RDP 7903: Monetary Rules: A Preliminary Analysis Appendix D
September 1979
Figure 1: Increase in Real Government Spending
![Figure 1: Increase in Real Government Spending](images/figure-d1.gif)
Figure 2: Increase in Real Exports
![Figure 2: Increase in Real Exports](images/figure-d2.gif)
Figure 3: Increase in Household Saving Ratio
![Figure 3: Increase in Household Saving Ratio](images/figure-d3.gif)
Figure 4: Decrease in Business Fixed Investment
![Figure 4: Decrease in Business Fixed Investment](images/figure-d4.gif)
Figure 5: Increase in Real Award Wages
![Figure 5: Increase in Real Award Wages](images/figure-d5.gif)
Figure 6: Reduction in Capacity Output
![Figure 6: Reduction in Capacity Output](images/figure-d6.gif)
Figure 7: Increase in World Prices
![Figure 7: Increase in World Prices](images/figure-d7.gif)
Figure 8: Increase in Capital Inflow
![Figure 8: Increase in Capital Inflow](images/figure-d8.gif)
Figure 9: Decrease in Demand for Money
![Figure 9: Decrease in Demand for Money](images/figure-d9.gif)
Output | Capital | Employment | Labour Supply | Unemployment Rate | Wages | Prices | Money | International Reserves | Bond Rate | Exchange Rate | |
---|---|---|---|---|---|---|---|---|---|---|---|
Increase in govt spending | 0.1 | −4.2 | 0.8 | 0.6 | −.27 | 5.1 | 5.3 | −0.4 | −6.7 | 1.3 | 4.3 |
Increase in exports | 1.8 | 2.0 | 0.9 | 0.7 | −.26 | −0.5 | −1.6 | −1.8 | 3.9 | – | −6.8 |
Increase in savings ratio | −0.2 | 5.7 | −1.4 | −0.9 | .44 | 7.4 | 7.3 | 17.1 | 31.2 | −2.5 | 7.4 |
Decrease in investment | – | – | – | – | – | – | – | – | – | – | – |
Increase in award wages | 0.7 | 4.8 | −1.0 | −0.6 | .34 | 4.5 | 2.8 | 8.2 | 16.7 | −1.7 | 3.7 |
Decrease in capacity output | −2.2 | −5.0 | 0.9 | 0.6 | −.32 | 0.2 | 2.5 | −5.0 | −8.4 | 1.1 | −0.2 |
Increase in world prices | – | – | – | – | – | – | – | – | – | – | −4.9 |
Decrease in money demand | – | 0.3 | – | – | – | 0.9 | 0.8 | −1.8 | −1.1 | −0.1 | 0.7 |
Increase in capital inflow | 0.2 | 1.2 | – | – | – | 1.0 | 0.7 | 2.1 | 5.0 | −0.4 | – |
* Percentage deviation from steady state levels, except in case of bond rate (deviation from steady state level) and unemployment rate (deviation from assumed steady state level of 2 per cent). |