【PPT精品课件】货币金融学7版英文课件--ch24-大学课.ppt

Chapter 24Monetary and Fiscal Policy in the ISLM Model 2005 Pearson Education Canada Inc.Shift in the IS Curve1.C:at given iA,Yad,Y IS shifts right2.Same reasoning when I,G,NX,T 2 2005 Pearson Education Canada Inc.Shift in the LM Curve from a Rise in Ms1.Ms:at given YA,i in panel(b)and(a)LM shifts to the right3 2005 Pearson Education Canada Inc.Shift in the LM Curve from a Rise in M d1.M d:at given YA,i in panel(b)and(a)LM shifts to the left4 2005 Pearson Education Canada Inc.Response to an Increase in Ms1.M s:i,LM shifts right Y i 5 2005 Pearson Education Canada Inc.Response to Expansionary Fiscal Policy1.G or T:Yad,IS shifts right Y i 6 2005 Pearson Education Canada Inc.Summary:Factors that Shift IS and LM Curves7 2005 Pearson Education Canada Inc.Effectiveness of Monetary and Fiscal Policy1.M d is unrelated to i i,M d=M s at same Y LM vertical2.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.8Ms vs.i Targets When IS Unstable1.IS unstable:fluctuates from IS to IS2.i target at i*:Y fluctuates from YI to YI3.M target,LM=LM*:Y fluctuates from YM to YM4.Y fluctuation is less with M targetConclusion:If IS curve is more unstable than LM curve,M target is preferred9 2005 Pearson Education Canada Inc.Ms vs.i Targets When LM Unstable1.LM unstable:fluctuates from LM to LM2.i target at i*:Y=Y*3.M target:Y fluctuates from YM to YM4.Y fluctuation is less with i targetConclusion:If LM curve is more unstable than IS curve,i target is preferred10 2005 Pearson Education Canada Inc.The ISLM Model in the Long RunPanel(a)1.Ms,LM right to LM2,go to point 2,i to i2,Y to Y22.Because Y2 Yn,P,M/P,LM back to LM1,go back to point 1Panel(b)1.G,IS right to IS2,go to point 2 where i=i2 and Y=Y22.Because Y2 Yn,P,M/P,LM left to LM2,go to point 2,i=i2 and Y=Yn.11 2005 Pearson Education Canada Inc.Deriving AD CurveP,M/P,LM shifts in,Y Points 1,2,312 2005 Pearson Education Canada Inc.Shift in AD from Shift in ISAt given PA,IS shifts right:Y in panel(b)AD shifts right in panel(a)13 2005 Pearson Education Canada Inc.Shift in AD from Shift in LMAt given PA,LM shifts right:Y in panel(b)AD shifts right in panel(a)14 2005 Pearson Education Canada Inc.