tailieunhanh - Bài giảng Kinh tế vĩ mô (dành cho học viên cao học): Chapter 19 - TS. Phan Thế Công

Bài giảng "Kinh tế vĩ mô - Chapter 19: Advances in Business Cycle Theory" cung cấp cho người học các kiến thức: An overview of recent work in two areas, real business cycle theory, new keynesian economics. nội dung chi tiết. | 04 01 2016 C H A P T E R 19 Advances in Business Cycle Theory MACROECONOMICS SIXTH EDITION N. GREGORY MANKIW PowerPoint Slides by Ron Cronovich 2007 Worth Publishers all rights reserved In this chapter you will learn. an overview of recent work in two areas Real Business Cycle theory New Keynesian Economics CHAPTER 19 Advances in Business Cycle Theory slide 1 The Theory of Real Business Cycles All prices are flexible even in short run thus money is neutral even in short run. classical dichotomy holds at all times. Fluctuations in output employment and other variables are the optimal responses to exogenous changes in the economic environment. Productivity shocks are the primary cause of economic fluctuations. CHAPTER 19 Advances in Business Cycle Theory slide 2 1 04 01 2016 The economics of Robinson Crusoe Economy consists of a single producer-consumer like Robinson Crusoe on a desert island. Crusoe divides his time between leisure working catching fish production making fishing nets investment Crusoe optimizes given the constraints he faces. CHAPTER 19 Advances in Business Cycle Theory slide 3 Shocks in the Crusoe island economy Big school of fish swims by the island. GDP rises Crusoe s fishing productivity is higher Crusoe s employment rises He decides to shift some time from leisure to fishing to take advantage of the high productivity CHAPTER 19 Advances in Business Cycle Theory slide 4 Shocks in the Crusoe island economy Big storm hits the island. GDP falls The storm reduces productivity so Crusoe spends less time fishing for consumption. Investment falls because it s easy to postpone making nets until storm passes. Employment falls Since he s not spending as much time fishing or making nets Crusoe decides to enjoy more leisure time. CHAPTER 19 Advances in Business Cycle Theory slide 5 2 04 01 2016 Economic fluctuations as optimal responses to shocks In Real Business Cycle theory fluctuations in our economy are similar to those in Crusoe s economy. The shocks .