Monetarism, Inflation, and the Federal Reserve: EssaysU.S. Government Printing Office, 1985 - 126 pages |
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Common terms and phrases
acceleration accounts achieve adjustment Administration announced annual anti-inflation policy August bank reserves Barro/Rush model Bob Weintraub borrowing central bank change in unemployment checkable deposits Congress costs credit aggregates discount rate discount rate change discount window economic activity effect estimates expansion February Fed's Federal funds rate fiscal drag fiscal policy Galbraith goals increase inflation equation inflationary interest rates Joint Economic Committee lagged real balance long-term M1 growth macroeconomic measures ment mone monetarist monetary aggregates monetary base monetary growth monetary policy monetary stimulus monetary targets money and credit money growth targets money supply nomic nominal GNP November Open Market open market operations output paradox of thrift percent percentage points period political price level price stability rational expectations real balance growth real GNP real growth real income recession reduce reserve requirements Reserve's response short-term target range third quarter tion tive variables velocity volatility wage
Popular passages
Page 20 - An Act to provide for the establishment of Federal reserve banks, to furnish an elastic currency, to afford means of rediscounting commercial paper, to establish a more effective supervision of banking in the United States, and for other purposes.
Page 98 - Lenin was certainly right. There is no subtler, no surer means of overturning the existing basis of society than to debauch the currency. The process engages all the hidden forces of economic law on the side of destruction, and does it in a manner which not one in a million is able to diagnose.
Page 97 - By this method they not only confiscate, but they confiscate arbitrarily ; and, while the process impoverishes many, it actually enriches some. The sight of this arbitrary rearrangement of riches strikes not only at security, but at confidence in the equity of the existing distribution of wealth. Those to whom the system brings windfalls, beyond their deserts and even beyond their expectations or desires, become
Page 98 - As the inflation proceeds and the real value of the currency fluctuates wildly from month to month, all permanent relations between debtors and creditors, which form the ultimate foundation of capitalism, become so utterly disordered as to be almost meaningless; and the process of wealth-getting degenerates into a gamble and a lottery.
Page 66 - I should like to suggest that expectations, since they are informed predictions of future events, are essentially the same as the predictions of the relevant economic theory.2 At the risk of confusing this purely descriptive hypothesis with a pronouncement as to what firms ought to do, we call such expectations "rational.
Page 75 - The Role of Monetary Policy," American Economic Review, March 1968, and Edmund Phelps, "Money Wage Dynamics and Labor Market Equilibrium," Journal of Political Economy, Part 2, July/ August 1968.
Page 8 - Committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy's long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long-term interest rates".
Page 9 - ... taking account of past and prospective developments in employment, unemployment, production, investment, real income, productivity, international trade and payments, and prices; and (3) the relationship of the aforesaid objectives and plans to the short-term goals set forth in the most recent Economic Report of the President pursuant to section 3(a)(2)(A) of the Employment Act of 1946 and to any short-term goals approved by the Congress.
Page 20 - If any member bank to which any such advance has been made shall, during the life or continuance of such advance, and despite an official warning of the reserve bank of the district or of the Board of Governors of the Federal Reserve...