Topics for this week’s Tuesday seminar
The AD-AS model
-Equations and derivation of the slope of the AD curve
-The effectiveness of government spending in floating regime
-From short run to long run AS curve
-The role of capital mobility
Bring lecture notes: “Economic Policy. Fiscal Policy”
The Portfolio model with money
-The market for foreign exchange: how to derive
E
i
-Sterilization
Bring lecture notes: “Money and the exchange rate; Monetary policy”
Dynamics
-Final equation, short and long run multipliers
Exercise 1b OEM
Bring solution from http://folk.uio.no/asro/openm.htm
Seminar exercise 6
- 2) vertical long-run Phillips curve
- 4) a follow up on all the substitutions
- 6) an explanation of which variables are endog/exog
- 7) some comments
Bring your notes from the seminars on exercise 6