高宏Chapter5浅析.ppt

Chapter 5 Traditional Keynesian Theories of Fluctuations 周泳宏 tzhouyhjnu@jnu.edu.cn introduction Sluggish price adjustment creates a channel other than the intertemporal-substitution and capital-accumulation mechanisms of basic RBC models through which these shocks affect employment and output There are barriers to the instantaneous adjustment of nominal prices and wages Sluggish nominal adjustment causes changes in the aggregate demand for goods at a given level of prices to affect the amount that firms produce As a result, it causes purely monetary disturbances to change employment and output 5.1 5.2 Develop the aggregate demand side of the standard Keynesian model 5.3 5.4 Consider aggregate supply 5.5 5.6 Discuss some empirical evidence about the real effects of monetary changes and the cyclical behavior of the real wage 5.1 Review of the Textbook Keynesian Model of Aggregate Demand The IS Curve Shows the combinations of output and the interest rate such that planned and actual expenditures on output are equal A standard formulation In equilibrium, planned and actual expenditures must be equal IS Curve The IS curve is flatter when or is larger The shift of E line indicates the effect of The slope of E line indicates the effect of Multiplier The steeper the planned expenditure line, the more output must change to reach balance The LM Curve Shows the combinations of output and the interest rate that lead to equilibrium in the money market for a given price level IS-LM Model The AD Curve Example The effects of an Increase in Government Purchases Summary Incomplete adjustment of nominal prices introduces a new channel through which shocks affect output For some reason, nominal prices do not adjust fully in the short run. As a result , any change in the demand for goods at a given price level affects output In contrast ,the intertemporal-substitutin and wealth effects that drive employment fluctuations in RBC models would correspond to effec