Lecture 3 Outline

Lecture 3 Outline - 2 The new facts 3 An important message...

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Economics 134 Professor Christina Romer Spring 2012 Professor David Romer LECTURE 3 POSTWAR FLUCTUATIONS JANUARY 24, 2012 I. P OSTWAR F LUCTUATIONS IN E CONOMIC A CTIVITY A. Basic facts 1. Real GDP 2. Unemployment B. Recessions 1. What is a recession? 2. Postwar recessions 3. The 3 largest postwar recessions before the Great Recession C. The labor market in recessions 1. Okun’s law 2. The sources of Okun’s law D. Short-run fluctuations and the components of output II. C HANGES IN M ACROECONOMIC V OLATILITY A. The pre-depression era versus the early postwar decades 1. The old facts
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Unformatted text preview: 2. The new facts 3. An important message: Just because things are data doesn’t mean they’re true! 4. Why didn’t the economy become more stable? B. The early postwar decades versus 1985-2005 1. The facts: the “Great Moderation” 2. Why did the economy become more stable? III. I NFLATION AND M ONETARY P OLICY OVER THE P OSTWAR P ERIOD A. Inflation 1. The big picture: The rise and fall of inflation 2. Looking in more detail B. The role of monetary policy 1. Monetary policy and inflation 2. Issues that this raises C. A brief introduction to postwar monetary policy...
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This note was uploaded on 02/28/2012 for the course ECON 134 taught by Professor Davidromer during the Spring '12 term at Berkeley.

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