tailieunhanh - Lecture Macroeconomics: Lecture 10 - Prof. Dr.Qaisar Abbas

Lecture 10: Money and Inflation - I. After studying this chapter you will be able to understand: The definition and causes of economic growth, the nature and cause of the business cycle, the nature of unemployment and its measurement, the definition of inflation and how it is measured, the redistribution effects of inflation the output effects of inflation. | Review of the previous lecture The natural rate of unemployment the long-run average or “steady state” rate of unemployment depends on the rates of job separation and job finding Frictional unemployment due to the time it takes to match workers with jobs may be increased by unemployment insurance Structural unemployment results from wage rigidity - the real wage remains above the equilibrium level causes: minimum wage, unions, efficiency wages Review of the previous lecture Duration of unemployment most spells are short term but most weeks of unemployment are attributable to a small number of long-term unemployed persons Lecture 10 Instructor: Prof. Dr. Qaisar Abbas Money and Inflation- I Lecture Outline The connection between money and prices Money The quantity theory of Money The connection between money and prices Inflation rate = the percentage increase in the average level of prices. Price = amount of money required to buy a good. Because prices are defined in terms of money, we | Review of the previous lecture The natural rate of unemployment the long-run average or “steady state” rate of unemployment depends on the rates of job separation and job finding Frictional unemployment due to the time it takes to match workers with jobs may be increased by unemployment insurance Structural unemployment results from wage rigidity - the real wage remains above the equilibrium level causes: minimum wage, unions, efficiency wages Review of the previous lecture Duration of unemployment most spells are short term but most weeks of unemployment are attributable to a small number of long-term unemployed persons Lecture 10 Instructor: Prof. Dr. Qaisar Abbas Money and Inflation- I Lecture Outline The connection between money and prices Money The quantity theory of Money The connection between money and prices Inflation rate = the percentage increase in the average level of prices. Price = amount of money required to buy a good. Because prices are defined in terms of money, we need to consider the nature of money, the supply of money, and how it is controlled. Money: Money is the stock of assets that can be readily used to make transactions. Money Money: functions of exchange we use it to buy stuff 2. store of value transfers purchasing power from the present to the future 3. unit of account the common unit by which everyone measures prices and values Money: types 1. fiat money has no intrinsic value example: the paper currency we use 2. commodity money has intrinsic value examples: gold coins, cigarettes in . camps Money The money supply & monetary policy The money supply is the quantity of money available in the economy. Monetary policy is the control over the money supply. The central bank Monetary policy is conducted by a country’s central bank. In the ., the central bank is called the Federal Reserve (“the Fed”). In Pakistan, the central bank is called the State bank of Pakistan. Money Money supply measures, April 2002 _Symbol Assets .

• Kinh tế học
• Lecture Macroeconomics
• Principles of microeconomics
• Economic models
• Science of macroeconomics
• Tools of microeconomics
• Microeconomic transactions
• Bài giảng Kinh tế vĩ mô
• Kinh tế vĩ mô
• Data of macroeconomics
• Unemployment rate
• Inflation rate
• Natural rate of unemployment
• Consumer price index
• National income
• Agriculture sector
• Agricultural policies
• Economic fluctuations
• Macroeconomic policy
• Business cycle theory