Explain how the Great Depression weakened the popularity of classical economics and opened the way to Keynesian economics. What is an explanation of the 2008 economic recession in terms of market failure? What is the problem in the economy illustrated in the graph above? a) Stagflation b)...
Now perhaps there’s an NGDP mystery—how can unemployment be so low with NGDP growing at a rate of barely over 3%/year over the past two years? But on closer inspection, even that is not a mystery. Here’sMiles Kimball: More and more central banks are facing a situation in which the...
Question: Central bankers are reluctant to try to pop alleged bubbles. Which topics covered in this chapter might explain why they are reluctant to do so? Economic Bubble: An economic bubble develops when the value of financial instruments...
Because ABCT is a theory of how individual actors will choose in the faceof certain forms of central bank activity, the natural mode in which to employ1ABCT is that of historical explanation rather than formal Boet-tke (1994, p. 5) says, “Historical interpretation illustrates the power of...