Economics

How Are Inflation And Unemployment Related In The Short Run?

In the near run, an increase in aggregate demand for goods and services leads to a higher output of goods and services and a higher price level: the higher output reduces unemployment, but the higher prices cause inflation. What is the short-term relationship between inflation and unemployment? The Phillips curve depicts the relationship between unemployment

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What Are The Consequences Of Global Recession?

The recession spread as the financial crisis moved from the United States to other countries, particularly western Europe (where several big banks had extensively invested in American MBSs). Most developed countries experienced economic slowdowns of different severity (China, India, and Indonesia being prominent exceptions), and many of them responded with stimulus programs similar to the

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What Really Caused The Great Recession?

Fligstein and Adam Goldstein (Assistant Professor at Princeton University)1 look at the history of bank behavior leading up to the market collapse, focusing on why banks created and purchased risky mortgage-backed securities (MBSs) and collateralized debt obligations (CDOs) in the first place, and why they ignored early market failure warnings in 2006-07. According to popular

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