aIn the 1950s and the early 1960s, when post-Keynesian growth theory was prevailing, the Harrod-Domar model was widely used in development planning to calculate the capital requirement necessary to achieve a certain rate of growth or to determine a growth target given the financial resources avai...
and the low expected inflation over the next two years. These low inflation expectations are consistent with an economy suffering from a severe demand shortfall in the near term. And not just according to my model, but according to the sort of new Keynesian model that Bernanke...
He, certainly, didn’t favor NGDP targeting neither in «Prices and Production» nor in «Monetary Theory and the Trade Cycles». His recomendation was «a circulating medium wich doesn’t vary in amount» and his hope was «the growing information of the public may make it easi...
According to Keynesian theory, if equilibrium real GDP is below the full-employment level, then an increase in aggregate demand will result in which of the following changes in equilibrium? a. Real GDP will rise, but the price level will remain const...
The problem is lack of good investment opportunities, that’s what pushing on a string refers to whether your a Keynesian — boo — or a Monetarist — boo — or an Austrian — huzzah! The FRB has only created bank reserves, which are still sitting as cas on bank balance sheets. bank ...