Monetary System 货币系统.pptVIP

To summarize our findings about the money market: the money market is affected by a combination of (1)the publics desire to hold money (represented by the demand-for-money DD curve )and (2)the Feds monetary policy (shown as a fixed money supply ,SS). their interaction determines the market interest rate. A restrictive monetary policy shifts the SS curve to the left , raising market interest rates. An increase in the nation output or price level shifts the DD curve to the right and raise interest rates .An expansion of the money supply or a decline in money demand has the opposite effects. (Sa