Unemployment, inflation and some relevant policy issues

Peter J Stemp
This thesis is an attempt to consider in some detail a few of the important theoretical and policy issues associated with unemployment and inflation, using a fairly standard framework which many economists would accept as plausible. Part 1 is concerned with "The Role of Expectations and Deficit Financing." Here we introduce the rational expectations approach to economic modeling and also show how the short-run responses of endogenous variables can be calculated. We do this in...
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