Fourth Edition. Olivier Blanchard. Massachusetts Institute of Technology PEARSON. Prentice Hall. Prentice Hall Upper Saddle River, New Jersey 07458
|
|
- Virgil Johnston
- 5 years ago
- Views:
Transcription
1 Fourth Edition Olivier Blanchard Massachusetts Institute of Technology PEARSON Prentice Hall Prentice Hall Upper Saddle River, New Jersey 07458
2 } Chapter 1 A Tour of the World 3 Chapter 2 A Tour of the Book 21 The Core 43 [Chapter 3 The Goods Market 45 [Chapter 4 Financial Markets 65 {Chapter 5 Goods and Financial Markets: The fs-lm Model Chapter 6 The Labor Market 117 hapter 7 Putting All Markets Together: The AS-AD Model 139 apter 8 The Natural Rate of Unemployment and the Phillips Curve 165 npter 9 Inflation, Activity, and Nominal Money Growth 185 TS!! The Facts of Growth 205 bpter 11 Saving, Capital Accumulation, and Output 223 Dter 12 Technological Progress and Growth 247 )ter 13 Technological Progress, Wages, and Unemployment 269 isions r 14 Expectations: The Basic Tools } 5 Financial Markets and Expectations Chapter 16 Chapter 17 Chapter 1 8 Chapter 19 Chapter 20 Chapter 21 Expectations, Consumption, and Investment 335 Expectations, Output, and Policy 355 O«373 Openness in Goods and Financial Markets 375 The Goods Market in an Open Economy 395 Output, the Interest Rate, and the Exchange Rate 421 Exchange Rate Regimes 441 Chapter 22 Depressions and Slumps 467 Chapter 23 High Inflation 493 Back to Policy 511 Chapter 24 Should Policy Makers Be Restrained? 513 Chapter 25 Monetary Policy: A Summing Up 533 Chapter 26 Fiscal Policy: A Summing Up 553 Epilogue 575 Chapter 27 Epilogue: The Story of Macroeconomics 575 Appendix Appendix Appendix Glossary ndex An Introduction to National Income and Product Accounts A-1 A Math Refresher A-6 An Introduction to Econometrics A-12 G-l -1
3 Preface XIV Chapter 1 A Tour of the World The United States 4 Has the United States Entered a New Economy? 5 Should You Worry about the U.S. Budget Deficit? The European Union 8 How Can European Unemployment Be Reduced? 10 What Will the Euro Do for Europe? Japan 12 What Triggered the Slump? 1 3 How Chapter 4 Will Japan Recover? Looking Ahead 15 Appendix: Where to Find the Numbers? 19 Chapter 2 A Tour of the Book Aggregate Output 22 GDP: Production and Income 22 Nominal and Real GDP The Other Major Macroeconomic Variables 28 The Unemployment Rate 28 The Inflation?Rate The Short Run, the Medium Run, the Long Run ATouroftheBook 35 The Core 35 Extensions 36 Back to Policy 36 Epilogue 37 Appendix: The Construction of Real GDR and Chain-Type Indexes 40 The Core 43 Chapter 5 Chapter 3 The Goods Market The Composition of GDP The Demand for Goods 48 Consumption (C) 48 Investment (/) 50 Government Spending (G) The Determination of Equilibrium Output 50 Using Algebra 51 Using a Graph 52 Using Words 55 How Long Does It Take for Output to Adjust? Investment Equals Saving: An Alternative Way of Thinking about Goods - Market Equilibrium Is the Government Omnipotent? A Warning 60 Financial Markets The Demand for Money 66 Deriving the Demand for Money The Determination of the Interest Rate. I 69 Money Demand, Money Supply, and the Equilibrium Interest Rate 69 Monetary Policy and Open Market Operations 73 Open Market Operations 74 Choosing Money or Choosing the Interest Rate? 75 Money, Bonds, and Other Assets The Determination of the Interest Rate. II 76 What Banks Do 76 The Supply and the Demand for Central Bank Money Two Alternative Ways of Looking at the Equilibrium 82 The Federal Funds Market and the Federal Funds Rate 82 The Supply of Money, the Demand for Money, and the Money Multiplier 83 Goods and Financial Markets: The IS-LM Model The Goods Market and the IS Relation 90 Investment, Sales, and the Interest Rate 90 Determining Output 91 Deriving the IS Curve 92 Shifts of the IS Curve 94
