宏观经济学原理与应用（第二版）教学配套课件罗伯特.E.霍尔classical.pdfVIP

The Classical Long-Run Model Slides by: John Pamela Hall ECONOMICS: Principles and Applications 3e HALL LIEBERMAN © 2005 Thomson Business and Professional Publishing The Classical Long-Run Model • Economists sometimes disagree with each other • Actually much more agreement exists among economists than there appears to be • Once distinction between long-run and short-run becomes clear – Many apparent disagreements among macroeconomists dissolve • If no time horizon is specified, however, an economist is likely to focus on horizon he or she feels is most important – Something about which economists sometimes do disagree 2 The Classical Long-Run Model • Ideally, we would like our economy to do well in both long-run and short-run – Unfortunately, there is often a trade-off between these two goals • Doing better in short-run can require some sacrifice of long-run goals, and vice versa • Polices that can help us smooth out economic fluctuations may prove harmful to growth in the long-run – While policies that promise a high rate of growth might require us to put up with more severe fluctuations in short-run 3 Macroeconomic Models: Classical Verses Keynesian • Classical model, developed by economists in 19th and early 20th centuries, was an attempt to explain a key observation about economy – Over periods of several years or longer, economy performs rather well • If we think in terms of decades rather than years or quarters, business cycle fades in significance • In the classical view, this behavior is no accident – Powerful forces are at work that drive eco