Principles of Macro-monetary Theory

activity aggregate demand aggregate demand schedule aggregate supply aggregate supply curve balance of payments bonds Bretton Woods Bretton Woods system business cycle called capital causes central bank classical commodity market consumers cost countries create decline deficit defined demand curve demand for money dollar econ economists economy effect equation exchange rate expansionary expected financial assets fiscal policy foreign exchange Friedman gold standard government expenditure Hence higher interest rate important inflation rate interest rate investment IS-LM IS-LM framework Keynesian level of income liquidity trap LM curve loanable funds long-run ment monetarists monetary policy monetary rule money market equilibrium money supply Obviously Phillips curve policy action policy makers price controls price level quantity demanded quantity supplied quantity theory real GNP relationship saving sector slope stability Suggested Additional Reading supply curve supply of money surplus terms of Figure tion total product unemployment variables velocity of money VMPL wage rate