Chapter 10MoneyGrowthMoney Demand,andMonetaryPolicyMcGraw-Hilly/rwinCopyright 2006byTheMcGraw-Hill Companies,Inc.All rights reserved
McGraw-Hill/Irwin Copyright © 2006 by The McGraw-Hill Companies, Inc. All rights reserved. Chapter 10 Money Growth, Money Demand, and Monetary Policy
CONTENS福O10.1InflationandMoneyGrowth10.2Quantity Theory of MoneyandVelocityof Money10.3DemandforMoney10.4TargetingMoneyGrowthinaLow-InflationEnvironment20-2
20-2 CONTENS 10.1 Inflation and Money Growth 10.2 Quantity Theory of Money and Velocity of Money 10.3 Demand for Money 10.4 Targeting Money Growth in a Low-Inflation Environment
10.1 Inflation and Money Growth0Figure20.1Inflation and Money Growth,All Countries,1981-20031,200Nicaragua450eAngola800BoliviaPeruUkraineArmeniaBrazil-Belarus400ArgentinaAzerbaijan4008001,200AverageAnnualMoneyGrowth(%)20-3
20-3 10.1 Inflation and Money Growth
Inflation andMoney GrowthCConclusions:To avoid sustained episodes of highinflation, a central bank must beconcerned with money growth20-4
20-4 Inflation and Money Growth • Conclusions: • To avoid sustained episodes of high inflation, a central bank must be concerned with money growth
Inflation and Money GrowthCFigure20.2Inflationand Money Growth:Moderate-lnflationCountries,1981-2003504540(30201002030104050AverageAnnualMoneyGrowth(%)20-5
20-5 Inflation and Money Growth