Part I
ISLM Modell

1 Money supply
2 The goods market: The IS equation
 2.1 Derivation of the IS curve
 2.2 The shift of the IS curve in a closed economy
3 The financial market: the LM curve
 3.1 Derivation of the LM curve
 3.2 The shift of the LM curve in a closed economy
4 The effect of political decisions in equilibrium
 4.1 Fiscal policy
 4.2 Monetary policy
 4.3 The combined use of monetary and fiscal policy
5 The ISLM model with expectations
 5.1 The IS curve with expectations
 5.2 Fiscal policy, monetary policy and the role of expectations and backloading
6 The ISLM model in the open economy
 6.1 Demand for domestic goods vs. domestic demand: DD and ZZ curve
 6.2 Trade balance: net exports
 6.3 The IS curve in the open economy: real depreciation and trade balance
7 Atypical monetary policy: liquidity trap and quantitative easing
 7.1 Liquidity trap
 7.2 Monetary policy in the crisis

(c) by Christian Bauer
Prof. Dr. Christian Bauer
Chair of monetary economics
Trier University
D-54296 Trier
Tel.: +49 (0)651/201-2743