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Why is there increased speculation that America might go into a recession ? If they do will the rest of the world also face downturn?

This question is really a set of questions. 1 ) Will raising rates lead to a recession? 2 ) Will the US go into a recession (whatever the cause)? 2 ) Would a US recession have spillover effects to ...
• 1,542
1 vote

In what ways will taxing corporations reduce inflation?

It is actually not crystal clear whether corporate taxes reduce inflation. There are both demand and supply effects to consider (see Tanzi 1982). Lets start by considering the demand side of things. ...
• 41.5k

Unemployment only differs from its natural rate if expected inflation is different from actual inflation - why?

Mankiw probably refers there to the Expectations Augmented Philips Curve (EAPC) or some related model. According to EAPC the following relationship holds (See Romer Advanced Macro pp 259-262):  \...
• 41.5k
tl;dr There is absolutely no contradiction. $I=S$ is purely definitional like saying all triangles have three angles. It holds always because we defined the word saving in such way to always be equal ...