Lecture 5: The Short-Run IS-LM Model - Intermediate Macroeconomics - Blanchard & Johnson

Chapters 5, 6 - Macroeconomics, by Olivier Blanchard & David Johnson This video is from my Intermediate Macroeconomic Theory class from Summer 2020. The first few minutes provide an overview of what this lecture discusses and some motivation. Subsequently, I discuss the following: 1. The Goods Market and the IS relation 2. Graphical Derivation and Shifts of the IS curve 3. The Financial Market and the LM relation 4. Graphical Derivation and Shifts of the LM curve 5. Equilibrium in the IS-LM Model 6. Fiscal and Monetary Policy effects 7. Real vs Nominal Interest Rates 8. Risk Premium - Leverage and Financial Intermediaries 9. Extending the IS-LM Model: The effect of increase in risk premium 10. Extending the IS-LM Model: The zero lower bound 11. Extending the IS-LM Model: Great Recession Please like and subscribe for more videos!