A Tale of Two Effects
نویسنده
چکیده
This paper adopts a New Keynesian approach to analyze the relationship between nominal interest rates and prices. In this new framework, both a positive relation between interest rates and price levels (i.e., a positive Gibson effect) and a negative relation between interest rates and subsequent price changes (i.e., a negative Fama-Fisher effect) arise when money is supplied inelastically and prices are flexible. Such an economy is subject to Gibson’s Paradox, a long-standing puzzle in monetary economics, and a novel paradox identified here, a Fama-Fisher Paradox. By contrast, economies characterized by elastic money and sticky prices are not so paradoxical since nominal interest rates are positively related to subsequent inflation and ambiguously related to the price level. Empirical analysis of nearly two centuries of data for ten countries supports the new theory. JEL Classification: E31, E42, E43
منابع مشابه
An Architectural Tale of the Two Cities
A comparative study of the corresponding styles of Western and Iranian modern architecture has hardly ever been carried out in detail. This paper aims to sketch out an outline for such an investigation and to present a summary of empirical evidence accompanied by field observations to elaborate the ongoing trend of relationship between architectural styles in Iran and that of the West. This is ...
متن کاملMetacognitive Strategy Instruction and EFL learners’ Listening Comprehension Ability: A Tale of Two Genders
This research aimed to probe the effect of two different models of metacognitive strategy instruction on the listening performance of EFL learners in Iran. 83 intermediate EFL learners in four groups, two male and two female groups were the participants. The participants in the first experimental groups – a male and a female group – were undergone a ten-week treatment including the linear strat...
متن کاملI-3: Tale of The Tail: Candidate Genes Involved in Sperm Flagella Formation
Background ISTS defect in which sperm tail is short and fibrous sheath and axoneme are disorganized, is one of the syndromes that cause male infertility. Although a few studies have been done in this regard, its exact etiology in human is unclear yet. Four candidate genes causing ISTS are SPEF2, RABL2B, and A-kinas anchoring proteins genes (AKAP3 and AKAP4). Proteins which coded by SPEF2 and RA...
متن کاملA Comparative Study of Plato’s Allegory of the Cave and Suhrawardī’s Tale of the Western Exile
An important allegory throughout the history of philosophy is Plato’s allegory of the cave. There are remarkable similarities between this allegory and an allegory from Islamic philosophy—that of western exile (al-ghurba al-gharbiyya) proposed by Suhrawardī. This paper seeks to consider fundamental components and issues within the two allegories, including the issue of the soul as the ...
متن کاملEnvironmental and Ecological Extra Challenges in Minority Populations; a Tale of Toxic Exposures among First Nation Populations
متن کامل
A tale of two genes controlling behavior in Drosophila: role of DopEcR in ethanol-induced behavior and effects of epilepsy mutations on sleep
A tale of two genes controlling behavior in Drosophila: role of DopEcR in ethanol-induced behavior and effects of epilepsy mutations on sleep. ii To my friends, family, and flies iii Little Fly Thy summer's play, My thoughtless hand Has brush'd away.
متن کامل