4 5-2 Financial Markets and the LM Relation 94 Real Money, Real Income, and the Interest Rate 95 Deriving the LM Curve 95 Shifts of the LM Curve Putting the IS and the LM Relations Together 98 Fiscal Policy, Activity, and the Interest Rate 99 Monetary Policy, Activity, and the Interest Rate Using a Policy Mix How Does the IS-LMModel Fit the Facts? 107 Chapter 6 The Labor Market A Tour of the Labor Market 118 The Large Flows of Workers Movements in Unemployment Wage Determination 124 Chapter 7 Bargaining 1 25 Efficiency Wages 1 25 Wages, Prices, and Unemployment Price Determination The Natural Rate of Unemployment 129 The Wage-Setting Relation 1 29 The Price-Setting Relation 1 29 Equilibrium Real Wages and Unemployment 1 30 From Unemployment to Employment 1 32 From Employment to Output Where We Go From Here 133 Appendix: Wage- and Price-Setting Relations versus Labor Supply and Labor Demand 137 Putting All Markets Together: The AS-AD Model Aggregate Supply Aggregate Demand Equilibrium in the Short Run and in the Medium Run 145 Equilibrium in the Short Run 145 From the Short Run to the Medium Run The Effects of a Monetary Expansion 148 The Dynamics of Adjustment 148 Going Behind the Scenes 149 The Neutrality of Money A Decrease in the Budget Deficit 151 Chapter 8 Chapter 9 Deficit Reduction, Output, and the Interest Rate 153 Budget Deficits, Output, and Investment Changes in the Price of Oil 155 Effects on the Natural Rate of Unemployment 1 56 The Dynamics of Adjustment Conclusions 159 The Short Run versus the Medium Run 159 Shocks and Propagation Mechanisms 160 Where We Go From Here: Output, Unemployment, and Inflation 160 The Natural Rate of Unemployment and the Phillips Curve Inflation, Expected Inflation, and Unemployment The Phillips Curve 167 The Early Incarnation 167 Mutations 1 68 Back to the Natural Rate of Unemployment A Summary and Many Warnings 173 Variations in the Natural Rate Across Countries 174 Variations in the Natural Rate Over Time 1 76 High Inflation and the Phillips Curve Relation 1 76 Deflation and the Phillips Curve Relation 1 80 Appendix: From the Aggregate Supply Relation to a Relation between Inflation, Expected Inflation, and Unemployment 183 Inflation, Activity, and Nominal Money Growth Output, Unemployment, and Inflation 186 Okun's Law 1 86 The Phillips Curve 1 88 The Aggregate Demand Relation The Effects of Money Growth 190 The Medium Run 191 The Short Run Disinflation 193 A First Pass 1 93 Expectations and Credibility: The Lucas Critique 195 Nominal Rigidities and Contracts 1 96 Chapter 10 The Facts of Growth Growth in Rich Countries since
5 Chapter 1 1 Chapter 1 2 The Large Increase in the Standard of Living since The Decrease in Growth Rates since the Mid-1 970s 209 The Convergence of Output per Capita A Broader Look across Time and Space 210 Looking across Two Millennia 211 Looking across Countries Thinking about Growth: A Primer 213 The Aggregate Production Function 214 Returns to Scale and Returns to Factors 216 Output per Worker and Capital per Worker 217 The Sources of Growth 218 Saving, Capital Accumulation, and Output Interactions between Output and Capital 224 The Effects of Capital on Output 224 The Effects of Output on Capital Accumulation The Implications of Alternative Saving Rates 227 Dynamics of Capital and Output 227 Steady-State Capital and Output 229 The Saving Rate and Output 229 The Saving Rate and Consumption Getting a Sense of Magnitudes 236 The Effects of the Saving Rate on Steady- State Output 237 The Dynamic Effects of an Increase in the Saving Rate 237 The U.S. Saving Rate and the Golden Rule Physical versus Human Capital 240 Extending the Production Function 240 Human Capital, Physical Capital, and Output 241 Endogenous Growth 242 Appendix: The Cobb-Douglas Production Function and the Steady State 245 Technological Progress and Growth Technological Progress and the Rate of Growth 248 Technological Progress and the Production Function 248 Interactions between Output and Capital 249 Dynamics of Capital and Output 252 The Effects of the Saving Rate 253 Chapter 1 3 Extensions The Determinants of Technological Progress 255 The Fertility of the Research Process 255 The Appropriability of Research