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Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 CHAPTER 1 stabilizing the canadian economy.

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Presentation on theme: "Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 CHAPTER 1 stabilizing the canadian economy."— Presentation transcript:

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2 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 CHAPTER 1 stabilizing the canadian economy

3 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 17.1 Balance Sheets and Monetary Aggregates Bank of Canada

4 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 17.2 Controlling the Money Supply

5 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 17.3 Money Supply versus Interest Rate Targeting: The Money Market

6 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 17.4 Money Supply versus Interest Rate Targeting: IS Curve Fluctuations

7 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 17.5 Money Supply versus Interest Rate Targeting: Shifts in Demand for Money

8 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 17.6 The Aggregate Demand Curve with Interest Rate Targeting

9 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 17.7 Inflation and Real GDP with Interest Rate Targeting

10 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 17.8 Lags in the Response to an Open Market Operation

11 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 17.9 Interest Rates and the Business Cycle in the 1960s

12 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 17.10 Target Cones and Ranges

13 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 17.11 Target and Actual Money Supply Growth

14 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Figure 17.12 Actual Inflation and the Target Path to Zero Inflation

15 Bade-Parkin: Modern Macroeconomics, 4 th Edition, © Prentice Hall Canada, 2000 Table 17.1 Control of Money Supply


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