The Macroeconomic Policy Debate William McChesney Martin The fed.'s job is to take away the punch bowl just as the party gets going 联储的工作是在宴会进行时拿走盛满酒的酒杯。 The economy is inherently unstable

The Open Economy Why do countries trade with each other? \No nation was ever ruined by trade.\ -- Benjamin Franklin More varieties; higher quality; cheaper price

The Open Economy in the SR The Mundell-Fleming Model Model under floating ex-rate Model under fixed ex-rate Interest-rate- differentials Debate over floating v.s. fixed ex-rate Mundell-Fleming model with changing price level Model in large open economy

Investment Business fixed investment Equipment and structures that businesses buy to use in production Residential investment New housing that people buy to live in and that landlords buy to rent out Inventory investment Goods that business put aside in storage, including materials and supplies, work in process, and finished goods

Money Supply 100%-reserve banking Fractional-reserve banking

Topics Finish the assignment from last class Clarification for 4 questions from last class Demand for goods and services Equilibrium and the interest rate

Definition Inflation The overall increase in prices Hyperinflation: extraordinary high inflation

The money market LM curve The theory of liquidity preference

Introduction What are the three big problems macroeconomics studies? GDP -- Calculation: intermediate inventories;used;GNP Real v.s. Nominal (deflator; CPD) Okun'sLaw

ipids differ from the other classes of naturally occurring biomolecules (carbohy- drates, proteins, and nucleic acids)in that they are more soluble in non-to-weakly polar solvents(diethyl ether, hexane, dichloromethathan they are in water.they include a variety of structural types, a collection of which is introduced in this chapter. In spite of the number of different structural types, lipids share a common biosyn- thetic origin in that they are ultimately derived from glucose. During one stage of car- bohydrate metabolism, called glycolysis, glucose is converted to lactic acid. Pyruvic acid is an intermediate