Results The Facts of Growth Revisited 258 Capital Accumulation versus Technologica Progress 258 Fluctuations in the Pace of Technological Progress Institutions and Growth 260 Appendix: Constructing a Measure of Technological Progress 267 Technological Progress, Wages, and Unemployment Productivity, Output, and Unemployment in the Short Run 270 Technological Progress, Aggregate Supply, and Aggregate Demand 270 The Empirical Evidence Productivity and the Natural Rate of Unemployment 274 Price Setting and Wage Setting Revisited 274 The Natural Rate of Unemployment 275 The Empirical Evidence Technological Progress and Distribution Effects 279 The Increase in Wage Inequality 280 The Causes of Increased Wage Inequality 281 Chapter 14 Expectations: The Basic Tools Nominal versus Real Interest Rates 292 Nominal and Real Interest Rates in the United States since Expected Present Discounted Values 295 Computing Expected Present Discounted Values 296 Using Present Values: Examples 297 Nominal Versus Real Interest Rates, and Present Values Nominal and Real Interest Rates, and the 7S-LMModel Money Growth, Inflation, Nominal and Real Interest Rates 301
6 Chapti ter Chapter 16 fchapter 17 Revisiting the IS-LM Model 302 Nominal and Real Interest Rates in the Short Run 303 Nominal and Real Interest Rates in the Medium Run 304 From the Short to the Medium Run 305 Evidence on the Fisher Hypothesis 306 Appendix: Deriving the Expected Present Discounted Value Using Real or Nominal Interest Rates 311 Financial Markets and Expectations Bond Prices and Bond Yields 314 Bond Prices as Present Values * Arbitrage and Bond Prices * From Bond Prices to Bond Yields * Interpreting the Yield Curve * The Yield Curve and Economic Activity The Stock Market and Movements in Stock Prices 322 Stock Prices as Present Values 323 The Stock Market and Economic Activity Bubbles, Fads, and Stock Prices 326 Appendix: Arbitrage and Stock Prices 332 Expectations, Consumption, and Investment Consumption 336 The Very Foresighted Consumer 337 An Example 337 Toward a More Realistic Description 338 Putting Things Together: Current Income, Expectations, and Consumption Investment 341 Investment and Expectations of Profit 342 A Convenient Special Case 343 Current versus Expected Profit 346 Profit and Sales The Volatility of Consumption and Investment 349 Appendix: Derivation of the Expected Present Value of Profits under Static Expectations 354 Expectations, Output, and Policy Expectations and Decisions: Taking Stock 356 Expectations, Consumption, and Investment Decisions 356 Expectations and the IS Relation 356 The LM Relation Revisited Monetary Policy, Expectations, and Output 360 Monetary Policy Revisited 361 Chapter 1 8 Chapter Deficit Reduction, Expectations, and Output 364 The Role of Expectations about the Future 364 Back to the Current Period Openness in Goods and Financial Markets Openness in Goods Markets 376 Exports and Imports 376 The Choice between Domestic Goods and Foreign Goods 377 Nominal Exchange Rates 378 From Nominal to Real Exchange Rates 380 From Bilateral to Multilateral Exchange Rates Openness in Financial Markets 384 The Balance of Payments 385 The Choice between Domestic and Foreign Assets 387 Interest Rates and Exchange Rates Conclusions and a Look Ahead 392 The Goods Market in an Open Economy The IS Relation in the Open Economy 396 The Demand for Domestic Goods 396 The Determinants of C, /, and G 396 The Determinants of Imports 397 The Determinants of Exports 397 Putting the Components Together Equilibrium Output and the Trade Balance Increases in Demand, Domestic or Foreign 400 Increases in Domestic Demand 400 Increases in Foreign Demand 402 Fiscal Policy Revisited Depreciation, the Trade Balance, and Output 405 Depreciation and the Trade Balance: The Marshall-Lerner Condition 405 The Effects of a Depreciation 406 Combining Exchange-Rate and Fiscal Policies Looking at Dynamics: The J-Curve Saving, Investment, and the Trade Balance 413 Appendix 1: Multipliers: Belgium versus the United States 418 Appendix 2: Derivation of the Marshall- Lerner Condition 419
