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Friedman-Phelps Model of Stagflation: Equations, Curves, Criticisms and Conclusion

Friedman-Phelps Model of Stagflation: Equations, Curves, Criticisms and Conclusion! With the existence of stagflation, new economic models appeared during 1970s. M. Friedman and E.S. Phelps sought to explain the phenomenon of stagflation (or the instability of the Phillips curve) in terms of inflationary expectations; changes in inflationary expectations cause shifts in the Phillips curve. According […]

Technological Gap Model of International Trade | Economics

The Heckscher-Ohlin theory, like the earlier theories of trade, assumed that the techniques of production were given and fixed. Such an assumption can be valid only in a static system. In actual dynamic realities, there can be no place for such an assumption. The technical changes have highly significant effects on production and trade. A […]

Mundellian Model of Internal and External Stability | Economics

R.A. Mundell stressed not only the need of a monetary-fiscal policy mix to achieve the internal and external stability through his celebrated article. The Appropriate Use of Fiscal and Monetary Policy for Internal and External Stability, but also attempted to provide an answer to a very crucial question concerning the policy priorities in different economic […]

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