Where v is equal to the ratio of nominal income to monetary amount.
B the currency growth rate was changed to 15%.
An increase in money supply means a decrease in interest rates, which will encourage investment. If I were an investor, I would choose to increase investment.
D Whether the interest rate is floating or fixed, as an investor, I can only decide whether to increase or decrease my investment if the real interest rate is falling or rising.
If I am sure that the money supply will decrease, I think I prefer to accept a fixed interest rate, because if it is a floating interest rate, then reducing the money supply means that the interest rate will increase and the cost of investment will increase.
Macroeconomics is an economic field that uses the general statistical concepts of national income, investment and consumption to analyze the laws of economic operation. Macroeconomics is relative to classical microeconomics.
Macroeconomics is a branch of economics that has developed rapidly since the publication of john maynard keynes's General Theory of Employment, Interest and Money.
catalogue
A brief history of 1
2 research object
2. 1 economic cycle problem
2.2 Economic growth issues
2.3 National income and employment issues
Three schools of macroeconomics
4 Some concepts in macroeconomics
Brief introduction to history
Adam Smith has discussed the reasons and conditions of a country's economic growth in The Wealth of Nations. Until the beginning of the twentieth century, mainstream economists focused on economic growth.
During the period from 1929 to 1939, there was a serious economic recession in European and American free economic countries. Historically, this phenomenon has been called the Great Depression or the Great Economic Panic. During the Great Depression, unemployment was serious and output fell again.
Before the Great Depression, mainstream scholars at that time did not think that economic recession was a serious long-term phenomenon. These so-called classical economists continue the view of The Wealth of Nations that the price function of the free market is like an all-powerful black hand (invisible hand), which can make the economy run smoothly. The classical school has an extreme view, which completely denies the possibility of insufficient demand and serious unemployment. His view was represented by Jean-Baptiste Say (1767- 1832), a French economist at that time. He believed that supply could create equal demand, and this view was called Say's law by later generations.
However, the above views are inconsistent with the economic situation during the Great Depression. The Great Depression lasted for nearly ten years, but serious unemployment did not disappear. Therefore, under this background, J. Keynes (1883- 1946) published the General Theory of Employment, Interest and Money in 1936. Keynes believed that the government should put forward various policies to stimulate demand during the economic recession, so as to slow down unemployment and restore economic prosperity.
But in the1970s, new overall economic problems emerged. During the period from 1974 to 1975 and 1980 to 1982, European and American countries fell into the worst economic recession after World War II. Due to the problems caused by the oil crisis, high inflation and high unemployment rate, Keynes's theory is gradually challenged by other different theories.
These theories include monetarism represented by milton friedman (19 12-2006) and neoclassical school or rational expectation school represented by Robert Lucas, Jr. (1937-) and Thomas Sargent (1943-). Milton friedman and Robert Lucas, Jr. won the Nobel Prize in Economics with 1976 and 1995 respectively.
research objects
Macroeconomics should study how much of a country's existing production resources (such as labor, land, natural resources and capital) will actually be invested in various production departments, and study various phenomena after investment, as well as the reasons and laws behind these phenomena. Specifically, there are three main research questions.
Economic cycle problem
The problem of economic cycle is sometimes called economic cycle theory or economic crisis theory. The theme of its research is why the national income of some countries fluctuates periodically in its long-term growth trend.
Economic growth problem
Major projects: economic growth
Economic growth is also called economic growth theory or economic development theory. The main problem discussed is the main factors and laws that restrict and promote national income in the historical development of a particular country. From the perspective of macroeconomics, there are three factors that promote the growth of a country or economy, namely, investment, consumption and export, commonly known as "troika".
National income and employment issues
The problem of national income and employment is sometimes called the theory of national income determination, employment theory or unemployment theory. Specifically, it is to study how to determine the gross national income and employment (or unemployment) in a period.
Various schools of macroeconomics
Traditional Keynesian macroeconomics
Post-Keynesian macroeconomics
Supply-side macroeconomics
Neoclassical comprehensive macroeconomics
Monetarism macroeconomics
Rational expectation macroeconomics
the new classical macroeconomics
Neo-Keynesian macroeconomics
Macro-macroeconomics
Some concepts in macroeconomics
crowding-out effect
Gross Domestic Product (GDP)
GNP
price index
unemployment rate
money
Pigou effect
keynes effect
Financial crisis refers to the sharp, short-term and super-cycle deterioration of all or most financial indicators (such as short-term interest rates, monetary assets, securities, real estate, land (price), the number of commercial bankruptcies and the number of financial institutions) in a country or several countries and regions.
1. The financial crisis originated in America. Causes of financial crisis: The credit expansion caused by fictitious economy and the bursting of economic bubble are the main causes of financial crisis. The subprime mortgage crisis is the fuse. Sub-prime bonds are actually only $600 billion, which caused such a big financial crisis because of following the trend, that is, people's psychological expectations. Herd effect refers to the situation that investors have not formed their own expectations or obtained first-hand information in the market. Theoretically speaking, herding behavior will aggravate market fluctuation and become the key to the success of leaders' behavior. In the following situations, sesame seed cake is the leader. In the real economy, subprime mortgage is the leader.
