Question 1

Since the creation of highly independent central banks,governments have relinquished control over exchange rate policy.

Accepted Answer

A) True 
 B)False

Question 2

According to Oatley,a factor that reduces the inconsistency between democracy and independent central banks is that

Accepted Answer

A)  legislatures cannot withdraw the independence of central banks. 
B)  central bankers are typically appointed by elected officials for limited terms of office. 
C)  they are not the only political institutions that are granted independence from electoral politics in democracies. 
D)  monetary policy is a rather minor policy instrument at a government's disposal. 
E)  the economic benefit is overwhelming more important than the political inconvenience. 
A)  legislatures cannot withdraw the independence of central banks. 
B)  central bankers are typically appointed by elected officials for limited terms of office. 
C)  they are not the only political institutions that are granted independence from electoral politics in democracies. 
D)  monetary policy is a rather minor policy instrument at a government's disposal. 
E)  the economic benefit is overwhelming more important than the political inconvenience.

Question 3

As the euro appreciated in 2007-2008,European business associations called upon EU governments to pressure the US,Japan,and China to take steps to strengthen their currencies.

Accepted Answer

A) True 
 B)False

Question 4

According to Figure 13.6,which plots data for 1969-1995,the two countries with the lowest unemployment with the least central bank independence were

Accepted Answer

A)  Italy and Belgium. 
B)  Norway and Japan. 
C)  Japan and Sweden. 
D)  Austria and Germany. 
E)  Italy and Canada. 
A)  Italy and Belgium. 
B)  Norway and Japan. 
C)  Japan and Sweden. 
D)  Austria and Germany. 
E)  Italy and Canada.

Question 5

The shift from Keynesian strategies to the pursuit of price stability occurred first in

Accepted Answer

A)  the United States. 
B)  Germany. 
C)  Britain. 
D)  France. 
E)  Japan. 
A)  the United States. 
B)  Germany. 
C)  Britain. 
D)  France. 
E)  Japan.

Question 6

How strong is the negative relationship between inflation and unemployment? Give some examples to justify your claim.

Accepted Answer

The strength of the negative relationshi

Question 7

Explain and discuss how the Keynesian policy revolution came to an end as a result of prolonged inflation in the 1970s and 1980s.

Accepted Answer

The Keynesian policy revolution came to

Question 8

During the 1960s in the United States,the inflation-unemployment trade-off occurred within a range of inflation which was,on average,about

Accepted Answer

A)  1 %. 
B)  2%. 
C)  3%. 
D)  4%. 
E)  5%. 
A)  1 %. 
B)  2%. 
C)  3%. 
D)  4%. 
E)  5%.

Question 9

How does inflation have a large negative impact on a country's economic performance? How do some domestic economic interests profit from inflation?

Accepted Answer

Inflation has a large negative impact on

Question 10

A principal criticism of the state-centered approach to monetary politics is that it is more prescriptive than explanatory.

Accepted Answer

A) True 
 B)False

Question 11

How can the interaction between wage bargainers and the government have perverse consequences for social welfare?

Accepted Answer

The interaction between wage bargainers

Question 12

During the 1970s and 1980s,and even as late as the mid-1990s,European governments used monetary policy to pursue their particular economic policy goals which typically reflected the interests of their domestic interest groups.

Accepted Answer

A) True 
 B)False

Question 13

According to Oatley,granting the central bank independence should lead to

Accepted Answer

A)  short-term lower inflation. 
B)  short-term lower unemployment. 
C)  short-term political convenience. 
D)  long-term higher economic growth. 
E)  long-term higher unemployment. 
A)  short-term lower inflation. 
B)  short-term lower unemployment. 
C)  short-term political convenience. 
D)  long-term higher economic growth. 
E)  long-term higher unemployment.

Question 14

According to Oatley,the reason inflation fell in the 1980s in Europe was because

Accepted Answer

A)  the fall in energy prices lowered production costs dramatically. 
B)  unions and businesses were convinced that the government would devalue their currencies. 
C)  the EMS took away the control of monetary policy away from government. 
D)  the ECB was one of the world's most independent central banks. 
E)  European governments accepted higher unemployment that tight monetary policies generated. 
A)  the fall in energy prices lowered production costs dramatically. 
B)  unions and businesses were convinced that the government would devalue their currencies. 
C)  the EMS took away the control of monetary policy away from government. 
D)  the ECB was one of the world's most independent central banks. 
E)  European governments accepted higher unemployment that tight monetary policies generated.

