Macroeconomic model reference
Loanable Funds Model
The supply of savings meets the demand for investment at an equilibrium real interest rate. When households save more, the supply curve shifts right and the rate falls; when firms want to invest more, the demand curve shifts right and the rate rises.
Theory-based models · Interactive graph
Loanable Funds graph: parameters, shocks, and readouts
Use the Loanable Funds graph to move parameters, inspect shocks, and read the model outputs that change.