Macroeconomic balance in the Keynesian cross model and investment protection. Topic: Macroeconomic model of the Keynesian ridge Keynesian model of income Keynesian ridge

"Keynesian Crest" (or "Keynes' Crest") - a macroeconomic model, a graphical representation of the positive balance between the aggregate expenditures of economic agents and the underlying price level in the economy

The "Keynesian cross" model. The curve of cumulative losses shows a positive trend. The red point shows the increased employment of economic resources.

Keynesian ridge

The curve of actual expenditures is a bisector (line 45o), since the actual expenditures are equal to the output, and any point on the curve is consistent with this mind. The curve of planned expenditures is a line that has a positive slope (where the slope is indicated by the value of the borderline slope to life - mrs), which does not go out of the beginning of the coordinates, the remains of which will eventually result in autonomous life (Ĉ), so that it does not lie in the r Equal to income. The result is a distinctly weak cross, which is why the model got its name Keynesian cross.

The “Keynesian cross” is one of the most common ways of modeling the aggregate income. For the additional price of the model, you can select such parameters as equal to the issue, the lower price level in the economy, as in the AD-AS model. The fragments of the curves of aggregate expenditures show the increasing occupation of the economy's resources; using the “Keynesian cross” one can also analyze the phases of economic cycles. Since they actually spent more than planned (that is, the level of output is greater than the level of full-time employment of resources), so that companies were able to sell as much as they planned, due to the pressure of a change in product output, The level of cyclical unemployment is increasing, and a recession is now on the horizon. Since it is realistic to spend less than planned, if the level of output is lower than the level of full-time employment, then firms, for example, have less production, less needed on the market, through which they can increase their output, from You can also take care of the economy.

The Keynesian model describes the equilibrium of the market for goods and services. It is assumed that the real interest rate r is fixed (r = r time) and, therefore, investments I (r time) are immutable, and the daily income is linearly deposited in the apparent income.

For the total income level, planned expenditures E are calculated for setting the parameters of fiscal policy

(T = T equal, G = G equal):

The key idea of ​​this model is the possibility of diversification of planned expenditures E and actual expenditures Y. The level E = Y.

The achievement of equalization occurs due to an additional unplanned change in inventories: if output exceeds planned expenditures, there is an unplanned increase in inventories at firms and a decrease in production. As output costs less, unplanned changes in inventories occur, which encourages firms to increase production.

Obviously, as in the model of the Keynesian cross for other equal minds, sovereign purchases G (either investments I, or autonomous living) change for other equal minds, then the expenditures that are planned change for the skin equal output and as a result And there is a multiplier change of equal income to:

The multiplier of independent expenditures in the Keynesian model. When changing delta T contributions for other equals, a change in planned expenditures is required, which will lead to a multiplicative change in the equal income by:

Subsidiary multiplier in the Keynesian cross model.

Investment model – investment (I – S)

The same Keynesian approach is different from the neoclassical one. As I look at it:

• Keynesian - It is characterized by the function of income (div. Fig. 3.8), and investment by the function of interest rate (div. Fig. 3.10, b);
• neoclassical – both savings and investments are functions of the multicellular rate (Fig. 3.14).

Small 3.14.

How is it possible to feel offended?

So, stinks are found in the model of J. Hicks investments – protection (IS ), which describes the minds of jealousy on real rinku (Fig. 3.15).

Small 3.15.

Cob of research – quadrant IV. It is acceptable that on the penny market a hundred thousand rate has been established on the same level r 1 The won means the size of investments lying behind it, on the same level I 1 This position is shared by both neoclassicals and Keynesians.

It goes opposite the year arrow at quadrant III. It is important to use information that is also shared by economic schools, as well as mental macroeconomic balance, investment equity and protection. On the graphic it is depicted as a bisector I = S. The remainder of the investment has already been determined, so for the same reason, the value of the investment may be the same. S 1.

The upcoming quadrant II contains Keynesian information about those related to the income function. Tom projection S 1 on the right horizontally all national NI income is allowed to leave this equal level Y 1.

We went to quadrant I with already prepared coordinates of the point: Y 1, r 1. In fact, this is the point to provide information about an equally important duty to national income NI at the same level of interest rate, which ensures the continued equalization between investments and securities, this can be considered as IS 1.

Through successive iterations, depending on the different values ​​of the multi-hundred rate, it is possible to eliminate such equally important points IS. All the stench is becoming crooked IS.

