Thank you for watching the video and for leaving your comments. If you are interested in more videos on Intermediate Macroeconomics, the full lecture can be found here: The Goods Market: ua-cam.com/video/jgfSE6jAXWM/v-deo.html The Multiplier Effect: ua-cam.com/video/9eeBixxQa_o/v-deo.html The IS Curve: ua-cam.com/video/g6aba0V6ifo/v-deo.html Movements Along the Curve or Shifts of the Curve: ua-cam.com/video/LR5S4xL0DJE/v-deo.html The Money Market: ua-cam.com/video/I2iUZVoKkm0/v-deo.html The LM Curve: ua-cam.com/video/A5jV_0ZIRU4/v-deo.html The IS-LM Model: ua-cam.com/video/e_3clidGpfE/v-deo.html The Labor Market: ua-cam.com/video/r8qRf_kIeek/v-deo.html The Phillips Curve: ua-cam.com/video/c55Gz1oKr7w/v-deo.html The IS-LM-PC Model: ua-cam.com/video/7zvc1ECNHAo/v-deo.html Exchange Rates: ua-cam.com/video/QKf7fQCjfVY/v-deo.html Purchasing Power Parity: ua-cam.com/video/00H3hXF85Ns/v-deo.html Interest Rate Parity: ua-cam.com/video/_LVPhfBBGNs/v-deo.html Goods Market in the Open Economy: ua-cam.com/video/CS-fjsU4XBQ/v-deo.html Fiscal Policy and the Multiplier in the Open Economy: ua-cam.com/video/w5agukcULuo/v-deo.html Open Economy: Effects of Increases in Foreign Demand: ua-cam.com/video/fCzqV8KEFhw/v-deo.html Open Economy: Effects of a Currency Depreciation: ua-cam.com/video/zTza0XO-52Q/v-deo.html Reducing the Trade Deficit: ua-cam.com/video/S5Mv-WC6iNk/v-deo.html The Marshall-Lerner Condition: ua-cam.com/video/Yw3Y74DEge8/v-deo.html The Mundell-Fleming Model: ua-cam.com/video/yRefsZdU1No/v-deo.html The Solow Model: ua-cam.com/video/t8Q-2P0P3E4/v-deo.html The Solow Model with Technological Progress: ua-cam.com/video/sP_eQoPMAKg/v-deo.html
Thank you for this great and explanatory video! It was very helpful for understanding the core of the modern version of this model rather than the majority with the LM curve being different.
Thank you for such useful video. But I wonder if the modern view of LM curve is adopted, i.e. horizontal and using interest rate as monetary tool, is liquidity trap still applicable in this revised model?
Thank you! Yes, the liquidity trap in the traditional form (that the interest rate does not respond to monetary policy for a flat LM curve) is basically assumed away in this case. However, the constraint of the zero lower bound on the nominal interest rate could still be binding and would have similar consequences as a liquidity trap in the traditional version of the model.
Thank you for watching the video and for leaving your comments. If you are interested in more videos on Intermediate Macroeconomics, the full lecture can be found here:
The Goods Market: ua-cam.com/video/jgfSE6jAXWM/v-deo.html
The Multiplier Effect: ua-cam.com/video/9eeBixxQa_o/v-deo.html
The IS Curve: ua-cam.com/video/g6aba0V6ifo/v-deo.html
Movements Along the Curve or Shifts of the Curve: ua-cam.com/video/LR5S4xL0DJE/v-deo.html
The Money Market: ua-cam.com/video/I2iUZVoKkm0/v-deo.html
The LM Curve: ua-cam.com/video/A5jV_0ZIRU4/v-deo.html
The IS-LM Model: ua-cam.com/video/e_3clidGpfE/v-deo.html
The Labor Market: ua-cam.com/video/r8qRf_kIeek/v-deo.html
The Phillips Curve: ua-cam.com/video/c55Gz1oKr7w/v-deo.html
The IS-LM-PC Model: ua-cam.com/video/7zvc1ECNHAo/v-deo.html
Exchange Rates: ua-cam.com/video/QKf7fQCjfVY/v-deo.html
Purchasing Power Parity: ua-cam.com/video/00H3hXF85Ns/v-deo.html
Interest Rate Parity: ua-cam.com/video/_LVPhfBBGNs/v-deo.html
Goods Market in the Open Economy: ua-cam.com/video/CS-fjsU4XBQ/v-deo.html
Fiscal Policy and the Multiplier in the Open Economy: ua-cam.com/video/w5agukcULuo/v-deo.html
Open Economy: Effects of Increases in Foreign Demand: ua-cam.com/video/fCzqV8KEFhw/v-deo.html
Open Economy: Effects of a Currency Depreciation: ua-cam.com/video/zTza0XO-52Q/v-deo.html
Reducing the Trade Deficit: ua-cam.com/video/S5Mv-WC6iNk/v-deo.html
The Marshall-Lerner Condition: ua-cam.com/video/Yw3Y74DEge8/v-deo.html
The Mundell-Fleming Model: ua-cam.com/video/yRefsZdU1No/v-deo.html
The Solow Model: ua-cam.com/video/t8Q-2P0P3E4/v-deo.html
The Solow Model with Technological Progress: ua-cam.com/video/sP_eQoPMAKg/v-deo.html
you are an absolute legend, in 40 mins you have clarified more than 2 weeks of studying.
Thank you so much! I am happy that the lectures have been useful.
Your seperation of the timeframes is so good, I shall steal it for future Tutoring
Thank you! Feel free to do so (and to recommend the video ;))
Thank you for this great and explanatory video! It was very helpful for understanding the core of the modern version of this model rather than the majority with the LM curve being different.
Thank you for your positive feedback! I am glad that the video was helpful!
Thank you for such useful video. But I wonder if the modern view of LM curve is adopted, i.e. horizontal and using interest rate as monetary tool, is liquidity trap still applicable in this revised model?
Thank you! Yes, the liquidity trap in the traditional form (that the interest rate does not respond to monetary policy for a flat LM curve) is basically assumed away in this case. However, the constraint of the zero lower bound on the nominal interest rate could still be binding and would have similar consequences as a liquidity trap in the traditional version of the model.