初級宏觀經(jīng)濟學課件

Chapter1Introduction0102030409091929394959697989900LogionEconomists”onsomelevelaremathematicians,historians,diplomatists,philosophers…andtheyareasindifferentandhonestasartists”.

——JohnMaynardKeynes

“Wheneconomistsareanalyzingeconomicalaffairsorpublicpolicies,theyarealwaysrememberingdifferentmodels。”

——GregoryMankiwMainContents1.1Objectivesandscopesofmacroeconomics1.2Chinesemacroeconomicfacts1.3NatureofMacroeconomicsAnalysis1.4BriefhistoryofMacroeconomics1.5MethodologyofMacroeconomics1.6FeaturesofThisText1.1ObjectivesandScopesofMacroeconomicsMicroeconomics:

Totakethebehaviorsofsinglecorporationorfamiliarasresearchobjects,whichaimstoknowtherelationshipbetweendemand-supplybehaviorsandpricechanges.Macroeconomics：

Tofocusonoperationalsituationofthewholeeconomyinonecountryandhowthegovernmentuseseconomicalpoliciestoinfluencetheoperationofthewholeeconomyinonecountry..1.1ObjectivesandScopesofMacroeconomics

ContentOne：

EconomicGrowthintheLongTerm

GrowthresourcesIncreaseofLaborForceAveragepersonproductivityincreaseU.S.averageactualGDPfrom1900to2000

1.1ObjectivesandScopesofMacroeconomicsContentTwo：BusinessCycleDifferentcharacteristicsofbusinesscyclesVariousexplanationsofperiodicfluctuation1.1ObjectivesandScopesofMacroeconomicsContentThree：UnemploymentBasicconceptsThosewhohavetheworkingabilityandlookforworksbutcannotgetthemMeasurementUnemploymentpopulaceisdividedbytotallaborsAmericans’unemploymentratiofrom1900to20001.1ObjectivesandScopesofMacroeconomicsContentFour：InflationBasicconceptsPricesofmostcommoditiesandserviceskeepincreasingduringcertaintimeinoneeconomy.ReasonsIssuedtoomanycurrencies、overmuchdemandsforinvestmentandconsumption、increaseofcostsuchaswagesU.S.InflationRatiofrom1900to20001.1ObjectivesandScopesofMacroeconomicsContentFive：InternationalEconomyCloseeconomyOpeneconomyInflationwilltransmitbetweendifferentcountriesTradesurplusanddeficitwillinfluencedomesticemploymentandgovernmentrevenues

Rateofgrowth

exportcommodities

（%）Averageannualrateofgrowth14.15%1.1ObjectivesandScopesofMacroeconomicsChina’sgrossforeignexportvalue

（100milliondollars）

1990 620.9000

1991 718.4000

1992 849.4000 1993 917.4000

1994 1210.100 1995 1487.800 1996 1510.500 1997 1827.900

1998 1838.100 1999 1949.300 2000 2492.000

20012661.0000102030409091929394959697989900011.1ObjectivesandScopesofMacroeconomicsContentSix：PoliciesofMacroeconomicsFiscalpoliciesConstitutedbygovernmenttaxpoliciesandexpenditurepoliciesMonetarypolicyHowtodecideandadjustthecurrency’ssupplyrateunderthecontrolofcentralgovernmentinonecountry1.2ChineseMacroeconomicFactsGrowthandfluctuationofChineseeconomySourcesofgrowthIncreaseofLaborForceIncreaseofper-capitaproductivity年份1.2ChineseMacroeconomicFacts

——EconomicgrowthandfluctuationNIgrowthrate（%）-30-20-1001020305055606570758085909500Before1978，unemploymentandinflationwerebothrecessive;afterreformandopening-up，unemploymentandinflationbecameapairofcontradictioninChinesemacroeconomy.indexofretailprice（lastyear=100）

Urban

registeredjoblessrate

（%）1.2ChineseMacroeconomicFacts

——Unemploymentandinflation951001051101151201257880828486889092949698001.52.02.53.03.54.0788082848688909294969800Since1979,oneofveryimportantchangesofChinesemacro-economyistheraiseofopeningdegreetotheoutsideworldYearImportExportFDI1980200.17181.918.02/420012436.12661.5468.8Unit：ahundredmillion$1.2ChineseMacroeconomicFacts

