1 / 14

Monetarism and the Political Business Cycle - Understanding Economic Impacts

Explore the relationship between Monetarism, MV = PQ formula, and the Political Business Cycle. Learn how changes in money supply affect prices and output in the short and long run. Dive into historical elections where sitting presidents influenced outcomes. Discover the significance of timing in the Political Business Cycle game for success in elections. Make informed decisions to navigate the economic landscape effectively.

awhitcomb
Download Presentation

Monetarism and the Political Business Cycle - Understanding Economic Impacts

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Monetarism And the Political Business Cycle

  2. Monetarism MV = PQ 18-30 months In the long run, increases in M affect nothing but P (and W).

  3. Monetarism MV = PQ 18-30 months In the short run, increases in M affect Q---but only temporarily.

  4. Monetarism MV = PQ In the short run, increases in M affect Q---but only temporarily.

  5. Monetarism MV = PQ In the short run, increases in M affect Q---but only temporarily.

  6. Monetarism MV = PQ In the short run, increases in M affect Q---but only temporarily.

  7. The Political Business Cycle 1972 Nixon vs. McGovern 1976 Ford vs. Carter 1980 Carter vs. Reagan 1984 Reagan vs. Mondale 1988 Bush vs. Dukakis 1992 Bush vs. Clinton 1996 Clinton vs. Dole 2000 Gore vs. Bush 2004 Bush vs. Kerry Now, pick the elections in which one of the candidates was the sitting president.

  8. The Political Business Cycle 1972 Nixon vs. McGovern 1976 Ford vs. Carter 1980 Carter vs. Reagan 1984 Reagan vs. Mondale 1988 1992 Bush vs. Clinton 1996 Clinton vs. Dole 2000 2004 Bush vs. Kerry PBC game (good timing) PBC game (good timing) PBC game (good timing)

  9. The Political Business Cycle 1972 Nixon vs. McGovern 1976 Ford vs. Carter 1980 Carter vs. Reagan 1984 Reagan vs. Mondale 1988 1992 Bush vs. Clinton 1996 Clinton vs. Dole 2000 2004 Bush vs. Kerry PBC game (good timing) PBC game (good timing) PBC game (good timing)

  10. The Political Business Cycle 1972 Nixon vs. McGovern 1976 Ford vs. Carter 1980 Carter vs. Reagan 1984 Reagan vs. Mondale 1988 1992 Bush vs. Clinton 1996 Clinton vs. Dole 2000 2004 Bush vs. Kerry PBC game (good timing) PBC game (good timing) PBC game (good timing) PBC game (good timing) Didn’t play the PBC game PBC game (too early) PBC game (good timing) PBC game (too late) PBC game (good timing) Couldn’t play the PCB game

  11. The Political Business Cycle 1972 Nixon vs. McGovern 1976 Ford vs. Carter 1980 Carter vs. Reagan 1984 Reagan vs. Mondale 1988 1992 Bush vs. Clinton 1996 Clinton vs. Dole 2000 2004 Bush vs. Kerry PBC game (good timing) PBC game (good timing) PBC game (good timing) PBC game (good timing) Didn’t play the PBC game PBC game (too early) PBC game (good timing) PBC game (too late) PBC game (good timing) Couldn’t play the PCB game

  12. The Political Business Cycle 1972 Nixon vs. McGovern 1976 Ford vs. Carter 1980 Carter vs. Reagan 1984 Reagan vs. Mondale 1988 1992 Bush vs. Clinton 1996 Clinton vs. Dole 2000 2004 Bush vs. Kerry PBC game (good timing) PBC game (good timing) PBC game (good timing) PBC game (good timing) Didn’t play the PBC game PBC game (too early) PBC game (good timing) PBC game (too late) PBC game (good timing) Couldn’t play the PCB game

  13. And the Political Business Cycle If you play the PBC game and get the timing right (Nixon, 1972; Reagan, 1984; and Clinton; 1996, you’re likely to win. Otherwise, you’re likely to lose.

  14. Monetarism And the Political Business Cycle

More Related