§7.凯恩斯2.2JohnMaynardKeynes(468KB).ppt

Keynsian Economic Theory ——The Investment Function Investment The Marginal Efficiency of capital (Expected Return and market price) Interest rate (Money supply and the preference for liquidity) The Public Policy Implication Fiscal policy is the manipulation of levels of government spending and taxation to raise or lower the level of aggregate demand. Monetary policy: the use of tools controlled by the government, such as banking regulations and the issuance of currency, to try to affect the levels of money supply, interest rates, and credit. The Public Policy Implication Expansionary Fiscal Policy and Monetary Policy Case study: China’s fiscal policy and monetary policy during the financial crisis The Public Policy Implication Expansionary Fiscal Policy and Monetary Policy Case study: China’s fiscal policy and monetary policy during the financial crisis Fiscal policy——Government Expenditure Government acquisition of goods and services for current use to directly satisfy individual or collective needs of the members of the community is classed as government final consumption expenditure. Fiscal policy——Government Expenditure Government acquisition of goods and services intended to create future benefits, such as infrastructure investment or research spending, is classed as government investment (gross fixed capital formation), which usually is the largest part of the government gross capital formation. Fiscal policy——Government Expenditure Acquisition of goods and services is made through own production by the government (using the governments labor force, fixed assets and purchased goods and services for intermediate consumption) or through purchases of goods and services from market producers. Fiscal policy——Government Expenditure Government expenditures that are not acquisition of goods and services, and instead just represent transfers of money, such as social security payments, are called transfer payments. The first two types of government spe