——openingtotheoutsideworld1.3NatureofMacroeconomic AnalysisPredictiononmacroeconomyAnalysisofmacroeconomyResearchofmacroeconomyTreatingthewholeeconomicactivitiesasasystem,modernmacroeconomicsaimsatstudyinggeneraltrendofoneeconomybyanalyzingthetotalprocessofthissystem.Inanotherword,itstudiesthewhysandinternalrelationshipbetweengrosseconomicfacts,suchasthedeterminantsofgrossoutput,grossemploymentandaverageprices,andhowthesefactsareinfluencedbybalanceofpaymentsorthechangeofexchangerate.1.3NatureofMacroeconomics Analysis1.4BriefHistoryofMacroeconomicsmercantilesystemclassicaleconomicsvulgareconomicsneoclassicalsynthesis(early15c

-17c)（mid17c

–early19c）（early19c-20c30

）(20c30-)<beforeManipulatorymanufacture><manipulatorymanufacture>SeedtimeofcapitalismSeniorperiodofcapitalismEx-historyFirstperiodofcapitalismallkindsoftheoryofvaluetheoryof

laborvalueHandinvisiblyAnimadvertonfeudalsocietytheoryofmarginalutilityvalueAnarchism，freecompetitionAdvocatecapitalsociety

theoryofinsufficient

effectivedemandgovernmentinterference

Threetimesmodifymonopoly（Chamberlainandsoon）aquantitativequestion2.Keynesianism—aquantumproblem3.Ordinalutilityandgeneralequilibrium-aquantityproblemSamuelsonGroupedintomixedeconomy70sstagflationSchoolofmonetarismSchoolofrationalexpectationsSchoolofsupplyClassicalmacroeconomicsmodel<marginalanalysismethod>SysteminfoofmacroeconomicsMonetarism,Supplygenre,RationalexpectationsgenrekeynesianmodelEquilibriumofproductmarketsEquilibriumof

moneymarketEquilibriumoflabormarketNeoclassicalsynthesisADcurve（Keynes’）AScurve（wagerigidity）PhilipsCurveMacroeconomicpolicyExplaineconomicaloperation1.4BriefHistoryofMacroeconomicsIntroduction：Milton

FriedmanWinnersofNobelPrizeinEconomicsin1976Studyfield：ConsumptionMonetaryhistoryandmonetarypolicyHybriduseofstabilitypolicyIntroduction：RobertE.LucasWinnerofNobelPrizeinEconomicsin1995Studyfield：RationalexpectationsTheoryofneutralityofmoneyAnalysisofTransitionalEconomies

1.4BriefHistoryofMacroeconomicsEarlymacroeconomicsideasClassicalapproachKeynesianismMonetarismNeoclassicismandneoclassicalsynthesisSupplygenreRationalexpectationsgenre

NeoclassicismandneoclassicalsynthesisHansenandSamuelsonputforwardtheoryofforty-fivedegreeline。Solowandotherssetupneo-classicalgrowthmodelPhilipsputforwardPhilipsCurve,toexplaininflationHicksandModiglianireachedthestatewhichissmallerthanthepointoffullemploymentbasedonNsand

NdofNeoclassicism

，（rcannotfluctuate;traps;wagerigidity）1.4BriefHistoryofMacroeconomics

Neo-quantitytheory

HypothesisofnaturalratePolicy

allegation:agreewithmonetarypolicy,butopposefiscalpolicy，andmeanwhileopposethemonetarypolicieswhichisafterconsiderations,andclaimsforsinglepolicyrules

1.4BriefHistoryofMacroeconomics

SupplygenreTheorycore:supplycreatesdemandbyitselfMainanalysis：supplyeffectMainviewpoint:basicsinglepropositionaboutmarginalrateoftaxLaffer’sCurveTaxamountTTaxratetOtP1.4BriefHistoryofMacroeconomics

