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Review of the Previous Lecture • Money growth, Inflation and Aggregate Demand • Long Run Real Interest Rate • Monetary Policy Reaction Curve • Aggregate Demand Curve • Shifts in Aggregate Demand
23 trang | Chia sẻ: nguyenlinh90 | Ngày: 19/07/2019 | Lượt xem: 990 | Lượt tải: 0
Review of the Previous Lecture • Money growth, Inflation and Aggregate Demand • Long Run Real Interest Rate • Monetary Policy Reaction Curve • Aggregate Demand Curve
22 trang | Chia sẻ: nguyenlinh90 | Ngày: 19/07/2019 | Lượt xem: 1061 | Lượt tải: 0
Review of the Previous Lecture • Output and Inflation in the Long Run • Money growth, Inflation and Aggregate Demand • Monetary Policy and Real Interest Rate • Aggregate Demand and Real Interest Rate • Long Run Real Interest Rate
26 trang | Chia sẻ: nguyenlinh90 | Ngày: 19/07/2019 | Lượt xem: 950 | Lượt tải: 0
Review of the Previous Lecture • Monetary Aggregates • Equation of Exchange • Quantity Theory of Money • Demand for Money • Targeting Money growth in Low Inflation Environment • Output and inflation in the Long run
19 trang | Chia sẻ: nguyenlinh90 | Ngày: 19/07/2019 | Lượt xem: 1117 | Lượt tải: 0
Review of the Previous Lecture • Monetary Aggregates • Equation of Exchange • MV = PY • Quantity Theory of Money • Facts about Velocity of Money • Demand for Money • Transactions Demand for money
14 trang | Chia sẻ: nguyenlinh90 | Ngày: 19/07/2019 | Lượt xem: 977 | Lượt tải: 0
The Facts about Velocity • Fisher’s logic led Milton Friedman to conclude that central banks should simply set money growth at a constant rate. • Policymakers should strive to ensure that the monetary aggregates grow at a rate equal to the rate of real growth plus the desired level of inflation.
22 trang | Chia sẻ: nguyenlinh90 | Ngày: 19/07/2019 | Lượt xem: 1100 | Lượt tải: 0
Review of the Previous Lecture • Central Bank’s Monetary Policy Toolbox • Open Market Operations • Discount Lending • Reserve Requirements • Linking tools to Objectives
25 trang | Chia sẻ: nguyenlinh90 | Ngày: 19/07/2019 | Lượt xem: 825 | Lượt tải: 0
Target Federal Funds Rate and Open Market Operation • The central bank chooses to control the federal funds rate by manipulating the quantity of reserves through open market operations: the central bank buys or sells securities to add or drain reserves as required.
16 trang | Chia sẻ: nguyenlinh90 | Ngày: 19/07/2019 | Lượt xem: 843 | Lượt tải: 0
Review of the Previous Lecture • Deposit Creation in a Single Bank • Deposit Creation in a System of Banks • Deposit Expansion Multiplier • Deposit Expansion with Excess Reserves and Cash Withdrawals • Money Multiplier
20 trang | Chia sẻ: nguyenlinh90 | Ngày: 19/07/2019 | Lượt xem: 917 | Lượt tải: 0
Review of the Previous Lecture • Changing the Size and Composition of the Balance Sheet • Open Market Operation • Foreign Exchange Intervention • Discount Loans • Cash Withdrawals
28 trang | Chia sẻ: nguyenlinh90 | Ngày: 19/07/2019 | Lượt xem: 854 | Lượt tải: 0