《宏观经济学教学课件》Chapter_10.pptVIP

Introduction Money plays a central role in the determination of income and employment Interest rates are a significant determinant of aggregate spending ? Fed controls the money supply in the United States The stock of money, interest rates, and the Fed were noticeably absent from the model developed in the last chapter This chapter: introduces money and monetary policy builds an explicit framework of analysis within which to study the interaction of goods markets and assets market What determines interest rates? What is the role of interest rates in the business cycle? Introduction Figure 10-1 shows the interest rate on Treasury bills = the payment received by someone who lends to the U.S. government Ex. At an interest rate of 5%, a $100 loan to the government will earn $5 in interest Figure 10-1 shows that interest rates: Are high just before a recession Drop during the recession Rise during the recovery Introduction Figure 10-2 shows the strong link between money and output growth This chapter explores the link from money to interest rates to output IS-LM model is the core of short-run macroeconomics Maintains the details of earlier model, but adds the interest rate as an additional determinant of aggregate demand Includes the goods market and the money market, and their link through interest rates and income Introduction [Insert Figure 10-3 here] The Goods Market and the IS Curve The IS curve shows combinations of interest rates and levels of output such that planned spending equals income Derived in two steps: Link between interest rates and investment Link between investment demand and AD Investment is no longer treated as exogenous, but dependent upon interest rates (endogenous) Investment demand is lower the higher are interest rates Interest rates are the cost of borrowing money Increased interest rates raise the price to firms of borrowing for capital equipment ? reduce the quantity of investment demand Investment and the Interest Rate The investment