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Defensive Expectations

- Reinventing the Phillips Curve as a Policy Mix
Af: Liviu Voinea Engelsk Paperback

Defensive Expectations

- Reinventing the Phillips Curve as a Policy Mix
Af: Liviu Voinea Engelsk Paperback
Tjek vores konkurrenters priser

This book explains why inflation remains subdued after recessions, based on three revolutionary concepts: defensive expectations, compensatory savings, and cumulative wage gap. When income falls, consumption falls, and savings rise, as people rebuild their past wealth. Households will not spend more until they fully recover what they lost. The revised Phillips Curve explains that current inflation depends on the cumulative difference between current income and past income.

This new theory is tested and validated by data for US since 1960 to date and for 35 OECD countries from 1990 to date. A number of policy implications are derived from these results. The book calls for an optimal policy mix between monetary policy and fiscal policy; it also discusses the coronavirus crisis as an extreme case of defensive expectations.

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This book explains why inflation remains subdued after recessions, based on three revolutionary concepts: defensive expectations, compensatory savings, and cumulative wage gap. When income falls, consumption falls, and savings rise, as people rebuild their past wealth. Households will not spend more until they fully recover what they lost. The revised Phillips Curve explains that current inflation depends on the cumulative difference between current income and past income.

This new theory is tested and validated by data for US since 1960 to date and for 35 OECD countries from 1990 to date. A number of policy implications are derived from these results. The book calls for an optimal policy mix between monetary policy and fiscal policy; it also discusses the coronavirus crisis as an extreme case of defensive expectations.

Produktdetaljer
Sprog: Engelsk
Sider: 196
ISBN-13: 9783030550479
Indbinding: Paperback
Udgave:
ISBN-10: 3030550478
Kategori: Makroøkonomi
Udg. Dato: 11 dec 2021
Længde: 0mm
Bredde: 148mm
Højde: 210mm
Forlag: Springer Nature Switzerland AG
Oplagsdato: 11 dec 2021
Forfatter(e): Liviu Voinea
Forfatter(e) Liviu Voinea


Kategori Makroøkonomi


ISBN-13 9783030550479


Sprog Engelsk


Indbinding Paperback


Sider 196


Udgave


Længde 0mm


Bredde 148mm


Højde 210mm


Udg. Dato 11 dec 2021


Oplagsdato 11 dec 2021


Forlag Springer Nature Switzerland AG

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