Economic sense crooked IS It is believed that it shows the mutual connection between the standard r and national income NI in case of equalization between protected areas S and investments I.

Be a point on a curve IS displays simultaneously both the level of investment and the level of savings.

"Keynesian Cross"

The time has come to gain knowledge about both warehouse parts of the aggregate population (in the interpretation of J.M. Keynes): sustainable and investment expenditures. As a basis, it is calculated by the schedule of living expenses (div. Fig. 3.8) and includes up to new investment expenses. The “income - expenditure” coordinate system of investments has the appearance of a horizontal line (div. Fig. 3.10, A ), that's a total pouch Z+I repeatable graph form Z, or move parallel to your larger investment I (Fig. 3.16).

Small 3.16. "Keynesian Cross"

In this case, the point of macroequality will shift from , and the amount of equal national income NI increase by (). We have the right to supply food as a result of two gains: investment and income. Let's say, the increase in investment becomes 100 days. od. In other words, there is an increase in national income by 100 groschen. od.?

To understand the price of food, it is necessary to look at the multiplier effect.

Multiplicative effects

Autonomous payment multiplier - A coefficient that shows the extent of the change in national income due to a change in any element of autonomous expenditures, etc. independent from the dynamics of national income.

Let us remember that in the Keynesian model we are talking about survival and investment expenditures:

de - Multiplier of autonomous vitrats; - Change of national income; - Change of autonomous funds.

This staleness is multiplying (increasing): with the growth of autonomous expenditures, the growth of national income will be richer, lower incremental additional expenditures.

This is because the rest will generate a Lanzugian reaction of the economy, stimulating economic activity and additional employment in the received galus. Through the war, the “national pie” grows like a druzhdzh, increasing in number of times against the cob of additional autonomous expenditures.

Let's look at it from the perspective of an investment multiplier.

Investment multiplier - A coefficient that shows the likelihood of a change in national income due to a change in investment.

In a formalized form, the investment multiplier looks like this:

de – investment multiplier; - Change of national income; - Change of investment.

The formula is soluble

The economical substitution of this formula is that by making advance investments of a small size, it is possible to increase national income by a predetermined amount.

Why should the multiplier value be stored?

Obviously, this is part of the obvious income that is generated in the income stream. Please allow workers hired as a result of additional investments to divide the withdrawn salary into two parts: 80% for salary and 20% for benefits. This is 80% of the wine used for the purchase of bread, meat, milk, etc., allowing the baker, butcher, milkman, and dairy worker to make arrangements for their customers, and with their blackberries, for their needs. . This is how the process of animation begins. Since the ratio between the worker’s partial income, which is saved and saved, will be greater (for example, 40% - for living expenses and 60% - for benefits), then the obligation for continuous purchases will be twice as small, and therefore and the animation process will be more streamable. Also, the investment multiplier is proportional to the marginal sensitivity to the savings, then.

It is clear that the multiplier effect works on the disadvantageous side, but in the economy of unstable employment.

It is clear that the economy will benefit from increased employment due to increased investment. For which the first model of macroeconomics is accelerated AD–AS, As a result, the rate of full-time employment is fixed, which is the same as the “Keynesian crest” model (Fig. 3.17).

Investments are the storage part of the aggregate supply, which increases due to the growth of the aggregate supply. There are no fragments of the economy's free resources, so the adult aggregate flow will depend on the expansion of real production and the growth of the chain.

Small 3.17.

Thus, in the economy of full-time employment there are no reserves for increasing production, so the investment multiplier does not work.

It is clear that the mental equality in the model we analyzed is the equality of the value of the generated GDP (total income) with the planned expenditures ( E) private sector for a constant price level:

The remains are planned to be spent ( E) represent the amount of income and investments, then the mental balance can also be expressed as follows:

Graphically, we are responsible for connecting the lines of survivable and investment expenditures, which is equal to the value of the aggregate output (Fig. 2.10). On the abscissa axis, potentially possible processes of production are displayed ( Y): Distillers are ready to pay any obligation to obtain an adequate amount of income from distilled products. Income amount Y * indicates a situation of increased employment in the economy, then. Potential GDP is vibrating. On the ordinate axis the cumulative expenditures are placed ( E), which represents the amount of pennies that could be spent on a single income.

