Measure of the effect that slowing production has on economic output. To control inflation, a central bank may take steps such as raising interest rates. These efforts usually reduce production. The sacrifice ratio is equal to the dollar cost of lost production divided by the percentage change in inflation.
Related information about sacrifice ratio:
- Sacrifice Ratio Definition | Investopedia
Definition of 'Sacrifice Ratio'. An economic ratio that measures the costs associated with slowing down economic output to change inflationary trends. The ratio ...
- Sacrifice Ratio - Financial Dictionary - The Free Dictionary
The cost to an economy when growth slows or stops in order to combat inflation. The ratio shows the cost for each percentage of decrease in inflation.
- What Determines the Sacrifice Ratio? - National Bureau of ...
countries. I then develop a simple method for estimating the “sacrifice ratio” ... approach constrains the sacrifice ratio to be the same for all disinflations within ...
- Determinants of the Sacrifice Ratio: Evidence from OECD and non ...
be quantified by the sacrifice ratio, which measures the amount of real GDP ... Thereafter, Ball proceeds to specify a method in which the sacrifice ratio can be ...
- What Determines the Sacrifice Ratio?
This paper investigates the determinants of the "sacrifice ratio" for disinflation: the ... I develop a method for estimating the sacrifice ratio in individual disinflation ...
- What is sacrifice ratio? definition and meaning
Definition of sacrifice ratio: Measure of the effect that slowing production has on ... The sacrifice ratio is equal to the dollar cost of lost production divided by the ...
- Structural Estimates of the U.S. Sacrifice Ratio - Federal Reserve ...
This paper investigates the statistical properties of the U.S. sacrifice ratio -- the cumulative output loss arising from a permanent reduction in inflation. We derive ...
- inflation history and the sacrifice ratio: episode-specific evidence ...
negative effect of inflation history on the sacrifice ratio, which is what is expected ... sacrifice ratio, the percentage of a year's real GDP that must be forgone to ...