Inflationary Expectations

Some articles on inflationary expectations, expectations, inflationary:

New Keynesian Economics - Policy Implications
... using expansive monetary policy for short run gains in output and employment, as it would raise inflationary expectations and thus store up problems for the future ... recommended as eliminating the increased inflationary expectations will be impossible without producing a recession ... interest rates) helps by increasing output while stabilizing inflation and inflationary expectations ...
Mathematics and The Phillips Curve - The Traditional Phillips Curve - The Price Phillips Curves
... equation gives us a simple expectations-augmented price Phillips curve gP = −f(U − U*) + λ·gPex ... Gordon has called this the "Triangle Model" because it explains short-run inflationary behavior by three factors demand inflation (due to low unemployment), supply-shock inflation (gUMC), and ... In the long run, it is assumed, inflationary expectations catch up with and equal actual inflation so that gP = gPex ...
Built-in Inflation
... a "normal" aspect of the economy, via inflationary expectations and the price/wage spiral ... Inflationary expectations play a role because if workers and employers expect inflation to persist in the future, they will increase their (nominal) wages and prices now ... Of course, following the generally accepted theory of adaptive expectations, such inflationary expectations arise because of persistent past experience with inflation ...
Mathematics and The Phillips Curve - The Traditional Phillips Curve - Money Wage Determination
... Since the 1970s, the equation has been changed to introduce the role of inflationary expectations (or the expected inflation rate, gPex) ... This produces the expectations-augmented wage Phillips curve gW = gWT - f(U) + λ*gPex ... The introduction of inflationary expectations into the equation implies that actual inflation can feed back into inflationary expectations and thus cause ...

Famous quotes containing the words expectations and/or inflationary:

    Often, when there is a conflict between parent and child, at its very hub is an expectation that the child should be acting differently. Sometimes these expectations run counter what is known about children’s growth. They stem from remembering oneself, but usually at a slightly older age.
    Ellen Galinsky (20th century)

    An alliance is like a chain. It is not made stronger by adding weak links to it. A great power like the United States gains no advantage and it loses prestige by offering, indeed peddling, its alliances to all and sundry. An alliance should be hard diplomatic currency, valuable and hard to get, and not inflationary paper from the mimeograph machine in the State Department.
    Walter Lippmann (1889–1974)