According to participants in the Chicago Fed’s annual Automotive Outlook Symposium, the nation’s economic growth is forecasted to be solid this year and to strengthen somewhat in 2015. Inflation is expected to increase in 2014 and remain flat in 2015. The unemployment rate is anticipated to...

Price stability is widely recognised as the primary goal of modern monetary policy, and the management of private sector inflation expectations has become an essential channel through which this goal is achieved. This evaluation aims to improve the understanding of how the sensitivity of private...

ILO pub-WEP pub-PREALC pub. Working paper presenting the macroeconomics dimension of capital formation and basic needs planning in Latin America - based on an economic model, discusses the role of economic policy, public investment and wage policy in economic growth; explains the relation...

The existence of the inflation-output tradeoff is a well-established relationship in macroeco-nomics, with prevailing research focusing primarily on developed economies. In addition, there is a growing consensus that argues that the world has become globalized with freely flowing capital and...

A New Consensus in Macroeconomics (NCM) has emerged over the past couple of decades or so, which has become highly influential in terms of current thinking on the macroeconomy and of economic policy, especially monetary policy. Its main implication for economic policy has been the implementation...

This book originated from a 2010 conference marking the fortieth anniversary of the publication of the landmark "Phelps volume," Microeconomic Foundations of Employment and Inflation Theory, a book that is often credited with pioneering the currently dominant approach to macroeconomic analysis....

In mainstream economics, and particularly in New Keynesian macroeconomics, the booms and busts that characterize capitalism arise because of large external shocks. The combination of these shocks and the slow adjustments of wages and prices by rational agents leads to cyclical movements. In this...

Whether or not macroeconomics is a science depends on the scientific nature of macroeconomic theories and how the discipline responds when the empirical evidence fails to match the underlying assumptions and predictions of the theories. By way of an example, four conditions for macroeconomics to...

This study examines the link between macroeconomic indicators of workers’ (formal and informal) and remittances in Rural Ghana. A number of regressions tests have been conducted and found the link between price increases, cost of borrowing in Ghana and the remittances. According to the...

The concurrent growth of emerging countries stock market and their economies in the last two decades raises question regarding the fundamental linkage between stock price and key macroeconomic variables. This paper makes an attempt to examine the short-run and long-run relationship between stock...