When economists say that money promotes___, they mean that money encourages specialization and the division of labor unit of account When money prices are used to facilitate comparisons of value, money is said to function as a [N(N-1)]/2 In ...
. From Lecture 15 Nelson and Plosser (1982) argue that real GDP acts like a "Random Walk", which would imply that the "output gap" as originally measured by Taylor is a statistical illusion. Some economists have therefore suggested replacing the output gap in the Taylor Rule with a term ...