文档介绍：【PPT精品课件】货币金融学7版英文课件--ch24-大学课
Effectiveness of Monetary and Fiscal Policy
1. M d is unrelated to i i , M d = M s【PPT精品课件】货币金融学7版英文课件--ch24-大学课
Effectiveness of Monetary and Fiscal Policy
1. M d is unrelated to i i , M d = M s at same Y LM vertical
2. Panel (a): G , IS shifts right i , Y stays same (complete crowding out)
3. Panel (b): M s , Y so M d , LM shifts right i Y
Conclusion: Less interest sensitive is M d, more effective is monetary policy relative to fiscal policy
© 2005 Pearson Education Canada Inc.
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Ms vs. i Targets When IS Unstable
1. IS unstable: fluctuates from IS' to IS''
2. i target at i*: Y fluctuates from YI' to YI''
3. M target, LM = LM*: Y fluctuates from YM' to YM''
4. Y fluctuation is less with M target
Conclusion: If IS curve is more unstable than LM curve, M target is preferred
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© 2005 Pearson Education Canada Inc.
Ms vs. i Targets When LM Unstable
1. LM unstable: fluctuates from LM' to LM''
2. i target at i*: Y = Y*
3. M target: Y fluctuates from YM' to YM''
4. Y fluctuation is less with i target
Conclusion: If LM curve is more unstable than IS curve, i target is preferred
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© 2005 Pearson Education Canada Inc.
The ISLM Model in the Long Run
Panel (a)
1. Ms , LM right to LM2, go to point 2, i to i2, Y to Y2
2. Because Y2 > Yn, P , M/P , LM back to LM1, go back to point 1
Panel (b)
1. G , IS right to IS2, go to point 2 where i = i2 and Y = Y2
2. Because Y2 > Yn, P , M/P , LM left to LM2, go to point 2', i = i2` and Y = Yn.
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© 2005 Pearson Education Canada Inc.
Deriving AD Curve
P , M/P , LM shifts in, Y
Points 1, 2, 3
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© 2005 Pearson Education Canada Inc.
Shift in AD from Shift in IS
At given PA, IS shifts right: Y in panel (b) AD shifts right in panel (a)
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© 2005 Pearson Education Canada Inc.
CHUANGYI SHOUHUI SHANGWU MICROSOFT POWERPOINT
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