WSJ070510 - Econ 520 May 14, 2007 Masao Ogaki Wall Street...

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Econ 520 May 14, 2007 Masao Ogaki Wall Street Journal Articles on Wednesday, May 9 and Thursday, May 10, 2007 Background Information 1:  We compare the United States, the Euro area, and  Japan in recent months.  For the short-term interest rate, the U.S. rate has been the  highest, the Euro rate has been in the middle, and the Japanese rate has been the  lowest.  For the inflation rate from March 2006 to March 2007, the U.S. inflation was  the highest, the Euro inflation was in the middle, and the Japanese inflation was the  lowest. Background Information 2:  In the United States, data last month indicated week  first-quarter economic growth.  When economic growth is weak, the Fed sometime  lowers the interest rate and increases the money supply to help the economy expand.  However, the Fed’s main concern has been the risk of a surge in inflation.  When 
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This note was uploaded on 07/17/2008 for the course ECON 520 taught by Professor Ogaki during the Spring '07 term at Ohio State.

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WSJ070510 - Econ 520 May 14, 2007 Masao Ogaki Wall Street...

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