420+-+4.0+-+MacroAfterKeynes_Student - Econ 420 Intermediate Theory Money Income Employment Prof Aguilar Econ420 | Prof Aguilar 1 Course Outline 1.0

420+-+4.0+-+MacroAfterKeynes_Student - Econ 420...

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Econ420 | Prof. Aguilar Econ 420 Intermediate Theory: Money, Income, & Employment Prof. Aguilar 1
Econ420 | Prof. Aguilar 1.0 – Measuring Macroeconomic Data 2.0 – Classical Theory 3.0 – Keynesian Theory Course Outline 4.0 – Macro Theory After Keynes 5.0 – Open Economy Macroeconomics 6.0 – Economic Policy 7.0 – Economic Growth 2
Econ420 | Prof. Aguilar 4.0 – Macro After Keynes Section 4 – Macro After Keynes 4.2 – Output, Inflation, and Unemployment 4.3 – New Classical By the end of this section you will be able to : analyze a shock in the Monetarist system outline the main tenets of Monetarism 4.4 – Real Business Cycles & New Keynesian 4.1 – Monetarism 4.5 – Dynamic AS/AD 3
Econ420 | Prof. Aguilar Section 4 – Macro After Keynes 4 Monetarism “Monetary Policy is too important to be left to Central  Bankers” Main Tenets of Monetarism: 1) Money Supply is the dominant factor for nominal income. 2) In the LR: money influences prices; real variables (output, employment) are determined by real factors (capital, labor, technology) 3) In the SR: supply of money can influence real variables. 4) Economic instability is due primarily to government policies.
Econ420 | Prof. Aguilar Section 4 – Macro After Keynes 5 Theories of Money (Demand) PY r r r k M Y r L M kPY M PY MV D E B d d d ) , , ( Monetarist ) , ( Keynesian Cambridge Fisher = = = =
Econ420 | Prof. Aguilar Section 4 – Macro After Keynes 6 Keynesian Monetarist IS/LM Framework r r Y Y
Econ420 | Prof. Aguilar Section 4 – Macro After Keynes 7 Keynesian Monetarist Fiscal Policy r r Y Y LM IS LM IS
Econ420 | Prof. Aguilar Section 4 – Macro After Keynes 8 Keynesian Monetarist Monetary Policy r r Y Y LM IS LM IS
Econ420 | Prof. Aguilar 4.0 – Macro After Keynes Section 4 – Macro After Keynes 4.2 – Output, Inflation, and Unemployment 4.3 – New Classical By the end of this section you will be able to : analyze a shock in the Monetarist system outline the main tenets of Monetarism 4.4 – Real Business Cycles & New Keynesian 4.1 – Monetarism 4.5 – Dynamic AS/AD 9
Econ420 | Prof. Aguilar 4.0 – Macro After Keynes Section 4 – Macro After Keynes 4.2 – Output, Inflation, and Unemployment 4.3 – New Classical By the end of this section you will be able to : 4.4 – Real Business Cycles & New Keynesian 4.1 – Monetarism compare and contrast Monetarist & Keynesian views illustrate the tradeoff between inflation and UR 4.5 – Dynamic AS/AD 10
Econ420 | Prof. Aguilar Section 4 – Macro After Keynes 11 P Y P Y AS 1 AD SRAS 1 AD P Y 1 AD SRAS
Econ420 | Prof. Aguilar Section 4 – Macro After Keynes 12 Phillips Curve

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