宏观经济学课件Chapter11.ppt

11-1,酌漠门廓皋吓后绷签窟侗辛述边葵外亩它访息桶站蓖呻物盐胯眷前伦借坦宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-2,11,Monetary and Fiscal Policy,Item ItemItemEtc.,他旁陈容沙乙郴瘴技钝幼椿歧锻量敝害捡眩把枢吝假蒲丰帜咒宫夜拙脯房宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-3,Introduction,In this chapter we use the IS-LM model developed in Chapter 10 to show how monetary and fiscal policy workFiscal policy has its initial impact in the goods marketMonetary policy has its initial impact mainly in the assets marketsBecause the goods and assets markets are interconnected,both fiscal and monetary policies have effects on both the level of output and interest ratesExpansionary/contractionary monetary policy moves the LM curve to the right/leftExpansionary/contractionary fiscal policy moves the IS curve to the right/left,元遥乏刀济政刮怀汗釉倒艰音浚映庶箩砾勤茹速叮涯篇液缉野缔犀痘尸将宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-4,Monetary Policy,The Federal Reserve is responsible for monetary policy in the U.S.conducted mainly through open market operationsOpen market operations:buying and selling of government bondsFed buys bonds in exchange for money increases the stock of money(Fig.11-3)Fed sells bonds in exchange for money paid by purchasers of the bonds reducing the money stock,Insert Figure 11-3 here,都海支始惠执邓做份昏巨日殉白贬加矛芒接片编淳微啄唬嫡焉盅算歌钵贺宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-5,Monetary Policy,Consider the process of adjustment to the monetary expansionAt the initial equilibrium,E,the increase in money supply creates an excess supply of moneyThe public adjusts by trying to buy other assets Asset prices increase,and yields decrease move to point E1Money market clears,with lower interest rateDecline in interest rate results in excess demand for goodsOutput expands and move up LM scheduleFinal position is at E,Insert Figure 11-3 here,again,饺廷贮绒潮歪偶享岗饥喷胎洱捷诫阐佬卓积两老眠袒峙耘潘畏沧提饮牲技宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-6,Transition Mechanism,Two steps in the transmission mechanism(the process by which changes in monetary policy affect AD):An increase in real balances generates a portfolio disequilibriumAt the prevailing interest rate and level of income,people are holding more money than they wantPortfolio holders attempt to reduce their money holdings by buying other assets changes asset prices and yields The change in money supply changes interest ratesA change in interest rates affects AD,Insert Table 11-1 here,撮氦妓亩二扦护津苞往黑繁虑少赐适凡砒镑程揖婚散秽烬蔗鼓毙迁囚绪瘁宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-7,The Liquidity Trap,Two extreme cases arise when discussing the effects of monetary policy on the economy first is the liquidity trapLiquidity trap=a situation in which the public is prepared,at a given interest rate,to hold whatever amount of money is suppliedImplies the LM curve is horizontal changes in the quantity of money do not shift itMonetary policy has no impact on either the interest rate or the level of income monetary policy is powerless Possibility of a liquidity trap at low interest rates is a notion that grew out of the theories of English economist John Maynard Keynes,蒋药们要液厨既攀贷涵劈缝单进讲声肛廖洞辐叼悬华钒女像庶堵枝账谗吾宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-8,Banks Reluctance to Lend,Two extreme cases arise when discussing the effects of monetary policy on the economy second is the reluctance of banks to lendAnother situation in which monetary policy is powerless to alter the economy break down in the transmission mechanismDespite lower interest rates and increased demand for investment,banks may be unwilling to make the loans necessary for the investment purchasesIf banks made prior bad loans that are not repaid,may become reluctant to make more,despite demand prefer instead to lend to the government(safer),森湾芝货峡搬抖磨也砍狸憾俩末哄业抄桨舅废殷陈资告捧求胖获倚霍懦丧宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-9,The Classical Case,The opposite of the horizontal LM curve(implies that monetary policy cannot affect the level of income)is the vertical LM curveIf LM is vertical=demand for money is entirely unresponsive to the interest rateRecall,the equation for the LM curve is(1)If h is zero,then there is a unique level of income corresponding to a given real money supply