowing (borrowing by banks from each other to meet their short-term needs) or the money supply, often as an attempt to reduce inflation or the interest rate, to ensure price stability and general trust of the value and stability of the nation's currency. Monetary policy is a modification of the supply of money, i.e. "printing" more money, or decreasing the money supply by changing interest rates or removing excess reserves. This is in contrast to fiscal policy, which relies on taxation, government spending, and government borrowing as methods for a government to manage business cycle phenomena such as recessions. Further purposes of a monetary policy are usually to contribute to the stability of gross domestic product, to achieve and maintain low unemployment, and to maintain predictable exchange rates with other currencies. ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Inflation
In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reduction in the purchasing power of money. The opposite of inflation is deflation, a sustained decrease in the general price level of goods and services. The common measure of inflation is the inflation rate, the annualized percentage change in a general price index. As prices do not all increase at the same rate, the consumer price index (CPI) is often used for this purpose. The employment cost index is also used for wages in the United States. Most economists agree that high levels of inflation as well as hyperinflation—which have severely disruptive effects on the real economy—are caused by persistent excessive growth in the money supply. Views on low to moderate rates of inflation are more varied. Low or moderate inflation may be a ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Journal Of Political Economy
The ''Journal of Political Economy'' is a monthly peer-reviewed academic journal published by the University of Chicago Press. Established by James Laurence Laughlin in 1892, it covers both theoretical and empirical economics. In the past, the journal published quarterly from its introduction through 1905, ten issues per volume from 1906 through 1921, and bimonthly from 1922 through 2019. The editor-in-chief is Magne Mogstad ( University of Chicago). It is considered one of the top five journals in economics. Abstracting and indexing The journal is abstracted and indexed in EBSCO, ProQuest, EconLit , Research Papers in Economics, Current Contents/Social & Behavioral Sciences, and the Social Sciences Citation Index. According to the '' Journal Citation Reports'', the journal has a 2020 impact factor of 9.103, ranking it 4/376 journals in the category "Economics". The journal is department-owned University of Chicago journal. Notable papers Among the most influent ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Kydland
Finn Erling Kydland (born 1 December 1943) is a Norwegian economist known for his contributions to business cycle theory. He is the Henley Professor of Economics at the University of California, Santa Barbara. He also holds the Richard P. Simmons Distinguished Professorship at the Tepper School of Business of Carnegie Mellon University, where he earned his PhD, and a part-time position at the Norwegian School of Economics (NHH). Kydland was a co-recipient of the 2004 Nobel Memorial Prize in Economics, with Edward C. Prescott, "for their contributions to dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycles." Biography Early years Kydland grew up as the eldest of six siblings at the family farm in Søyland, Gjesdal, which is located in the Jæren farming region in Rogaland county, southwestern Norway. He recalls having had a liberal upbringing, his parents not imposing many limitations on their children. Finn Kydland be ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Edward C
Edward is an English given name. It is derived from the Anglo-Saxon name ''Ēadweard'', composed of the elements '' ēad'' "wealth, fortune; prosperous" and '' weard'' "guardian, protector”. History The name Edward was very popular in Anglo-Saxon England, but the rule of the Norman and Plantagenet dynasties had effectively ended its use amongst the upper classes. The popularity of the name was revived when Henry III named his firstborn son, the future Edward I, as part of his efforts to promote a cult around Edward the Confessor, for whom Henry had a deep admiration. Variant forms The name has been adopted in the Iberian peninsula since the 15th century, due to Edward, King of Portugal, whose mother was English. The Spanish/Portuguese forms of the name are Eduardo and Duarte. Other variant forms include French Édouard, Italian Edoardo and Odoardo, German, Dutch, Czech and Romanian Eduard and Scandinavian Edvard. Short forms include Ed, Eddy, Eddie, Ted, Teddy ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Kenneth Rogoff
Kenneth Saul Rogoff (born March 22, 1953) is an American economist and chess Grandmaster. He is the Thomas D. Cabot Professor of Public Policy and professor of economics at Harvard University. Early life Rogoff grew up in Rochester, New York. His father was a professor of radiology at the University of Rochester. Rogoff received a BA and MA from Yale University ''summa cum laude'' in 1975, and a PhD in Economics from the Massachusetts Institute of Technology in 1980. Chess At sixteen Rogoff dropped out of high school to concentrate on chess. He won the United States Junior Championship in 1969 and spent the next several years living primarily in Europe and playing in tournaments there. However, at eighteen he made the decision to go to college and pursue a career in economics rather than to become a professional player, although he continued to play and improve for several years afterward. Rogoff was awarded the IM title in 1974, and the GM title in 1978. He was 3r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Central Bank
