Real exchange rates, national price levels, and the peace dividend

Article Abstract:

The reductions in military expenditures that have occurred as a result of the unification of Germany and the collapse of communism will lead to structural changes in the economy. The economy is expected to be affected in such areas as capital and labor allocation, national price level and real exchange rates. Research indicates that reductions in defense budgets will lead to small real depreciations in currencies and slight reductions in national price levels.

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Is there a core of practical macroeconomics that we should all believe?

Article Abstract:

A proposed core model of macroeconomics has four major elements. Wages and prices develop according to Phillips-type equations, and are mostly estimated in the short run. Output is determined by demand in the short run. Aggregate demand is sensitive to interest, reacts to fiscal policy and responds to monetary policy which establishes short-term interest rates. Okun's law connects the variations in the unemployment rate to the growth in productivity.

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Wage growth and the inflation process: an empirical note

Article Abstract:

The expectations-augmented Phillips-curve model has been a popular theoretical model used to research inflation. Research into wage and price series trends with the model support the idea that Granger-causality effects wage-price changes.

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