Schemes for 30453 - FOUNDATIONS OF ECONOMICS - MODULE 2 (MACROECONOMICS) BESS 2020/2021, Schemi e mappe concettuali di Macroeconomia

Scarica Schemes for 30453 - FOUNDATIONS OF ECONOMICS - MODULE 2 (MACROECONOMICS) BESS 2020/2021 e più Schemi e mappe concettuali in PDF di Macroeconomia solo su Docsity! National Accounting SNA —SSTEN oL [uno nccsurista A COMERENT STA dt tmInCI. #7 DESCRIBE seveecaTe Ctoloty (GbP- GROSS DOMESTIC PRODUCT + “ONE PeRsoNs EHPENDITORE ds AUOTHERIS TNCOMEY (foi CIACULAR FLOW HoDEL) No DEPEGCIATON of CAf ITAL __NOHINAC (Cunet PRIUS) È + PRODUCTION Ve HARKET VAWE of ALL FIVAL 00)S cud SERVICES PRODUCED WITHIN AN ECONOMY NURING A GIVEN PERIOA c TIME PRICES= VALUE Vo TNTERMENATE quodh (FIR FM) | CORRENTLY Lupenor (ua) SUM of VAVE ADDED wiTHIW AU E00NOMY DURING A GIVEN PERIOA of TIME VALUE of PRODUCTS = VALUE È INTERMEDIATE quod * INCOKE (DI) - SUM of AULWCOMES GENERATED cul DISTRIBUTED WITWW AU ECONOMY DURING A GIVEN PERIOA of TIME PRoFrS «WAGES «TNDIRECT TAXES I__REAL (Gowdint PRICES= PRICES iu a. BASE ( € pen] FGDP Lu CHAIN- LINKED volunes DIFFICULTIES su CHOGSING a BASE YEAR = PAISTANGE = È DISTORTIONS SYSTEMS of RELATIVE PRICES Mauk, CHANGE Stowly over TIME * DIFFERENT Good (ep 4925 Guns ud tab Gas) COMPONENTS of GBP powdk SUM UP + BFFENENT QUALITY of G0ODS (eg. 2005 PIOIES qud eo PHoWES) * DIFFERENT COSTS (Gy. 1430 Nt nd dozo PC) — PRoBMEoS * GBP is NoT a. DIRECT HEASUREOÉ SOCIAL WELFARE (Duk CORRELATED) + Hovsekot» pordudtoy is TGUORED (eg. CARING fa. SOMEONE) * EXTERNALITIES are TENORED (eq. CHINA) * LEISURE #5 Ue VALVED (19. fGDP bc of SLESURE) PRICE Wves (—GDP DEFLATOR PE GBA/REDP —PRoE Inex, GENERAL PRICE (EVEL of PRODUCEDI Gooss CRT iaia (CPI - (ONSUMER PRIGE IUDEX— GENERAL PRICE EVEL of CONSUMED Gooss + REPRESEUTATIVE BASKET (s Venr) 'SIFLATION/DEFCATION — CHANGE ku, PRICE LEVEL. (VET'GROWTH RATE) T = fe ha fe A fe-u fe 'yoRK STATISTICS -WORKING-AGE PoPULATION {S-6h YEARS) (LABOUR FORCE = EHityMENT+UNEHN0Y HENT PARTIC|PATION: RATE = LABOR Force WORKING - AGE - EMPLOYMENT= HAVING a, 808 (da of REHUERATED Wok pi EEK Read (6 une da, 2 Wenn) _ EMfoyMent EMMoYMENT RATE = TTT (Ecoware POTENTIAL) “UNE HttoyHEUT= LooKinK fe 0.508 (> 3 attrugio) ONCIPOYMENT RATE = QUEMRO RENT (Enne ME FFICIENY) LABOUR-FORCE ‘007 of LABOUR FORCE (IvAcriVe) * DISCOURAGED