1. The Economic Thermostat
But as much as half of the decline in volatility was due to smaller economic changes such as oil price changes, and the results of these actions may only be temporary. ... Alan Greenspan, on the otherhand, believes in a "bubble effect" view on the economy. ... What is the economic security of this nation?" ... The New Keynesians believe that market-clearing models cannot explain short-run economic fluctuations, and so they advocate models with "sticky" wages and prices. New Keynesian theories rely on this stickiness of wages and prices to explain why involuntary unemployment exists and why m...
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- Approx Pages: 5