TAILIEUCHUNG - Lecture Macroeconomics: Lecture 27 - Prof. Dr.Qaisar Abbas

Lecture 27 Money supply and money demand - II. After studying this chapter you will be able to understand: ways the Fed can control the money supply, why the Fed can’t control it precisely, a portfolio theory, a transactions theory: the Baumol-Tobin model. | Review of the previous lecture Fractional reserve banking creates money because each dollar of reserves generates many dollars of demand deposits. 2. The money supply depends on the monetary base currency-deposit ratio reserve ratio 0 Lecture 27 Money Supply and Money Demand- II Instructor: Prof. Dr. Qaisar Abbas 1 This chapter sets up the IS-LM model, which chapter 11 then uses extensively to analyze the effects of policies and economic shocks. This chapter also introduces students to the Keynesian Cross and Liquidity Preference models, which underlie the IS curve and LM curve, respectively. If you would like to spend less time on this chapter, you might consider omitting the Keynesian Cross, instead using the loanable funds model from Chapter 3 to derive the IS curve. Advantage: students are already familiar with the loanable funds model, so skipping the KC means one less model to learn. Additionally, the KC model is not used anywhere else in this textbook. Once it’s used to derive

• Kinh tế học
• Lecture Macroeconomics
• Principles of microeconomics
• Economic models
• Science of macroeconomics
• Tools of microeconomics
• Microeconomic transactions
• Money supply
• Money demand
• 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