WORKERS- GIVE UP cookinG. (Hord. {6 wosnace) Ru — SYNESS CYCLE — Boo AEtESSIOI RECESSION «SIGNIFICANT DEGLIVE au ECONOMIC ACTIVITY - WIDESPREAD *PRololGED  Goos HARKET KEYWesiaN: Boa auy DeWawb 2, Meg, vs SUPPLY Y oe A j n = + TIT] VELO cn YM=AIHCDI RESuRIES DESTIIETIONI Soviaes | (BNINEStMENMENAUNES — I - ;- (+76 -S >(DVSOG SARE Sands COMPONENTS (NET FOREIGN DEHAND/NET ExPoRTE/MRADE BALANOT NX = X-M (CloSEb NX=0) — IMPORTS H- FOREIGN Go0D$ fg, (oCALS XHH = OPEMUESS of. au, € Go NoMY EXPORTS X- (oCAL GCOBS fa AREIGNERS '__NHESTIC DEMAND C+T+G (GOVERNMENT BUDGET G LT - HOGENOUS - SPENDING G MO GUERUMENT TRANSFRS! (0a, DUEItYHENT BENENITS Pasian * CONSUMPTION - DIRECT SATISFACTION of NEEDS - TNVESTHENT- FurURE BEEFITS (2g. INFRASTRUCTURE /ReScAROA) - TAKEST I CONSUMITION C(X)=co+a1 (Y-T) - EMOGE NOUS = MARGIVAL Moteusity G CousuMe : 0<C4<A- Goods GoNSUMED Wie A adoliticu@i Yi — AUTHOHOLE CONSUIFTON Co - ALL OMER. FACTORS. INDIRENDENT fio INCOME (CA, SUBSISTENCE, EXPECTATON) '_RoSS CAPITAL FORVATION L - FIXED. INVESTHENTS + Nol-RESDENTIAL T(Y, 4) FIRMS (cawrs, MACHINES.) - (EVA OL SAES Y (17: f RAS, MACHINES 000) - INTEREST RATE + OPPORTUNITY COST" of LORROWIVE (RETURNS > CoST(A+-è) ?) - RESIGUTIAL- PEORE (teus) =0 = CHAAGE INI INVENTORIES “RAW MATERIALS /Goops den SAU =0 —EQUILIBRIUH (LS RELATION Muli — OUTPUT=DEHAND «egg > 2- A+cyY + AUTONOHOUS DEHAND A = Cot E Diter ast vniar = TL Inpinecr U Effeon erFatr >A de ST CI=4+ 014.40 = _L A-C4 Wo 350 1-4 * KEYNESIAN MULTIPUER -birear error. AT ZT3Y1 (content) wo -imugecr ereeor. Af>Z2f>YT»CT —TNVESTMENTE SAVING MIZAR * PROPENSITY TO SAVE (1-04) PARADOX of THRIFT/SAVNGS. Co PCpAVDS = EXPAND TS RELATION - OUTPUT=DE HAND Y 22 VE GAP) > BRANN fer a. quis 4 (<45° hg EMPIRICAL EVIDE 10€) A f > MovEHENT Avon THE CURVE AT A SHIFT THE CURVE = = IE» ‘ci - TIIMIDINO OCLUISI TIR) FUVANLIAL INdIKRUMENIÒS UbU MONS RK) VALUG * RETURN “RISK * MATURITY- LENGTH L TIME off WHICH dE ENDS ( RESERVES) FIUARCINL INTERME DIARY: SETTIG-FINAUCIAL TRANSAGNONS Motron SAVERS £ BORDERS wii: LEGAL TENDER/BASE Money /HIGH-RaveRed MOUEY — FRACTIONAL RESERVE BAuiKING * ReseRves È cotce, DAILY TRAISACTIONS (> A %) = LIQUIBITY RISK | COSTOMERS uso \WITHDRAW at WILL > RescRE RATIS ano CONSTRAINTS dee ble SUPRY of BROAD HoWey BALANCE SHEET ASSETS SECURITIES (eg Bonus) BASE Honey — RESERVES — CURRENCY (cASU) LIABLITIES BROAD Ho EY — DEPOSITS _ CENTRAL BANK CB —SUPPlY of MoWEey sud, CREDIT — MOLETARY POLICY: SUPRY of BASE MONEY we INTEREST RATES — FIVANCIAL STABILI :SUPERVISION ol BANKS BALANCE SHEET ASSETS LIABILITIES SECURITIES | BASE MONEY (eg Bonbs) — RESERVES — CURRENCY (CASÙ) USEFUL GONEPTS L_yeam [NEW \WORTH= ASSETS - LIABILITIES (Stock VARIABLE) 2 e - ASSETS = OWNINGS+0€ INS - REAL (BuldIGS, (AUD, CAPITAL GS): TE = AVE IE FINAUCIAL ASSGTS. (SuARE, BONDS, ANS) © pet * PRESENT INLUE/BEP PRICE p Je sua fel ya « INTEREST RATE/VIED 43 a * FUTURE PAYMENT F «Lenno = C<Ya chat (crRruy EARUINGES) LI ABILLTIES =DEBTS + Bomsulin= C>YA Caf at (OMR CoST)  STANDARD LS-LH- EQUILIBRIUM iu Gomsa Motley MARKET (SHERT- RUN) ISìY ni TIHI(VA)H+G tetta tetdi UH: de 9 A-CA -du Kb= I ch4RIE t(£ = od ; la PoLICIES di da Hi (F ISCAL CONSOLIDATION (Tt 02 G4) n î i i Firms' expectations are crucial to the effectiveness of monetary expansions: if they forecast bad times, demand for investments might not change even if i is really low = d LM; 7 TA 7 IEXPANSIONARY PoUiCy Mix (Thor GT +44)- REALLY BAD RetESSIONE ss \g, forteoitart FISCAL CONSOLIDATION £ MONETARY EXPANSION (Tf a G4+ 44) The final effect on output (increasing, decreasing or remaining stable) depends rl NE A upon the the extent of the policies IM, IS, 15, iriselitore EXTENDED IS-LM ci Y=C(Y-T)AT(V4-0%4x)+ E CHIVM=V TL NVESTHENT olupudb ou BORROING RATE=V+x (REAL (Ex ANTE) INTEREST RATE 1 = À- 12 (de audi TE, < 40%) By FISHER EQUATION A+ = AtaL)R 14K= - KA+R% et >» Tre Peet late — AMOUNT of Kowgy E RePAY (Arde)Pe — AHOUNT e Good & RePAY Arre, Gta — EXPECTED INFLATION RATE È, = Might È _REMARKS — Ti d lst — TIPIALY TE, >O + ode — TIPIALY ME,,>0 + <de - 2ER0 LOWER BOUND: a>0 +3 - TRUE cuty for SHAL AHOONTS (04% Kesp CASH) - The, BAWK vwgql go BUST + ACCEPT L=<0 ISK PREMIUN x= (i) 2 (RISK- NEUTRAL) — PROBABILITY of DEFAULT: D <p<A - RETURN cow a RISKLESS BOND (Ara) FINANCIAL CRISIS au TS-CM — HINDERS He AGILITY of HouseMayi & FIRMS & AccEsS FINANCIAL MARKETS creata DISYVA um EXPANSIONARY PollCyY is NEEDED (1-4) ELE 45 olendhy lo, He, ZERO loWER Bound Woiy revos Yo HOVETARY EXPANSION [NEFFEGIIVE Rota da TS-LH-PC (Hebivw- Ru») TS-CH (Y=C(Y-T)+I(Y,7+9+G PC aa Va) * \ICKSELLIAN RATED INTEREST, | Y=M | ANCHORESTEXPECTATONE 9-0 TS-LH SY=C(Y-T)+I(Y7+9+G PC Ls Vo) [FISCAL CONSOUDATION (rta GI) £ MONETARY EXPANSION (+ 4) IS-LM-PC model Fiscal con: * SHorT Run Yb®Ck, IK,t<0 IM, 1 > MONETARY EXPANSION C&:K14 seg + NEDION RUN: Ye Ya (c I î), T30 I ‘ase in x F 1S-LM-PC model el Financial cris 4, causin og uefon i p*SHORTRUN: xf>IboYi®CH,II 2a; » HOVETARY EXPANSION CB. VE (cul uil 218) ran “a *NENONRUN:T=0,Y<%x heziBis 7 2=2°=0 Ty %a 'PureLy ADAPTIVE ExPECTATIONS 9-4 TS-LHSY=C(Y-T)+I(0749+G PC de Va) (MONEY MARKET DIT=0 , U Un, Vela PAL (ty) Tf-Mt [FISCAL consoubaTion (rta GÎ £ HONETARY EXPANSION (44) BIO CP ISLM-PC me Fiscal ce * SHORT RUN: Y4 >C4, I = MONETARY POLICY CB: vi 4 + HEBIUM RUN :Y=Va (CHI) gm ,40=0  "Am Je DE FLATION TRAP (2L8) — PERIOD È Dad petlevent ASSUMPTIONS Y's, N,=07Yh - - FISCAL GONSOLIDATION Tf=> |S+ rResd OB: 14 vul0 218 >= Ma =0 Is «AT<0O «TM <0 r Deflatior F x sirena e M>0 Ù , AM Aîmt<0 Si mM eM<0 Ar, - PERIOD n : Deflation 72-1,=4% Ga -Ty>-T >0 ‘AU < Amy <A <0 . Ma<M, <Mm<0 Ar Ar, SUPPLY SHOCK (ut > unt» PLT) m r IS-LM-PC modi Suppi * STAGFLATION : utut sing ove DHONETARY POLICY tion 7 F — OVERSHOOTING Y''> rl, DAT<O (TeupoRARILY, 1 6 INITIAL ver) 3 — RESTABIUZING Ylu<l*=DAY=0 ion Ar mm Az, Az,=0 Financial markets and expectatione FINANCIAL MARKETS | EXPECTED PRESENT DISCOUNTED VALUE (PV) — VALUE of SEQUENCE of PAYHENTS cu Tarw of TODAY (Honey TODAY > HOVEY Toltoton) O ever te eri + V(a,8 di Pa, ut) © e a Ze: a+ TEO lt) DISCOUNT FACTOR, +, Ara DISOOUIUT RATE Ag = TME RATE (tipica RISK-IESS) tati coudà be cond. iu Ha PERIOD. (OMOLTUNITY COST) EXPECTED FUTORE PAYMENT EZE,, /2%m EXAMPLES — CONSTANT è (O) EVE -È, tele i ® ve = £. ICI — COUSTANT & md. è, MATURITY 00 (CoNSOL BoNbS) DM) eve ® te Bons 1 CaufoN Bos - PAYMENTS befem. HATURITY ((oUPONS) + PAVMENT st MATUAITY (FACE VALLE) Calia) RATE —conpons. Tre LD Coufovs CURREUT MELb Spe __DIScoUNT BoWbs - PAVMENT at MATURITY (FACE VALE) PRICES gud, YIELD Detinuied, “FACE VALUE (FY)-PAYMENT st MATURITY MATURI T- LENGTA «TIME off lui, ib EUDS «RISK - DEFAULT- NOT PAY BA0K He, AMOUNT — PRICE- SELL Bob Lefen HATURITY L_ERIVANON }—ComtentivE LiS-(E4S MARKET (x=0) —Price= Py AVER Pas TIE 2900 Re e Atiiar - NO-ARBITRAGE (Gare Exfecred A-veAR RETURN) For cum duro vu A-YEAR BONDI: Atdg for cum cito va L-YEAR