《西方经济学原理》Chap 33 The Warring Schools of macroeconomics

ECSENOMICS Chapter 33 The Warring schools of macroeconomics McGraw-Hilllrwin Copyright@ 200/ The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Chapter 33 The Warring Schools of Macroeconomics

ECSENOMICS According to Says Law, Supply Creates Its Own Demand as Prices move to balance Demand with Aggregate Supply T252 Figure 33-1 utput AD AD′ Q=Q′=Q Real output McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. T-252 Figure 33-1 According to Say’s Law, Supply Creates Its Own Demand as Prices Move to Balance Demand with Aggregate Supply

ECSENOMICS Aggregate Demand Helps Determine C Output in the Keynesian Approach T253 Figure 33-2 Potential AS 8 AS AD AD Q Q Real output McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Aggregate Demand Helps Determine Output in the Keynesian Approach T-253 Figure 33-2

ECSENOMICS Velocity and Its components 1929-1995 T254 Figure 33-3 10,000 1.000 2=865=558E55 M, (left scale) Nominal GDP (left scale) ≥ Velocity (right scale 1920193019401950196019701980 1990200 Y McGraw-Hilllrwin Source: V constructed by the authors from the data from the Fe de ral Reserve board

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Velocity and Its Components, 1929-1995 T-254 Figure 33-3 Source: V constructed by the authors from the data from the Federal Reserve Board and the U.S. Department of Commerce

ECSENOMICS Comparison of monetarist and Keynesian Views T255 Figure 33-4 (a) Monetarist Approach (b) Keynesian Approach AS only M. G.-TX AD AD Real output Real output McGraw-Hilllrwin Copyright C 2001 The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Comparison of Monetarist and Keynesian Views T-255 Figure 33-4

ECSENOMICS Rate of Changes of Income Velocity of M T256 Figure 33-5 19601965 19701975 1980 1995 Ye McGraw-Hilllrwin Source: Velocity de fine d as the ratio of gDP to Mi; money supply from the Fede ral reserve board

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Rate of Changes of Income Velocity of M1 T-256 Figure 33-5 Source: Velocity defined as the ratio of GDP to M1 ; money supply from the Federal Reserve Board and GDP from the Commerce Department

ECSENOMICS The New Classical Phillips Curve T256 Figure 33-6 W B True"Phillips curve Apparent short-ri 三 Phillips curve C Unemployment rate McGraw-Hilllrwin Copyright@ 200/ The McGraw-Hill Companies, Inc. All rights reserved

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. The New Classical Phillips Curve T-256 Figure 33-6

ECSENOMICS Comparison of Multipliers in Forward Looking and Adaptive models T258 Figure 33-7 1.5 三 v5 1.0 Adaptive 三 ∽点 0.5 Forward-looking s=EE Years after fiscal policy Souree: Ralph C. Bryant, Gerald Holtham, and Peter Hooper,Consensus and Diversity in the Model Simulations, in Ralph C. Bryantet aL, eds, Empinical Macroeconomics for Interdependent Economies McGraw-Hilllrwin Brookings Institution, Was hington, D.C., 1988), Fig 3-33

McGraw-Hill/Irwin Copyright © 2001 The McGraw-Hill Companies, Inc. All rights reserved. Comparison of Multipliers in Forward￾Looking and Adaptive Models T-258 Figure 33-7 Source: Ralph C. Bryant, Gerald Holtham, and Peter Hooper, “Consensus and Diversity in the Model Simulations,” in Ralph C. Bryant et al., eds., Empirical Macroeconomics for Interdependent Economies (Brookings Institution, Washington, D.C., 1988), Fig. 3-33