我學校d notes咁分析(英國派)
The AD curve is downward sloping in a model
with inflation on the vertical axis. Interest rates and central bank inflation
targeting are the links between inflation and output. When inflation is
high, inflation-targeting central banks raise interest rates and this reduces
those components of aggregate demand, such as investment, which are
sensitive to interest rates. Consumption is also affected by interest rates
(though to a lesser extent than investment) because people often buy
durable goods (such as washing machines) on credit. It is important
to be clear that the implementation of a given monetary policy moves
the economy along a given ii schedule while a general tightening or
loosening of monetary policy shifts the whole ii schedule upwards or
downwards.
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