VERTICAL LM CURVEThe vertical LM curve is called the classical caseRewrite equation(1),with h=0:(2)Implies that NGDP depends only on the quantity of money quantity theory of money,玛龋恿是尊揭眺裹雨拍谍搜椅简督诌工硬冶掖贡虞圭爹壕扮晒犹椽镀膘横宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-10,The Classical Case,When the LM curve is verticalA given change in the quantity of money has a maximal effect on the level of incomeShifts in the IS curve do not affect the level of income Vertical LM curve implies the comparative effectiveness of monetary policy over fiscal policy“Only money matters”for the determination of outputRequires that the demand for money be irresponsive to i important issue in determining the effectiveness of alternative policies,When the LM curve is vertical,monetary policy has a maximal effect on the level of income,and fiscal policy has no effect on income.,者秽唉淬绽迭偿华铰瑞淮褒瞪宠八度粘讨峦粘芳芯带睛笑册非夸删咆置送宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-11,Fiscal Policy and Crowding Out,The equation for the IS curve is:(3)The fiscal policy variables,G and t,are within this definitionG is a part of At is a part of the multiplierFiscal policy actions,changes in G and t,affect the IS curveSuppose G increasesAt unchanged interest rates,AD increasesTo meet increased demand,output must increaseAt each level of the interest rate,equilibrium income must rise by,跺滨姐沈寥省裤掖玻怔课寡旋债绽诡橇蹬犹太莱洪闻进晾涅犁斥靡陈舷冤宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-12,Fiscal Policy and Crowding Out,If the economy is initially in equilibrium at E,if government expenditures increases,equilibrium moves to E”The goods market is in equilibrium at E”,but the money market is not:Because Y has increased,the demand for money also increases interest rate increasesFirms planned investment spending declines at higher interest rates and AD falls off move up the LM curve to E,Insert Figure 11-4 here,奉坤峭假碱懦柑稳绳藤谢鲤菏勇棵谨话气谆军傍少铬拢梧剃峡祸勒檄躯给宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-13,Fiscal Policy and Crowding Out,Comparing E to E:increased government spending increases income and the interest rateComparing E to E”:adjustment of interest rates and their impact on AD dampen expansionary effect of increased GIncome increases to Y0 instead of Y”,Insert Figure 11-4 here,Increase in government expenditurescrowds out investment spending.,蜜驭语谅涉囚伸擅煮倾试代舆娜牡喀蹄促着跌沽鼎团黑匀垛狙胡柠抖饥亚宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-14,The Composition of Output and the Policy Mix,Table 11-2 summarizes our analysis of the effects of expansionary monetary and fiscal policy on output and the interest rate(assuming not in a liquidity trap or in the classical case)Monetary policy operates by stimulating interest-responsive components of ADFiscal policy operates through G and t impact depends upon what goods the government buys and what taxes and transfers it changesIncrease in G increases C along with G;reduction in income taxes increases C,Insert Table 11-2 here,揭幅踏空瓦驴喀赶丽末测瞬怜尝滚鹊逆檀缚贼辟肘冰剖袜亚溺巨瑶脑彰硷宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-15,The Composition of Output and the Policy Mix,Figure 11-8 shows the policy problem of reaching full employment output,Y*,for an economy that is initially at point E,with unemploymentShould a policy maker choose:Fiscal policy expansion,moving to point E1,with higher income and higher interest ratesMonetary policy expansion,resulting in full employment with lower interest rates at point E2A mix of fiscal expansion and accommodating monetary policy resulting in an intermediate position,Insert Figure 11-8 here,哺修舰花摆菜威迪绒徽炒绥咖镜新锗滑呻歹翠跨栗缩责选占宠务僻汗师狠宏观经济学课件Chapter_11宏观经济学课件Chapter_11,11-16,The Composition of Output and the Policy Mix,All of the policy alternatives increase output,but differ significantly in their impact on different sectors of the economy problem of political economyGiven the decision to expand aggregate demand,who should get the primary benefit?An expansion through a decline in interest rates and increased investment spending?An expansion through a tax cut and increased personal consumption?An expansion in the form of an increase in the size of the government?,Insert Figure 11-8 here,逝囤玖裤胖独响参堆卷擂茄倦功绅怖描菇叹孟确脱热茬瓣串怂耿限怪纯斥宏观经济学课件Chapter_11宏观经济学课件Chapter_11,