巴德 宏观经济学原理（英文版·第8版）Chapter 12.pptxVIP

What causes inflation? 12When you have completed your study of this chapter, you will be able to1 Explain what determines the demand for money and how the demand for money and the supply of money determine the nominal interest rate.2 Explain how in the long run, the quantity of money determines the price level and money growth brings inflation.3 Identify the costs of inflation and the benefits of a stable value of money.CHAPTER CHECKLISTMoney, Interest, and Inflation The Real EconomyReal factors that are independent of the price level determine potential GDP and the natural unemployment rate.Investment demand and saving supply determine the amount of investment, the real interest rate and, along with population growth, human capital growth, and technological change, determine the growth rate of real GDP.WHERE WE ARE AND WHERE WE’RE HEADING The Money EconomyMoney—the means of payment—consists of currency and bank deposits.Banks create money and the Fed influences the quantity of money through its open market operations, which determines the monetary base and the federal funds rate.Here we explore the effects of money on the economy.WHERE WE ARE AND WHERE WE’RE HEADING Real and Money Interactions and PolicyThe effects of money can be best understood in two steps:The effects of the Fed’s actions on the short-term nominal interest rateThe long-run effects of the Fed’s actions on the price level and the inflation rateWHERE WE ARE AND WHERE WE’RE HEADING 12.1 MONEY AND THE INTEREST RATEThe Demand for MoneyQuantity of money demanded is the amount of money that households and firms choose to hold.Benefit of Holding MoneyThe benefit of holding money is the ability to make payments.The more money you hold, the easier it is for you to make payments. 12.1 MONEY AND THE INTEREST RATEThe marginal benefit of holding money decreases as the quantity of money held increases.Opportunity Cost of Holding MoneyThe opportunity cost of holding money is the interest forgone on an alt