A central bank, reserve bank, or monetary authority is an institution that manages the currency and monetary policy of a country or monetary union, and oversees their commercial banking system. In contrast to a commercial bank, a central bank possesses a monopoly on increasing the monetary base. Most central banks also have supervisory and regulatory powers to ensure the stability of member institutions, to prevent bank runs, and to discourage reckless or fraudulent behavior by member banks. Central banks in most developed nations are institutionally independent from political interference. Still, limited control by the executive and legislative bodies exists. Activities of central banks Functions of a central bank usually include: * Monetary policy: by setting the official interest rate and controlling the money supply; *Financial stability: acting as a government's banker and as the bankers' bank (" lender of last resort"); * Reserve management: managing a cou ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Milton Friedman
Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the complexity of stabilization policy. With George Stigler and others, Friedman was among the intellectual leaders of the Chicago school of economics, a neoclassical school of economic thought associated with the work of the faculty at the University of Chicago that rejected Keynesianism in favor of monetarism until the mid-1970s, when it turned to new classical macroeconomics heavily based on the concept of rational expectations. Several students, young professors and academics who were recruited or mentored by Friedman at Chicago went on to become leading economists, including Gary Becker, Robert Fogel, Thomas Sowell and Robert Lucas Jr. Friedman's challenges to what he called "naive Keynesian theory" began with his interpretatio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
The Manchester School
''The Manchester School'' is an economics journal, edited since 1932 by the School of Social Science at the University of Manchester in Manchester, England. It is currently published by John Wiley & Sons. Every volume of ''The Manchester School'' incorporates five regular issues, one special issue devoted to a particular theme and a further special supplement containing selected papers from the Money, Macroeconomics and Finance Research Group Conference. External links The Manchester School homepageThe Manchester Schoolat John Wiley & Sons John Wiley & Sons, Inc., commonly known as Wiley (), is an American multinational publishing company founded in 1807 that focuses on academic publishing and instructional materials. The company produces books, journals, and encyclopedias, in p ... The Money Macro and Finance Research Group(MMFRG) at the University of Essex University of Manchester Economics journals Wiley-Blackwell academic journals English-language journals ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Brazilian Journal Of Political Economy
Brazilian commonly refers to: * Something of, from or relating to Brazil * Brazilian Portuguese, the dialect of the Portuguese language used mostly in Brazil * Brazilians, the people (citizens) of Brazil, or of Brazilian descent Brazilian may also refer to: Sports * Brazilian football, see football in Brazil * Brazilian jiu-jitsu, a martial art and combat sport system *''The Brazilians'', a nickname for South African football association club Mamelodi Sundowns F.C. due to their soccer kits which resembles that of the Brazilian national team Other uses * Brazilian waxing, a style of Bikini waxing * Brazilian culture, describing the Culture of Brazil * "The Brazilian", a 1986 instrumental by Genesis * Brazilian barbecue, known as churrasco * Brazilian cuisine See also * ''Brasileiro ''Brasileiro'' is a 1992 album by Sérgio Mendes and other artists including Carlinhos Brown which won the 1993 Grammy Award for Best World Music Album. Track listing # "Fanfarra" (Carlinhos Brown) ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Hysteresis (economics)
In economics, hysteresis (from Greek ''hysterēsis'', from hystereō, "(I) lag behind, come later than") consists of effects that persist after the initial causes giving rise to the effects are removed. Two of the main areas in economics where hysteresis effects are invoked to explain economic phenomena are unemployment and international trade. For instance, in labor economics hysteresis refers to the possibility that periods of high unemployment tend to increase the rate of unemployment below which inflation begins to accelerate, commonly referred to as the natural rate of unemployment or non-accelerating inflation rate of unemployment (NAIRU). Implication for statistical characterization of unemployment If the unemployment rate exhibits hysteresis, then it follows a statistically non-stationary process, because the expected value of the unemployment rate now and in the future permanently shifts when the rate itself changes. The process with hysteresis is a unit root process ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