Rational

expectationsgenre

Expectationsandrationalexpectations：

conceptandtype

Basicviewpoint:naturalratehypothesis;completelyinvalidationofmacroeconomicpolicies；Microcosmicbaseofmacro-economicstheoryStaticexpectationsExtrapolation

expectationsAdaptability

expectationsequaltoactualamountoflasttermactualamountoflasttermandchangesactualamountoflasttermandhiserrors1.4BriefHistoryofMacroeconomicsDifferencebetweenneoclassicismandNew-Keynesian

Differenceofbasichypothesis：whethermarketisclearingDifferentexplanationsofeconomicalfluctuant：neoclassicismexplainsitfromsupplychangesofrealfactors,whilenew-Keynesianexplainsitfromdemandchangesofmonetaryfactors.Divergenceofpolicies：neoclassicism,consideringeconomicpoliciesinvalid,opposesinterventionineconomybygovernment.1.4BriefHistoryofMacroeconomics

1.5MethodologyofMacroeconomics

Macroeconomicssynthesizesallmarketsofoneeconomicalsystemintothreemarkets：moneymarket、commoditymarketandlabormarket.MacroeconomicanalysisarebasedonsinglebehavioranalysisofmicroeconomicsMacroeconomicssetuptheorymodelswithnecessaryhypothesis,basedonobservationofpracticaleconomicphenomena,andthenmakeuseofdatafromactualworldtoverifytheorymodels.

1.5MethodologyofMacroeconomics

Whenitcomestonewproblemsandphenomena，logisticstructureofmacroeconomicstheorydrawnfrommacroeconomicresearch,iscalledmacroeconomicsmodels,manyofwhichareexpressedinmathematicallinguisticsAnymacroeconomicstextbookisfullofsomanymathematicalmodelsthatifonewantstosuccessineconomicresearchheneedssolidmathematicalfoundation.1.6FeaturesofThisTextBasisofmacroeconomicsFurtherresearchandexpansionoftheorysystemsDiscussionoffront-lineresearch34

Chapter2TheMajorMacroeconomicVariables0102030409091929394959697989900Outlines(1)2.1GDP&

GNP2.2threeapproachestomeasureGDP2.3NI&PI&DPI2.4MPSvsSNA2.5savingandwealth,stockandflow2.6priceindexandInflationRate2.7nominalinterestrateandrealinterestrate2.8employment,unemployment,&wagelevelOutlines(2)definitionGDPGNPcomparisonGDP:domesticprincipleGNP:nationalprinciple2.1GDP&GNP

relationdefinitionofNFP2.1GDP&GNPNominalandRealGDPNominalGDPisthesumofthequantitiesoffinalgoodsproducedtimestheircurrentprice.RealGDPisthesumofthequantitiesoffinalgoodsproducedtimesconstant(ratherthancurrent)price.2.1GDP&GNP40finalgoodsandservicesvs.intermediateproductsProductsvs.commoditiesMarketvs.non-market2.1GDP&GNPcase1:

makewinePriceoffinalgoods

PriceofintermediateproductsIncrementWheat1000100flour15010050Bread250150100retail30025050total800500300Case2:fromwheattobreadlimitationofGDP(GNP）

non-marketactivitiesdiversityinstandardoflivingIncomedistributionNaturalresource&environment2.1GDP&GNP2.2ThreeApproachesto

MeasureGDP

ProductapproachDefinition:GDPisthevalueoftheFinalGoodsandServicesProducedintheEconomyDuringaGivenPeriod.45

ProductapproachNote:MarketvalueNewproductandserviceFinalproductandservice2.2ThreeApproachesto

MeasureGDP

Productapproach

GDPistheSumofValueAddedintheEconomyDuringaGivenPeriod.2.2ThreeApproachesto

MeasureGDP

expenditureapproachFourcategoriesofexpenditure

consumption（C）

investment（I）

governmentpurchase（G）

netexport（NX）2.2ThreeApproachesto

MeasureGDP

expenditureapproach2.2ThreeApproachesto

MeasureGDPCase3:Case4:

GDPandcomponents1997ofchinacomponentsTotal（billionsofYuan）Percentage（%）consumption36117.847.48Investment27867.336.63Governmentpurchase9347.112.28Netexports2745.03.61GDP76077.2100source：《Chinastatistics，1998》

incomeapproachGDPistheSumofincomesintheEconomyDuringaGivenPeriod.2.2ThreeApproachesto

