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Exact(20)
In this context price flexibility doesn't lead to full employment.
The goods market is bogged down by inertia, transaction costs and long-term contracts that inhibit price flexibility.
You also need IS-LM to talk about the hypothetical process by which price flexibility restores full employment, if only to point out how problematic that process is.
The airline considered pitches from Boeing and Bombardier, but says that Airbus offered the best overall package with reference to price, flexibility and support.
"A hybrid trading scheme with price ceilings and floors offers a potentially attractive balance of price flexibility and predictability that we think merits serious consideration by governments as a potential alternative to either pure trading or pure tax solutions".
THIS week's interesting economics research: Accounting devices and fiscal illusions (Timothy Irwin) New estimates of the responses of wives to husbands' wages (Benoit Dostie and Lene Kromann) Is increased price flexibility stabilizing?
Similar(39)
The rationale he gave makes much sense:In a common currency area, the burden of adjusting to country-specific economic shocks falls on labour and capital mobility, price and cost flexibility, and fiscal policy.
Most importantly, pricing flexibility has been unwound.
"Japan and Korea have fresh products, and they have attractively priced currencies, which gives them pricing flexibility," said John Casesa, an analyst at Merrill Lynch.
So, U.S.-based multinationals that produce commodity-like items, things like petrochemicals or other basic materials, are not appealing right now because global demand is not robust and these companies do not have much in the way of pricing flexibility.
Last year, Congress enacted a law that restricted pricing flexibility — for instance, banks must give a 45-day notice before raising their rates, even when a borrower misses a payment.
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