Behavior

Consumption Investment Open Economy Money & Prices

The first panacea for a mismanaged nation is inflation of the currency; the second is war. Both bring a temporary prosperity; both bring a permanent ruin. But both are the refuge of political and economic opportunists.

— Ernest Hemingway

Economics 302: Macroeconomic Analysis

Money and Prices

Background:

Blanchard, ch. 4 (pp. 65–75); ch. 14 (pp. 290–293); ch. 15 (pp. 312–317); ch. 18 (pp. 387–391); ch. 19 (pp. 419–421).

Analysis:

George T. McCandless Jr. and Warren E. Weber, "Some Monetary Facts," Federal Reserve Bank of Minneapolis Quarterly Review, v. 19, n. 3, Summer 1995.
Krugman, Paul. "Baby-Sitting the Economy," Slate, August 14, 1998.

In The News:

Friedman, Milton. "The Fed's Thermostat," Commentary, The Wall Street Journal, August 19, 2003.

Going Further:

Terry J. Fitzgerald, "Money Growth and Inflation: How Long is the Long-Run?" Federal Reserve Bank of Cleveland Economic Commentary, August 1, 1999.
"Plus ça change," The Economist, January 24, 2002.