巴罗宏观经济学：现代观点第10章课件-002

1MacroeconomicsChapter10ConceptsofMoneyFiatmoneyhasvalueduetogovernmentfiat,ratherthanthroughintrinsicvalue.Commoditymoney,suchasgoldandsilvercoins,whichdohaveintrinsicvalue.High-poweredmoney,whichaddsthedepositsheldbybanksandotherdepositoryinstitutionsAttheFederalReserve.Anothernameforhigh-poweredmoneyisthemonetarybase.2MacroeconomicsChapter10ConceptsofMoneyMonetaryaggregateAmonetaryaggregateisthetotaldollarstockofagroupoffinancialassetsdefinedtobemoney.Themostcommondefinition,calledM1Checkabledepositsissuedbybanksandotherfinancialinstitutions.3MacroeconomicsChapter104MacroeconomicsChapter105MacroeconomicsChapter10ConceptsofMoneyMonetaryaggregateM2includeshouseholdholdingsofsavingsdeposits,small-timedeposits,andretailmoney-marketmutualfunds.TheM2definitiongoesbeyondtheconceptofmoneyasamediumofexchange.Inourmodel,itisbesttouseanarrowerdefinitionofmoney,forexample,ascurrencyheldbythepublic.6MacroeconomicsChapter10TheDemandforMoneyMoneyishand-to-handcurrencyAssumethattheinterestratepaidonmoneyiszero.BondsandownershipofcapitalInterest-bearingassets

Theseassetspayapositivereturntotheholder.7MacroeconomicsChapter10TheDemandforMoneyThehouseholdbudgetconstraintinnominaltermsPC+

∆B+P·∆K=π

+wL+i·(B+PK)nominalconsumption+nominalsaving=nominalincome8MacroeconomicsChapter10TheDemandforMoney“demandformoney,”Md,Theaverageholdingofmoneythatresultsfromthehousehold’soptimalstrategyformoneymanagement.9MacroeconomicsChapter10TheDemandforMoneyTheInterestRateandtheDemandforMoneyAhigherinterestrate,i,providesagreaterincentivetoholddownaverageholdingsofmoney,M,inordertoraiseaverageholdingsofinterest-bearingassets,B+

PK.Thatis,withahigheri,householdsaremorewillingtoincurtransactioncostsinordertoreduceM10MacroeconomicsChapter10TheDemandforMoneyTheInterestRateandtheDemandforMoneyWepredict,accordingly,thatanincreaseinireducesthenominaldemandformoney,Md.Foragivenpricelevel,P,wecanalsosaythatahigherilowerstherealdemandformoney,Md/P.11MacroeconomicsChapter10TheDemandforMoneyThePriceLevelandtheDemandforMoneySupposethatthepricelevel,P,doubles.Thenominaldemandformoney,Md,doubles.SinceMd

andPhavebothdoubled,theratio,Md/P,isthesame.Theresultisthattherealdemandformoney,Md/P,doesnotchangewhenPchanges.12MacroeconomicsChapter10TheDemandforMoneyRealGDPandtheDemandforMoneyAssumenowthatnominalincomedoubles,whilethepricelevel,P,isunchanged.Householdswoulddoubletheirnominaldemandformoney,Md.SincePisconstant,therealdemandformoney,Md/P,alsodoubles.13MacroeconomicsChapter10TheDemandforMoneyRealGDPandtheDemandforMoneyEconomiesofscaleincashmanagement,athigherincomeshouseholdsholdlessmoneyinproportiontotheirincome.14MacroeconomicsChapter10TheDemandforMoneyOtherInfluencesontheDemandforMoneyPaymentstechnologyTheleveloftransactioncosts15MacroeconomicsChapter10TheDemandforMoneyTheMoney-DemandFunctionMd

=P·L(Y,i)Md/P=L(Y,i)16MacroeconomicsChapter10TheDemandforMoneyEmpiricalEvidenceontheDemandforMoneyStevenGoldfeldCaseyMulliganandXavierSala-i-MartinMichaelDotsey17MacroeconomicsChapter10DeterminationofthePriceLevelTheNominalQuantityofMoneySuppliedEqualstheNominalQuantityDemandedMs

=MdMd

=P·L(Y,i)Keyequation:Ms

=P·L(Y,i)18MacroeconomicsChapter10DeterminationofthePriceLevelGeneralequilibrium.

