Monetary Economics

  1. Money, Inflation, and Output
    1. Aggregate Demand and Supply Analysis
      1. The IS-LM Model
        1. The IS Curve (Goods Market Equilibrium)
          1. Investment-Saving Equilibrium
            1. Determinants of Aggregate Demand
              1. Consumption Function
                1. Investment Function
                  1. Government Spending
                    1. Net Exports
                    2. Fiscal Policy Effects
                      1. Government Spending Multiplier
                        1. Tax Multiplier
                          1. Crowding Out Effects
                          2. Slope and Shifts of IS Curve
                            1. Interest Sensitivity
                              1. Autonomous Spending Changes
                            2. The LM Curve (Money Market Equilibrium)
                              1. Money Demand and Supply
                                1. Monetary Policy Effects
                                  1. Money Supply Changes
                                    1. Interest Rate Targeting
                                    2. Slope and Shifts of LM Curve
                                      1. Interest Elasticity of Money Demand
                                        1. Income Elasticity of Money Demand
                                        2. Liquidity Trap
                                          1. Horizontal LM Curve
                                            1. Policy Ineffectiveness
                                          2. Policy Analysis in the IS-LM Framework
                                            1. Shifts in IS and LM Curves
                                              1. Policy Mix and Effectiveness
                                                1. Fiscal-Monetary Coordination
                                                  1. Crowding Out vs. Crowding In
                                                  2. Comparative Effectiveness
                                                    1. Liquidity Trap Conditions
                                                      1. Investment Sensitivity
                                                  3. Aggregate Demand Curve
                                                    1. Derivation from IS-LM
                                                      1. Price Level Effects
                                                        1. Real Money Balances
                                                        2. Factors Shifting Aggregate Demand
                                                          1. Fiscal Policy
                                                            1. Monetary Policy
                                                              1. Consumer Confidence
                                                                1. Investment Expectations
                                                                2. Slope of Aggregate Demand Curve
                                                                  1. Interest Rate Effects
                                                                    1. Real Balance Effects
                                                                      1. International Trade Effects
                                                                    2. Aggregate Supply Curve
                                                                      1. Long-Run Aggregate Supply
                                                                        1. Full Employment Output
                                                                          1. Potential GDP
                                                                            1. Factors Affecting Long-Run Supply
                                                                              1. Technology
                                                                                1. Capital Stock
                                                                                  1. Labor Force
                                                                                    1. Natural Resources
                                                                                  2. Short-Run Aggregate Supply
                                                                                    1. Sticky Prices and Wages
                                                                                      1. Output-Inflation Tradeoff
                                                                                        1. New Keynesian Phillips Curve
                                                                                          1. Factors Shifting Short-Run Supply
                                                                                            1. Input Costs
                                                                                              1. Productivity Shocks
                                                                                                1. Expectations
                                                                                          2. Monetary Policy and Aggregate Demand
                                                                                            1. The Monetary Transmission Mechanism in the IS-LM Model
                                                                                              1. Interest Rate Channel
                                                                                                1. Exchange Rate Channel
                                                                                                  1. Asset Price Channel
                                                                                                  2. The Aggregate Demand-Aggregate Supply Framework
                                                                                                    1. Short-Run Effects
                                                                                                      1. Output and Price Level Changes
                                                                                                        1. Adjustment Process
                                                                                                        2. Long-Run Effects
                                                                                                          1. Price Level Adjustment
                                                                                                            1. Output Neutrality
                                                                                                            2. Dynamic Adjustment
                                                                                                              1. Expectations Formation
                                                                                                                1. Wage-Price Spirals
                                                                                                            3. The Phillips Curve and the Inflation-Unemployment Tradeoff
                                                                                                              1. The Short-Run Phillips Curve
                                                                                                                1. Original Phillips Curve
                                                                                                                  1. Wage Inflation and Unemployment
                                                                                                                    1. Empirical Relationship
                                                                                                                    2. Modified Phillips Curve
                                                                                                                      1. Price Inflation and Unemployment
                                                                                                                        1. Expectations-Augmented Phillips Curve
                                                                                                                        2. Inflation Expectations
                                                                                                                          1. Adaptive Expectations
                                                                                                                            1. Rational Expectations
                                                                                                                              1. Survey-Based Expectations
                                                                                                                              2. Demand-Pull and Cost-Push Inflation
                                                                                                                                1. Aggregate Demand Shocks
                                                                                                                                  1. Supply Shocks
                                                                                                                                    1. Policy Responses
                                                                                                                                  2. The Long-Run Phillips Curve and the Natural Rate of Unemployment
                                                                                                                                    1. Vertical Long-Run Phillips Curve
                                                                                                                                      1. No Long-Run Tradeoff
                                                                                                                                        1. Natural Rate Hypothesis
                                                                                                                                        2. Natural Rate of Unemployment
                                                                                                                                          1. NAIRU (Non-Accelerating Inflation Rate of Unemployment)
                                                                                                                                            1. Structural Unemployment
                                                                                                                                              1. Frictional Unemployment
                                                                                                                                              2. Factors Affecting Natural Rate
                                                                                                                                                1. Labor Market Institutions
                                                                                                                                                  1. Demographics
                                                                                                                                                    1. Technology
                                                                                                                                                      1. Government Policies
                                                                                                                                                    2. The Role of Expectations
                                                                                                                                                      1. Adaptive Expectations
                                                                                                                                                        1. Backward-Looking Expectations
                                                                                                                                                          1. Learning from Past Inflation
                                                                                                                                                          2. Rational Expectations
                                                                                                                                                            1. Forward-Looking Expectations
                                                                                                                                                              1. Policy Ineffectiveness Proposition
                                                                                                                                                              2. Policy Implications
                                                                                                                                                                1. Credibility and Expectations
                                                                                                                                                                  1. Disinflation Costs
                                                                                                                                                                    1. Sacrifice Ratio
                                                                                                                                                                2. The Time-Inconsistency Problem and Policy Credibility
                                                                                                                                                                  1. Discretionary Policy vs. Policy Rules
                                                                                                                                                                    1. Rules-Based Policy
                                                                                                                                                                      1. Commitment Mechanisms
                                                                                                                                                                        1. Constitutional Rules
                                                                                                                                                                          1. Automatic Stabilizers
                                                                                                                                                                          2. Discretionary Policy
                                                                                                                                                                            1. Flexibility Advantages
                                                                                                                                                                              1. Time-Inconsistency Problems
                                                                                                                                                                                1. Political Economy Issues
                                                                                                                                                                              2. The Importance of Central Bank Credibility
                                                                                                                                                                                1. Inflation Expectations
                                                                                                                                                                                  1. Expectation Formation
                                                                                                                                                                                    1. Policy Announcements
                                                                                                                                                                                    2. Reputation and Commitment
                                                                                                                                                                                      1. Building Credibility
                                                                                                                                                                                        1. Maintaining Credibility
                                                                                                                                                                                          1. Costs of Lost Credibility
                                                                                                                                                                                        2. Solutions to Time-Inconsistency
                                                                                                                                                                                          1. Central Bank Independence
                                                                                                                                                                                            1. Inflation Targeting
                                                                                                                                                                                              1. Delegation and Contracts
                                                                                                                                                                                                1. Reputation Models

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                                                                                                                                                                                            5. The Transmission Mechanisms of Monetary Policy

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                                                                                                                                                                                            7. Modern Monetary Policy in Practice