7 Chapter 20 Output, the Interest Rate, and the Exchange Rate Equilibrium in the Goods Market Equilibrium in Financial Markets 423 Money versus Bonds 423 Domestic Bonds versus Foreign Bonds Putting Goods and Financial Markets Together The Effects of Policy in an Open Economy 427 The Effects of Fiscal Policy in an Open Economy 427 The Effects of Monetary Policy in an Open Economy Fixed Exchange Rates 429 Pegs, Crawling Pegs, Bands, the EMS, and the Euro 430 Pegging the Exchange Rate, and Monetary Control 432 Fiscal Policy under Fixed Exchange Rates 433 Appendix: Fixed Exchange Rates, Interest Rates, and Capital Mobility 438 Chapter 21 Exchange Rate Regimes The Medium Run 442 Aggregate Demand under Fixed Exchange Rates 443 Equilibrium in the Short Run and in the Medium Run 443 The Case for and against a Devaluation Exchange Rate Crises under Fixed Exchange Rates Exchange Rate Movements under Flexible Exchange Rates 449 Exchange Rates and the Current Account 452 Exchange Rates, and Current and Future Interest Rates 453 Exchange Rate Volatility Choosing between Exchange Rate Regimes 454 Common Currency Areas 455 Hard Pegs, Currency Boards, and Dollarization 457 Appendix 1: The Real Exchange Rate, and Domestic and Foreign Real Interest Rates 463 Appendix 2: Deriving Aggregate Demand under Fixed Exchange Rates ~*SWSHSWSBSS»SB«Chapter 22 Depressions and Slumps Disinflation, Deflation, and the Liquidity Trap 468 The Nominal Interest Rate, the Real Interest Rate, and Expected Inflation 469 The Liquidity Trap 471 Putting Things Together: The Liquidity Trap and Deflation The Great Depression 475 The Initial Fall in Spending 477 The Contraction in Nominal Money 478 The Adverse Effects of Deflation 479 The Recovery The Japanese Slump 481 The Rise and Fall of the Nikkei 483 The Failure of Monetary and Fiscal Policy 484 The Recovery 486 Chapter 23 High Inflation Budget Deficits and Money Creation Inflation and Real Money Balances Deficits, Seignorage, and Inflation 499 The Case of Constant Nominal Money Growth 499 Dynamics and Increasing Inflation 501 Hyperinflation and Economic Activity How Do Hyperinflations End? 503 The Elements of a Stabilization Program 503 Can Stabilization Programs Fail? 504 The Costs of Stabilization Conclusions 505 Back to Policy 511 Chapter 24 Should Policy Makers Be Restrained? Uncertainty and Policy 514 How Much Do Macroeconomists Actually Know? 514 Should Uncertainty Lead Policy Makers to Do Less? 5 1 6* Uncertainty and Restraints on Policy Makers Expectations and Policy 518 Hostage Taking and Negotiations 518 Inflation and Unemployment Revisited 519 Establishing Credibility 520 Time Consistency and Restraints on Policy Makers Politics and Policy 522 Games between Policy Makers and Voters 523 Games between Policy Makers 525 Politics and Fiscal Restraints 528
8 Chapter 25 Monetary Policy: A Summing Up The Optimal Inflation Rate 534 The Costs of Inflation 535 The Benefits of Inflation 537 The Optimal Inflation Rate: The Current Debate The Design of Monetary Policy 539 Money Growth Targets and Target Ranges 539 Money Growth and Inflation Revisited 540 Inflation Targeting 541 Interest Rate Rules The Fed in Action 545 The Mandate of the Fed 545 The Organization of the Fed 546 The Instruments of Monetary Policy 546 The Implementation of Policy 548 Chapter 26 Fiscal Policy: A Summing Up The Government Budget Constraint 554 The Arithmetic of Deficits and Debt 554 Current versus Future Taxes 557 The Evolution of the Debt-to-GDP Ratio Four Issues in Fiscal Policy 561 Ricardian Equivalence 561 Deficits, Output Stabilization, and the Cyclically Adjusted Deficit 563 Wars and Deficits 563 The Dangers of Very High Debt The U.S. Budget: Current Numbers and Future Prospects 567 Current Numbers 567 Medium-Run Budget Projections 569 The Long-Run Challenges: Low Saving, Aging, and Medical Care 570 Epilogue 575 Chapter 27 Epilogue: The Story of Macroeconomics Keynesandthe Great Depression The Neoclassical Synthesis 576 Progress on All Fronts 577 Keynesians versus Monetarists The Rational Expectations Critique 579 Appendix Appendix 2 Appendix 3 Glossary Index 1 The Three Implications of Rational Expectations 580 The Integration of Rational Expectations Current Developments 583 New Classical Economics and Real Business Cycle Theory 583 New Keynesian Economics 583 New Growth Theory Common Beliefs 585 An Introduction to National Income and Product Accounts A Math Refresher A-6 An Introduction to Econometrics A-12 G A-l