BoNDS LP n Aix CPi — = Pa > B& avocala. IMI ERI AVER ius A ev Tra 2. I__GOHFPETITIVE MARMET aut PRICE RISK — NO-ARBITRAGE Aiuta cetra Eh eV enne) fusk PREMO Vietd in 6 >» Bse anocalil VIELD TO MATUR AVEAR du A Aut ev Eh ZIE de 4 (ut rat i) vini RADAR Residual maturi in years Liounlip Celia YIELD-MATURITY * UFIVARD SLofiNG (Sena wt pxfa if) CRM EPREAD (SIOPE) dere ia 4 (Fe Aut Kat) Sos te EXPECTATIONS + Acculi, PREBIOOR, 0f- ELoWoKIC A ride ae fa isa Cds POSITIVE “NORMAL Lote dere Ayg > Kae [2 Alr004 P Rae LARGER Hina NORMALE — dd & Xag fe Etra Aa => SMALLER A “NORMALI (pena, NEGATIVE) STOUKS— Flow of NviewSs FWCCVATIVG ibi PROFIT DIVIDEND DISCOUNT HODEL (fron EFFICIENT MARKET MYPOTHESIS) — CHANGES zu EXPECTATIONS = CHANGES du STOCK PRICES (HARDY PRENCTABIE) is Defoe, ou HARKET'S EFFICIENCY È INFFUSIONI of. INFORMATION — Ex -buibevs PRICE € QL divisero €dy ERPECTED DIMDEND € Ney RETURN £ lu teo, <a PRICENSERIMATIONI — NO- ARBITRAGE AF, + SEO FE Ni EQ it O RL ST den - EQUITY RISK XL Sic €QE,, = it € A € cd Ti Ea) 4 Qua ELMEG) iii ine GoNSTIT A+Lia tu L (ta, 1 (Ud,  Open Economy EXCHANGE RATES I BILATERAL V E= Awutok soMeste curgevcY Lu Tm of FOREIGN fivet iu ANGIO —SAXON) DS eee ® e-Ed _ PRICE ot DOMESTIC Goons au FOREIGN CURRENCY spa taa a P° PRICE sf FOREIGN Gom$ cu FOREIGN CURRENCY cal | FLEXIBLE —Deliunod ba UÎP sl - APPREUIATION E/£ 1 — DEPRECIATION E/E 4 — CONS — HIGH FLUCTUATIONS + INFAMOI (Lottauiua, o DEPRELIATION) * I STABILITY — DISRUPTS TRADE FLOWS sud (UVESTHENTS — SUBZECT & SPECULATIONIS aud. EXTERNAL FOROES FIXED Raro, clou — REVALUATION E/et —NEVAWATION E/E4 — TyPES » PEG — FOLLOW ANOTHER CURRENCY If ST Lt» NX 4 CRAWLING PEGS -Prodelimmived mati of DEPRECIATION (rome COMPETMVENESS) * EURDIEAN MOMETARY SYSTEM - EXCHANGE RATES put BANDS Otouudi o CENTRAL PARITY —CoNS {_UMAEALETIO PEGS — Gesto [MBALANCES — LOW= TIME, X f ®TENSION wifl. {har Coma — HIGH=TH1,X4 TRADE DEFICIT Thea change rata __fessible SPECULATIVE Ainaxs IF MARKET expect a DEVALUATION CB cu — DEFEND dle PEG > CREDIBILITY È ) FOREIGN CURRENCY RESERVES È — INCREASE + Y4 — DEVALUATE (sett - fu0fi0vg propheco) (__NO INDIFENDENT HONETARY Poricy stia (Co) Siun EER =4" — IMfoSSIBUE TUNITY + FIXED FOREIGN RATES al E - FREE CAPITAL MOVEMENT ATA ‘ INDIPENDENT HONETARY Policy fossIBlE Bof CRISIS L__55 of