MeasureGDP

incomeapproachFivecategoriesofexpenditure（NI）LaborincomeCapitalincomeRateearningsCompanyprofitNetinterest2.2ThreeApproachesto

MeasureGDP

incomeapproachTheotherthreeitemsIndirecttaxes

depreciationNFP2.2ThreeApproachesto

MeasureGDP2.3NI、PIandDPIBasictermsGDP:grossdomesticproductGNP:grossnationalproductNNP:netnationalproductNI:nationalincomePI:personalincomeNFP:netforeignproductGNPdepreciation

NNPIndirecttaxes

NIPI=NI-Co.Profit-socialinsurance+transferpayment+netinterest+bonusincometax&non-taxpayment

DPI

2.3NI、PIandDPI2.4MPS

vs.SNA(1)MPSBefore1978EstablishedbySovietBasedonMarx’laboraxiologyExcludethethirdindustry,includeintermediateproducts57(2)SNAAfter1978Spread

throughmostcountriesBasedonwesterneconomicsIncludefinalproductsandservices2.4MPS

vs.SNA2.5SavingandWealth,

StockandFlow

savingandwealthdefinitioncomparisonrelationsStockandFlow2.5SavingandWealth,

StockandFlowStockandFlowSaving（flow）equalsdeferenceofwealth（stock）2.5SavingandWealth,

StockandFlowStockandFlowCapital（stock）ofyeartequalscapital（stock）ofyeart-1addinginvestment(flow)ofyeart,deductdepreciationofyeart.2.5SavingandWealth,

StockandFlow2.6PriceIndexandInflationRate

NominalandRealGDP

howtomeasureGDP?

definition：GrossDomesticProduct(GDP)isthemarketvalueofallfinalgoodsandservicesproducedwithinaneconomyinagivenperiodoftime.

MarketvalueNominalandRealGDP

nominalGDP

currentprice

realGDP

fixedprice2.6PriceIndexandInflationRateformationofpriceindex

Variable-WeightPriceIndex

Fixed-WeightPriceIndex2.6PriceIndexandInflationRate

formationofpriceindex

Variable-WeightPriceIndex2.6PriceIndexandInflationRate

formationofpriceindex

Fixed-WeightPriceIndex2.6PriceIndexandInflationRate

inflationrateInflationisasustainedriseinthegenerallevelofprice,asustainedriseinthepricelevel.

inflationrate2.6PriceIndexandInflationRateThe

GDPdeflator

inyeart,Pt,isdefinedastheratioofnominalGDPinyeart:2.6PriceIndexandInflationRateTheGDPdeflatorgivestheaveragepriceofthegoodsincludeinGDPthefinalgoodsproducedintheeconomy.

CPI:tomeasuretheaveragepriceofconsumption,orequivalently,thecostofliving,macroeconomistslookatanotherindex,theconsumerpriceindex(CPI),theCPIgivesthecostindollarofaspecificlistofgoodsandservicesovertime:2.6PriceIndexandInflationRateCase5:CPI&GDP,1948-2000ofU.S.AnominalinterestrateandrealinterestratenominalinterestratemeasurestheyieldoffinancialassetbynominalpriceRealinterestratemeasurestheyieldoffinancialassetbyrealprice2.7NominalInterestRate

andRealInterestRate2.8Employment,Unemployment,

&WageLevelProductionfunctionPopulationover16Laborforce

NotinlaborforceStudentsHousewifeRetiredSickOtherEmployment

Unemployment2.8Employment,Unemployment,

&WageLevel2.8Employment,Unemployment,

&WageLevelTheunemploymentrateisdefinedastheratiothenumberofunemployedtothelaborforce:u=U/LThelaborforceisdefinedasthesumofthoseemployandtheseunemployed:L=N+Ulaborforce=employed+unemployedCase6:LaborForceStatusoftheU.S.,2000LaborForceStatusoftheU.S.,2000laborforce

