ChMonetaryandFiscalPolicyinaClosedEconomy经济学英文复旦周翼实用学习教案VIP

1、会计学1ChMonetaryandFiscalPolicyinaClosedEconomy经济学英文复旦经济学英文复旦(f dn)周翼实用周翼实用第一页，共23页。25.2第1页/共23页第二页，共23页。25.3第2页/共23页第三页，共23页。25.4第3页/共23页第四页，共23页。25.5Savings occur duringmiddle ageand dissaving in youthand old age.A theory of consumption developed by Ando and Modigliani.Age0Income, consumptionDeathIn

2、dividuals try to smooth their consumption, basedon expected lifetime income.PermanentincomeThus wealth and interest rates may influence consumption.Income varies over anindividuals lifetime.Actual income第4页/共23页第五页，共23页。25.6adjust.第5页/共23页第六页，共23页。25.7第6页/共23页第七页，共23页。25.8020406080100120140160196519

3、7519851995 billionTransOther mc/eqDwellingsOther buildIntangibleSource: Economic Trends Annual Supplement, Monthly Digest of Statistics第7页/共23页第八页，共23页。25.9第8页/共23页第九页，共23页。25.10 shows how much investment firms wish toundertake at each interest rate.Investment demandInterest rateIIAt relatively high

4、 interest rates, less investmentprojects are viable.At r0, I0 projects are viable.r0I0but if the interest rate rises to r1, desiredinvestment falls to I1.r1I1第9页/共23页第十页，共23页。25.11第10页/共23页第十一页，共23页。25.12IncomeAggregate demand45o lineAD0Y0CC 0Suppose the economy starts with consumptionat CC0, invest

5、ment at I0and equilibrium at Y0.I0A fall in interest ratesshifts the consumption function to CC1, and leads to higher investment at I1.CC1I1Aggregate demand risesto AD1, and the newequilibrium is at Y1.AD1Y1第11页/共23页第十二页，共23页。25.13IncomeAggregate demand45o lineAD0Y0Suppose an increase ingovernment s

6、pendingshifts the AD curve to AD1.AD1Initially, equilibriummoves to Y1.Y1But higher income raisesmoney demand, so interest rates riseand consumption and investment fall, shifting AD back to AD2 and equilibriumincome to Y2.AD2Y2第12页/共23页第十三页，共23页。25.14第13页/共23页第十四页，共23页。25.15IncomeAD45o lineIncomerAD

7、0r0At a relatively high interestrate r0, consumption andinvestment are relatively low so AD is also low.Y0Y0Equilibrium is at Y0.Y1Y1Equilibrium is at Y1.ISThe IS schedule shows allthe combinations of realincome and interest rateat which the goods market is in equilibrium.AD1At a lower interest rate

8、 r1Consumption, investmentand AD are higher.r1第14页/共23页第十五页，共23页。25.16第15页/共23页第十六页，共23页。25.17rrIncomeReal moneybalancesL0LL0r0r0Y0At income Y0, money demand is at LL0 and equilibrium in the money market requires an interest rate of r0.r1Y1r1LL1At Y1, money demand is at LL1,and equilibrium is at r1.

9、LMThe LM schedule traces out the combinations of real incomeand interest rate in which the money market is in equilibrium.第16页/共23页第十七页，共23页。25.18第17页/共23页第十八页，共23页。25.19IncomerISBringing together the IS schedule (showinggoods market equilibrium)LMand the LM schedule(showing money market equilibrium

10、).Y*r*We can identify theunique combination ofreal income and interestrate (r*, Y*) which ensuresoverall equilibrium.第18页/共23页第十九页，共23页。25.20IncomerIS0LMY0r0Y0, r0 represents the initial equilibrium.IS1A bond-financed increase in governmentspending shifts the ISschedule to IS1.r1Y1Equilibrium is now

11、 at r1, Y1.Some private spending has been crowded outby the increase in therate of interest.第19页/共23页第二十页，共23页。25.21IncomerIS0LM0Y0r0Y0, r0 represents the initial equilibrium.LM1An increase in money supply shifts the LMschedule to the right.Y1r1Equilibrium is now at r1, Y1.第20页/共23页第二十一页，共23页。25.22IncomerDemand management is the use of monetary and fiscal policy to stabilize the level of income around a high average level.Y*Income level Y* canbe attained by:LM0IS0r2Tight fiscal policy (IS0) with easy monetary policy (LM