Question 15

Explain the dynamic and concept of the accelerationist principle in the context of the United States between 1961 and 1999.How unique was the American experience?

Accepted Answer

The accelerationist principle, in the co

Question 16

According to Figure 13.5,for 1964-1970 for the six countries listed,if we add the inflation rate to the unemployment rate (lowest is best),the country with the lowest score is

Accepted Answer

A)  the United States. 
B)  Germany. 
C)  France. 
D)  Britain. 
E)  Japan. 
A)  the United States. 
B)  Germany. 
C)  France. 
D)  Britain. 
E)  Japan.

Question 17

Data strongly suggest that countries with relatively high inflation rates have experienced lower economic growth,whereas countries with relatively low rates of inflation have had higher economic growth.

Accepted Answer

A) True 
 B)False

Question 18

According to Oatley,

Accepted Answer

A)  lower inflation during the 1970s did not reduce unemployment relative to the 1960s. 
B)  higher inflation in the 1980s did not raise unemployment relative to the 1970s. 
C)  higher inflation in the 1990s did not raise unemployment relative to the 1980s. 
D)  lower inflation in the 1990s did not raise unemployment relative to the 1980s. 
E)  higher inflation in the 1990s did raise unemployment relative to the 1980s. 
A)  lower inflation during the 1970s did not reduce unemployment relative to the 1960s. 
B)  higher inflation in the 1980s did not raise unemployment relative to the 1970s. 
C)  higher inflation in the 1990s did not raise unemployment relative to the 1980s. 
D)  lower inflation in the 1990s did not raise unemployment relative to the 1980s. 
E)  higher inflation in the 1990s did raise unemployment relative to the 1980s.

Question 19

Discuss the logic and the evidence that all countries do,in fact,have a natural rate of unemployment.How long is it reasonable to wait after a recession or a boom for this long-run equilibrium to appear?

Accepted Answer

The natural rate of unemployment refers

Question 20

According to Figure 13.5,for 1964-1990 for the six countries listed,if we add the inflation rate to the unemployment rate (highest is worst),the country with the highest score for the whole period was

Accepted Answer

A)  the United States. 
B)  Germany. 
C)  France. 
D)  Britain. 
E)  Japan. 
A)  the United States. 
B)  Germany. 
C)  France. 
D)  Britain. 
E)  Japan.

Since the creation of highly independent central banks,governments have relinquished control over exchange rate policy.

According to Oatley,a factor that reduces the inconsistency between democracy and independent central banks is that

As the euro appreciated in 2007-2008,European business associations called upon EU governments to pressure the US,Japan,and China to take steps to strengthen their currencies.

According to Figure 13.6,which plots data for 1969-1995,the two countries with the lowest unemployment with the least central bank independence were

The shift from Keynesian strategies to the pursuit of price stability occurred first in

How strong is the negative relationship between inflation and unemployment? Give some examples to justify your claim.

Explain and discuss how the Keynesian policy revolution came to an end as a result of prolonged inflation in the 1970s and 1980s.

During the 1960s in the United States,the inflation-unemployment trade-off occurred within a range of inflation which was,on average,about

How does inflation have a large negative impact on a country's economic performance? How do some domestic economic interests profit from inflation?

A principal criticism of the state-centered approach to monetary politics is that it is more prescriptive than explanatory.

How can the interaction between wage bargainers and the government have perverse consequences for social welfare?

During the 1970s and 1980s,and even as late as the mid-1990s,European governments used monetary policy to pursue their particular economic policy goals which typically reflected the interests of their domestic interest groups.

According to Oatley,granting the central bank independence should lead to

According to Oatley,the reason inflation fell in the 1980s in Europe was because

Explain the dynamic and concept of the accelerationist principle in the context of the United States between 1961 and 1999.How unique was the American experience?

