Equationsss

# Equationsss - M Mt Ms m mt mD P P D DC Pt Y Yt y Real GDP...

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M Nominal money stock (\$) M t Nominal money stock M s Nominal money stock =P*m D m Maturity Slope of short-run Laffer Curve =m D ( π e + r) =m D 0 + r) Real value of money stock/balances =M ÷ P m t Real money stock =M t ÷ P t m D Real money demand Demand for real money stock =M s ÷ P* P Price =M s ÷ m D =MV ÷ y P* Equilibrium price level at which S = D =M s ÷ m D D Money Demand Bond duration =[1C ÷ (1 + i) + 2C ÷ (1 + i) 2 + … + m(C + F) ÷ (1 + i) m ] ÷ PV B D C Consol duration =1 ÷ i - i(D c ) P t Price level in year t Price index Y Nominal income (\$/year) Y t Nominal income y Real GDP, Real income =Y ÷ P y t Real income =Y t ÷ P t =Y y (P 0 ÷ P t ) YTM Yield to maturity π Annual inflation rate = P ÷ P Average inflation (over past 12 months) =( M ÷ M) + ( V ÷ V) – ( y ÷ y) π e Expected inflation

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## This note was uploaded on 11/08/2010 for the course ECON 520 taught by Professor Ogaki during the Fall '07 term at Ohio State.

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Equationsss - M Mt Ms m mt mD P P D DC Pt Y Yt y Real GDP...

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