Chapter 16 - The Dynamics of Inflation and Unemployment

Hyperinflation

________ also means people have less time to produce goods and services.

New Zealand

Since 1989, the central bank in ________ has been operating under a law that specifies its only goal is to attempt to maintain stable prices, which, in practice, requires it to keep inflation between 0 and 2 percent a year.

Monetarists

________: Economists who emphasize the role that the supply of money plays in determining nominal income and inflation.

Government

________ deficit= new borrowing from the public + new money created.

Seignorage

________: Revenue raised from money creation.

Hyperinflation

________ also means people have less time to produce goods and services.

Money illusion

________: Confusion of real and nominal magnitudes.

Demographics

________: The composition of the workforce can change, decreasing the natural rate.

Phillip

Expectations ________ curve: The relationship between unemployment and inflation when taking into account expectations of inflation.

Governments

________ do a combination of both selling bonds and printing money, as long as the deficit is covered.

Hyperinflation

________: An inflation rate exceeding 50 percent per month.

velocity of money

The _____________ is defined as the ratio of nominal GDP to the money supply.

Quantity Equation

______________: The equation links money, velocity, prices, and real output.

Growth Version of the quantity Equation

_____________________: An equation that links the growth rates of money, velocity, prices, and real output.