A Structural Macro Model

Theme: Beyond Perfect Competition Markets in verity Title of the paper: Imperfect Competition, Financial Market & powerful Demand By St. Xaviers College, Kolkata (Autonomous) Hemangi Desai Email: hemangi221@gmail.com 9874630182 Nilesh Agarwal Email: nilesh_airan@hotmail.com 9883014523 Subid Chakraborty Email: subid_06@yahoo.co.in 9830562517 Rachit Agarwal Email: rachit_agarwal4u@yahoo.co.in 9333918992 citation: We are grateful to Prof. R.N. Nag, Head of Department of Economics, St. Xaviers College, and Prof. Partha Pratim Ghosh for their valuable comments on an earlier version of the paper. We also thank the college governing for their infrastructural support. Abstract: We construct an effective demand model involving interaction between the real sector and the monetary sector. The commodity marketplace is imperfect. We explain price stickiness in terms of Kaleckian Mark-up pricing. The financial assets are money, government bonds and a risky asset, say equity or stock. The model is an extension of Krugmans model of international financial multiplier and the model can explain not alone the fall in asset prices but also its recessive consequences. The paper also contains policy recommendations to overcome the financial melt mint.

JEL compartmentalisation: E60, E61. Keywords: Mark-up pricing, financial meltdown, effective demand. Section 1: Introduction The global financial sy melodic theme is currently in meltdown. Stock markets have been falling most days, money markets and credit markets have shut down as their interest-rate spreads skyrocket, and it is still too early to tell whether the great deal of measures adopted by the US and Europe will stem the bleeding on a sustained basis. A generalized run on the banking system has been a source of care for the first time in seven decades, while the ghost banking system - broker-dealers, non-bank mortgage lenders, structured investment vehicles and conduits, hedge funds, money... If you call for to get a full essay, order it on our website: Ordercustompaper.com

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