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Category Archives: macroeconomics

What Causes Inflation?

25-Jan-08

During the last class, one of you asked me what causes inflation. This is an excellent question and, like everything else in (macro)economics there are several theories to explain the process. The classical theory: Assume that the Fed prints more money and circulates it into the economy. If the amount of goods and services produced [...]

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Are We In a Recession?

23-Jan-08

The short answer, according to the Wall Street Journal’s Economics Blog, is no: The 87-year-old NBER, a nonprofit group of 600 academic economists, has become the unofficial arbiter of when recessions begin and end. Its definition of a recession: “A significant decline in economic activity spread across the economy, lasting more than a few months, [...]

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