Illustrate what does this imply about the effectiveness

Assignment Help Business Economics

Reference no: EM1349371

Due to historical differences, countries often differ in how quickly a change in actual inflation is incorporated into a change in expected inflation. In a country such as Japan that has had very little inflation in recent memory, it will take longer for a change in the actual inflation rate to be reflected in a corresponding change in the expected inflation rate. In contrast, in a country such as Argentina, one that has recently had very high inflation, a change in the actual inflation rate will immediately be reflected in a corresponding change in the expected inflation rate.

a. What does this imply about the short-run and long-run Phillips curves in these two types of countries?

b. Illustrate what does this imply about the effectiveness of monetary and fiscal policy to reduce the unemployment rate?

Reference no: EM1349371

Questions Cloud

Find the maximum distance that these stars could from earth : A particle with a charge of q = -5.00 nC is moving in the uniform magnetic field of vec{B}=( -1.20 T ) hat{z}. The magnetic force on the particle is measured to be vec{F}= ( -7.60×10-7 N )hat{y}.

Explain what is a clear industry trend in this naics : Explain What is a clear industry trend in this NAICS code that is relevant to a small baby food business idea

Find the immediate dilution potential : Pebble Beach Country Club currently has four million shares of stock oustanding and will report earnings of $7 million in the current year. The company is planning the issuance of 500,00 additional shares that will net $35.00 per share to the company..

Description of change management : How to write a recommendation analysis of how large and small firms utilize change management concepts to meet growing technology demands.

Illustrate what does this imply about the effectiveness : Illustrate what does this imply about the effectiveness of monetary and fiscal policy to reduce the unemployment rate.

Social policy and debate regarding children and technology : See Supreme Court Rules for more information. If Winner's three guiding maxims were utilized, how would this influence social policy and debate regarding children and technology?

Describing the time series design : Give a description of and a therapeutic outcome that you might like to measure. Then, describe the time series design that you would use, why you would use that particular design, and how you would use it.

Describe the principles of change management : Describe the principles of change management - Present at least 3 data collection methods for organizational diagnosis.

Calculate the standard deviation of annual sales : Calculate the standard deviation of annual sales. Calculate the coefficient of variation of annual sales.

User Account

All Pages