[loanable funds -

market]:

- [sticky prices]:
( ) -
( )
[labor market]:
[sticky wages]:

[capital market]: -
[mutual fund]: -
-
- -
, -
,

[federal -
funds market]: [outsourcing]: -
-

[product market]: -
- [income-
expenditure analysis]:
[land reform]: -
-

: .
[causation]: - [total factor productivity
analysis]:
, - -
, -
-


,

/ [gross
domestic product/ GDP]: - [developed countries]:

871


, -
, , - (
, )
[appreciation]:
[absolute advan-
- tage]: -

[frictional unemployment]:
- ( -
- )
[deflation]: -

[boom]: [GDP deflator]:
- -

[human capital]:

-
: .
[open economy]: /
[risk aversion]: -

/ [exchange]: - Pareto [Pareto
efficient]: -
Pareto
[countercyclical
policies]: -
-
[efficiency wage]:

[countervailing du-
ties]: () [imperfect compe-
- tition]:
-
-
[infinite elasticity]:
[imperfect informa-
( ) - tion]: -
- -
( ) (
()
[stocks]: ) -
-

872 Joseph E. Stiglitz | Carl E. Walsh



[automatic
stabilizer]: -
[tariffs]:

- [consumer pri-
ce index]:
[basic trade
identity]:
[producer price
[basic index]:
competitive model]: -
[trade creation]:
, -
-

[industrialized [fiscal deficit]:
countries]: .
[sustainable develop-
ment]: -
[fiscal surplus]:
- -
-

[reserves]:
[North American Free Trade
Agreement, NAFTA]:
, -
- [disposable income]:
-
[short run]: -
[discretion]: -
-
-

[structural unem-
[inflation adjustment line]: ployment]:
-
,
-
-

[borrowed reserves]: -
-

873


[diversification]: ,
- ,

[bilateral trade]: [income ap-
proach]:
[dual economies]: -

-
[budget con-
straints]:

/
[dollarization]: - -
( )

-
[open-market operations]: -
-
[capital inflows]: -
-
[dynamic inconsist- ,
ency]: , -


[liquidity]: [capital outflows]: -

-
[potential GDP]: ,
-

[national saving]: [crowding out]: -


[imports]: - [trade diversion]: -

-
[income effect]:

[price elasticity of demand]: -

-
- 1% ( -
-

874 Joseph E. Stiglitz | Carl E. Walsh



)
-
[price elasticity of supply]: -
,

1% [expansions]:
(
[investment]: -
) ,
[free trade]:

- -
,
[full- -
employment deficit]: , -
(

[capital deepening]: , ,

[commercial policies]: )
[inventory invest-
ment]:
[trade deficit]: -
[capi-
[balance of trade]: tal goods investment]: -
(
( ) -
[Treasury ,
bills, T-bills]: - [ ])

[plant and equipment invest-
[exports]: ment]: -
- -

[outside lag]: [residential investment]:

[sharecropping]:
, -
,
-

/ [repurchases/ RPs]:

875


[European Union]:
[full-employment level of -
output]:

[demand]:
- -

[substitution
effect]: [positive economics]:
-

, -
- -

- [theory]:

-

[fed- [efficient
eral funds rate]: - market theory]: -


[infant industry argument]:
- [strategic
- trade theory]:
,
- -
,
[seasonal unemployment]:
, -

- [Open Market
Desk]:
[inside lag]:
-
- [private property]:
- ( )


, ,
,
-
[equilibrium]:

876 Joseph E. Stiglitz | Carl E. Walsh



() -

[net capital , -
inflows]: (
)
[cur- [market
rency board]: supply curve]:
-
-


[short-run inflation ad- -
justment curve]: ( -


, - )
--
[demand curve]: - [aggregate demand-inflation curve]:
-
,
( ) [aggregate
expenditures schedule]:
[market -
demand curve]:
- [recession]: -
- -

, [mon-
, etary policy rule]:


[production possibilities curve]: - , -
, -
-
[rules]:
() - -

Phillips [Phillips curve]: [normative eco-
- nomics]: -
-
- -

[supply curve]:

877


[income per capi- -

ta]:
[circular flow]:
[demand deposits]:
, -
, ,

[distribution]: - [operating pro-
cedures]:
-
[entitlements]:
[less de-
/ veloped countries]:
( )
[central bank]: - ,

