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Nominal Income and the Inflation-Growth Divide

This paper deals with aggregate demand fluctuations and their price and output effects. Starting with a nominal income solution, a rule for determining the inflation and output growth effects is presented. Assigning alternative values to the key parameters of the suggested rule generates different c...

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Bibliographic Details
Main Author: Chand, Sheetal
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 1997
Series:IMF Working Papers
Subjects:
Treasury Policy
Inflation
General Aggregative Models: General
Comparative Or Joint Analysis Of Fiscal And Monetary Policy
Income
Labour
Stabilization
Potential Output
Personal Income
Wages, Compensation, And Labor Costs: General
Deflation
Production
Personal Income, Wealth, And Their Distributions
National Accounts
Labor
Model Construction And Estimation
Macroeconomics: Production
Price Level
Economic Methodology
Prices
Macroeconomics
Wages
Prices, Business Fluctuations, And Cycles: General (includes Measurement And Data)
Economic Theory
Income Economics
Production Growth
Production And Operations Management
United States
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:This paper deals with aggregate demand fluctuations and their price and output effects. Starting with a nominal income solution, a rule for determining the inflation and output growth effects is presented. Assigning alternative values to the key parameters of the suggested rule generates different closure rules, such as the classical and the Keynesian and their modern counterparts. An application to major industrial country data indicates that the suggested rule is robust. Both inflation and output growth are affected by nominal shocks, but response patterns vary among the countries
Physical Description:32 pages
ISBN:9781451856699

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