经济学内容（宏观）30.pptVIP

* This result is important because relative prices, not nominal prices, determine the economy’s allocation of resources. * The material on this slide does not appear explicitly in this chapter, but it helps explain how money can be neutral. * The textbook’s definition of velocity appears on this slide. You may prefer a more precise definition: The number of transactions in which the average dollar is used. The following slide provides a simple example to clarify the meaning of velocity. * If $10,000 worth of money purchases $30,000 worth of pizza, it must be true that the average dollar is used three times. * Note: Each variable has been scaled to equal 100 to make variables comparable. This graph replicates Figure 3 in the textbook. Its purpose is to demonstrate that velocity is fairly stable over time. This observation justifies the assumption of constant velocity in the quantity theory of money. Original sources: M2 is from Board of Governors, Federal Reserve Board GDP is from U.S. Department of Commerce, Bureau of Economic Analysis. I obtained all data from FRED database, Federal Reserve Bank of St. Louis, at: /fred2/ This exercise makes the quantity theory more concrete for students. If you’re pressed for time, you can delete part b or ask students to do it on their own. * The nominal interest rate is the 3-month Treasury Bill rate. The inflation rate is calculated as the percent change in the CPI from 12 months earlier. Mostly, these two variables move very closely together: increases in inflation correspond to similar increases in the nominal interest rate. When the two variables are not moving precisely together, the real interest rate is changing. This would occur if, for example, there were changes in the supply and/or demand for loanable funds. Starting in the early 1980s, the emergence of huge budget deficits caused the supply of loanable funds to fall, which increased the real interest rate. On this graph, the gap b