ECO 1102 Lecture Notes - Lecture 3: Black Market, National Accounts, Core Inflation

• School: University of Ottawa
• Department: Economics
• Course: ECO 1102
• Professor: David Gray

Document Summary

Assumed keynesian would deliver low unemployment and inflation, rising living standards. Resulted in hyper inflation, rising unemployment, slow growth in real gdp. How do they classify the era we"re in now. Drafting a new paradigm is a work in progress. Neoclassical synthesis supply and demand diagrams (2010-2016) great secular stagnation fair gdp, fairly high unemployment. Financial economists screwed up in the absolute extreme in the mid 2000s. Can retrospectively explain the economic phenom which occurred but lacks a unified overarching model of how macroecon works. Core problem was irrational behaviour from homeowners, investors and financial institutions. Glass eagle act (canada never had a glass eagle act) Investment banks and retail banks were separate, but legislation was repealed, not good. Institution: abstract structure created by humans to govern daily affairs/lives politically, economically, and socially. Macroeconomic policy: what the government does and does not do, always intentional two types, fiscal and monetary policy. Models ex) circular flow diagram, ppf.