曼昆宏观经济学第三十四章.pptVIP

34The Influence of Monetary and Fiscal Policy on Aggregate Demand第一页，共六十一页。 The burning issue Theory of liquidity preference Keyness theory that the interest rate adjusts to bring money supply and money demand into balance.第二页，共六十一页。 The Theory of Liquidity PreferenceKeynes developed the theory of liquidity preference in order to explain what factors determine the economy’s interest rate.According to the theory, the interest rate adjusts to balance the supply and demand for money.第三页，共六十一页。 The overviewThe aggregate demand curve slopes downward for three reasons:The wealth effectThe interest-rate effectThe exchange-rate effectHow monetary policy influences aggregate demand ?第四页，共六十一页。 The overviewFor the U.S. economy, the most important reason for the downward slope of the aggregate-demand curve is the interest-rate effect.第五页，共六十一页。 “Irrational exuberance .”-----that was how Federal Reserve Chairman Alan Greenspan once described the booming stock market of the late 1990s.第六页，共六十一页。 The idea in tangibleWhy the Fed watches the stock market ?第七页，共六十一页。 A booming stock market expands the aggregate demand for goods and services.when the stock market booms, households become wealthier, and this increased wealth stimulates consumer spending.?a rise in stock prices makes it more attractive for firms to sell new shares of stock, and this stimulates investment spending.第八页，共六十一页。 The opposite occurs when the stock market falls.?spending on consumption and investment declines, depressing aggregate demand and pushing the economy towards recession.第九页，共六十一页。 Figure 1 Equilibrium in the Money MarketQuantity ofMoneyInterestRate0MoneydemandQuantity fixedby the FedMoneysupplyr2M2dMdr1EquilibriuminterestrateCopyright ? 2004 South-Western第十页，共六十一页。 第十一页，共六十一页。 Figure 2 The Money Market and the Slope of the Aggregate-Demand CurveQuantityof MoneyQuantity fixedby the Fed0InterestRateMoney demand at price level P2, MD2 Money demand atprice level P, MD Moneysupply(a) The Money Mark