******************************************************* ********PROGRAM FILE FOR NEUMANN TABLES AND FIGURES**** *******************************************************; ******************************************************* ********TABLE 1**************************************** *******************************************************; THE DATA FOR THIS TABLE WAS TAKEN FROM TABLES 1 AND 4 OF BORDO'S PAPER. THE DEMAND AND SUPPLY SHOCKS FOR THE MEAN G7 WAS CALCULATED AS THE MEAN OF THE SQUARED STANDARD DEVIATIONS OF THE INDIVIDUAL COUNTRY SHOCKS FROM TABLE 4. ******************************************************* *******TABLE 3***************************************** *******************************************************; THE ACTUAL VARIANCES CAME FROM NEUMANN'S TABLE 1. THE ADJUSTED VARIANCES WERE CALCULATED USING THE FOLLOWING BATCH PROGRAM IN MATHEMATICA. THE CARAT SYMBOLS WERE CHANGED TO DOUBLE ASTERISKS (**) AND THE BRACKETS WERE CHANGED TO PARENTHESIS-BARS ( (|,|) ). ***START OF PROGRAM**** ONE=((A**2+B**2)/(A+B)**2)*(D+S/B**2); TWO=((A**2+B**2)/(A+B)**2)*S + 2*D*(A*B)**2/(A+B)**2; **THE VALUES FOR D, S, P, AND Y ARE*****; **INSERTED IN THE NEXT FOUR LINES*******; D=DEMAND SHOCK; S=SUPPLY SHOCK; P=VARIANCE FOR INFLATION; Y=VARIANCE FOR OUTPUT; SOLSET = SOLVE(|{ONE==P, TWO==Y}, {A,B}|); {AA,BB} = {A,B} /. SOLSET(|(|7|)|); C1=(AA**2+BB**2)/(AA+BB)**2; C2=2*(AA*BB)**2/(AA+BB)**2; AVAR1=C1*D; AVAR2=C2*D; SD1=-1/BB; SS1=1/AA; ****END OF PROGRAM*** THE DEMAND AND SUPPLY SHOCKS AND THE VARIANCES FOR INFLATION AND OUTPUT FROM NEUMANN'S TABLES 1 AND 3 ARE INSERTED INTO THE PROGRAM WHERE THEY ARE CALLED FOR. THE MEAN G4 SHOCKS ARE CALCULATED USING BORDO'S TABLE 4 JUST AS THE MEAN G7 SHOCKS WERE IN NEUMANN'S TABLE 1. AVAR1 IS THE ADJUSTED VARIANCE OF INFLATION AND AVAR2 IS THE ADJUSTED VARIANCE OF OUTPUT. ADJUSTED DIVIDED BY ACTUAL THEN MULTIPLIED BY 100 CREATES THE PERCENT OF ACTUAL. ******************************************************* ********FIGURES 1 AND 2******************************** ******************************************************* THE SLOPES FOR THE LINES WERE CALCULATED IN THE MATHEMATICA PROGRAM. SD1 IS THE SLOPE OF THE DEMAND CURVE AND SS1 IS THE SLOPE OF THE SUPPLY CURVE. THE CURVES WERE DRAWN SUCH THAT THEY INTERSECT AT A COMMON POINT IN THIS CASE (8.2, 8.2).