Macroeconomics any1 can help?
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hi anyone can help me using layman term define some of the following, best if have some empirical evidence to use:
1) Policy ineffectiveness proposition
2) Hysteresis under unemployment
3) Time-inconsistency
4) Golden rule of saving rate (under solow growth)
5) Sacrifice Ratio
thanks a million :)
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no response... :(
dun worry no need show all
maybe 1 or 2 that u know :)
come on kind hearted netizens.. :)
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charlize is the economics expert in here.
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Master is the economics expert in here.
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Oh yah! He is.
We shall wait for Master to explain.
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Easy topics but unfortunately, i have to OT till night
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I can help you on E maths.
You want?
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for sacrifice ratio, look for Roste's study on countries first introducing inflation and those countries which did not..the ratio falls on the inflation-introduced countries due to autoregressive models in place.
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What autoregressive models is in place?
Cheemz......
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Originally posted by deepak.c:
What autoregressive models is in place?
Cheemz......
Regression.
You won't understand.
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Sounds abit like Yakun's law.
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Actually with the internet, can just google and I am sure you can find the answers or at least part of it.
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I just googled it, I thought it said sacrifice ratio is a trade off between inflation and unemployment.
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Originally posted by deepak.c:
I just googled it, I thought it said sacrifice ratio is a trade off between inflation and unemployment.
Unemployment and inflation is Phillips curve.
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Sacrifice Ratio is dollar cost of production loss divided by % change in inflation.
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Yes, I also googled.
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Originally posted by charlize:
Unemployment and inflation is Phillips curve.
Yah. Found it.Me thinks you got PhD in Googling.
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An economic ratio that measures the costs associated with slowing down economic output to change inflationary trends. The ratio is calculated by taking the cost of lost production and dividing it by the percentage change in inflation, and its quotient gives the loss of output per 1% change in inflation:
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Originally posted by charlize:
Sacrifice Ratio is dollar cost of production loss divided by % change in inflation.
Eh?From Understanding the Wealth of Nations (Miles & Scott):
From the Phillips curve, we have that every 1% increase in unemployment produces an A% decline in inflation. Therefore, to reduce inflation by 1% we need to increase unemployment by (1/A)% -- this is called the sacrifice ratio, how much unemployment needs to be generated to lower inflation by 1%.
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chim ...
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Much research has used the available data to examine the Phillips curve quantitatively. The results of these studies are often summarized in a number called the sacrifice ratio, the percentage of a year's real GDP that must be forgone to reduce inflation by 1 percentage point. Although estimates of the sacrifice ratio vary substantially, a typical estimate is about 5: for every percentage point that inflation is to fall, 5 percent of one year's GDP must be sacrificed.
We can also express sacrifice ratio in terms of unemployment. Okun's law says that a change of 1 percentage point in the unemployment rate translates into a change of 2 percentage points in GDP. Therefore, reducing inflation by 1 percentage point requires about 2.5 percentage points of cyclical unemployment.
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Originally posted by starhawk:
hi anyone can help me using layman term define some of the following, best if have some empirical evidence to use:
1) Policy ineffectiveness proposition
2) Hysteresis under unemployment
3) Time-inconsistency
4) Golden rule of saving rate (under solow growth)
5) Sacrifice Ratio
thanks a million :)
Don't be lazy.
All the answers to your 5 questions can be found easily by googling it.
For empirical evidence, you can easily found them by using the Economics Search
engine Econlit. However, you will need to have access to the digital Library of
NUS.
Should you need to have in depth studies on these questions, you can refer to
the compulsory macroeconomics textbook for postgraduate economics students
ie Advanced Macroeconomics by David Romer. However, you will need to have
advanced mathematical background especially on the theory of optimal control and
dynamic optimisation knowledge to understand the materials covered in the
textbook. The thorough references at the back of the textbook will direct you to the
empirical evidence, origin and further and related journal articles too.
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char,
My google search function more powderful than yours.
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Originally posted by deepak.c:
char,
My google search function more powderful than yours.
Unlike you, I prefer to type in short one liners.
I don't regurgitate everything I google.