ECO301- Asset Market

November 1, 2022

Two types of Assets

• Monetary
• Non Monetary Assets

Markets

• Labour Market
• Money Market
• Goods Market
  • IS curve represents equilibrum
  • savings=investements represents equilibrium

$Walras’s Law$

Short Term Stabilization

Classical Economics

• Freshwater Economists

Keynsian Economics- assumption that there is wage and price rigidity

• Saltwater Economists

ISLM Model built by John Hicks

IS-LM-FE

• IS curve- downward sloping
  • goods market
  • investment (I) =savings (S)
• LM curve- upward sloping
  • money market
  • money demanded (L) =money supplied (M)
• FE curve- vertical line
  • labour market
  • labour demanded= labour supplied

Comparative Statics

The general theory of emplyoment,….. and money

Dicky Fuller Test