2. From the subprime mortgage crisis to the financial crisis, here is an original case: two people sell baked wheat cakes, each selling 20 cakes a day (because the demand for baked wheat cakes is only 40), and the output value of one yuan per day is 40 yuan. Later, they discussed and bought 100(A bought it from B and B 100 bought it from A 100).
If the price of sesame cakes traded with each other is 5 yuan, the daily transaction amount is 1040 yuan. At this time, A and B will raise the market biscuits to 2 yuan. Some people heard that sesame seed cakes 1 were sold in 5 yuan, but when they saw that there was only 2 yuan in the market, they quickly bought them. -The bubble economy came into being.
Baked sesame seeds can't be cooked at once, so buy forward cakes. A, Otsuichi increased the number of baked wheat cakes (up to 100 per day), on the other hand, it sold forward baked wheat cakes, and at the same time began to issue baked wheat cakes bonds. Buyers use cash and mortgages to buy. -Financing, financial intervention.
Some people want to buy it, and they have neither cash nor collateral, so A and B issue subordinated biscuit bonds to buy insurance from insurance institutions-subprime bonds have planted seeds for the subprime mortgage crisis.
One day, I found that I couldn't eat the biscuits I bought. If it is stored in one place and moldy, I will sell it soon, even if the price is lower. The bubble burst.
This is how the financial crisis broke out. Cookie shop layoffs (as long as 40 cookies a day)-unemployment; Sesame cake bonds become waste paper-subprime mortgage crisis
Mortgage loan (collateral is worthless) can not be recovered, the liquidity crisis of the lending bank, the bankruptcy of the insurance company and so on. -Financial crisis
3. In the process from subprime mortgage crisis to financial crisis, the financial leverage of financial institutions and the issuance and circulation of financial derivatives have played an amplification role.
4. deeper level
(1) Long-term accumulation of early consumption. In the United States, early consumption has been popular for a long time, encouraging people to buy houses, cars and high-end consumer goods. In order to pursue high profits, banks issue credit cards to residents to encourage consumption in advance. Enjoy today with tomorrow's money "Let your dreams come early and make them come true." Being able to earn and spend is the pride of the times. " To put it bluntly, this kind of advanced consumption has also brought temporary prosperity for several years. However, this kind of advanced purchasing power in the future, after all, is "unable to make ends meet", with bubbles, temporary prosperity and illusory colors. Once the economy is depressed, a large number of unemployed people will not pay their debts, and consumers' ability to pay will drop sharply. American subprime debts will be highlighted in front of the world, banks will have piles of bad debts, and some investment banks will face bankruptcy.
(2) American banks bear high salaries. The American banking industry has been pampered for a long time and seems to be a "favored son of heaven." High-level leaders are well paid, with millions of annual salaries everywhere and hundreds of thousands of middle-level white-collar workers. For a long time, the banking industry has covered up the contradiction because of the huge amount of loans and rich profits. Although the salary is high every year, it can get by. Once the debtor is unable to pay his debts, a batch of bad debts will appear, forming a triangular debt. At first, the bank was in trouble, and then it suffered huge losses. So a lot of layoffs. If we seriously reflect, high salary is an excessive enjoyment of economic achievements and contains exploitation factors. Or it is a foolish act of "fishing with exhausted resources" and "killing the goose to get the egg".
(3) The United States currently lacks emerging industries. Over the years, emerging industries in the United States have often led the world trend. Such as expressway, automobile industry, aviation industry and electronic communication industry. For example, the software and hardware of computers and mobile phones are far ahead. When many countries were still in infancy, the United States had formed an industry on a large scale. However, in the past ten years, these leading industries in the United States have been hovering, while many countries in the world are catching up quickly. The electronic industries such as computers and mobile phones have developed rapidly, and the advantages of the United States have weakened relatively, or gradually lost their advantages.
Rome was not built in a day. The financial crisis in the United States is a long-term accumulation, which inspires people to learn from it. We should proceed from our own reality and do a good job in China. This is also a good way to resolve the impact of the US financial crisis on China.
5. The financial crisis has spread all over the world, affecting China. Part of the country's foreign exchange reserves are lost, making it difficult to export. Economic growth slows down, unemployment increases, people's income declines, consumption decreases, and the market is depressed. If it is serious, it will cause political instability. Compared with European countries (such as Detroit Motor City), the financial crisis has little impact on China, because China's economy is separated from the international economy to some extent. China's RMB is strictly managed under the capital account, and the impact of international hot money is not great. Now, with more than 70 banks in the United States tending to close down, China's financial system is running well and its economy is growing at a certain speed. At the same time, the state is also taking measures such as expanding finance, reducing the deposit reserve ratio and stimulating domestic demand of 4 trillion yuan. Now, the RMB exchange rate has been lowered. If all macroeconomic measures are effectively implemented, China needs about 1 year.