曼昆经济学原理英文课件princ-ch35.pptVIP

* This slide corresponds to a section, new to the 5th edition, appearing near the end of the chapter. Data sources: Oil price data from FRED/fred2/series/OILPRICE?cid=98 Corn price data from USDA Economic Research Service, Table 18/Publications/AgOutlook/AOTables/ * * * * THE SHORT-RUN TRADE-OFF * CONCLUSION The theories in this chapter come from some of the greatest economists of the 20th century. They teach us that inflation and unemployment are unrelated in the long run negatively related in the short run affected by expectations, which play an important role in the economy’s adjustment from the short-run to the long run. CHAPTER SUMMARY The Phillips curve describes the short-run tradeoff between inflation and unemployment. In the long run, there is no tradeoff: inflation is determined by money growth, while unemployment equals its natural rate. Supply shocks and changes in expected inflation shift the short-run Phillips curve, making the tradeoff more or less favorable. * CHAPTER SUMMARY The Fed can reduce inflation by contracting the money supply, which moves the economy along its short-run Phillips curve and raises unemployment. In the long run, though, expectations adjust and unemployment returns to its natural rate. Some economists argue that a credible commitment to reducing inflation can lower the costs of disinflation by inducing a rapid adjustment of expectations. * * This chapter traces the history of economists’ thinking about the relationship between inflation and unemployment. It is the last of a three-chapter sequence on short-run economic fluctuations. It builds on three key elements of the preceding two chapters: 1) The upward-sloping SRAS curve, and how it shifts in response to changes in expectations 2) The ability of monetary policy to shift the AD curve and affect real variables in the short run 3) The classical dichotomy, long-run monetary neutrality, and vertical LRAS curve While this chapter is not easy, most st