[unit of account]:
[central planning]:

( 1, 2, 3 [M1, M2, M3]: -
) 1

[capital gain]: - 2 1 -
- , -

3 2 -
[capital goods]:

[macroeconomics]:
- -
-
[incentives]:
[long run]:
-
[peaks]: - -
-

[opportunity cost]: - [large open
economy]: -
-

[cyclical unemployment]:
-

878 Joseph E. Stiglitz | Carl E. Walsh



- nomy]:

[Great Depression]: -
-
- -
1930
- [microeconomics]:
[export-led growth]:

-
[law of
supply and demand]: -
[devaluation]:




[dividends]: - Okun [Okuns law]:
-

[medium of exchange]: Arthur Okun
Okun
1%
2%
[sunk costs]: [dumping]:
-

[nonborrowed
reserves]: [market economy]:
-
FED - -
- ( )

[nondiscretionary [business cycle]: -
spending]: -
, -

[zero elasticity]: -
- [Federal Open Market Committee]:
( )
-

[small open eco- [nominal GDP]:

879


/
[World Trade Organization/ WTO]: -
1995 -
[nominal rate of in-
terest]: - -
,
[General Agreement on Tariffs
and Trade, GATT]
[marginal benefits]: -
, -
, [output gap]: -
-
[marginal
propensity to save]: [store of value]: -

-
[marginal pro-
pensity to import]: [retained earn-
ings]:

[marginal pro- -
pensity to consume]:
[property rights]:
-
[marginal revenue]: -

- (
, )
[marginal cost]:

[certificate of
[neutrality deposit]: -
of money]: - -

-
-
[surplus of labor]: -
[globalization]: -
, -

[excess reser-
- ves]:

880 Joseph E. Stiglitz | Carl E. Walsh



[inflation]: ,

[inflation shocks]: - [quan-
- tity equation of exchange]: MV
= PY
(
SRIA)
[full-employment]:
- [real investment]:

[information]: , -


- [real exchange rate]: -


- [real GDP]: -

[beggar-thy-neighbor policies]: - -
-
-
[real rate of interest]:
,


[multiplier]: [real wage]: -
-
-
(-
[money ) [discretionary act]:
multiplier]:
() -
-
, ,
... [green revolution]:
[multilateral trade]:
-

[quotas]: -
- 1960 1970
[discretionary spen-
[equilibrium quanti- ding]: -
ty]: -

881


[discount rate]:

[flows]:
[adaptive ex- -
pectations]: -


[expected re- -
turns]: [labor turnover rate]:


-
[unemployment rate]:
[final goods
approach]:

-
[quota rent]: [labor force participation rate]:
-
-

[implicit labor
[protectionism]: - contact]: -
- -

-
[value added]:
- [supply shocks]: -
-
, -


[newly industrialized countries]:
[scarcity]: -


, , -
-
[supply]: -
[stagflation]: -


[trough]: - [inflation target-

882 Joseph E. Stiglitz | Carl E. Walsh



ing]: - -
-

[total reserves]:
[price-level
targeting]:
- -

[comparative ad- [aggregate expendi-
vantage]: - tures]:

(
)

[total factor productivity]: -
/ [exchange]: -


[exchange rate]: [opportunity set]: -
( -
) ,
( , )

[short-run aggregate produc- [frac-
tion function]: tional reserve system]: -
,
( )

[import function]: -
[flexible/ floating ex-
change rate system]:
[investment func- -
tion]: ,
,
-
-
[ag- [fixed exchange rate system]:
gregate consumption function]:
- -

[interest [price system]: -
rate parity condition]:

883


[correlation]: [depreciation]: ()
- -
, -

[trade-offs]: -
( ()
)

( -
)
[velocity]: [depression]:
-
, -
[diminishing returns]:
[perfectly
mobile capital]: - -
,

[perfect competi-
tion]: - [asset price bubbles]:



,
,
[equilibrium price]: [natural rate of
- unemployment]:

[market
clearing price]: - [portfolio]: -
, -

[money]: -
[present , -
discounted value]:
- [financial
investments]: ,
[random walk]: -



[time constraints]:

884 Joseph E. Stiglitz | Carl E. Walsh



( -
) -

885