[영문] IS-LM 모델을 통해 설명한 소득수준에 따른 경제정책의 파급효과

소개글

아이비리그 대학교에서 A를 받은 IS-LM 모델을 통해 설명한 소득수준에 따른 경제정책의 파급효과에 대해 기술한 리포트입니다.

목차

- Introduction

- The Investment-Saving Curve

- The Liquidity-Money Curve

- The Equilibrium

- Fiscal Policy

- Monetary Policy

- Conclusion

본문내용

After the devastating economic calamity of 1929, many economists believed that a new model was needed to explain such a large economic downturn the classical model could not explicate. According to the classical economic model, total output depends on factor supplies and the technology, but neither of them underwent significant change around the time of the Great Depression. Applying John Maynard Keynes’ theory that addresses “low aggregate demand is responsible for the low income and high unemployment,” modern economists came up with the IS-LM model to demonstrate the relationship between interest rates and real output in the goods and services market and the money market.
The IS-LM model especially comes in handy to explain effects of government policies, since the model takes the aggregate market, money market, and labor market into consideration. Ever since, Adam Smith’s laissez-faire theory has become passe and governments practice heavy influence in all markets by utilizing various economic policies that encompass both monetary and fiscal means. And the model does give us a general idea how each policy would affect the population as a whole by showing expected changes in the total outcome and interest rates.

참고 자료

Keynes, J. The general theory of employment, interest, and money. 1936.
Mankiw, N. Gregory. Macroeconomics. 7. New York: Worth Pub, 2010.
Robert J. Gordon, Macroeconomics eleventh edition, 2009