…on aggregate demand, at least, than changes in velocity. * Note that this does not include spending on intermediate goods — those that are turned into final goods within the…

…their bank accounts and running a $100 deficit. Voila! There’s money! Now one household works for the firm, creating $50 in value, goods. The firm gives the household $50 in…

…consumer goods. (The government did buy some consumer goods for the various programs, plus there was a spillover effect, but as the graph clearly shows, the action was on the…

…not specify the breakdown. Inflation’s hitting all sectors, goods (primarily) and services alike, via inputs to production. READ MORE AFTER THE JUMP!April core prices rose 1.6% over the year. The…

…that’s what makes the shift from capital goods production to consumer goods and services production painful, while the opposite shift is not painful. Consider a simple economy with steel mills…

…create jobs. That is why countries whose currency is being used as a reserve, and exporting T-bills rather than goods, often face an insufficiency of aggregate demand.” Now, if this…

…very brief Williamson argued that vertical integration is efficient when intermediate goods are made with inflexible capital. IIRC They key example is stamps for bashing metal which shape metal into…

…planners in Beijing have ordered government agencies not to buy imported goods for the country’s nearly $600 billion stimulus program except when no domestically produced goods are available. The government…

…of the scheduled benefit, just that we get as close to it as we can without undue burden on workers or diverting assets away from other social goods. Of the…

…it is keeping the yuan undervalued to gain an advantage in the international marketplace. A cheaper yuan makes Chinese goods less expensive in the United States and American goods more…