Mankiw has written widely on economics and principles of macroeconomics mankiw pdf download policy. 23rd most influential economist in the world, out of nearly 50,000 registered authors. Romney during the presidential campaigns in 2008 and 2012.
83, foreshadowing his later position as chairman of that organization. He was promoted to full professor in 1987 at the age of 29. 1985, compared a firm’s private incentive to adjust prices after a shock to nominal aggregate demand with the social welfare implications of that decision. The paper concluded that expansion in aggregate demand may either increase welfare or reduce it, but the welfare reduction is never greater than the menu cost. A contraction in aggregate demand, however, reduces welfare, possibly in an amount much larger than the menu cost.
Put another way, from a social planner’s point of view, prices may be stuck too high, but never too low. Their sticky-information model displays three related properties that are more consistent with accepted views about the effects of monetary policy. Second, monetary policy shocks have their maximum impact on inflation with a substantial delay. Third, the change in inflation is positively correlated with the level of economic activity.