Mych12a - Ch. 12 Unemployment and Inflation Motivation...

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Ch. 12 Unemployment and Inflation Motivation Trade-off Unemployment Inflation 1
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Motivation Intermediate Macroeconomics is not a laundry list but like a chess book in 3 parts The first third: Rules of the game – pieces, moves, ending National accts. Labor mkt.; Goods mkt. ; Asset mkt. The second third: Elementary strategies, like the openings, etc. Growth; Cycles; Open economy; Money & fiscal policies The final third: Games of the masters Inflation; Unemployment; Hyper-inflation; Depression, etc. <The successes and failures of past cases> 2
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Motivation Intermediate Macroeconomics is not a laundry list but like a chess book in 3 parts The first third: Rules of the game – pieces, moves, ending National accts. Labor mkt.; Goods mkt. ; Asset mkt. The second third: Elementary strategies, like the openings, etc. Growth; Cycles; Open economy; Money & fiscal policies The final third: Games of the masters Inflation; Unemployment; Hyper-inflation; Depression, etc . <The successes and failures of past cases> 3
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Motivation In the present Chapters 12 and 13 cover the issues Chapter 12 is about inflation and unemployment The focus of attention for a closed economy the hegemon Chapter 13 is about the additional issues of the open economy Chapter 14 deals with monetary issues Chapter 15 deals with issues concerning government finance 4
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5 Trade - off Historical background The Phillips Curve Replication from US data 1960s Views of Phelps and Friedman The breakdown of the relation for US data Implications from the Lucas Critique: the role of expectations The expectations-augmented Phillips Curve
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6 Trade - off Unemployment was always regarded as undesirable, especially so after the Great Depression. Inflation was not thought as equally harmful,
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Mych12a - Ch. 12 Unemployment and Inflation Motivation...

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