西方经济学(宏观)课件CHAPTER08.pptVIP

In the late 1980s and early 1990s, surges in the rate of money supply growth in Brazil were reflected in nearly simultaneous surges in inflation, with no obvious lag. Source: International Monetary Fund. Between 1985 and 1995, Brazil’s money supply and aggregate price level grew in close tandem—and by a huge amount. In this figure, both are expressed as index numbers, with 1985 = 1. Over the 10-year period, the money supply and the aggregate price level both rose by 100 billion percent. D0 and S0 are the demand and supply curves for loanable funds when the expected inflation rate is 0%. At an expected inflation rate of 0%, the equilibrium nominal interest rate is 4%. Expected inflation pushes both the demand and supply curves upward by 1 percentage point for every point of inflation. D10 and S10 are the demand and supply curves for loanable funds when the expected inflation rate is 10%. Expected inflation raises the equilibrium nominal interest rate to 14%. The real interest rate remains at 4%, and the equilibrium quantity of loanable funds also remains unchanged. The Fisher effect tells us that each percentage point of expected inflation raises the nominal interest rate by 1 percentage point. These data show the short-term interest rate and the inflation rate in the United States over the past half-century. They moved roughly together, both reaching a double-digit peak around 1980. Sources: Bureau of Labor Statistics; Federal Reserve Bank of St. Louis. * * ? 2006 Worth Publishers * ? 2006 Worth Publishers * CHAPTER 08 INFLATION, DISINFLATION, AND DEFLATION Slide * What You Will Learn in this Chapter: Why efforts to collect an inflation tax by printing money can lead to high rates of inflation How high inflation can spiral into hyperinflation as the public tries to avoid paying the inflation tax The economy-wide costs of inflation and disinflation, and the debate over the optimal rate of inflation Why even moderate levels of inflation can be hard to end Why def