{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Principles of Economics- Mankiw (5th) 774

Principles of Economics- Mankiw (5th) 774 - 800 PA R T T H...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
800 PART THIRTEEN FINAL THOUGHTS the Federal Reserve, argued forcefully in his book Hard Heads, Soft Hearts that policymakers should not make this choice: The costs that attend the low and moderate inflation rates experienced in the United States and in other industrial countries appear to be quite modest—more like a bad cold than a cancer on society. . . . As rational individuals, we do not volunteer for a lobotomy to cure a head cold. Yet, as a collectivity, we routinely prescribe the economic equivalent of lobotomy (high unemployment) as a cure for the inflationary cold. Blinder concludes that it is better to learn to live with moderate inflation. QUICK QUIZ: Explain the costs and benefits of reducing inflation to zero. Which are temporary and which are permanent? SHOULD FISCAL POLICYMAKERS REDUCE THE GOVERNMENT DEBT? Perhaps the most persistent macroeconomic debate in recent years has been over the finances of the federal government. Throughout most of the 1980s and 1990s, the U.S. federal government spent more than it collected in tax revenue and fi-
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern