Topics for test 3

Topics for test 3 - Currency Board, Dollarization...

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Topics for test 3: Chapters: 11,12,13,14,15 Worksheets: 16,17,18,19,20,21 Homework 5 and Quiz 5 Chapter 11: IS-LM and AD-AS for a closed economy Fiscal Policy and Crowding out, Monetary Policy Interaction between Fiscal Policy and Monetary Policy Monetary policy response to IS and LM shocks i) If r is kept constant ii) If money supply is kept constant iii) If Income is kept constant IS-LM model in the long run AD-AS model in the short run and long run The Great Depression The Liquidity Trap Chapter 12: The Open Economy: The MF Model LM* and IS* curve and equations Monetary Policy, Fiscal Policy and Trade Policy in fixed and flexible exchange rate systems. Interest rate differentials and risk premium in the MF model International Financial Crisis: Mexico, Asia Advantages and Disadvantages of fixed and flexible exchange rate systems.
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Unformatted text preview: Currency Board, Dollarization Impossible Trinity Chinese Yuan Controversy MF model with a Changing Price Level Chapter 13: AS and Phillip’s curve Why is SRAS upward sloping? i) Rigid Price ii) Rigid Wages iii) Imperfect-Information or Misperceptions Y=Ybar+α(P-P e ) Demand Pull inflation and Cost Push inflation Phillip’s curve, Sacrifice Ratio Rational Expectations and Painless Disinflation. Chapter 14: Stabilization Policy Why do we need Stabilization Policy? To reduce output fluctuations What are some problems with using Stabilization Policy? Should Policy be conducted to Rule or by Discretion? Taylor’s Rule Central Bank Independence Chapter 15: Federal Debt Why is the debt not a problem? Why is the debt a problem? Ricardian Equivalence...
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This document was uploaded on 10/28/2011 for the course ECON 420 at UNC.

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