Topic 12: Stabilization Policy, Inflation & Unemployment
Key Points
- Understand the goal of stabilization policy
- Analyze how monetary and fiscal policy can be used for stabilization
- Know the concept of policy lags and how the lags differ for fiscal and monetary policy
- Understand the short-run Phillips curve relationship between inflation and unemployment
- Analyze the economics that makes the long-run run Phillips curve vertical
Videos
Stabilization Policy I
Policy Lag
Stabilization Policy II
Inflation and Unemployment I
Inflation and Unemployment II