=135.2+5.7=140.9unemploymentrate

=(5.7/140.9)100%=4.0%Participationrate=(140.9/209.7)100%=67.2%Case7:LaborForceStatusoftheU.S.AdultPopulation,1994CategoriesofunemploymentFrictionalunemploymentSeasonalunemploymentCyclic(al)unemploymentShortdemandunemploymenttechnologicalunemploymentstructuralunemploymentVoluntary(involuntary)unemployment2.8Employment,Unemployment,

&WageLevel

full-employment

naturalunemploymentrate

2.8Employment,Unemployment,

&WageLevelNSDInequilibriumlabormarket,employmentratedecidedbylevelofwageW*/PN*W/P2.8Employment,Unemployment,

&WageLevelOkun’sLawArthurM.OkunOkun’sLaw:Inmostcountries,thereisaclearrelationbetweenthechangeinunemploymentandGDPgrowth.ThisrelationisknownasOkun’sLaw.2.8Employment,Unemployment,

&WageLevelCase8:Okun’sLaw

source：Mankiw《macroeconomics》（the5thedition），P.3683

Chapter2TheEnd0102030409091929394959697989900Chapter3TotalExpenditure&GDP:GoodsMarket0102030409091929394959697989900Content3.1ConceptsofMacroeconomicEquilibrium3.2ConsumptionFunction3.3SimpleModelandothers3.4Multiplier3.1ConceptsofMacroeconomicEquilibriumMacroeconomicEquilibriumThetotalsupplyequalsthetotaldemand

FactorsmarketGoods&labormarketFamilyFirms（1）supplyfactorsofproduction（2）payments（3）buyingproducts（4）supplygoods3.1ConceptsofMacroeconomicEquilibrium——twosectionsmodelleakage：familysetasidepartoftheincomeforsaving.injection：firmsgettheinvestmentfirmsfamilypaymentsExpenditureonconsumptionFinancialmarketsavingsInvestment3.1ConceptsofMacroeconomicEquilibriumNationalincome’scyclingmodel

From：Mankiw,Macroeconomics,5thEdition，P.363.1ConceptsofMacroeconomicEquilibriumMacroeconomicvariablesfromexpenditureviewConsumptionInvestmentGovernmentExpenditureNetExport3.1ConceptsofMacroeconomicEquilibrium——threesectionseconomyFirmsFamilyFinancialmarket

government3.1ConceptsofMacroeconomicEquilibrium——foursectionseconomy3.1ConceptsofMacroeconomicEquilibriumYAEAEY100100income=100expenditure=100100IU<0IU>03.2ConsumptionFunctionFactorsonthebehaviorofconsumerIncomePriceRateRationofincomePreferenceAgeofconsumerWeatherCustoms3.2ConsumptionFunctionKeynes’consumptionfunctionAfamily’sconsuminglist

YinBocheng’s“WesternEconomics”（3rdedition）page299（1）

（2）

（3）（4）IncomeConsumption

MPCAPCConsumptioncurveY0123C681012144567C=C(Y)45。

incomeequal

consumptionLinearconsumptioncurveY0123C681012144567C=a+bY45。

incomeequalsconsumption3.2ConsumptionFunctionKeynes’consumptionfunctionAveragePropensitytoConsume，APCMarginalPropensitytoConsume，MPC3.2SavingFunctionKeynes’savingfunctionIncomeincreases，savingincreasesaccordinglyAfamily’ssavinglist（1）

（2）

（3）（4）

IncomeSaving

MPS

APSSavingCurveY0-1S681012141234S=S(Y)LinearSavingCurveY0-1S681012141234S=-a+(1-b)Y3.2SavingFunctionKeynes’SavingFunctionAveragePropensitytoSave，APSMarginalPropensitytoSave，MPS3.2SavingFunctionKeynes’consumptionfunction&savingfunctionTherelationbetweenAPC&APSTherelationbetweenMPC&MPSConsumption&savingcurve

from：Yinbocheng“Simplifiedwesterneconomics”(Thirdedition),page305Y0-1S1012141234S=-a+(1-b)YC=a+bY3.2ConsumptionFunctionFamily’sconsumptionfunction&socialconsumptionfunctionRationofnationalincomeTaxpolicyTherateoffirm’sprofit1978-1991thenation’sconsumption&income

from：Yuanzhigang“Macroeconomics”（secondedition),P133Yearincome

consumptionAPC（ahundredmillionYuan）(ahundredmillionYuan）Thedeterminationofincome-twosectionsformula：Savingfunction:I=S45°line3.3ASimpleModelandOthersY=C+IC=a+bYI=I03.3ASimpleModelandOthersThedeterminationofincome-threesectionsformula：Savingfunction:I+G=S+T45°lineY=C+I+GC=a+b(Y-T)T=T0

