Comment on the role given to money in the monetary policy strategy of the ECB.
Answer to relevant QuestionsCountries A and B both have the same money growth rate and in both countries, real output is constant. In Country A velocity is constant while in Country B velocity has fallen. In which country will inflation be higher? ...In Chapter Data Exploration Problem 2, you plotted the inflation rate together with the gap between the Taylor rule and the federal funds rate. Visually, when the Taylor rule gap was positive, inflation appeared relatively ...Explain why the short-run aggregate supply curve is upward sloping. Under what circumstances might it be vertical? Why do you think the surge in oil prices in 2007-2008 had a much smaller impact on inflation expectations compared with the oil price shocks of the 1970’s? How often is negative supply shocks associated with recessions? Plot on a quarterly basis since 1971 the real price of oil measured as the ratio of the nominal price of oil (FRED code: OILPRICE) to the U.S. Consumer Price ...
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