1. EC6012 Lecture 9
Models of Stagflation
Stephen Kinsella
March 23, 2008

2. Today
Introduction
Data
A Simple Macrodynamic Model
Introduction
The Model
The Output Market
Equilibrium in the product and money markets
Examples
Aggregate supply
The Phillips curve
Dynamics of asset accumulation
Expectations
Bernanke-Blinder Model
An SFC Inside-Outside Model

3. Stagflation
A stagflationary economy experiences a slowing of growth
combined with rising inflation. Episodes of stagflation occurred in
the world economy in the late 1970’s and early 1980’s.