The Classical dichotomy

Lecture Money, Banking & Finance - Lecture 2: The Microfoundations of Money - Part 1. The following will be discussed in this chapter: The foundations of Classical Monetary theory and the Classical dichotomy, The invalidity of the Classical dichotomy, neo-Classical monetary theory - the Real Balance Effect, Evaluation of RBE, The CIA model, macro implications.

20p runordie1 10-05-2022 21 2   Download

After completing this chapter, students will be able to: See why inflation results from rapid growth in the money supply, learn the meaning of the classical dichotomy and monetary neutrality, see why some countries print so much money that they experience hyperinflation, examine how the nominal interest rate responds to the inflation rate, consider the various costs that inflation imposes on society.

39p tradaviahe15 23-02-2021 21 1   Download

After completing this chapter, students will be able to: See why inflation results from rapid growth in the money supply, learn the meaning of the classical dichotomy and monetary neutrality, see why some countries print so much money that they experience hyperinflation.

17p larachdumlanat125 01-12-2020 13 1   Download

After completing this chapter, students will be able to: See why inflation results from rapid growth in the money supply, learn the meaning of the classical dichotomy and monetary neutrality, see why some countries print so much money that they experience hyperinflation, examine how the nominal interest rate responds to the inflation rate, consider the various costs that inflation imposes on society.

45p youcanletgo_04 17-01-2016 69 4   Download

Wallace attempts to analyse central bank interest rate control in a cashless, Arrow- Debreu economy. The model incorporates only the unit of account function of money and exhibits a version of the classical dichotomy in which arbitrary accounting prices are independent of the equilibrium real relative price vector. A model with these properties is incapable of providing a theory of the price level or inflation, nominal interest rate rules or justifying a role for the central bank. Nominal magnitudes are nominal in name only and Wallace’s analysis is without theoretical foundations.

22p taisaocothedung 09-01-2013 58 2   Download