§7宏观经济政策分析(839KB).pptVIP

* * In item 2, I’m using the term “correction” in the stock market sense. * * * * * The textbook (from the bottom of p.299 through p.300) uses an “extended” IS-LM model, which includes both the nominal interest rate (measured on the vertical axis) and the real interest rate (which equals the nominal rate less expected inflation). Because money demand depends on the nominal rate, which is measured on the vertical axis, the change in expected inflation doesn’t shift the LM curve. However, investment depends on the real interest rate, so the fall in expected inflation shifts the IS curve: ea