BMEGT30A101 - A103 - Economics II - Mankiw CH 14
BMEGT30A101 - A103 - Economics II - Mankiw CH 14
BMEGT30A101 - A103 - Economics II - Mankiw CH 14
MACROECONOMICS
BMEGT30A101
BMEGT30A103
Monday: 8.15–9.45 (QA240)
4. Conclusion
Y Y P P e
Market will not Market will clear
clear
Labor market 1. Sticky wages 2. The worker
misperception
LD(W/P); If P↑ W/P ↓ LD ↑ u ↓ Y ↑
πe + ε A
B
• Expected inflation un u
• Cyclical unemployment: the deviation of u from the
natural rate (un)
– NAIRU: Non-Accelerating Inflation Rate of Unemployment
(USA 6%)
• Supply shocks
2018.05.10. Ligeti Zsombor 14
Sacrifice ratio
• ΔY/ Δπ = 5 cost of disinflation
• Okun: ΔY/ Δu = –2
• Depends on expectations!
• ΔMI/Δu = 4 ΔMI/Δπ = 1