Brief Contents. THE EXTENSIONS Introduction 1 Expectations 283. Policy 433
Brief THE EXTENSIONS Introduction 1 Expectations 283 Chapter 1 A Tour of the World 3 Chapter 14 Financial and Chapter 2 A Tour of the Book 21 Expectations 285 Chapter 15 Expectations, Consumption, and
More informationMacroeconomics. A European Text OXFORD UNIVERSITY PRESS SIXTH EDITION. Michael Burda and Charles Wyplosz
Macroeconomics A European Text SIXTH EDITION Michael Burda and Charles Wyplosz OXFORD UNIVERSITY PRESS Detailed Contents List of Tables xiii List of Figures xv List of Boxes xix 1 PART I Introduction to
More informationDynamic Macroeconomics
Chapter 1 Introduction Dynamic Macroeconomics Prof. George Alogoskoufis Fletcher School, Tufts University and Athens University of Economics and Business 1.1 The Nature and Evolution of Macroeconomics
More informationGLOBAL EDITION. Macroeconomics EIGHTH EDITION. Abel Bernanke Croushore
GLOBAL EDITION Macroeconomics EIGHTH EDITION Abel Bernanke Croushore Symbols Used in This Book A productivity B government debt BASE monetary base C consumption CA current account balance CU currency held
More informationIntroduction The Story of Macroeconomics. September 2011
Introduction The Story of Macroeconomics September 2011 Keynes General Theory (1936) regards volatile expectations as the main source of economic fluctuations. animal spirits (shifts in expectations) econ
More informationSyllabus. MACROECONOMICS Instructors: Dmitriy A. Veselov.
Syllabus MACROECONOMICS Instructors: Dmitriy A. Veselov. 1. Course Description a. Title of a Course Macroeconomics b. Pre-requisites The basic knowledge of calculus and mathematical analysis c. Course
More informationGLOBAL EDITION. Macroeconomics. Policy and Practice SECOND EDITION. Frederic S. Mishkin
GLOBAL EDITION Macroeconomics Policy and Practice SECOND EDITION Frederic S. Mishkin Real-Time Data Analysis Exercises Up-to-date macro data is a great way to engage in and understand the usefulness of
More informationPART II: THE NATIONAL ACCOUNTS
Acknowledgments To the Student To the Teacher page xxix xxxi xxxiii PART I: INTRODUCTION 1 Macroeconomics and the Real World 3 1.1 The Problems of Macroeconomics 3 1.2 What Is Macroeconomics? 4 1.2.1 Macroeconomics
More informationPart I (45 points; Mark your answers in a SCANTRON)
Final Examination Name: ECON 4020/ SPRING 2005 Instructor: Dr. M. Nirei 1:30 3:20 pm, April 28, 2005 Part I (45 points; Mark your answers in a SCANTRON) (1) The GDP deflator is equal to: a. the ratio of
More informationMonetary Theory and Policy. Fourth Edition. Carl E. Walsh. The MIT Press Cambridge, Massachusetts London, England
Monetary Theory and Policy Fourth Edition Carl E. Walsh The MIT Press Cambridge, Massachusetts London, England Contents Preface Introduction xiii xvii 1 Evidence on Money, Prices, and Output 1 1.1 Introduction
More informationThe Macroeconomy. Private Choices, Public Actions, and Aggregate Outcomes. Michael B. McElroy. North Carolina State University
The Macroeconomy Private Choices, Public Actions, and Aggregate Outcomes Michael B. McElroy North Carolina State University Originally published in 1996 by Prentice Hall (ISBN 0-02-378801-1). Chapter 1
More informationKarl Seeley. Macroeconomics in. Ecological Springer
Karl Seeley Macroeconomics in Ecological Context @ Springer Contents Part I Building Blocks 1 The Economy in the World 3 1.1 The History of Pasta 3 1.2 The Economic Perspective 6 1.3 Macroeconomics vs.
