Wealth Effects, Government Budget Constraints, and
                         Ben Bernanke
                                  ...
Today




      Admin
  1




      Bernanke-Blinder
  2




      Government Wealth
  3




Stephen Kinsella (University ...
IS LM




                                Figure: Equilibrium in the IS-LM model
Stephen Kinsella (University of Limerick)...
BB Model




                            Figure: Bernanke-Blinder Model Equilibrium.
Stephen Kinsella (University of Limer...
Table




          Rise in                        Income         Money          Credit        Interest Rate on bonds
    ...
A New Model
                                                                          LM
                                 ...
JW Curve
                                 i




                  G>tY


                                                 ...
JW-IS-LM
                                            i




                                                               ...
References




Stephen Kinsella (University of Limerick) Wealth Effects, Government Budget Constraints, and Ben Bernanke 23...
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IS LM and Beyond

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This is a lecture discussing some of the variants to the ISLM model in the light of Ireland's current macroeconomic problems.

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IS LM and Beyond

  1. 1. Wealth Effects, Government Budget Constraints, and Ben Bernanke EC6012 Lecture 8 Stephen Kinsella Dept. Economics, University of Limerick. stephen.kinsella@ul.ie March 23, 2009 Stephen Kinsella (University of Limerick) Wealth Effects, Government Budget Constraints, and Ben Bernanke 23, 2009 March 1/9
  2. 2. Today Admin 1 Bernanke-Blinder 2 Government Wealth 3 Stephen Kinsella (University of Limerick) Wealth Effects, Government Budget Constraints, and Ben Bernanke 23, 2009 March 2/9
  3. 3. IS LM Figure: Equilibrium in the IS-LM model Stephen Kinsella (University of Limerick) Wealth Effects, Government Budget Constraints, and Ben Bernanke 23, 2009 March 3/9
  4. 4. BB Model Figure: Bernanke-Blinder Model Equilibrium. Stephen Kinsella (University of Limerick) Wealth Effects, Government Budget Constraints, and Ben Bernanke 23, 2009 March 4/9
  5. 5. Table Rise in Income Money Credit Interest Rate on bonds Bank Reserves + + + - Money Demand - + - + Credit Supply + + + + Credit Demand - - + - Commodity Demand + + + + Table: Effects of Shocks on Observable Variables. (?, pg. 438.) Stephen Kinsella (University of Limerick) Wealth Effects, Government Budget Constraints, and Ben Bernanke 23, 2009 March 5/9
  6. 6. A New Model LM i I_{T} I_{T} Y Y_{e} Y_{F} (M-alpha)/ (gamma) Figure: Nell’s ISLM. Stephen Kinsella (University of Limerick) Wealth Effects, Government Budget Constraints, and Ben Bernanke 23, 2009 March 6/9
  7. 7. JW Curve i G>tY JW G<tY IS Y Stephen Kinsella (University of Limerick) Wealth Effects, Government Budget Constraints, and Ben Bernanke 23, 2009 March 7/9
  8. 8. JW-IS-LM i LM JW IS I_{T} Y Y = G/t (M - alpha)/gamma Stephen Kinsella (University of Limerick) Wealth Effects, Government Budget Constraints, and Ben Bernanke 23, 2009 March 8/9
  9. 9. References Stephen Kinsella (University of Limerick) Wealth Effects, Government Budget Constraints, and Ben Bernanke 23, 2009 March 9/9

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