Small 2.10. Jealousy in the “Keynesian Cross” model

The bisector graphically embodies the attitude of jealousy, then. At any point on this line, jealousy ends: Y = E. We remember that, in fact, the domestic rulers can direct part of the income taken away to the endowment, so they plan

vitrat ( E) does not avoid the bisector there will be a way to add per vertical line to the graph of the growth of the constant value of the investment.

Rivnovaga reaches exactly B, in which line of planned aggregate expenditures ( E) crosses the bisector. Summary of information about the production process Y B Equally important.

The most important source of production (Y B) – this is a commitment to the release that will ensure waste costs sufficient for the purchase of a large number of manufactured products.

Other possible sources of production (cream Y B) cannot be persistent. If the level of production is less than equal (the area is left-handed from the point B), then the withdrawal of income from such production during the time of production will lead to an increase in living expenses: the aggregate expenses will be larger, which is not necessary for the addition of created goods. In this case, beware of a shortening of stocks of finished products at firms, which will serve as a signal for an increase in the volume of goods and services being produced.

Let's remember what we saw in the planned (current) investments. However, the collapse of the balance between the aggregate expenditures and the investment obligation has led to unplanned investments in the form of changes to inventory (TMZ) . Thus, actual investments are the sum of planned and unplanned investment expenses. The rest will remain the function of the so-called mechanism, which is strong and maintains a renewed macroeconomic balance in every disruption.

Turning to the little one 2.10, it is significant that the point is equal B Full-time employment is out of my reach. To go to the point F It is necessary to either further stimulate private investment, or engage other components of aggregate spending: government purchases ( G) and net export ( X n). When turned on before analyzing these components, the line of aggregate costs ( E) will continue to collapse in the mountains, and the macroeconomic balance can be established due to the constant employment of resources (point F).

Following from the above model, to determine the value of an equally important output, you can use the same model “protection – investment” (“Viluchenya - in’ektsii”).

Small 2.11. The “endowment-investment” model

On one side, enclosed forcibly (Rotation or subvoln_kannya) of potential losses from the flow of “income - waste”. Through the war, lasting expenses become insufficient for the supply of goods and services. Thus, entitlement is a factor that destroys jealousy. On the other hand, the enterprise sector does not intend to sell all its products to outsiders. Some of the products are in the form of production processes (investment goods), which will be sold in the middle of the manufacturing sector itself. Therefore, investments can be viewed as Injections Vitrat per potik “income - spend.”

The mental equation (2.14) is soluble and the expression of algebra that characterizes the equity in the “endowment-investment” model is deducible:

(2.16)

In this way, if the investments are protected (they are compensated by injections), then the planned total expenditures are sufficient for the supply of goods and services. The model is shown graphically as it appears, representing the little one 2.11.

The equal amount of Ye can fluctuate continuously until the value of any component of the total costs changes: Ye=C+I+G+Xn.

An increase in any component of autonomous expenditures results in an even greater increase in the total income of DY due to the multiplier effect.

Multiplier of autonomous expenditures - change of equal GDP before changing any component of autonomous expenditures

de m - Autonomous cash flow multiplier;

Y – change in equal GDP;

A - Change of autonomous expenditures independent of the dynamics of Y.

The multiplier shows how many times the total increase (shortness) of total income outweighs the incremental increase (shortness) of autonomous expenditures. This means that relatively small changes in the values ​​of C, I, G or Xn can cause significant changes in the levels of employment and output.

Model "IS" ("investment-protection")

The relationship between investment, income and income can be graphically illustrated in this way.

The “IS” model allows you to show connections between 4 variables: endowments, investments, social security and national income. Using this additional model, you can understand the minds of real market so that the market for goods and services. And even jealousy S And the mental values ​​are equal.

IV square. Here we see the proportional deposit between investments and the real interest rate. In this period, the level of investment corresponds to investments in the size Io. III square. The bisector that emerges from the coordi- nates of the III quadrant, є I = S. II square. Here the schedule is stricter, even S deposit as real profit (Y). The price So corresponds to the real income Y. And, you will find that in the I square you can, knowing the price Ro and Yo, know the point ISO.

If the rate % moves, the following changes will occur: the increase in the multi-hundredth rate from level r0 to r1 will lead to a change in investment, then level I. Which is the least protected S1, settled down with less income Y1, now you can find the point IS1, through the points ISOі IS1 you can draw a curve IS.

