critical role of money
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How do the views and the effects of changes in money supply oninterest rates and prices in the current era of globalization "
we can distinguish two classes of securities:
1. view of the fiskalis
fiskalis model, something changes in the supply of money to bringan immediate effect on interest rates, but tida no effect on the price level.
In addition, not differentiated market interest rate and real interestrates (real). This causes increased investment in the business world and the result is the total demand also helped to grow.
Source of resources that have not been used in the production andabsorption into the field of economy concerned moving towards full employment situation while prices adjust to it.
2. The view of the monetarist
In the monetarist model changes in the supply of money will bringan immediate effect on the price level, but does not affect interest rates.
The monetarist concluded that because of the effect on totaldemand, in case of temporary budgetary changes, it is not certain,it is better cultivated a steady monetary growth rather than fiscal.
How do the views and the effects of changes in money supply oninterest rates and prices in the current era of globalization "
we can distinguish two classes of securities:
1. view of the fiskalis
fiskalis model, something changes in the supply of money to bringan immediate effect on interest rates, but tida no effect on the price level.
In addition, not differentiated market interest rate and real interestrates (real). This causes increased investment in the business world and the result is the total demand also helped to grow.
Source of resources that have not been used in the production andabsorption into the field of economy concerned moving towards full employment situation while prices adjust to it.
2. The view of the monetarist
In the monetarist model changes in the supply of money will bringan immediate effect on the price level, but does not affect interest rates.
The monetarist concluded that because of the effect on totaldemand, in case of temporary budgetary changes, it is not certain,it is better cultivated a steady monetary growth rather than fiscal.
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