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November 10, 2009
Getting Started
We took up a variety of topics to get started with floating and fixed exchange rates.
Shift the IS curve in a closed economy model.
Shift the LM curve in a closed economy model. (This is "lower P," but "higher M" looks the same.)
An effort to explain how "shift the curve" works for the first equation on page 111. (You had to be there.)
Think of changes in x2 as changes in a composite intercept. (Picture from lecture on 11/12.)
An increase in y-bar:
Posted by bparke at November 10, 2009 10:22 PM