뒤로Ch3 Ch4
이 집합의 용어 (21)
Currency and checkable deposits are the two main types of money used for transactions.
The demand for money depends negatively on the interest rate; as interest rates rise, people hold less money and more bonds.
Md = \(Y L(i), where \)Y is nominal income and L(i) is a decreasing function of the interest rate i.
An increase in nominal income increases the demand for money, shifting the Md curve to the right.
The central bank sets the money supply and adjusts it through open market operations to achieve a target interest rate.
Buying bonds to increase money supply (expansionary) or selling bonds to decrease money supply (contractionary) by the central bank.
Interest rate i = (100 - P_B) / P_B; higher bond prices mean lower interest rates and vice versa.
Assets: Bonds; Liabilities: Central bank money (reserves + currency).
Assets: Reserves, loans, bonds; Liabilities: Checkable deposits.
The fraction of checkable deposits that banks hold as reserves, used to determine demand for reserves Hd = θ Md.
A market where banks borrow and lend excess reserves overnight; the federal funds rate is the interest rate in this market.
A situation where the interest rate is at or near zero, making monetary policy ineffective in lowering it further.
Money demand becomes horizontal at zero interest rate, so increases in money supply do not lower interest rates.
GDP = Consumption (C) + Investment (I) + Government spending (G) + Net exports (X - IM).
C = c0 + c1 Y_D, where c0 is autonomous consumption and c1 is the marginal propensity to consume (0 < c1 < 1).
Y_D = Y - T, where Y is income and T is taxes minus government transfers.
Production (Y) equals demand (Z), so Y = Z = C + I + G.
Y = (1 / (1 - c1)) (c0 + I + G - c1 T), where the multiplier is 1/(1 - c1).
An initial increase in autonomous spending leads to a larger total increase in output by a factor of 1/(1 - c1).
Investment equals saving: I = S + (T - G), where S is private saving and (T - G) is public saving.
When consumers try to save more (reduce c0), output falls, so total saving does not increase in equilibrium.