Home/Tag: aggregate demand

Federal Reserve U-Turn and the Phillips Curve

In February 2019, the US Federal Reserve stopped worrying about inflation that might come from economic growth (and reduced unemployment) and instead focused on the possibility of stagnant growth. That shift in focus led the Fed to stop talking about raising interest rates to reduce inflation, and instead talk [...]

Federal Reserve U-Turn and the Phillips Curve2020-05-10T09:57:21-04:00

Plunging Oil Prices as a Positive Supply Shock ?

A year ago, oil prices had plunged from $110/barrel to around $70/barrel. There was much concern then, as there is today with oil prices under $40/barrel, about the effects on the Canadian economy. The Globe & Mail ran a story "Oil's Plunge to Buoy Global Economy: A $1.3 Trillion [...]

Plunging Oil Prices as a Positive Supply Shock ?2020-05-07T16:08:42-04:00