Essays about: "near-rationality"

Found 2 essays containing the word near-rationality.

1. 1. Money Illusion and the Optimal Long-Run Rate of Inflation

   University essay from Lunds universitet/Nationalekonomiska institutionen

   Author : Hannes Stiernstedt; [2011]
   Keywords : Money Illusion; Phillips curve; efficiency wages; near-rationality; Business and Economics;

   Abstract : The conventional NAIRU model stipulates that any existing money illusion would vanish by the passage of time. In contrast, the model developed by Akerlof, Dickens and Perry (2000) (ADP) argues that inflation, instead of time, dissipate money illusion. Accordingly, there exists a possibility of an inflation unemployment tradeoff in the long run. READ MORE

3. 2. The optimal Inflation Target with respect to Swedish Unemployment

   University essay from Handelshögskolan i Stockholm/Institutionen för nationalekonomi

   Author : Arvid Eriksson; Lisa Wimmerstedt; [2011]
   Keywords : Inflation; Unemployment; Near-rationality; Inflation target;

   Abstract : The rise in unemployment experienced by Sweden in recent decades is assumed to be uncorrelated with the low rate of inflation. The generally accepted theory of a long-run vertical Phillips curve has lately been questioned by studies that show that a long-run trade-off between inflation and unemployment may exist at low levels of inflation. READ MORE