COMPETTIVENESS — IF W>M* ud E-T PETS = I tte LONG-RUN) a, DEVALUATION 75 NEEDED ___MULTILATERAL REAL EFFECTIVE EXCHANGE RATES (REER) Average of REA would. hi TRADE SHARE + GMPETIION wifi DOMESTIC GOONS iu OTHER, FOREIGAI COUNTRIES (lUbEX NUMBER) BALANCE of PAYMENTS NATIONAL ACGOUNTING IDENTITY + GNDI = C+I+G+NX+NIFA GROSS NATIONAL DISPOSABUE TNGOHE GNDT=GBP+NIFA NET INCOME FROM ABROAD ATFA (CI DIVIDENDS, REMITTANCES, FOREIGN AD) {SECTORAL BALANCES GUDI-T-C-T =(6-T):{NxX+NIFA) — SURILUS PRIVATE SECTOR= (PRIMARY) DEFICIT PUBLIC SECTOR + DEFICIT FOREIGN SECTOR — DEFICIT FOREIGN SECTOR — LURAENT ACCOUNT CA = TRAN BALANCE NX + NET INGOHE FROM ABROAD NTFA + CLAIMS on FORE IGNERS — SURPLUS f- SELTORLS NET WORTH T = NEFICIT f=SECTOR'S NET WRTHY | SNO), SEEIZON - COVURY '$ RANSACITONS vili (a, REST of {Pe ORLO — NATIONAL SAVINGS S= $%8°=(GNDI =T-C)+(T-6) 7 DOMESTIC WEALTH can be accmvated, out throw, CA ov T — SURPLUS of DOMESTIC ECONOMY = NEFILIT FOREIGN SECTOR. Cory te reunitsa eo CMMAGIESIED — cuRReNT+ (CAPITAL (BROADLY)) = O — CAPITAL ACCOUNT (BRoADLY) = CAPITAL+ FINANCIAL + CAPITAL ACCOUNT (STRICIÙY) - NON -FINANCIAL/MfON-PRODICED ASSETS (Meafigibte,) * FINANCIAL ACCOUNIT= FINANCIAL ASSETS asd LIABILITIES (eg DIRECT INVESTMENT, BONDS, RESERVES) Goons HARKET du OPEN ECONOMY EMAND 7 PE —DOMESNO DEMAND fia Goost DDzC+ T+6 Speri = te - O>MULTIPLIER>À lt ° x NMUE ETA NEVA NIN 0. NAYECTIA Lane A4A3C4TAR- TM (IUMeTE 1 tra nl NOWESTIO NanNC TIDIUMLAN DPI poeta Saba n - O>MUCTIPLIER>A ari DOMESTIC DEMAND da DOMESTIC Goods AA=C+T+6- w (IMtORTS iu tana of DONESTIC Goods) : Fr + NULTINCIER AA < KULTIRLIER Db (Pant of YÎ fallo IMPORTI) Î (cHree-5) Domestic demand (c++) i - MULTIIUER 22 = HULTIPLIER AA 7 +SHIEToA X vt. AA (X dona depudì cu Y) * TRADE BALANCE TT=NX=DD-22 na>o xe mr CHANGES iu DEMAND -—DOMESTIC DEMAND (©. 61) -SMEToO 22 Gt=>yYf (ch, IMt) - otenvesst= AYf = SHIFT albug TT Gf9YTSIMf>NX4 “ OPEUEssf=- ANX È — FOREIGNIDEMAND (eo 21) INTERNATIONAL SPILLOVERS —» FREE-RIDER, PoteM Dauno CRISIS, a cauti) uwogfito unit for cita cola to liane - SHIFT A daxtoyioxt SHIFT TT, XfYftSIMt<Xf®NXf - EXCHANGE RATE (ca. DEPRECIATION e) Suo fa NX=X-IN È -x(Y9)f -IK(MOb Lt (rea {MfoRTS) »AY an AMB|G0US TF MARSHALL IERAER CoMbImOns AM (tipiodly SATISFIED 4 REAL) - SHIFT of 22:£4OXIIMI SY - SHIFT E