曼昆经济学原理Chapter34.ppt

Using Policy for Stabilization The case for active stabilization policy The government use fiscal policy The central bank use monetary policy To stabilize the economy, responding to fluctuations of the economy Keynes his followers The government should actively stimulate aggregate demand When AD appeared insufficient to maintain production at its full-employment level * ? 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Using Policy for Stabilization Case against active stabilization policy Government Should avoid active use of monetary and fiscal policy to try to stabilize the economy Affect the economy with a long lag Fail to achieve stabilization on time (even worsen) Policy instruments Should be set to achieve long-run goals The economy– left alone to deal with short-run fluctuations * ? 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use. Using Policy for Stabilization Automatic stabilizers Changes in fiscal policy that stimulate aggregate demand when the economy get into a recession Without policymakers having to take any deliberate action Tax system: tax collection automatically falls during recession Government spending: welfare (unemployment) benefits automatically increases during recession Government budget deficits during recession Not strong enough to prevent recession, but reduce the magnitude of recession * ? 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected w