a. Explain the role that inflation expectations play in creating a self-fulfilling prophecy. b. Explain Bernankes predictions

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a. Explain the role that inflation expectations play in creating a self-fulfilling prophecy.
b. Explain Bernanke’s predictions about the impact of the 2008 oil price shock as compared to the 1970s shock.

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Macroeconomics Canada in the Global Environment

ISBN: 978-0321778109

8th edition

Authors: Michael Parkin, Robin Bade

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Question Posted: Dec 19, 2015 05:06 AM

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a. Explain the role that inflation expectations play in creating a self-fulfilling prophecy. b. Explain Bernankes predictions

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If peoples inflation expectations rise they demand higher money wage rate...View the full answer

Macroeconomics Canada in the Global Environment

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