货币金融学7版本英文课程--ch24-大学课.ppt

Chapter 24 Monetary and Fiscal Policy in the ISLM Model Shift in the IS Curve 1. C ?: at given iA, Yad ?, Y ? ? IS shifts right 2. Same reasoning when I ?, G ?, NX ?, T ? Shift in the LM Curve from a Rise in Ms Shift in the LM Curve from a Rise in M d 1. M d ?: at given YA, i ? in panel (b) and (a) ? LM shifts to the left Response to an Increase in Ms Response to Expansionary Fiscal Policy Summary: Factors that Shift IS and LM Curves Effectiveness of Monetary and Fiscal Policy 1. M d is unrelated to i ? i ?, M d = M s at same Y ? LM vertical 2. Panel (a): G ?, IS shifts right ? i ?, Y stays same (complete crowding out) 3. Panel (b): M s ?, Y? so M d ?, LM shifts right ? i ? Y ? Conclusion: Less interest sensitive is M d, more effective is monetary policy relative to fiscal policy Ms vs. i Targets When IS Unstable Ms vs. i Targets When LM Unstable The ISLM Model in the Long Run Deriving AD Curve Shift in AD from Shift in IS Shift in AD from Shift in LM ? 2005 Pearson Education Canada Inc. *? 2005 Pearson Education Canada Inc. 1. Ms ?: at given YA, i ? in panel (b) and (a) ? LM shifts to the right 1. M s ?: i ?, LM shifts right ? Y ? i ? 1. G ? or T ?: Yad ?, IS shifts right ? Y ? i ? ? 2005 Pearson Education Canada Inc. 1. IS unstable: fluctuates from IS to IS 2. i target at i*: Y fluctuates from YI to YI 3. M target, LM = LM*: Y fluctuates from YM to YM 4. Y fluctuation is less with M target Conclusion: If IS curve is more unstable than LM curve, M target is preferred 1. LM unstable: fluctuates from LM to LM 2. i target at i*: Y = Y* 3. M target: Y fluctuates from YM to YM 4. Y fluctuation is less with i target Conclusion: If LM curve is more unstable than IS curve, i target is preferred Panel (a) 1. Ms ?, LM right to LM2, go to point 2, i to i2, Y to Y2 2. Because Y2 Yn, P ?, M/P ?, LM back to LM1, go back to point 1 Panel (b) 1. G ?, IS right to IS2, go to point 2 where i = i2 and Y = Y2 2. Because Y2 Yn, P ?, M/P ?, LM left to LM2, go to point 2, i = i2` and