文档介绍：【PPT精品课件】货币金融学7版英文课件--ch22-大学课
Cash Balance in Baumol-Tobin Model
8
© 2005 Pearson Education Canada Inc.
Precaut【PPT精品课件】货币金融学7版英文课件--ch22-大学课
Cash Balance in Baumol-Tobin Model
8
© 2005 Pearson Education Canada Inc.
Precautionary and Speculative Md
Precautionary Demand
Similar tradeoff to Baumol-Tobin framework
1. Benefits of precautionary balances
2. Opportunity cost of interest foregone
Conclusion: i , opportunity cost , hold less precautionary balances, Md
Speculative Demand
Problems with Keynes’s framework:
Hold all bonds or all money: no diversification
Tobin Model:
1. People want high Re, but low risk
2. As i , hold more bonds and less M, but still diversify and hold M
Problem with Tobin model: No speculative demand because T-bills have no risk (like money) but have higher return
© 2005 Pearson Education Canada Inc.
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Friedman’s Modern Quantity Theory
Implication of 3:
Md Y
= f(YP) V =
P f(YP)
Since relationship of Y and YP predictable, 4 implies V is predictable: Get Q-theory view that change in M leads to predictable changes in nominal income, PY
Theory of asset demand: Md function of wealth (YP) and relative Re of other assets
Md
= f(YP, rb – rm, re – rm, e – rm)
P + – – –
Differences from Keynesian Theories
1. Other assets besides money and bonds: equities and real goods
2. Real goods as alternative asset to money implies M has direct effects on spending
3. rm not constant: rb , rm , rb – rm unchanged, so Md unchanged: ., interest rates have little effect on Md
4. Md is a stable function
© 2005 Pearson Education Canada Inc.
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Yelling to all my friends gather around the field,  Wait for you everyday just to catch the eels. Since the rain has stopped now let's go to catch the eels. Oh, boy please stand still don't fall into muddy field. Since the rain has let's go to catch the eels.