+tY

I=I0，G=G0C+I+GY(C+I)oY*C45oC+I3.3ASimpleModelandOthersThedeterminationofincome-foursectionsPrincipleof：import：M=M0+myexport：X=X0

formula：45°lineY=C+I+G+(X-M)C=a+b(Y-T)T=T0

+tY

I=I0,G=G0,X=X0

M=M0

+mY3.3ASimpleModelandOthersC+I+GY(C+I)oY*C45oC+IC+I+G+(X-M)3.3ASimpleModelandOthersmultiplierTheratioofthechangeinanendogenousvariabletothechangeinaexogenousvariable(forexample,theratioofthechangeinoutputtoachangeinautonomousspending)3.4MultiplierInvestmentmultiplier3.4MultiplierY=C+I+GC=a+b(Y-T)T=T0I=I0,G=G0C+△IY(C+I)oY’C+I45o△IY△YTheeffectofmultiplier△Y=△I+△Ib+△Ib2+△Ib3+△Ib4+…...b=0.8=MPC3.4Multiplier3.4MultiplierMultiplierofgovernmentexpenditureMultiplieroftaxes（fixedtaxes）Multiplieroftaxes

（taxtoscale）TransferringexpendituremultiplierY=C+I+GC=a+b(Y-T)T=T0I=I0,G=G0Governmentexpendituremultiplier3.4MultiplierT=T03.4MultiplierY=C+I+GC=a+b(Y-T)T=T0I=I0,G=G0T=T0+tYY=C+I+GC=a+b(-T)T=T0+tYI=I0,G=G03.4MultiplierY=C+I+GC=a+b(Y-T+Tr)T=T0,Tr=Tr0I=I0,G=G0Transferringexpendituremultiplier3.4MultiplierBalancingbudgetmultiplier3.4Multipliermultiplier：Y—>Ireasons：Y—>C—>production

—investment

—>IFormulaofmultiplier：

Formulaofinvestment&income：It=v(

Yt-Yt-1

)3.4MultiplierChapter3TheEnd0102030409091929394959697989900126Chapter4FinancialMarket0102030409091929394959697989900TopicstobeDiscussed4.1Introduction4.2Bankingsystem&monetarymarket4.3Theinterestrate&nationalincome4.1IntroductionPhysicalassets&

financialassetsMoney&statisticcaliberBondsStocksPhysicalassets&

financialassetsBasicconceptsPhysicalasset

equipments,factorybuildings,automobiles,products,andproductmaterial…Financialassets

money、bonds、stocks…4.1Introductionphysicalassets&

financialassetsFunctionsoffinancialassetsInformationtransferLessenexchangecost4.1IntroductionMoney&statisticcaliberFunctionofmoneyTransactionFormMeasurementofValueMeansofPaymentandMeansofHoard4.1IntroductionMoney&statisticcaliberM0：Cash&Currency(Cu)M1：4.1IntroductionMoney&statisticcaliberM2：M1，SavingsDeposits(Ds),PersonalTermDeposits(Dt)4.1IntroductionMoney&statisticcaliberM3：M2,Non-PersonalTermDepositsandDepositsinForeignCurrency,etc,Dn4.1IntroductionMoney&statisticcaliberCurrencyDepositRatioThedeterminationof

CurrencyDepositRatiothebehaviorofthefamilyandthefirm4.1IntroductionCase1:Money&statisticcaliber

Source：Mankiw,Macroeconomics,5thEdition，P36BondsDefinitionCharacteristics：

Reimburse

negotiability

Beneficial

security4.1IntroductionStocksDefinitionCharacteristics：Non-reimburseParticipationNegotiability