Otje, crooked IS shows the difference between the interest rate and national income with the difference between protected and investments. This is not a functional deposit, because income (Y) is not an argument, but an interest rate (r)- function. It is important to understand that come what may point on the curve IS reflects the equal level of investment and investment (balancing goods markets) with different income and interest rates. This is natural, the fragments of mental jealousy in the real market (market of goods) is jealousy I = S.

Pobudova curve IS May be significant for understanding the problems of macroeconomic balance. However, to complete the picture, it is necessary to know the minds of the penny market in order to select the “IS-LM” model.

Keynesian “income-spend” model This is a model of equalization of national income, in which expenditure (aggregate income) and national product (aggregate proposition) do not lie with the equalization of prices (fixed prices) and the function of income. The national product is taken to be equal to the national income.

The Keynesian model comes from the identity of aggregate expenditures and aggregate income (Say's model): V = E, where V - income, output; E – vitrati. Actual (real) and planned expenditures are distinguished. Actual (real) expenses may be the case if firms are forced to make unplanned investments in inventory in the face of uncontrolled changes in sales levels. Planned expenses- the sum that all entities (households, enterprises, society and the outside world) plan to spend on goods and services that are produced in the country. E = C + I + G + Xn

Model “income - spend” 1-inflationary growth; 2 – recessionary growth

Keynes's Cross (Dodi-Vitrati Model)

"Keynesian Cross"- macroeconomic model, graphical representation of the positive ratio between the aggregate expenditures of economic agents and the underlying price level in the economy

18. Pobudova models is

Model IS(investment – ​​investment) – organic warehouse part of the model "IS-LM". It shows the interrelationship between savings, investments, income and income. With this additional model, one can understand the equivalence of the real market (the market for goods and services) because equivalence Iі S And the mental values ​​are equal. The relationship between investments and protections is direct, since the greater the share of national income, the greater the ability of the credit system to directly contribute to investment projects. Kriva IS shows all possible gains between the bet and the hundred ( r) that income ( Y). There is a negative impact because the issue, which is equally important to the goods market, is falling due to the increase in the multi-hundredth rate.

19. Pobudova models lm.

The price on the penny market means a curve L.M. which shows all possible relationships Y and r, for whom they drink for pennies the ancient propositions of pennies. Under a penny in this case, as a rule, we understand a penny unit M 1 , which includes cooking and kosti on a flow rack, which can be easily converted to cooking at any time. At the heart of the puzzle curve L.M. lie down Keynesian theory of liquidity advantage , Which explains how the relationship between the prices and the propositions of real stocks of cash determine the bet of a hundred. Real inventories of goods and nominal inventories, adjusted for changes in the price level and price level M/R.

Within the framework of this model, the position of pennies in stock Ms = W + D, de Z- cooking, D- Koshti on the current racks.

20. Macroeconomic balance in the is-lm model.

Model IS-LM(investment (I), savings (S), (transfer of liquidity = money on pennies) (L), pennies (M)) - a macroeconomic model that describes the underlying macroeconomic equilibrium, which is established by the way of a combination of models of the same gi on the commodity (IS curve) and penny (LM curve) markets. The model was expanded by English economists John Hicks and Alvin Hansen and first adopted in 1937.

The skin point on the IS curve indicates the level of trade on the commodity market, which is indicated by the relationship between GDP (Y) and interest rates (i). The IS curve models two positions:

The liability of the investment depends on the interest rate. The higher the high-cost rate, the lower the investment. Therefore, national production is falling, and with it national income.

Keynesian ridge

The skin point on the LM curve resembles the market price of the penny market. The LM curve models the dependence of the multi-hundredth rate on national income. The higher the income, the higher the wage rate (higher income → higher expenses related to living expenses → the higher the cost of cooking → the higher the wage rate).

It is only at the point where the curves cross that the balance between both markets reaches.

Kriva IS is called right-handed. The new level of equilibrium is undermined by a high national income and a high interest rate.

The IS-LM model allows you to visualize the interrelationships of such macroeconomic quantities as the wage rate, the penny mass, the price level, the food price, the goods price, and the global economy rate. Zmіniy Chichel -Qih -Tsich values ​​to pretend to the acceleration point of Peretin Krivikh LM IS, ShO at his Worm of Vynoye Vobrinitva (I income) Ekononiki, I have a vіdpovydny ryven of the Vidsotkovo rates.