《西方经济学原理》Chap 32 Ensuring Price Stability

ECSENOMICS Chapter 32 Ensuring Price Stability McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 32 Ensuring Price Stability

ECSENOMICS Inflation Is a Fundamental S Constraint on Economic Policy T240 Figure 32-1 Prices McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. T-240 Figure 32-1 Inflation Is a Fundamental Constraint on Economic Policy

ECSENOMICS English Price Level and Real Wage 1270-1999(1270=1) T241 Figure 32-2 ce ievel Tell scale Rcal wage iright scale) 1200 McGraw-Hilllrwin Source: E.H. Phelps Brown and S V. Hopkins, Economica, 1956, updated by authors

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. English Price Level and Real Wage, 1270-1999 (1270 = 1) T-241 Figure 32-2 Source: E.H. Phelps Brown and S.V. Hopkins, Economica, 1956, updated by authors

ECSENOMICS U.S. Prices since the Civil War T242 Figure 32-3 1.500 1,500 Oil-price shocks 1,000 1.000 500 World War II 300 World 300 War I OlIVil 200 Great Depression 100 1860 1880 1900 1920 1960 1980 2000 Year McGraw-Hilllrwin Source: U.S. Department of Labor, Bureau of Labor Statistics

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. U.S. Prices since the Civil War T-242 Figure 32-3 Source: U.S. Department of Labor, Bureau of Labor Statistics

ECSENOMICS Inflation Has Remained Low and Stable in the 1990 T243 Figure 32-4 名2三 1945195019551960196519701975 19801985199019952000 McGraw-Hilllrwin SourceU.s.DepartmentofLaborStatisticswww.hls.gny

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Inflation Has Remained Low and Stable in the 1990s T-243 Figure 32-4 Source: U.S. Department of Labor Statistics www.bls.gov. This graph shows the consumer price index

ECSENOMICS Money and Hyperinflation Germany, 1922-1924 T244 igure 32-5 Fi The German Hyperinflation 100.000.000.000 10.000,000.000 1,000.000,000 Currency 100.000,000 = 10.00,000 1,000.000 100.000 10,000 >5三 1.000 Prices 100 10 I LllLLLLLLlllLlll 9221923 1924 Year McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Money and Hyperinflation in Germany, 1922-1924 T-244 Figure 32-5

ECSENOMICS Demand-Pull Inflation Occurs When Too t Much Spending Chases Too Few Goods T245 Figure 32-6 Potential output QP AS CAD' AD Q Real output McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Demand-Pull Inflation Occurs When Too Much Spending Chases Too Few Goods T-245 Figure 32-6

ECSENOMICS An Upward spiral of prices and Wages Occurs When Aggregate Supply and Demand Shift Up Together T246 Figure 32-7 Price Potential output level AD P"=(1.03)P AS (1.03)2P E P′=1.03PD AS E AD AD Real output Q McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. An Upward Spiral of Prices and Wages Occurs When Aggregate Supply and Demand Shift Up Together T-246 Figure 32-7

ECSENOMICS The Short-Run Phillips Curve depicts the Trade-off between Inflation and Unemployment T247 Figure 32-8 △PP △W/W 6 2 5 6 Phillips curve 2 品月 0 12345678910 Unemployment rate(percent) McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. The Short-Run Phillips Curve Depicts the Trade-off between Inflation and Unemployment T-247 Figure 32-8

ECSENOMICS The Phillips Curve or the Phillips curl? T248 Figure 32-9 10 86 1969 1983 三2 1999◆4 1960 Unemployment rate (percent) McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. The Phillips Curve or the Phillips Curl? T-248 Figure 32-9