From f9d4671f9dfe8761f92a7aeebe40982e2b24c80a Mon Sep 17 00:00:00 2001 From: Longye Tian Date: Thu, 8 Aug 2024 14:12:44 +1000 Subject: [PATCH] [money_inflation_nonlinear] Update spelling - change 'stationary inflation rate that assert' to 'stationary inflation rate that asserts' - change 'it reverse the pervese' to 'it reverses the perverse' - change 'qualitive' to 'qualitative'. --- lectures/money_inflation_nonlinear.md | 6 +++--- 1 file changed, 3 insertions(+), 3 deletions(-) diff --git a/lectures/money_inflation_nonlinear.md b/lectures/money_inflation_nonlinear.md index 7bd8306a..e120bdf1 100644 --- a/lectures/money_inflation_nonlinear.md +++ b/lectures/money_inflation_nonlinear.md @@ -35,14 +35,14 @@ As in that lecture, we discussed these topics: * an **inflation tax** that a government gathers by printing paper or electronic money * a dynamic **Laffer curve** in the inflation tax rate that has two stationary equilibria * perverse dynamics under rational expectations in which the system converges to the higher stationary inflation tax rate -* a peculiar comparative stationary-state analysis connected with that stationary inflation rate that assert that inflation can be *reduced* by running *higher* government deficits +* a peculiar comparative stationary-state analysis connected with that stationary inflation rate that asserts that inflation can be *reduced* by running *higher* government deficits These outcomes will set the stage for the analysis of {doc}`laffer_adaptive` that studies a version of the present model that uses a version of "adaptive expectations" instead of rational expectations. That lecture will show that * replacing rational expectations with adaptive expectations leaves the two stationary inflation rates unchanged, but that $\ldots$ -* it reverse the pervese dynamics by making the *lower* stationary inflation rate the one to which the system typically converges +* it reverses the perverse dynamics by making the *lower* stationary inflation rate the one to which the system typically converges * a more plausible comparative dynamic outcome emerges in which now inflation can be *reduced* by running *lower* government deficits ## The model @@ -399,7 +399,7 @@ Those dynamics are "perverse" not only in the sense that they imply that the mon * the figure indicates that inflation can be *reduced* by running *higher* government deficits, i.e., by raising more resources through printing money. ```{note} -The same qualitive outcomes prevail in {doc}`money_inflation` that studies a linear version of the model in this lecture. +The same qualitative outcomes prevail in {doc}`money_inflation` that studies a linear version of the model in this lecture. ``` We discovered that