Energy price increases and macroeconomic policy
Journal Article
·
· Energy J.; (United States)
The 1979 oil price increases accounted for only a portion of the high inflation rate; the major contributing factors being past policies of monetary and fiscal expansion, unemployment, and other constraints on the economy. A macroeconomic policy which responds to energy price increases must, therefore, first identify and separate out the appropriate shocks before it can derive an appropriate accommodation. At issue is both the optimal rate and the extent of that accommodation. An attempt to reconcile three alternative frameworks for analyzing macroeconomic policy and design an optimal adjustment policy concludes that the best model is one which allows the goods market to clear and real wages adjust. 19 references, 6 figures. (DCK)
- Research Organization:
- Massachusetts Inst. of Tech., Cambridge
- OSTI ID:
- 6866308
- Journal Information:
- Energy J.; (United States), Journal Name: Energy J.; (United States) Vol. 1:4; ISSN ENJOD
- Country of Publication:
- United States
- Language:
- English
Similar Records
Impact of energy prices and money growth on five industrial countries
Energy prices, inflation, and economic activity
Disequilibrium analysis of three macroeconomies after two OPEC shocks: US, Germany, and Japan
Journal Article
·
Sat Feb 28 23:00:00 EST 1981
· Fed. Reserve Bank St. Louis Rev.; (United States)
·
OSTI ID:6531498
Energy prices, inflation, and economic activity
Conference
·
Wed Dec 31 23:00:00 EST 1980
·
OSTI ID:6528425
Disequilibrium analysis of three macroeconomies after two OPEC shocks: US, Germany, and Japan
Thesis/Dissertation
·
Fri Dec 31 23:00:00 EST 1982
·
OSTI ID:6699920