More informationModels of the Neoclassical synthesis
Models of the Neoclassical synthesis This lecture presents the standard macroeconomic approach starting with IS-LM model to model of the Phillips curve. from IS-LM to AD-AS models without and with dynamics
More informationShanghai Livingston American School Quarterly / Trimester Plan 3 AP Macro
Shanghai Livingston American School Quarterly / Trimester Plan 3 AP Macro Concept / Topic To Teach: Unit 4 MODULE 22: SAVING, INVESTMENT, AND THE FINANCIAL Specific Objectives: ELD Standards SYSTEM Week
More informationMacroeconomics: Principles, Applications, and Tools
Macroeconomics: Principles, Applications, and Tools NINTH EDITION Chapter 16 The Dynamics of Inflation and Unemployment Learning Objectives 16.1 Describe how an economy at full unemployment with inflation
More informationM.Sc. in Environmental and Natural Resource Economics Faculty of Economics, Chulalongkorn University
M.Sc. in Environmental and Natural Resource Economics Faculty of Economics, Chulalongkorn University Course Outline and Advanced Economics Theory II (2940604) (Macroeconomics) Assoc. Prof. Paitoon Kraipornsak,
More informationInnovations in Macroeconomics
Paul JJ. Welfens Innovations in Macroeconomics Third Edition 4y Springer Contents A. Globalization, Specialization and Innovation Dynamics 1 A. 1 Introduction 1 A.2 Approaches in Modern Macroeconomics
More informationLecture Notes in Macroeconomics. Christian Groth
Lecture Notes in Macroeconomics Christian Groth July 28, 2016 ii Contents Preface xvii I THE FIELD AND BASIC CATEGORIES 1 1 Introduction 3 1.1 Macroeconomics............................ 3 1.1.1 The field............................
More informationINTERMEDIATE ECONOMIC THEORY: MACRO ECON Fall 2008
INTERMEDIATE ECONOMIC THEORY: MACRO ECON 30020.01 Fall 2008 Instructor: Amitava Dutt Class time: Mondays and Wednesdays 1:30 2:45 PM, Place: O Shaughnessy, 115 Office Hours: Office Hours: Mondays and Wednesdays,
More informationPART ONE INTRODUCTION
CONTENTS Chapter-1 The Nature and Scope of Macroeconomics Nature of Macroeconomic Difference Between Microeconomics and Macroeconomics Dependence of Microeconomic Theory on Macroeconomics Dependence of
More informationAdvanced Placement Macro Economics
Advanced Placement Macro Economics Economics is a study of mankind in the ordinary business of life. Alfred Marshall Through the AP Macroeconomics course, students will have a better understanding of the
More informationMacroeconomics Prelims Hilary Term 2006
Hilary Term 2006 This course covers the macroeconomic theory that you will need for Prelims. The course is also intended to make you think carefully about the microeconomic foundations of macroeconomics,
More informationB r i e f T a b l e o f C o n t e n t s
B r i e f T a b l e o f C o n t e n t s Chapter 1. Introduction Part I. CAPITAL ACCUMULATION AND ECONOMIC GROWTH Chapter 2. Neoclassical Growth Models Chapter 3. Endogenous Growth Models Chapter 4. Some
More informationMonetary Business Cycles. Introduction: The New Keynesian Model in the context of Macro Theory
Monetary Business Cycles Introduction: The New Keynesian Model in the context of Macro Theory Monetary business cycles Continuation of Real Business cycles (A. Pommeret) 2 problem sets Common exam Martina.Insam@unil.ch,
More information3. TFU: A zero rate of increase in the Consumer Price Index is an appropriate target for monetary policy.
Econ 304 Fall 2014 Final Exam Review Questions 1. TFU: Many Americans derive great utility from driving Japanese cars, yet imports are excluded from GDP. Thus GDP should not be used as a measure of economic
More informationADVANCED MODERN MACROECONOMICS
ADVANCED MODERN MACROECONOMICS ANALYSIS AND APPLICATION Max Gillman Cardiff Business School, Cardiff University Financial Times Prentice Halt is an imprint of Harlow, England London New York Boston San
More informationEconomics Macroeconomic Theory. Spring Final Exam, Tuesday 6 May 2003
Economics 202.04 - Macroeconomic Theory Spring 2003 - Final Exam, Tuesday 6 May 2003 Please answer: ALL QUESTIONS IF YOU DO PART 1 3 OUT OF 4 QUESTIONS IF YOU DO PART 2 Each question in each part carries
More informationName: Intermediate Macroeconomic Theory II, Fall 2009 Instructor: Dmytro Hryshko Final Exam (35 points). December 8.
