最新巴罗宏观经济学：现代观点第10章PPT课件.ppt

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1、巴罗宏观经济学：现代观点第巴罗宏观经济学：现代观点第10章章2Macroeconomics Chapter 10 The Demand for MoneyThe household budget constraint in nominal termslPC +B+PK =+wL+i (B+PK)lnominal consumption+nominal saving=nominal income9Macroeconomics Chapter 10 The Demand for Money“demand for money,”Md,lThe average holding of money tha

2、t results from the households optimal strategy for money management.10Macroeconomics Chapter 10 The Demand for MoneyThe Interest Rate and the Demand for MoneylA higher interest rate,i,provides a greater incentive to hold down average holdings of money,M,in order to raise average holdings of interest

3、-bearing assets,B+PK.That is,with a higher i,households are more willing to incur transaction costs in order to reduce M11Macroeconomics Chapter 10 The Demand for MoneyThe Interest Rate and the Demand for MoneylWe predict,accordingly,that an increase in i reduces the nominal demand for money,Md.lFor

4、 a given price level,P,we can also say that a higher i lowers the real demand for money,Md/P.12Macroeconomics Chapter 10 The Demand for MoneyThe Price Level and the Demand for MoneylSuppose that the price level,P,doubles.The nominal demand for money,Md,doubles.Since Md and P have both doubled,the ra

5、tio,Md/P,is the same.lThe result is that the real demand for money,Md/P,does not change when P changes.13Macroeconomics Chapter 10 The Demand for MoneyReal GDP and the Demand for MoneylAssume now that nominal income doubles,while the price level,P,is unchanged.lHouseholds would double their nominal

6、demand for money,Md.Since P is constant,the real demand for money,Md/P,also doubles.14Macroeconomics Chapter 10 The Demand for MoneyReal GDP and the Demand for MoneylEconomies of scale in cash management,at higher incomes households hold less money in proportion to their income.15Macroeconomics Chap

7、ter 10 The Demand for MoneyOther Influences on the Demand for MoneylPayments technologylThe level of transaction costs16Macroeconomics Chapter 10 The Demand for MoneyThe Money-Demand FunctionlMd=P L(Y,i)lMd/P=L(Y,i)17Macroeconomics Chapter 10 The Demand for MoneyEmpirical Evidence on the Demand for

8、MoneylSteven GoldfeldlCasey Mulligan and Xavier Sala-i-Martin lMichael Dotsey18Macroeconomics Chapter 10 Determination of the Price LevelThe Nominal Quantity of Money Supplied Equals the Nominal Quantity DemandedMs=MdMd=P L(Y,i)Key equation:Ms=P L(Y,i)19Macroeconomics Chapter 10 Determination of the

9、 Price LevelGeneral equilibrium.Ms=MdLs=Ld(K)s=(K)d.20Macroeconomics Chapter 10 Determination of the Price Level21Macroeconomics Chapter 10 Determination of the Price LevelA Change in the Nominal Quantity of MoneylFrom a one-time change in the nominal quantity of money supplied,Ms.lThe increase in M

10、s from M to 2M raises the equilibrium price level from P to 2P22Macroeconomics Chapter 10 Determination of the Price Level23Macroeconomics Chapter 10 Determination of the Price LevelA Change in the Nominal Quantity of MoneylSince the technology level,A,has not changed,the real wage rate,w/P,and labo

11、r input,L,do not change.lTherefore,the price level,P,is twice as high,and w/P is unchanged.We conclude that,in general equilibrium,the nominal wage rate,w,has to double.24Macroeconomics Chapter 10 Determination of the Price LevelA Change in the Nominal Quantity of MoneylThe unchanged technology leve

12、l,A,means that the real rental price,R/P,and the quantity of capital services,K,do not change.lThe fixed K corresponds to a given capital stock,K,and an unchanged capital utilization rate,.lThus,the price level,P,is twice as high,and R/P is unchanged.We must have,in general equilibrium,that the nomi

13、nal rental price,R,doubles.25Macroeconomics Chapter 10 Determination of the Price LevelA Change in the Nominal Quantity of Moneyli=(R/P)().The doubling of Ms does not change the real rental price,R/P,and the capital utilization rate,the rate of return on ownership of capital does not change on the r

