伯南克宏观经济学ch11.pptVIP

Monetary and Fiscal Policy in the Keynesian Model Monetary policy Monetary policy in the Keynesian IS-LM model Since prices are sticky in the short run in the Keynesian model, the price level doesnt adjust to restore general equilibrium Keynesians assume that when not in general equilibrium, the economy lies at the intersection of the IS and LM curves, and may be off the FE line This represents the assumption that firms meet the demand for their products by adjusting employment Figure 11.4 An increase in the money supply Monetary and Fiscal Policy in the Keynesian Model Monetary policy Analysis of an increase in the nominal money supply (Fig. 11.4) Easy money increases real money supply, causing the real interest rate to fall to clear the money market The lower real interest rate increases consumption and investment With higher demand for output, firms increase production and employment Eventually firms raise prices, the LM curve shifts back to its original level, and general equilibrium is restored Thus money is neutral in the long run, but not in the short run Monetary and Fiscal Policy in the Keynesian Model Monetary Policy in the Keynesian AD-AS framework The effect of a 10% increase in money supply is to shift the AD curve up by 10% Thus output rises in the short run to where the SRAS curve intersects the AD curve In the long run the price level rises, causing the SRAS curve to shift up such that it intersects the AD and LRAS curves So in the Keynesian model, money is not neutral in the short run, but it is neutral in the long run Figure 11.5 An increase in government purchases Monetary and Fiscal Policy in the Keynesian Model Fiscal policy The effect of increased government purchases (Fig. 11.5) A temporary increase in government purchases shifts the IS curve up In the short run, output and the real interest rate increase The multiplier, ΔY/ΔG When prices adjust, the LM curve shifts up and equilibrium is restored at the full-employment level of output wi