ADVANCED MACROECONOMICS Lecture 6 Traditional Keynesian Theory 电子科大经管学院马捷
ADVANCED MACROECONOMICS Lecture 6 Traditional Keynesian Theory 电子科大经管学院 马捷 1
Outline Income and Expenditure ·IS Curve LM Curve ·AD Curve ( Open Economy Labor Market AS Curve 电子科大经管学院马捷 2 元元元元元
Outline Income and Expenditure IS Curve LM Curve AD Curve Open Economy Labor Market AS Curve 电子科大经管学院 马捷 2
Expenditure -Actual or planned? For a closed economy: E=E(Y,i-π°，G,T),01 E=Y S<I 电子科大经管学院马捷 3 元元元元元
Expenditure Actual or planned? For a closed economy: 电子科大经管学院 马捷 3 S I S I S I E Y Y C S T E C Y T I i G E E Y i G T P e Y e E + + ( ) ( ) ( , , , ), 0 1
The Keynesian Cross E Real Expenditure(Output) Unwanted inventoriesT Why less than45°？ Planned Expenditure Unwanted inventories 45° Y 电子科大经管学院马捷 元元元兄元
The Keynesian Cross 电子科大经管学院 马捷 4 E Real Expenditure(Output) Planned Expenditure Y 45 º Why less than 45 ? Unwanted inventories Unwanted inventories ↓
The IS Curve E E=Y E=(Y,i'-e,G,T) E=(Y,i-e,G,T) Decrease r Interest rate (i) IS Income (Y) 电子科大经管学院马捷 5 元元元兄元
The IS Curve 电子科大经管学院 马捷 5 E E=Y E=(Y, i’ - π e, G, T) Y Interest rate （i） IS Income （ Y ） E=(Y, i - π e, G, T) Decrease r
Dynamics AD以Y AD<Y IS Y 电子科大经管学院马捷 6 一元 5元元元元元元
Dynamics 电子科大经管学院 马捷 6
Mathematics Y=EY,i-,G,T)→ dy +E Er di dy E-元<0 di di 1-Ex G↑orT↓→IS moves to the right or TIS is stceper 电子科大经管学院马捷 7 元元兄
Mathematics 电子科大经管学院 马捷 7 or ISissteeper or moves to the right 0 1 ( , , , ) Y i Y i Y i IS e E E G T IS E E di dY di dY di dY Y E Y i G T e e E E e
Government Purchase and Tax Y=E(Y,i-π，G,T)=C(Y-T)+1i-π)+G→ dy dy dG Ey +EG→ dG E列 IS- E T E=-1 1- 电子科大经管学院马捷 8
Government Purchase and Tax 电子科大经管学院 马捷 8 0, 1 1 1 1 1 1 ( , , , ) ( ) ( ) T Y T Y T IS Y Y G Y G IS e e E E E dT dY dT dY dT dY E E E dG dY dG dY dG dY Y E Y i G T C Y T I i G E E E E
Understand? E E=Y E=(Y,i-e,G',T) E=(Y,i-e,G,T) 电子科大经管学院马捷 9
Understand? 电子科大经管学院 马捷 9 E E=Y E=(Y, i - π e, G, T) E=(Y, i - π e, G’, T) Y
The Money Market Money supply =Actual money surplus=M/P Money demand=L(i,Y) M/P ？ Extra money supply and Extra money bond demand demand and bond supply L(i,Y) M/P,L 电子科大经管学院马捷 10
The Money Market Money supply =Actual money surplus=M/P Money demand= 电子科大经管学院 马捷 10 ( , ) L i Y Extra money supply and bond demand Extra money demand and bond supply i M/P L(i, Y) M/P, L ?