国际经济学 图.docVIP

Initially, OL1 in home and L1O’ in foreign, real wage in home (C) is lower than in foreign (B). Workers move freely to whichever offers a higher real wage until the real wages are equalized (A). A country can trade current consumption for future consumption in the same way it can producer more of one good by producing less of another. A tariff causes a net loss to the economy measured by the area of the two triangles. For a large country, there is an optimum tariff (to) at which the marginal gain from impose terms of trade just equals the marginal efficiency loss from production and consumption distortion. For a given level of income, real money demand decreases as the interest rate increases. The market always moves toward an interest rate at which the real money supply equals aggregate real money demand. If there is initially an excess of money supply, the interest rate falls. For a given price level and real income, an increase in the money supply lowers the interest rate and output. Given the price level and money supply, an increase in real income raises the interest rate. Both asset market ate in equilibrium at the interest rate R1$ and exchange rate E1$/€, at these values money supply equals money demand (1) at the interest parity condition holds (1’) Given P and Y, an increase in a country’s money supply causes its currency to depreciate in the foreign exchange market. (a). The excepted return on euro deposit rises because of inflationary expectations: The dollar is excepted to be less valuable when buying goods and services and less valuable when buying Euros. The dollar is expected to depreciate, increasing the return on deposits in Euros. (b). As prices increase, the real money supply decreases and the domestic interest rate return to it long run rate. After the money supply increase at t0 (a) the interest rate (b), price level (c) and exchange rate (d) moves as shown toward there long run levels. As indicated in (d) b