北大金融学课件(英文版)第8章(3课时).ppt

CHAPTER 8 How Does the Open Macroeconomy Work? National Macroeconomic Performance Goals Internal Balance Full employment, or an acceptably low unemployment rate Price stability, or an acceptably low inflation rate National Macroeconomic Performance Goals External balance Sustainable balance of payments with the rest of the world Useful indicator: Official settlements balance approximately equal to zero (so that the country is not losing official international reserves or acquiring unwanted official international reserves) The Product Market Y=AD=C + Id + G + (X－M) Y－C－G= Id + (X－M) Since Y－C－G=(Y－T－C)+(T－G) = S , S=Id + (X－M) The Current Account (CA) Balance ?1. If credits equal debits, the current account balance must equal net foreign investment (If). ? CA = If where, If has 2 components: KA OR 2. National saving (S) versus domestic investment (Id). S = Id + If, so that ? CA = S – Id IS Curve S=S(Y) Id=Id (i) M=M(Y) S(Y) = Id (i) + X－M(Y) IS curve shows all the combinations of Y and i for which the domestic product market is in equilibrium. Figure 8.5 Forces Shifting IS up Expansionary fiscal policy An exogenous increase in Household consumption domestic real investment Exports An exogenous decrease in imports The Money Market: LM Curve Benefits and costs of holding money L = L (PY, i) =Ms LM curve shows all combinations of Y and i for which the money market is in equilibrium. Figure 8.6 Forces Shifting LM down Expansionary monetary policy Decrease in price level Exogenous decrease in money demand Intersection of IS LM IS and LM determine the level of Y and i The intersection shows the short term equilibrium in both the product market and money market. The Foreign Exchange Market: FE Curve Current account balance depends negatively on Y International capital flows depend on i in the short run B = CA (Y) + KA (i) FE curve shows all combinations of i and Y that result in a zero with official settlement balance Ambiguous Effect in