巴罗宏观经济学：现代观点第16章.pptVIP

Macroeconomics Chapter 16 The New Keynesian Model 2 Extensions: Imperfect competition: the typical producer actively sets its price. Sticky prices: nominal goods prices that do not react rapidly to changed circumstances. menu cost Journal price The New Keynesian Model Price Setting Under Imperfect Competition Let P( j ) be the price charged for a good by firm j. the quantity demanded of firm j ’s goods is q( j ) The New Keynesian Model Price Setting Under Imperfect Competition Typically, q(j) depends on relative price P( j )/P and the income of consumers Extra: Price Setting Under Imperfect Competition Pure Monopoly A single seller, who chooses price and quantity to maximize profits. Entry into the market is completely blocked by technological or legal barriers. Extra: Price Setting Under Imperfect Competition FOC: Extra: Price Setting Under Imperfect Competition Cournot Oligopoly: Extra: Price Setting Under Imperfect Competition The profit function of firm j is: Extra: Price Setting Under Imperfect Competition Extra: Price Setting Under Imperfect Competition Under imperfect competition, each firm can set P( j ) above its nominal marginal cost. The ratio of P( j ) to the nominal marginal cost is called the markup ratio firm j ‘s markup ratio = P( j)/MC( j) Extra: Price Setting Under Imperfect Competition P( j) = (markup ratio) · MC( j) The production function for firm j looks like the function we have used before: Y( j) = F[κ( j) · K( j) , L( j) ] MPL( j) = ?Y( j)/ ?L( j) MC(j) = w/ MPL( j) P( j) = (markup ratio) · [w/ MPL( j)] The New Keynesian Model Short-Run Responses to a Monetary Shock Imagine M doubles. In this setting, each nominal price, P( j ), doubles when M doubles. The average price, P, doubles The economy-wide nominal wage rate, w, also doubles as before. These changes leave unchanged the real variables in the economy. The real variables now include not only the econo