TAILIEUCHUNG - Lecture Macroeconomics: Lecture 11 - Prof. Dr.Qaisar Abbas

Lecture 11: Money and Inflation - II. After studying this chapter you will be able to understand: the stock of assets used for transactions; serves as a medium of exchange, store of value, and unit of account; Commodity money has intrinsic value, fiat money does not; Central bank controls money supply; seigniorage; fischer effect; money demand and the nominal interest rate; inflation. | Review of the previous lecture Money the stock of assets used for transactions serves as a medium of exchange, store of value, and unit of account. Commodity money has intrinsic value, fiat money does not. Central bank controls money supply. Quantity theory of money assumption: velocity is stable conclusion: the money growth rate determines the inflation rate. Lecture 11 Instructor: Abbas Money and Inflation- II Lecture Outline Seigniorage Fischer effect Money demand and the nominal interest rate Inflation Seigniorage To spend more without raising taxes or selling bonds, the govt can print money. The “revenue” raised from printing money is called seigniorage (pronounced SEEN-your-ige) The inflation tax: Printing money to raise revenue causes inflation. Inflation is like a tax on people who hold money. Inflation and interest rates Nominal interest rate, i not adjusted for inflation Real interest rate, r adjusted for inflation: r = i The Fisher Effect The Fisher .

• Kinh tế học
• Lecture Macroeconomics
• Principles of microeconomics
• Economic models
• Science of macroeconomics
• Tools of microeconomics
• Microeconomic transactions
• Bài giảng Kinh tế vĩ mô
• Kinh tế vĩ mô
• Data of macroeconomics
• Unemployment rate
• Inflation rate
• Natural rate of unemployment
• Consumer price index
• National income
• Agriculture sector
• Agricultural policies
• Economic fluctuations
• Macroeconomic policy
• Business cycle theory