Economic equilibrium is the combination of economic variables (usually price and quantity) toward which normal economic processes drive the economy. Key Takeaways.

National Bureau of Economic Research Working Paper Series, No. 14259. CLARK, T. E. 2009. Is the Great Moderation Over? An Empirical Analysis. Federal Reserve Bank of Kansas City Economic Review ...

Macroeconomists need to know more about the process that moves the economy from one long-run equilibrium toward another as economic conditions change (e.g. due to a shock to mortgage markets).

This post explains how to analyze a pandemic-induced economic depression using Keynes’ framework, a framework developed by Keynes to analyze the causes of, and remedies for, the Great Depression.

Understanding Below Full Employment Equilibrium . When an economy is currently below its long-run, full-employment real GDP level, there will be economic unemployment of resources, which will lead ...

Interest rates during the current economic recovery have been unusually low. Some have argued that yields have been pushed down by declines in longer-run expectations of the normal inflation-adjusted ...

How the fragile macro-economic base of China’s external adjustment could intersect with China 2025 and generate a new "China" shock.

Based on this perspective, there is no dividing wall between microeconomics and macroeconomics. Dynamic stochastic general equilibrium (DSGE), a widely accepted modern macroeconomic theory, also ...

The economic model used in this paper is a computable general equilibrium (CGE) model developed with reference to Zodorow and Diamond (2013) "> REF and Heer and Maussner (2009).

The standard model, smooth and self-rectifying as it is, invites economists to see their role as identifying marginal policy changes to improve trade-offs, speed up the pace at which the economy ...