Particularly confusing is the blue line in the graphs

[koganbot]

Won't have much time for livejournal in the next couple of days. In the meantime I'm linking a long post by Brad DeLong that I don't understand well after one reading, in case any of you would like to explain it to me:

Today In Financial History

The purpose of stage III policies is to boost demand relative to supply for risky assets, and thus to operate on the margin that is the spread in prices and yields between safe assets like Treasury securities and the risky assets whose falling prices are threatening the stability of the financial system and the macroeconomic flow of investment.

Comments

[jtemperance.livejournal.com]

The blue line in the second set of graphs is a supply curve. It's vertical because supply is fixed in the short run, so q is always the same.

Anywhere the supply curve (blue line) and demand curve (red line) intersects is an equilibrium. In the later examples with the S-shaped demand curve, there is often more than one possible equilibrium.