Ms

=MdLs

=Ld(κK)s

=(κK)d.19MacroeconomicsChapter10DeterminationofthePriceLevel20MacroeconomicsChapter10DeterminationofthePriceLevelAChangeintheNominalQuantityofMoneyFromaone-timechangeinthenominalquantityofmoneysupplied,Ms.TheincreaseinMs

fromMto2MraisestheequilibriumpricelevelfromP∗to2P∗21MacroeconomicsChapter10DeterminationofthePriceLevel22MacroeconomicsChapter10DeterminationofthePriceLevelAChangeintheNominalQuantityofMoneySincethetechnologylevel,A,hasnotchanged,therealwagerate,w/P,andlaborinput,L,donotchange.Therefore,thepricelevel,P,istwiceashigh,andw/Pisunchanged.Weconcludethat,ingeneralequilibrium,thenominalwagerate,w,hastodouble.23MacroeconomicsChapter10DeterminationofthePriceLevelAChangeintheNominalQuantityofMoneyTheunchangedtechnologylevel,A,meansthattherealrentalprice,R/P,andthequantityofcapitalservices,κK,donotchange.ThefixedκKcorrespondstoagivencapitalstock,K,andanunchangedcapitalutilizationrate,κ.Thus,thepricelevel,P,istwiceashigh,andR/Pisunchanged.Wemusthave,ingeneralequilibrium,thatthenominalrentalprice,R,doubles.24MacroeconomicsChapter10DeterminationofthePriceLevelAChangeintheNominalQuantityofMoneyi=(R/P)·κ−δ(κ).ThedoublingofMs

doesnotchangetherealrentalprice,R/P,andthecapitalutilizationrate,κ,therateofreturnonownershipofcapitaldoesnotchangeontherighthandsideofequationTheinterestrate,i,isalsounchanged25MacroeconomicsChapter10DeterminationofthePriceLevelAChangeintheNominalQuantityofMoneyY=A·F(κK,L)AdoublingofMs

doesnotaffectthequantitiesofcapitalservices,κK,andlabor,L.Inotherwords,ingeneralequilibrium,aone-timeincreaseinthenominalquantityofmoneysupplied,Ms,doesnotaffectrealGDP.26MacroeconomicsChapter10DeterminationofthePriceLevelTheNeutralityofMoneyInthelongrun,anincreaseordecreaseinthenominalquantityofmoneysupplied,Ms,influencesnominalvariablesbutnotrealones.27MacroeconomicsChapter10DeterminationofthePriceLevelAChangeintheDemandforMoneyAnimprovementinthetechnologyformakingfinancialtransactions—perhapsincreaseduseofcreditcardsorATMmachines—decreasestherealdemandformoneyto[L(Y,i)’],sothatthenominaldemandbecomes:(Md)’=P·[L(Y,i)’]28MacroeconomicsChapter10DeterminationofthePriceLevel29MacroeconomicsChapter10DeterminationofthePriceLevelAChangeintheDemandforMoneyAdecreaseintherealdemandformoneyissimilartoanincreaseinthenominalquantityOfmoneysuppliedinthatthepricelevel,P,risesineachcase.However,onedifferenceisthatachangeinMs

isfullyneutral,whereasachangeintherealdemandformoneyisnotfullyneutral.30MacroeconomicsChapter10DeterminationofthePriceLevelTheCyclicalBehaviorofthePriceLevelArecession,declineinYreducestherealquantityofmoneydemandedThedecreaseiniraisestherealquantityofmoneydemandedInarecession,therealquantityofmoneydemanded,givenbyL(Y,i),decreasesoverall.31MacroeconomicsChapter10DeterminationofthePriceLevelTheCyclicalBehaviorofthePriceLevelGivennominalquantityofmoneysupplied,Ms,thedecreaseintherealquantityofmoneydemanded,L(Y,i),raisesthepricelevel,P.ThatisPwillbecountercyclical.32MacroeconomicsChapter10DeterminationofthePriceLevel33MacroeconomicsChapter10DeterminationofthePriceLevelTheCyclicalBehaviorofthePriceLevelInourequilibriumbusinesscyclemodel,theunderlyingshockscomefromthesupplyside,notthedemandside.Alowtechnologylevel,A—thesourceofarecessioninthemodel—meansthatgoodsandservicesareinlowsupply.Whenlookedatthisway,itmakessensethatPwouldtendtobehighinarecession.34MacroeconomicsChapter10DeterminationofthePriceLevelPrice-LevelTargetingandEndogenousMoneyWhenthemonetaryauthorityseekstoattainaspecifiedpricelevel,P,ittypicallyhastoadjustthenominalquantityofmoney,M,inresponsetochangesinthenominalquantitydemanded,Md.35MacroeconomicsChapter10DeterminationofthePriceLevelPrice-LevelTargetingandEndogenousMoneyToseehowthisworks,wenowassumethatthemonetaryauthoritywantsthepricelevel,PtoequalatargetlevelP0.Thisobjectiveiscalledprice-leveltargeting.36MacroeconomicsChapter10DeterminationofthePriceLevelPrice-LevelTargetingandEndogenousMoneyM=P0

·L(Y,i)nominalquantityofmoney=price-leveltarget·realquantityofmoneydemanded37MacroeconomicsChapter10DeterminationofthePriceLevelPrice-LevelTargetingandEndogenousMoneyTrendgrowthofmoneySinceL(Y,i)growsatthesamerateasrealGDP,Y,weconcludethatMmustgro