chuong 4 IS LM

CHAPTER – IS - LM THÀNH VIÊN NHÓM 7: - ĐINH QUỐC THỊNH - TRẦN THỊ BÍCH TRÂN - NGUYỄN THỊ PHƯƠNG THUÝ - ĐỖ TẤN PHÁT - NGUYỄN THỊ DIỄM THU TABLE OF CONTENTS 4.1 IS – LM model of aggregate of demand 4.2 Aggregate supply 4.3 Conclusions 4.1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4.1.1 IS CURVE - MINUS : C , I , B IN BOTH SIDES OF THE EQUATION, WE HAVE: 4.1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4.1.1 IS CURVE THE REAL EXCHANGE RATE: Q: THE REAL EXCHANGE RATE S: NOMINAL EXCHANGE RATE P*: FOREIGN PRICE LEVEL P: LOCAL PRICE LEVEL THE HIGHER THE LEVELS OF Q, THE CURRENT ACCOUNT SURPLUS IS LIKELY TO BE GREATER THAN AT LOW LEVELS 4.1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4.1.1 IS CURVE THE SIMPLE FORM OF PREVIOUS RELATIONSHIPS: GIVEN VALUE OF Q , SAY Q0 4.1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4.1.1 IS CURVE PICKING ANY ARBITRARY FOR INTEREST RATE, r0 SAY 4.5 WE HAVE: POINT A ( , r0 y0 POINT B ( , r1 y1 POINT C ( , r1 y0 ) ) ) , THEN SLOVE EQUATION 4.1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4.1.1 IS CURVE 4.1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4.1.1 IS CURVE 4.1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4.1.2 MONEY MARKET M0: MONETARY BASE (CURRENCY IN CIRCULATION) M1: M0 + DEMAND DEPOSITS M2: M1 + SAVING DEPOSITS M3: M2 INCLUDES TIME DEPOSITS 4.1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4.1.2 MONEY MARKET DEMAND FOR MONEY - REASON TO HOLD MONEY: TRANSACTION, PRECAUTION, SPECULATION 4.1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4.1.3 AGGREGATE DEMAND 4.1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4.1.3 AGGREGATE DEMAND 4.1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4.1.3 AGGREGATE DEMAND 4.2 AGGREGATE SUPPLY • 4.2.1 FLEXIBLE PRICES 4.2 AGGREGATE SUPPLY • 4.2.1 FLEXIBLE PRICES 4.2 AGGREGATE SUPPLY • 4.2.1 FLEXIBLE PRICES 4.2 AGGREGATE SUPPLY • 4.2.1 FLEXIBLE PRICES 4.2 AGGREGATE SUPPLY • 4.2.2 FIXED PRICES 4.2 AGGREGATE SUPPLY • 4.2.2 FIXED PRICES 4.2 AGGREGATE SUPPLY • 4.2.2 FIXED PRICES 4.2 AGGREGATE SUPPLY • 4.2.2 FIXED PRICES 4.2 AGGREGATE SUPPLY • 4.2.3 A COMPROMISE : STICKY PRICES 4.2 AGGREGATE SUPPLY • 4.2.3 A COMPROMISE : STICKY PRICES SUMMARY: 4.3 CONCLUSIONS • THE HIGHER THE REAL EXCHANGE RATE THE MORE COMPETITIVE DOMESTIC OUTPUT ON THE WORLD MARKETS AND HENCE THE GREATER THE DEMAND IN THE ECONOMY, OTHER THINGS BEING EQUAL • UNDER A FIXED EXCHANGE RATE REGIME, THE MONEY SUPPLY IS NO LONGER A POLICY VARIABLE THANK YOU FOR PAYING ATTENTION ... DEMAND LM CURVE • 4. 1 IS – LM MODEL OF AGGREGATE OF DEMAND LM CURVE 4. 1 IS – LM MODEL OF AGGREGATE OF DEMAND • LM CURVE 4. 1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4. 1.3 AGGREGATE DEMAND 4. 1 IS – LM. .. IS – LM MODEL OF AGGREGATE OF DEMAND • 4. 1.1 IS CURVE 4. 1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4. 1.1 IS CURVE 4. 1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4. 1.2 MONEY MARKET M0: MONETARY BASE (CURRENCY... TIMES y 4. 1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4. 1.2 MONEY MARKET WE REWRITE THE EQUATION 4. 6 THEN DIVIDING BOTH SIDES OF 4. 7 BY P , WE HAVE: 4. 1 IS – LM MODEL OF AGGREGATE OF DEMAND • 4. 1.2