13.1 Simple Closed Model ■ Simple closed model SOlution for short-term ◆ For expectation of Y=C(Y)+/(Y,r)+G inflation is difficult to describe, we presume =LOr, r) P it is zero. so the Y-y model can be expressed H(x-) as follow: Y 复终济学院
13.1 Simple Closed Model ◼Simple closed model ⚫Solution for short-term ◆For expectation of inflation is difficult to describe, we presume it is zero. So the model can be expressed as follow: ( ) ( , ) ( ) ( , ) Y Y Y H P P L Y r P M Y C Y I Y r G − = = = + + •
13.1 Simple Closed Model ■ Simple closed model ● Solution for short dy=c dy+ldy+ dr+dG term Ldy+L.dr=-=dM dP ◆ Without considering the change of time the solution is based-dp-(dP H Y on compared static analysis 复表经济学院
13.1 Simple Closed Model ◼Simple closed model ⚫Solution for shortterm ◆Without considering the change of time, the solution is based on compared static analysis. dY Y H dP P P d P P dP P M dM P L dY L dr dY C dY I dY I dr dG Y r r Y r ' ( ) 1 1 2 2 − = + = − = + + + • •
13.1 Simple Closed Model ■ Simple closed model ● conclusion: +Compared static analysis is to compare different economy and different economic policies without considering time. 复表经济学院
13.1 Simple Closed Model ◼Simple closed model ⚫conclusion： ◆Compared static analysis is to compare different economy and different economic policies without considering time
13.1 Simple Closed Model Static solution to simple closed model dy +l dy+l dr+dG Ldy+l dr=dM dp Y 1001cG cy-ly-l. dy M 0 P dP 复学终济器院
13.1 Simple Closed Model ◼Static solution to simple closed model dY Y H dP P P d P P dP P M dM P L dY L dr dY C dY I dY I dr dG Y r r Y r ' ( ) 1 1 2 2 − = + = − = + + + • • − = − − − dP dM dG P M P dr dY L I L C I r r Y Y Y 2 0 1 0 1 0 1