Supply Shocks and Monetary Policy Revisited

@article{Gordon1984SupplySA,
  title={Supply Shocks and Monetary Policy Revisited},
  author={Robert J. Gordon},
  journal={The American Economic Review},
  year={1984},
  volume={74},
  pages={38-43}
}
  • R. Gordon
  • Published 1 March 1984
  • Economics
  • The American Economic Review
This paper reviews the main issues that supply shocks pose for the conduct of monetary policy. A simple version of the Gordon-Phelps model shows that the necessary condition for actual real GNP to be maintained at its equilibrium level in the wake of a supply shock is for the change innominal GNP to exceed the change in the nominal wage by the change in the income share of the raw material in GNP. The required "wedge" between nominal GNP and wage growth can be accomplished by any combination of… 
Do We Really Know that Oil Caused the Great Stagflation? A Monetary Alternative
This paper argues that major oil price increases were not nearly as essential a part of the causal mechanism that generated the stagflation of the 1970s as is often thought. There is neither a
The History of the Phillips Curve: Consensus and Bifurcation
While the early history of the Phillips curve up to 1975 is well known, less well understood is the post-1975 fork in the road. The left fork developed a theory of policy responses to supply shocks
Global Oil Price Shocks and Effects on Economic Growth: An Econometric Investigation of Nigeria
This study is necessitated for the reason that global oil price shocks are bound to affect the pace of economic growth in Nigeria. Given that Nigeria is a net oil-exporting country makes it
The effects of oil price shocks on real GDP in Iran
In this paper, the asymmetric effects of oil price shocks on GDP have been investigated by co-integration analysis in Iran economy during the period 1960-2010. We used Hodrick-Prescott filtering to
Disasters and Market Response
The post—World War II era has seen an enormous output of scientific research on the mitigation and behavioral response to disasters, both natural and otherwise. Over this same period, world gross
Fixed Exchange Rate Regimes and Price Stability: Evidence from MENA Countries
In this study, we empirically test whether pegged regime was successful in achieving and maintaining consistently low inflation rates in 17 MENA countries over the period of 1980-2007. Taking into
Stabilization Crises and the Breakdown of Military Authoritarianism in Latin America
Over the last five years, military authoritarian regimes broke down consistently throughout Latin America. The return to democratic government has had less to do with the internal political situation

References

SHOWING 1-10 OF 19 REFERENCES
Alternative Responses of Policy to External Supply Shocks
DURING 1973 and 1974 reductions in supplies of food (through natural causes) and of oil (through unnatural causes) simultaneously lowered the real income of U.S. nonfarm workers and raised the rate
Inflation, Flexible Exchange Rates, and the Natural Rate of Unemployment
The most important conclusion of this paper is that the growth rate of the money supply influences the U.S. inflation rate more strongly and promptly than in most previous studies, because the
The Output Cost of Disinflation in Traditional and Vector Autoregressive Models
THE SPEED of adjustment of the aggregate price level to demand and supply shocks has long been a leading topic of controversy in macroeconomics. Among the many issues requiring for their resolution
The Demand for and Supply of Inflation
  • R. Gordon
  • Economics
    The Journal of Law and Economics
  • 1975
ECONOMIC research on the causes of inflation has been primarily devoted to the theoretical and empirical study of the links between government policy variables and the rate of inflation. While debate
Wages, Profits, and Macroeconomic Adjustment: A Comparative Study
The behavior of real wages has complicated macroeconomic policy in the industrialized world during the 1970s. Many commentators have discussed the extraordinary increase in wage inflation in Europe
Aggregate Dynamics and Staggered Contracts
Staggered wage contracts as short as 1 year are shown to be capable of generating the type of unemployment persistence which has been observed during postwar business cycles in the United States. A
Statistical abstract of the United States
1 Includes drainage basin of Red River of the North, not a part of any accession, but in the past sometimes considered a part of the Louisiana Purchase. i Includes Baker, Canton, Enderbury, Rowland,
...
1
2
...