Title Details: | |
The Money Market |
|
Authors: |
Kyrikos, Dimitrios |
Reviewer: |
Vlassis, Minas |
Subject: | LAW AND SOCIAL SCIENCES > ECONOMIC SCIENCES > MACROECONOMICS AND MONETARY ECONOMICS LAW AND SOCIAL SCIENCES > ECONOMIC SCIENCES > MACROECONOMICS AND MONETARY ECONOMICS > GENERAL AGGREGATIVE MODELS LAW AND SOCIAL SCIENCES > ECONOMIC SCIENCES > MACROECONOMICS AND MONETARY ECONOMICS > MACROECONOMICS: CONSUMPTION, SAVING, PRODUCTION, EMPLOYMENT, AND INVESTMENT LAW AND SOCIAL SCIENCES > ECONOMIC SCIENCES > MACROECONOMICS AND MONETARY ECONOMICS > PRICES, BUSINESS FLUCTUATIONS, AND CYCLES LAW AND SOCIAL SCIENCES > ECONOMIC SCIENCES > MACROECONOMICS AND MONETARY ECONOMICS > MONEY AND INTEREST RATES LAW AND SOCIAL SCIENCES > ECONOMIC SCIENCES > MACROECONOMICS AND MONETARY ECONOMICS > MONETARY POLICY, CENTRAL BANKING, AND THE SUPPLY OF MONEY AND CREDIT LAW AND SOCIAL SCIENCES > ECONOMIC SCIENCES > MACROECONOMICS AND MONETARY ECONOMICS > MACROECONOMIC POLICY, MACROECONOMIC ASPECTS OF PUBLIC FINANCE, AND GENERAL OUTLOOK LAW AND SOCIAL SCIENCES > ECONOMIC SCIENCES > INTERNATIONAL ECONOMICS > MACROECONOMIC ASPECTS OF INTERNATIONAL TRADE AND FINANCE |
Description: | |
Abstract: |
In chapter 3, we drop the assumption of autonomous (exogenous) investment and show that the main determinant of investment expenditure is the interest rate. This introduces an additional endogenous variable in the macroeconomic system, since the determination of equilibrium output requires knowledge of the interest rate. We discuss two models of interest rate determination, the loananle funds model and the liquidity preference model. The former is appropriate for the long-term rate and the latter explains the short-run movements in the interest rate on the basis of liquidity demand and supply.
|
Linguistic Editors: |
Kalokyri, Anastasia |
Technical Editors: |
Karamolegkou, Maria |
Type: |
Chapter |
Creation Date: | 2015 |
Item Details: | |
License: |
http://creativecommons.org/licenses/by-nc-nd/3.0/gr |
Handle | http://hdl.handle.net/11419/1563 |
Bibliographic Reference: | Kyrikos, D. (2015). The Money Market [Chapter]. In Kyrikos, D. 2015. Macroeconomic Analysis and Policy [Undergraduate textbook]. Kallipos, Open Academic Editions. https://hdl.handle.net/11419/1563 |
Language: |
Greek |
Is Part of: |
Macroeconomic Analysis and Policy |
Publication Origin: |
Kallipos, Open Academic Editions |