According to Figure 13.5,for 1964-1970 for the six countries listed,if we add the inflation rate to the unemployment rate (lowest is best),the country with the lowest score is

Data strongly suggest that countries with relatively high inflation rates have experienced lower economic growth,whereas countries with relatively low rates of inflation have had higher economic growth.

According to Oatley,

Discuss the logic and the evidence that all countries do,in fact,have a natural rate of unemployment.How long is it reasonable to wait after a recession or a boom for this long-run equilibrium to appear?

According to Figure 13.5,for 1964-1990 for the six countries listed,if we add the inflation rate to the unemployment rate (highest is worst),the country with the highest score for the whole period was

International Political Economy

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The Political Economy of International Trade Cooperation

A Society-Centered Approach to Trade Politics

A State-Centered Approach to Trade Politics

Trade and Development I: Import Substitution Industrialization

Trade and Development II: Economic Reform

Multinational Corporations in the Global Economy

The Politics of Multinational Corporations

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Cooperation, conflict and Crisis in the Contemporary International Monetary System

A Society-Centered Approach to Monetary and Exchange-Rate Policies

Developing Countries and International Finance I: the Latin American Debt Crisis

Developing Countries and International Finance II: a Decade of Crises

Globalization: Consequences and Controversies

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Exam 13: A State-Centered Approach to Monetary and Exchange-Rate Policies

Since the creation of highly independent central banks,governments have relinquished control over exchange rate policy.

According to Oatley,a factor that reduces the inconsistency between democracy and independent central banks is that

As the euro appreciated in 2007-2008,European business associations called upon EU governments to pressure the US,Japan,and China to take steps to strengthen their currencies.

According to Figure 13.6,which plots data for 1969-1995,the two countries with the lowest unemployment with the least central bank independence were

The shift from Keynesian strategies to the pursuit of price stability occurred first in

How strong is the negative relationship between inflation and unemployment? Give some examples to justify your claim.

Explain and discuss how the Keynesian policy revolution came to an end as a result of prolonged inflation in the 1970s and 1980s.

During the 1960s in the United States,the inflation-unemployment trade-off occurred within a range of inflation which was,on average,about

How does inflation have a large negative impact on a country's economic performance? How do some domestic economic interests profit from inflation?

A principal criticism of the state-centered approach to monetary politics is that it is more prescriptive than explanatory.

How can the interaction between wage bargainers and the government have perverse consequences for social welfare?

During the 1970s and 1980s,and even as late as the mid-1990s,European governments used monetary policy to pursue their particular economic policy goals which typically reflected the interests of their domestic interest groups.

According to Oatley,granting the central bank independence should lead to

According to Oatley,the reason inflation fell in the 1980s in Europe was because

Explain the dynamic and concept of the accelerationist principle in the context of the United States between 1961 and 1999.How unique was the American experience?

According to Figure 13.5,for 1964-1970 for the six countries listed,if we add the inflation rate to the unemployment rate (lowest is best),the country with the lowest score is

Data strongly suggest that countries with relatively high inflation rates have experienced lower economic growth,whereas countries with relatively low rates of inflation have had higher economic growth.

According to Oatley,

Discuss the logic and the evidence that all countries do,in fact,have a natural rate of unemployment.How long is it reasonable to wait after a recession or a boom for this long-run equilibrium to appear?

According to Figure 13.5,for 1964-1990 for the six countries listed,if we add the inflation rate to the unemployment rate (highest is worst),the country with the highest score for the whole period was

International Political Economy

The World Trade Organization and the World Trade System

The Political Economy of International Trade Cooperation

A Society-Centered Approach to Trade Politics

A State-Centered Approach to Trade Politics

Trade and Development I: Import Substitution Industrialization

Trade and Development II: Economic Reform

Multinational Corporations in the Global Economy

The Politics of Multinational Corporations

The International Monetary System

Cooperation, conflict and Crisis in the Contemporary International Monetary System

A Society-Centered Approach to Monetary and Exchange-Rate Policies

Developing Countries and International Finance I: the Latin American Debt Crisis

Developing Countries and International Finance II: a Decade of Crises

Globalization: Consequences and Controversies

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