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week#8 (the behavior of Y (holding all else constant) (Y shift的原因 (Asset…
week#8
the behavior of Y (holding all else constant)
Y shift的原因
technology or productivity shocks
changes to household wealth or consumer preferences(this includes consumer expectations of the future)
fiscal policy (governent expenditure or taxes)
Asset market
monetary assets
demand of money (公式）
demand of money is trade-off b/w liquidity and lower expected returns. anything that makes alternative assets less desirable, increase the demand for money
nominal demand
income
the nominal rate of return on all non-monetary assets
the expected inflation rate
the price level
根据公式可知
nominal money demand is increasing in price level
real money demand is increasing in income
real money demand is decreasing in nominal interest rate if we hold constant
real money demand is decreasing in as higher expected inflation decreases the real return to money
nominal money demand is proportional to price level.成比例
non-monetary asset