Ngân hàng tín dụng - Money and banking (lecture 43)When current output is below potential output, part of the economy’s capacity is idle, and firms tend to raise their prices and wages less than they did when current output equaled potential output. • When current output exceeds potential output, the opposite happens; firms increase their prices and wages more than they would if they were o...
23 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 858 | Lượt tải: 0
Ngân hàng tín dụng - Money and banking (lecture 42)Shifts in the Monetary Policy Reaction Curve • Whenever the monetary policy reaction curve shifts, the aggregate demand curve will shift as well • Changes in the long-run real interest rate, which is a consequence of the structure of the economy, will also shift aggregate demand
22 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 935 | Lượt tải: 0
Ngân hàng tín dụng - Money and banking (lecture 41)When current inflation rises • Monetary policymakers raise the real interest rate, moving upward along the monetary policy reaction curve • The higher real interest rate reduces consumption, investment, and net exports causing aggregate demand (output) to fall.
26 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 821 | Lượt tải: 0
Ngân hàng tín dụng - Money and banking (lecture 40)The same would be true for increases in other components of aggregate demand that are not interest sensitive. • A change in potential output has an inverse effect on the long-run real interest rate;
19 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 807 | Lượt tải: 0
Ngân hàng tín dụng - Money and banking (lecture 39)Potential output is what the economy is capable of producing when its resources are used at normal rates. • Potential output is not a fixed level, because the amount of labor and capital in an economy can grow, and improved technology can increase the efficiency of the production process • Unexpected events can push current output away from...
14 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 856 | Lượt tải: 0
Ngân hàng tín dụng - Money and banking (lecture 38)Spending your Rs.30,000 in 30 days, your average money holding will be Rs.1000 far below Rs.1,500 you would hold if you simply left the 30,000 in your checking account and spent it at a rate of Rs.1,000 per day • So lower the cost of shifting funds from your bond fund to your checking account, the lower your money holdings at a given level o...
22 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 859 | Lượt tải: 0
Ngân hàng tín dụng - Money and banking (lecture 37)The number of times each rupee is used (per unit of time) in making payments is called the velocity of money; the more frequently each rupee is used, the higher the velocity of money
25 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 826 | Lượt tải: 0
Ngân hàng tín dụng - Money and banking (lecture 36)By adjusting the reserve requirement, the central bank can influence economic activity because changes in the requirement affect deposit expansion. • Unfortunately, the reserve requirement turns out not to be very useful because small changes in the reserve requirement have large (really too large) impacts on the level of deposits.
16 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 890 | Lượt tải: 0
Ngân hàng tín dụng - Money and banking (lecture 34)The simple deposit expansion multiplier was derived assuming no excess reserves are held and that there is no change in currency holdings by the public. • These assumptions are now relaxed as • 5% withdraw of cash. • Excess reserves of 5% of deposits
28 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 859 | Lượt tải: 0
Ngân hàng tín dụng - Money and banking (lecture 33)The extension of credit to the banking system raises the level of reserves and expands the monetary base. • The banking system balance sheet shows an increase in assets (reserves) and an increase in liabilities (the loan).
26 trang | Chia sẻ: thuychi20 | Ngày: 06/04/2020 | Lượt xem: 863 | Lượt tải: 0
