IS/LM model
Course Learning Outcome: Formulate a whole system approach to the human subsystem structure and function.
Sub-Module Outcome: Apply monetary and fiscal policy to achieve ecological economic goals.
Activities:
- Read material on ISLM and monetary and fiscal policy.
- Integrative project work: How could monetary and fiscal policy be used to solve your problem?
OR
As an alternative to 3: Accepting the goals of EE, How would you use monetary and fiscal policy to solve the current financial crisis?
OR
How would you use monetary and fiscal policy to achieve the goals of EE? - Project work: Rewrite your problem statement, and add goals and objectives.
- Project work: reading on synthesis: pulling it all together.
Self Check: At the end of this section you should be able to answer the following questions:
- What is the relationship between savings, investment, interest rates and national income?
- What is the relationship between liquidity preference, interest and national income?
- What causes a shift in the IS curve?
- What causes a shift in the LM curve?
- What causes inflation?
- Why are governments so concerned about inflation are their concerns justified?
- How does monetary policy work, and how could we use it to achieve the goals of ecological economics?
- How does fiscal policy work, and how could we use it to achieve the goals of ecological economics?
