Can anyone econfags help me out here? Suppose there's a

If I had to tell you I'd say all in dgb

>>2353943
What does that mean? I'm just asking if rb increases or decreases.

>>2353932
Don't ask anything actually finance related here. It's coin fags only

As for ur problem, rb increases at lower int rate

borrowing rate decreases also

>>2354084

Why?

>>2353932
Wow an actual real thread, it's been awhile. Bump for interest in learning more about this.

>>2353932
What is mp in this case? Marginal productivity? I know this to be a liquidity preference money supply? In this case is MP money supply?

>>2354263
It stands for Monetary Policy. Google "IS-MP model" if you're interested.

>>2354292
Yeah man similar to LM model, in this case bro, doesn't the MP curve shift left, on the is? To lower the rate the central bank must conduct expansive monetary policy

>>2354321
Not the IS* and pardon, MP shift right. Whenever rates go down output should increase

>>2354321
Are you talking about the picture or my example? They're pretty much opposites.
In my example IS will shift right, as will Aggregate Demand.Then in the long-run inflation will rise and MP will shift left until you're back at Y1, assuming Y1 is potential output.
i think

>>2354392

I'm interested in this just because it irritated me I was supposed to just take these concepts as read when they seem to be built on concepts formulated by people who formulated concepts with loads of presumptions that don't seem to get spotted because they're just "how things are" - always makes me uncomfortable as a science of "human ideas".

d(Y) is the differential between one interest bearing asset and another as a concept - I don't know what it applies to in reality in total. All bonds? All interest yielding asets?

r(b) - Nothing useful on google, just what the rate people and businesses are borrowing money spent vs (rs) taking it out of supply?

>Spread between interest rates = rate people and businesses are borrowing minus rate people and businesses are saving.

I have absolutely no idea why that should be so.

Is it because if entities are borrowing and saving at identical amounts the market is perfectly matched so there's no differential because there's no need for price discovery?

My economics teacher on the IB just used to say "it just is" - useless sort of person who approaches things like that.

>>2354537
idk nigga I'm just an undergraduate. I can link you the pdf for the lecture on Credit Market Disruptions if you think it would help give more context.

>>2354392
The pic
>>2354537
Don't over complicate it, it's like 2nd year econ tops. D(y) is interest rate, yes what banks lend at minus what rate they give on deposits. Econ is very theoretical, it doesn't matter what asset etc. Dint worry about that. Its just top band mins bottom band

Rb is just borrow rate say 5%.ie a jew business needs a loan and the bank charges them 5%on it.

Rs is rate savings say 1%.so if u deposit money at the bank u get 1% from them. In this example D(y) is 4%

>>2354702
oh, if you're talking about the pic then yeah MP will shift right and inflation will fall.
and yup, 2nd year econ.

>>2354702
>Econ is very theoretical

Must be why it's so bad at predicting things.

>>2354838
Nice. Yeah it's not bad yet haha
>>2354853
It shouldn't be taken as literally predicting things at this level. These are the basic theoretical principles, its only 2nd year. You must learn this foundational stuff to learn how to use tools to analyze live data in more complex models.
Thats when it's less theoretical, and more practical

And its called forecasting, not predicting. Predicting is speculating on short term price movements. Forcasitng macroeconomic trends does work, leading indicators tend to show first the trend of over all business cycle

>>2353932
It's all bullshit now, when central banks buy 1/3 of the bonds from the market and pump interest rates to negative zone.

Macroecon stopped being meaningful around 2008 and most of this models do not work, they might be useful as some point of reference, but not as a forecasting tool.