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Inflation-Forecast Targeting for India : An Outline of the Analytical Framework

Beneš, Jaromír - 2017

India formally adopted flexible inflation targeting (FIT) in June 2016 to place price stability, defined in terms of a target CPI inflation, as the primary objective of monetary policy. In this context, the paper draws on Indian macroeconomic developments since 2000 and the experience of other...

Persistent link: https://www.econbiz.de/10012960575

MMT and policy assignment in an open economy context : simplicity is useful, oversimpliflflication not so much

Razmi, Arslan - 2022

Modern Monetary Theory (MMT) has recently received significant at- tention in academic and policy circles. Critics question the sustainability of MMT-prescribed approaches to fiscal and monetary policy, especially over extended periods of time, in the presence of international financial markets,...

Persistent link: https://www.econbiz.de/10012819441

Disequilibrium Dynamics of the Monetary Economy : A Micro-Founded Synthesis of the Wicksellian Theory of Cumulative Process and the Keynesian Theory of Effective Demand

Iwai, Katsuhito - 2019

monopolistically competitive firms are free to adjust their prices, their ex ante expectations for the average price are necessarily …, if prices are sticky with an exogenous probability, any value of aggregate demand gap becomes compatible with firms … band and when it strays out of it. (4) Finally, as long as prices are costly to adjust, the aggregate rate of involuntary …

Persistent link: https://www.econbiz.de/10012899318

Indeterminacy of Ramsey Model Under Heterogeneous Time Preference, Transversality Condition Issues, Theories of Price Level and Uniform Rate of Interest

Kim, Bryce - 2016

This paper presents a simple Ramsey-type model example where two infinitely-living agents have same utility function except for time preference, and shows that equilibrium is indeterminate that is to be interpreted as being non-existent. The issues regarding New Keynesian transversality...

Persistent link: https://www.econbiz.de/10012982564

Modern Money Theory 101 : A Reply to Critics

Tymoigne, Eric - 2013

One of the main contributions of Modern Money Theory (MMT) has been to explain why monetarily sovereign governments have a very flexible policy space that is unencumbered by hard financial constraints. Through a detailed analysis of the institutions and practices surrounding the fiscal and...

Persistent link: https://www.econbiz.de/10013073537

Seven Replies to the Critiques of Modern Money Theory

Tymoigne, Eric - 2021

availability and potential inflationary pressures from bottlenecks, rising import prices, and exchange rate depreciation, among …

Persistent link: https://www.econbiz.de/10013311107

Gibson's paradox, monetary policy, and the emergence of cycles

Hannsgen, Greg - 2004

Many empirical studies have found that interest rate have a positive effect on the price level. This paper pursues an obvious, but neglected explanation: interest payments are a cost of production that is at least in part passed on to costumers. A model shows that the cost-push effect of...

Persistent link: https://www.econbiz.de/10010266536

Gibson's paradox II

Hanssgen, Greg - 2006

The Gibson paradox,long observed by economists and named by John Maynard Keynes (1936),is a positive relationship between the interest rate and the price level. This paper explains the relationship by means of interest-rate, cost-push inflation.In the mode,spending is driven in part by changes...

Persistent link: https://www.econbiz.de/10010266628

A non-linear analysis of Gibson's paradox in the Netherlands, 1800 - 2012

Caporale, Guglielmo Maria; Škare, Marinko - 2014

Persistent link: https://www.econbiz.de/10010364606

The Effective Demand Fraud

Clower, Robert W. - In: Eastern Economic Journal 20 (1994) 4, pp. 377-385

This paper argues that Keynes's "theory of effective demand" merely restates in outwardly novel aggregative terms ideas that are part and parcel of "classical theory," and so adds nothing of substance to orthodox doctrine. The aim of the paper is to impugn neither The General Theory nor...

Persistent link: https://www.econbiz.de/10005418810