TT: E4SNKT, CPI INPORTED Goods ft FINANCIAL HARKETS uu OPEN ECONOMY EQUILIBRIUM MER RSTMRARINiMINIB) SAHE EXPECTED RETURN ou DOHESTIC audi. FOREIGN BONDI {NO RISK) RELATIONSHIP Lutiazo E sud i i e \[E ra Se Ati 447%) 4 )- E - AMICI diet EE \ | fem ( ce EXPECTED RATE ot APPRECIATION I_CHANGES van EQUILIBRIUH (Fuexinte E) - EXPECTED EKOHMNGE RATE E (e.9, E*Î) = CHANGE et SLoPE. E*f+Ef » "Sua RETURN cu DOMESTIC BONN f + DEMAND fin DOMESTIC CURRENCY Î DE f — FOREIGN TNTEREST RATE 4° (eg at î) = CHANGE of SlofE: dt» E — Suut RETURN Ow FOREIGN BONN 1 =» DEMAND fix FOREIGN CURRENCY Î > EY - SHIFT 000ug; Ha, CUNVE : 4 T4Ef — Sint RETURN DOMESTIC Bonne f > DEMAND fin DOMESTIC CURRENCY È» E È —_LONG-RUN EXKPECTATIONS * DMY >WORU TRADEH: do douaud & Crede (rodit * EUOLE» — BANKS Camus, US TOXIC ASSET — HOUSING PRICES + — ]NTEREST RATES T (x1) Policy RESPONSE }__HONETARY AH uti 218 (quan fotlur iu EURO) — QUANTITATIVE CASE Expuntow of CB BALAVOE SHEET — INCREASE BASE ud BISAS Holy wifi Anuozua LENDING INCENTIVES + LIQUIDITY PRAYISION Qudisuzto BANKS aid FINANCIAL INSTITUTIONS via. EHERGENCY LENDING FACILITIES (Oncistg FIRE SALES aud BANKRUPTCIES) + ASSETE. PURCMASES : Poricant ot PRIVATE ASSETS sud BONDS ) affect SUPPLY of BROAD Mover — Suwcr ble RISK PREMIUM 4» clofinzined by SUPPLY È DEMAND > X& > letti YIELD ume — Soure pî of FIVANCIAL ASSETS >INEQUALITY È __FISCAL - BAILOLUTS of BANKS aud FINANCIAL INSTITUTIONS — Stars ot BANKS BOUGHT by te GOVERNMENT — EXPANSIONARy fOUCY | Gf besTt  si pets paio CENTRAL BANK (_OBIECNVES (__INFLATION TARGETING — Pia, Shitrifita over MEDIUH TERM — Deprudb sw EXPECTATIONS — PHILIPS CURVE MT" =-&(Ug-Wa) + CREDIBUE TARGET TY 1* - DIVINE GINCINENCE Tae" WU - Sim Ha RMILUP'S CURVE di NOT KAVOWUA + FLEXIBIE INFLATION TARGETING TAVIORISBRIVOE è, -X7 +0.(T1-T*)-b(u ta) » TARGET INTEREST RATE d°- + > T4 Mes) UU, DA = + SENSITIVITY {6 INFLATIOY a,>0 e + SENSITIVITY fs UNENICo/MENT b>Q0 |PREFERENCES * liew ME>M*/ bn dA, Î __STABILUTY of FINANCIAL awe PAYMENT SYSTEMS I__OPERATIONAL FRANEWORK- “CoRRIDORÈ SYSTEM >> Up — RESERVES asd 4 are lutad (CB FAULITIES * DEPOSIT RATE dp = Fiook + LEYDING RATE A 7 CEILING (DEMAND i Rogi Open fry BAI ul E LEND, Site ca BoRBOII LATERA 1 (oWER RATE) hi ralianioni did ® MIN DEMAND (ay BANK 45 INDIFFERENT Gata KEEPING MIN «2 