14、ight hand side of equationThe interest rate,i,is also unchanged26Macroeconomics Chapter 10 Determination of the Price LevelA Change in the Nominal Quantity of MoneylY=A F(K,L)lA doubling of Ms does not affect the quantities of capital services,K,and labor,L.lIn other words,in general equilibrium,a o

15、ne-time increase in the nominal quantity of money supplied,Ms,does not affect real GDP.27Macroeconomics Chapter 10 Determination of the Price LevelThe Neutrality of MoneylIn the long run,an increase or decrease in the nominal quantity of money supplied,Ms,influences nominal variables but not real on

16、es.28Macroeconomics Chapter 10 Determination of the Price LevelA Change in the Demand for MoneylAn improvement in the technology for making financial transactionsperhaps increased use of credit cards or ATM machinesdecreases the real demand for money to L(Y,i),so that the nominal demand becomes:l(Md

17、)=P L(Y,i)29Macroeconomics Chapter 10 Determination of the Price Level30Macroeconomics Chapter 10 Determination of the Price LevelA Change in the Demand for Money lA decrease in the real demand for money is similar to an increase in the nominal quantitylOf money supplied in that the price level,P,ri

18、ses in each case.lHowever,one difference is that a change in Ms is fully neutral,whereas a change in the real demand for money is not fully neutral.31Macroeconomics Chapter 10 Determination of the Price LevelThe Cyclical Behavior of the Price LevellA recession,decline in Y reduces the real quantity

19、of money demandedThe decrease in i raises the real quantity of money demandedlIn a recession,the real quantity of money demanded,given by L(Y,i),decreases overall.32Macroeconomics Chapter 10 Determination of the Price LevelThe Cyclical Behavior of the Price LevellGiven nominal quantity of money supp

20、lied,Ms,the decrease in the real quantity of money demanded,L(Y,i),raises the price level,P.lThat is P will be countercyclical.33Macroeconomics Chapter 10 Determination of the Price Level34Macroeconomics Chapter 10 Determination of the Price LevelThe Cyclical Behavior of the Price LevellIn our equil

21、ibrium business cycle model,the underlying shocks come from the supply side,not the demand side.lA low technology level,Athe source of a recession in the modelmeans that goods and services are in low supply.lWhen looked at this way,it makes sense that P would tend to be high in a recession.35Macroec

22、onomics Chapter 10 Determination of the Price LevelPrice-Level Targeting and Endogenous MoneylWhen the monetary authority seeks to attain a specified price level,P,it typically has to adjust the nominal quantity of money,M,in response to changes in the nominal quantity demanded,Md.36Macroeconomics C

23、hapter 10 Determination of the Price LevelPrice-Level Targeting and Endogenous MoneylTo see how this works,we now assume that the monetary authority wants the price level,P to equal a target level P0.This objective is called price-level targeting.37Macroeconomics Chapter 10 Determination of the Pric

24、e LevelPrice-Level Targeting and Endogenous MoneylM=P0 L(Y,i)nominal quantity of money=price-level target real quantity of money demanded38Macroeconomics Chapter 10 Determination of the Price LevelPrice-Level Targeting and Endogenous MoneylTrend growth of moneySince L(Y,i)grows at the same rate as r

25、eal GDP,Y,we conclude that M must grow at the same rate as Y.Thereby,the growth rate of the nominal quantity of money,M,matches the growth rate of the real quantity demanded,L(Y,i),and allows the price level,P,to remain constant at its target level,P0.39Macroeconomics Chapter 10 Determination of the

26、 Price LevelPrice-Level Targeting and Endogenous MoneylCyclical behavior of moneylThe cyclical fluctuations in M will match the cyclical fluctuations in the real quantity of money demanded.lM should be procyclical.Empirically,the nominal quantity of money,M,is weakly procyclical.40Macroeconomics Cha

27、pter 10 Determination of the Price LevelPrice-Level Targeting and Endogenous MoneylSeasonal variations in moneyMonetary authority has to vary the nominal quantity of money,M,to match the changes in the real quantity demanded,L(Y,i),that occur because of economic growth or fluctuations.An analogous argument applies to the variations in L(Y,i)associated with the seasons.41Macroeconomics Chapter 10