chapter 17. debates link to syllabus skip real business cycle theory
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Chapter 17. Debates
Link to syllabus
Skip Real Business Cycle Theory
Classical versus Keynesian Macro. Fig 17-2, p. 473
Fiscal Policy with a Fixed Money Supply. Fig. 17-4, p. 478
Increase in interest rate lowers the expansionary effect on AD – this is what we have called crowding out.
The Velocity of Money. Fig 17-5, p. 479
Not exactly constant
Comparisons of Velocities of
M
DifferentText.
Milton Friedman, 1912-2006
Link to Friedman’s bio http://www.hoover.org/bios/friedman
Most prominent advocate ofa return to free market/non-governmental policies.
Influence concretized underPresident Reagan.
Also: leading ‘monetarist’ anda Nobel Prize winner.
Monetary Growth Rule i
Monetary Growth Rule ii
Five Key Questions about Macro Policy. Table 17-1, p. 489