BeneficialSecurity

risk4.1Introduction4.2BankingSystem&MonetaryMarket

BankingSystemTheassetanddebtCommercialbank

thedepositcreationTheDemandandsupplyforMoney

BankingSystemCentralbankIssuingbankBanks’bankGovernment’sbankTheindependencetogovernmentTheindependencetobanks4.2BankingSystem&MonetaryMarket

BankingSystemCommercialBanksTheReserves4.2BankingSystem&MonetaryMarketTheassetanddebtCommercialbankAssetbusinessdiscountingcreditsecuritiesDebtbusinessAbsorbdeposition4.2BankingSystem&MonetaryMarketAssets-debtsofmonetarymarket

Source:YuanZhigang,”Macroeconomics”,(2ndedition),P82Public（familiesandfirms）CommercialbanksCentralbankAssetdebtassetdebtAssetDebtCuCuDDReReLoansLoansBondsBonds

MoneyBase(Mb)Components:Cu,R(RR&ER）High-poweredmoney:H

4.2BankingSystem&MonetaryMarketMonetarybase&moneysupply4.2BankingSystem&MonetaryMarketMonetaryBaseMultiplier(mm)4.2BankingSystem&MonetaryMarketMonetarybaseandthequantity

Source:YuanZhigang,“macroeconomics”,(2ndedition),P115MoMbKDepositorBank’sdepositsBank’loansReserve（1）（2）=（3）+（4）（3）=（2）x0.8（4）=（2）x0.2A1008020B806416C6451.212.8…………TOTAL5004001004.2BankingSystem&MonetaryMarket

Thedeposit’screation

ThedemandformoneyKeynesianthreemotiveformoney：

Thetransactionmotive

Theprecautionarymotive

Thespeculativemotive4.2BankingSystem&MonetaryMarketTheequilibriumofmonetarymarketM0RMsR*M*MdE*Source:YuanZhigang,“macroeconomics”,(2ndedition),P119TheIncreaseofsupplyleads

theinterestratedecreasesM0RMsR*M*MdE*R**M**E**Sources:YuanZhigang,“Macroeconomics”,(2ndedition),P119.m=M/P0rmsr*m*mdE*Therelationbetweentherealmoneysupplyandrealinterestrater**m**E**TheIncreaseofsupplyleads

theinterestratedecreasesWhatwillhappenifthedemandincrease?Therelationbetweentherealmoneysupplyandrealinterestratem=M/P0rmsr*m*mdE*r**m**E**TheIncreaseofsupplyleads

theratedecrease4.3TheInterestRate&NationalIncome

MarginalEfficiencyofInvestment(MEI)rMEIr1r0II1I2155Chapter4TheEnd0102030409091929394959697989900156Chapter5GoodsandFinancialMarkets:TheIS-LMModel0102030409091929394959697989900TopicstobeDiscussed5.1TheGoodsMarketEquilibriumandISCurve5.2FinancialMarketsandLMCurve5.3GoodsandFinancialMarkets:IS-LMModel5.1ISCurveTheGoodsMarketEquilibriumTheDemand=TheSupplyTheGoodsMarketEquilibriumandtheISCurveConditionsForEquilibrium：I=S(ClassicalMethod)5.1ISCurveS=0.2Y-40I=260–2000RConditionsForEquilibrium：

S=I0.2Y-40=260–2000RISCurve：

Y=1500–10000R(ClassicalMethod)5.1ISCurveY=1500–10000R

Howtodrawit?RYSI450ISIr1Sr2I2I1S1S2Y1Y2ImbalanceinthegoodsmarketRYISEDESI>SE>YI<SE<Y

I=SE=YRRIIYYSS45ISR1I1S1Y1ISR2Y2I2S2

ISCurveS,IYYRY1Y2I1SY1I2Y2R1R2ISWhenInterestRate=R1,I=I1ISCurveWhenInterestRate=R2,I=I25.2LMCurveFinancialMarketsEquilibriumMoneyDemand=MoneySupplyLMCurveConditionsForEquilibrium：Ms=Md5.2LMCurveMs=400

L1=Mt=0.25Y

L2=Ma=250–