IV.C. - 1. Explaining Prices Barro Ch.10 PP slides 15-16...

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

View Full Document Right Arrow Icon
IV.C. Cyclical Behavior of Money and Prices Money neutrality is a key implication of the RBC model, but is it consistent with the facts? Facts: (i) Money is procyclical and less volatile than output (ii) Prices are countercyclical and less volatile than output
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: 1. Explaining Prices Barro Ch.10 PP slides 15-16 Sketch in Money diagram 2. Explaining Money Barro Ch.10 PP slides 17-18 Sketch in Money Diagram...
View Full Document

This note was uploaded on 02/19/2011 for the course ECON 251 taught by Professor Blanchard during the Spring '08 term at Purdue University-West Lafayette.

Ask a homework question - tutors are online