No RESERIES) Neri ini Inelastic demand for reserve balances Nobankuniltendto 27, —® MAX DEMAND (EUERY BANK 5 WDIFFERENT balia KEEPING MAX «n 00 KESERVES) lowerthan ip RP i, È 7 ° Ac dg + CODA (very Avi tou BORROW VGduco i cun VED LATERAk a HIGHER, RATE) Ru Baar, R by fan ANISACTIONS (__EQUILUBRIVM Equilibrium în the “corridor” system + The CB is in full control of = CAN (MAUGE Ple Wi OMos Hus R Rotax R __F[00k, SISTEM = 4° Lu, * Alta GE, fo INSENTAGILE RESERUES ouol MONETARY PoLLCy + BANKS lione EXCESS RESERVES EQUILIBRIUN R ITNCREASE du SAVING RATE (6°) gue ros lid a ves STEADY STATE —+ CAPITAL ACCUMULATION CANNOT BE A SOURO ol LONG-RUN GROWTH I__DYNAHICS SI 2-0 (KE) SRL A bi PRE Jia Ye 4 ill gp il. dla STEADY-STATE 2 (KL) SS + UK Yu Ge 4 Lidl ccacne l.0 x STEADY-STATE L__ ready STATE Kk* | 2-F(KE)=SK, - INVESIMENTE DEPRECIATION ENISTENCE pud UNIQUENESS cm quasmuliadi by INADA CONDITIONS + Lay, THA - 00 > $ + iu CHPx=0 CHEB-DOVGLAS PRODUCTION FUNETION (E _ EXTENDED -EkoGeNovs TECHONOLOGICAL PROGRESS — + quo od Y>A |_ASSUMPTIONS LI AED — Cose-DovelAs Y=K"(a. N) - TOTAL FACTOR. PRODUCTIVITY 2 - TECHONOLOGICAL cud SOCIO ECONOHIC. EFFICIENCY of PRODUCTION PROCESS + LABOUR SAVINO + Sas Cota pro opisen CAPITAL STOCK * MEASURES — HUMAN CAPITAL ACCUMULATION = VARIABLE CAPITAL UTILIZATION sud. LABOUR EFFORT — TECKNOLOGICAL PROGRESS QUALITY of INSTITUTIONS oud, POLICY ti fo ISTEADY-STATE=BALANGED GROWTH PATH È a) - BALANCED GROUVTH Seco KM quad TT» UT 6 Lo 4 COUSTANT & — OUTPUT pun EFFECTIVE WORKER 4 in CONSTANT 2 - OUTPUT pin ORKER. + qpouo ok Xa OUTPUT gras» ct Y-+Yy —T CHANGES =INMREASE au ST * STEADY-STATE &*fî,4*f * OUTPUT pa WORKER — (JB qpauo TEHDRARILY ch I>I (Stud t) N — Well go at STEADY-STATE ak è -INUMEASE wu Vr « STEADY STATE. K*L,y"%4 “OUTPUT pa \WORKER Lr gpouo ok Yx:>% '—T SG UOWURESISVAL - ESTIMATE of Wa I__ASSUMPTIONS “Ptobuction FINCTION Y=2-F(K, N) = COMPETITIVE FACTOR MARKETS: MC = MP-EACH FACTOR ok PRODUCTION 1» paid ife MARGINAL PRODUCT + REAL WAGE w=MPy REAL RENTAL RATE V=HPx __ERIVATTON —Couridinvua, PRADICTION FUNES ON witlo LONSTANT 24=2 Ay = HP AN + MPa AK PAY= HRLALAN + MP AK = Mak MAN VR È dl YN ri Fa nav gt ZU = ADDING TELHIOLOGICAL PROGRESS :9y=9, Pes 9% +HBNO, - SHARES as INCOME= 6x3 = x SHARES qu INCOME= BK=XE , Sy SAL a gy= ga +59 45090 SSL RESA.