(A) Covered; (B) riskless; (C) expected future

(A) Covered; (B) riskless; (C) forward

(A) Uncovered; (B) future; (C) forward

(A) Uncovered; (B) future; (C) forward

real output growth

real interest

productivity growth

inflation

People do not make systematic errors

On average the economy will be close to the LAS curve

Policy makers have better information about the economy than other economic actors

Macroeconomic policy changes must come as a surprise in order to have an impact on the real economy

Higher price levels distort price signals

Higher rates of inflation are associated with higher variability in nominal prices

Unanticipated inflation leads to redistribution of wealth from lenders to borrowers

The loss of value of money in inflation leads to real costs when households engage in efforts to economize on their cash holdings

Friedman Critique

Phelps’ Doctrine

Lucas Model

Taylor Rule