June 15, 2005
The Mundell-Fleming Model
We reproduced the diagrams in the book. There are a very large number of possible diagrams for this model!
Posted by bparke at 11:15 PM | Comments (0)
June 14, 2005
A New Keynesian Model
Posted by bparke at 11:14 PM | Comments (0)
New Classical Economics
Posted by bparke at 11:10 PM | Comments (0)
Monetarism
Posted by bparke at 11:06 PM | Comments (0)
June 13, 2005
Midterm 2 Answers
Posted by bparke at 10:53 PM | Comments (0)
June 09, 2005
OEQ
The slope of the LM curve depends on the interest rate elasticity and the income elasticity of the money demand function.
Posted by bparke at 08:45 PM | Comments (0)
June 08, 2005
The Term Structure of Interest Rates
Posted by bparke at 09:39 PM | Comments (0)
Money Supply
A proof:
Posted by bparke at 09:36 PM | Comments (0)
June 07, 2005
Monetary Economics
Posted by bparke at 11:02 PM | Comments (0)
Aggregate Supply in a Keynesian Setting
We next consider the Aggregate Supply curve. The Keynesian and Classical Models both explain shifts in the AD curve, but the effect depends on the slope of the AS curve. (The topic spanned Monday and Tuesday.)
The Classical Economists see price expectations adjusting rapidly, making the AS curve vertical.
Posted by bparke at 10:55 PM | Comments (0)
June 06, 2005
Aggregate Demand for an IS/LM Model
Changes in P change the real money supply.
Things that shift the IS and LM curves also shift the AD curve.
Posted by bparke at 10:47 PM | Comments (0)
Midterm 1 Answers
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June 03, 2005
IS/LM Policy Effects
Increase G-T:
Increase M:
The effect depends on the slopes of the curves:
A Liquidity Trap arises if the LM Curve has a flat region.
Posted by bparke at 10:26 PM | Comments (0)
June 01, 2005
Deriving the IS Curve
From the Simple Keynesian Model:
From the Loanable Funds Market:
Posted by bparke at 10:16 PM | Comments (0)