Economie internationale

Ex 1) USA said in a year, the interest rate will raise. 

So TODAY the only thing that will change (on the graph) is  (view handwritten note/graph)

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- MONEY definition: an asset widely used used as a mean of payment

                 ~ function: 1) medium of exchange

                           2) Unit of account

                           3) store of value 

         (Doesn’t have to be money- money. Ex: cigarette in prison are used as money)

- Link between money & interest rate : 

                ~ interest rate is the opportunity cost of holding money

- MONEY MARKET:

                     → Money supply: central bank : M$

                     →Money demand: amounts of monetary assets that people are willing to                                                    hold. 

                                          - Determinants: 1) interest rate ( - ) 

                                                                        2) income ( + ) 

                                                             3) prices 

                               →Md= P * L (R,Y)

[pic 1]

-EQUILIBRIUM= Md = Ms ➔Ms/ P = L (R,Y)[pic 2][pic 3]

[pic 4][pic 5][pic 6][pic 7]

                                                                                                                                                                                            R1 = excess supply of $[pic 8][pic 9][pic 10][pic 11][pic 12][pic 13][pic 14][pic 15][pic 16][pic 17][pic 18][pic 19][pic 20][pic 21][pic 22][pic 23][pic 24][pic 25][pic 26][pic 27][pic 28][pic 29][pic 30][pic 31][pic 32][pic 33][pic 34][pic 35][pic 36][pic 37][pic 38][pic 39][pic 40][pic 41][pic 42][pic 43][pic 44][pic 45][pic 46][pic 47][pic 48][pic 49][pic 50]

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