INFLATIONCLASS - Prices, SR Inflation & Phillips Curve...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
1 Prices, SR Inflation & Phillips Curve 1 Inflation vintage delong Key Points ± CPI – interpretation, calculation, problems ± GDP Deflator and Chain weighted indexes ± Harm of Inflation-anticipated, unanticipated ² Inefficient use of money, distortion of price system, redistribution lenders/borrowers, uncertainty ² Harm of Deflation, Hyperinflation 2 ± Inflation Causes in the Short-Run – Keynesian ² Demand-pull, cost push ² Wage- price Spirals ² Wage Price Guidelines ± Deflation ± Short-run Phillips Curve Course Issues ± Online Midterm –Window from Tuesday 10/19 6pm thru Thursday 10/21 6pm 50 questions covering weeks 1-7 60 minutes – DO NOT POST QUESTIONS RE MIDTERM AFTER 6 pm Today ± Advising and Investment Game 3
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
2 In the News? 4 Consumer Price Index Release - BLS ± The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.1 percent in September on a seasonally adjusted basis ± Over the last 12 months, the all items index increased 1.1 percent before seasonal adjustment 5 adjustment. ± Increases in food indexes and another rise in the gasoline index contributed to the all items seasonally ± The index for all items less food and energy was unchanged in September, as it was in August. CPI Uses ± Used for: ² tracking changes in cost of living/ inflation ² Deflating nominal variables ² adjust contracts for inflation “COLAs” 6 ± Not a true cost of living index ± Note large role of housing ² Medical, etc?
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 02/08/2011 for the course ECONOMICS 220:103 taught by Professor Sheflin during the Spring '08 term at Rutgers.

Page1 / 7

INFLATIONCLASS - Prices, SR Inflation & Phillips Curve...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online