ModelISLM(宏观经济学加州大学詹姆斯·布拉德福.pptxVIP

CHAPTER 11Extending the Sticky-Price Model: IS-LM, International Side,and AS-ADCopyright ? 2002 by The McGraw-Hill Companies, Inc. All rights reserved.QuestionsWhat is money-market equilibrium?What is the LM curve?What determines the equilibrium level of real GDP when the central bank policy is to keep the money supply constant?What is the IS-LM framework?Copyright ? 2002 by The McGraw-Hill Companies, Inc. All rights reserved.QuestionsWhat is an IS shock?What is an LM shock?What is the relationship between shifts in the equilibrium on the IS-LM diagram and changes in the real exchange rate?Copyright ? 2002 by The McGraw-Hill Companies, Inc. All rights reserved.QuestionsWhat is the relationship between shifts in the equilibrium on the IS-LM diagram and changes in the balance of trade?What is the aggregate supply curve?What is the aggregate demand curve?Copyright ? 2002 by The McGraw-Hill Companies, Inc. All rights reserved.The Demand for MoneyThree facts about business and household demand for moneymoney demand is proportional to total nominal income (P?Y)money demand has a time trend, the result of slow changes in the banking sector structure and technologymoney demand is inversely related to the nominal interest rateCopyright ? 2002 by The McGraw-Hill Companies, Inc. All rights reserved.The Demand for MoneyMoney demand is inversely related to the nominal interest rate (i=r+?) because the nominal interest rate is the opportunity cost of holding moneymoney balances lose purchasing power at the rate of inflation (?)if money balances were placed in some other asset, they would earn the prevailing market real interest rate (r)Copyright ? 2002 by The McGraw-Hill Companies, Inc. All rights reserved.The Demand for MoneyTo keep our model simple, we will ignore the time trend in velocityThe demand for money can be expressed asMoney demand is proportional to real GDP and a decreasing function of the nominal interest rateCopyright ? 2002 by The McGraw-Hill Companies, Inc