Showing 1 - 10 of 320
Determinacy of equilibrium under the original, the backward-looking, the forward-looking and the hybrid Phillips curves is examined. If the monetary authority keeps the nominal money stock to be constant, the equilibrium path is always determinate under the original Phillips curve and the...
Persistent link: https://www.econbiz.de/10003644964
Using a competitive two-country two-commodity monetary model with optimizing agents in which persistent unemployment arises, this paper examines the effects of trade restrictions on consumption and employment in the two countries. When facing unemployment, a country tends to impose an import...
Persistent link: https://www.econbiz.de/10003321174
The Keynesian multiplier effect is reinterpreted and several issues that may have misled assessments of the effect of fiscal spending are discussed. It is shown that even in the textbook Keynesian framework some transfer policy ‘reduces’ aggregate demand and that public works spending may...
Persistent link: https://www.econbiz.de/10003819992
Persistent link: https://www.econbiz.de/10008907382
Although the Keynesian multiplier effect of public works is criticized for lack of a microeconomic foundation, it is still taught in most undergraduate courses and believed to be useful for policy makers. However, it has a serious fallacy even if we accept the consumption function. This note...
Persistent link: https://www.econbiz.de/10003381989
Persistent link: https://www.econbiz.de/10003499954
Persistent link: https://www.econbiz.de/10008655033
Persistent link: https://www.econbiz.de/10003941420
Persistent link: https://www.econbiz.de/10009578689
In 1960s - 1980s Japan enjoyed high economic growth. In the early 1990s, however, the growth rate drastically declined and thereafter Japan has been suffering secular stagnation. This paper proposes a dynamic macroeconomic model that can consistently explain such a drastic change in economic...
Persistent link: https://www.econbiz.de/10011316661