TAILIEUCHUNG - Lecture Principles of money, banking, and financial markets (12th edition): Chapter 23 - Ritter, Silber, Udell

Chapter 23 - The Keynesian framework. In this chapter you will learn to see the differences among saving, investment, desired saving, and desired investment and explain how these differences can generate short-run fluctuations in real GDP; understand the Keynesian cross and determination of an equilibrium level of income; analyze autonomous changes in macroeconomic variables and their potential to cause economic fluctuations. | Chapter 23 The Keynesian Framework Copyright © 2009 Pearson Addison-Wesley. All rights reserved. Learning Objectives • See the differences among saving, investment, desired saving, and desired investment and explain how these differences can generate short run fluctuations in real GDP • Understand the Keynesian cross and determination of an equilibrium level of income • Analyze autonomous changes in macroeconomic variables and their potential to cause economic fluctuations Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 23-2 Learning Objectives (Cont.) • Define the liquidity preference theory and its role in determining interest rates • Comprehend the Keynesian theory of monetary policy and its role in impacting the economy • Understand the Keynesian version of aggregate demand/aggregate supply analysis Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 23-3 1 Introduction • In 1936, John Maynard Keynes published The General Theory of Employment, Interest and Money • Concerned with short-run as compared to the Classical Economists who focused on long-run • Argued that free market forces could take considerable time to adjust • In the short run there could be lengthy periods of underemployment Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 23-4 Introduction (Cont.) • Preoccupied with what determined the level of real economic activity during long periods of recession or depression • If economy were sufficiently depressed, could experience increases in real output without any increase in the price level • Assumed that the price level is fixed • Focused on aggregate demand and supply since full employment was irrelevant Copyright © 2009 Pearson Addison-Wesley. All rights reserved. 23-5 When Saving Doesn’t Equal Investment • Classical economists stated that equilibrium existed when total saving desired by households equals total investment desired by firms • However, Keynes asked what happens when desired savings

• Ngân hàng - Tín dụng
• Financial markets
• Financial institutions
• Monetary policy
• International finance
• Monetary theory
• Keynesian framework
• Lecture Financial markets
• Thị trường tài chính
• Financial futures markets
• Valuation of financial futures
• Interest rate futures
• Lecture Financial markets and institutions
• Financial institutions markets
• Capital markets
• Money markets
• Derivative securities markets
• Futures markets
• Option markets
• Swap markets
• Foreign exchange derivative markets
• Bank management
• Types of Financial Markets
• Securities traded
• Valuation of securities
• Money market yields
• Bond markets
• Municipal bonds
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• Primary mortgage market
• Stock markets
• Common stock
• Foreign exchange markets
• Foreign exchange
• Commercial banks
• Financial statements
• Risks at financial institutions
• Market risk
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• Economics 252
• Efficient markets
• Excess volatility
• Efficient Markets Hypothesis
• Interest rate derivative markets
• Interest rate swaps
• Mortgage backed securities
• Globalization of mortgage markets
• Financial markets and institutions
• The financial system
• Interest rates change
• Financial markets efficient
• Term structure affect interest rates
• The stock market
• The mortgage markets
• The international financial system
• Financial regulation
• Interest rate fundamentals
• Interest rates
• Security valuation