Name: Intermediate Macroeconomic Theory II, Fall 2009 Instructor: Dmytro Hryshko Final Exam (35 points). December 8. 1. (5 points) Suppose that the only shocks in the economy are changes in the assessments
More informationThis paper is not to be removed from the Examination Halls UNIVERSITY OF LONDON
~~EC2065 ZB d0 This paper is not to be removed from the Examination Halls UNIVERSITY OF LONDON EC2065 ZB BSc degrees and Diplomas for Graduates in Economics, Management, Finance and the Social Sciences,
More informationFOURTH EDITION DEVELOPMENT MACROECONOMICS. Pierre-Richard Agenor. Peter J. Montiel. Princeton University Press Princeton and Oxford
FOURTH EDITION DEVELOPMENT MACROECONOMICS Pierre-Richard Agenor Peter J. Montiel Princeton University Press Princeton and Oxford Contents Preface to the Fourth Edition xix Introduction axid Overview 1
More informationContents. 1 Introduction. The Globalization of the World Economy 1 1.1A We Live in a Global Economy 1
1 Introduction The Globalization of the World Economy 1 1.1A We Live in a Global Economy 1 The Globalization Challenge 3 The Dell PCs, iphones, and ipads Sold in the United States Are Anything but American!
More informationand the Financial System
Macroeconomics Institutions, Instability, and the Financial System Wendy Carlin David Soskice OXPORD UNIVERSITY PRESS Outline contents Reviews " Preface ix How to use the Online Resource Centre xviii Acknowledgements
More informationGLOBAL EDITION. Hubbard O Brien. Economics SIXTH EDITION. R. Glenn Hubbard Anthony Patrick O Brien
GLOBAL EDITION Hubbard O Brien Economics SIXTH EDITION R. Glenn Hubbard Anthony Patrick O Brien Practice, Engage, and Assess with MyEconLab Learning Catalytics Generates classroom discussion, guides lectures,
More informationPlease choose the most correct answer. You can choose only ONE answer for every question.
Please choose the most correct answer. You can choose only ONE answer for every question. 1. Only when inflation increases unexpectedly a. the real interest rate will be lower than the nominal inflation
More informationPROGRAM. Program: Economics
Program: Economics A. FINANCIAL ECONOMICS 1. Financial Markets and Instruments Definition of financial market and its role. Structure and main participants of financial market. Types of financial market.
More informationEcon 308: Intermediate Macroeconomics Whitman College Fall 2008
Econ 308: Intermediate Macroeconomics Whitman College Fall 2008 Denise Hazlett Office: Maxey 212 Phone: 527-5155 email: hazlett homepage: http://people.whitman.edu/~hazlett/ Cleo email address for the
More informationNotes VI - Models of Economic Fluctuations
Notes VI - Models of Economic Fluctuations Julio Garín Intermediate Macroeconomics Fall 2017 Intermediate Macroeconomics Notes VI - Models of Economic Fluctuations Fall 2017 1 / 33 Business Cycles We can
More informationMACROECONOMICS FOR ECONOMIC POLICY
COURSE SYLLABUS MACROECONOMICS FOR ECONOMIC POLICY Instructors: Adam Reiff (lecturer), Rita Peto (TA) Department: Department of Economics, Central European University Semester and year: Fall, 2014/2015
More informationThe Wharton School University of Pennsylvania Finance Department
The Wharton School University of Pennsylvania Finance Department Finance 101 Spring 2018 Monetary Economics & the Global Economy Prof. Gerald Carlino Required Text and Materials: Andrew B. Abel, Ben S.
More informationECF2331 Final Revision
Table of Contents Week 1 Introduction to Macroeconomics... 5 What Macroeconomics is about... 5 Macroeconomics 5 Issues addressed by macroeconomists 5 What Macroeconomists Do... 5 Macro Research 5 Develop
More informationReview: objectives. CHAPTER 2 The Data of Macroeconomics slide 0
Review: objectives Remind you of the main theories. Overview of how parts of the course all fit together. Draw the most important and general lessons to remember from the course. CHAPTER 2 The Data of
More informationThe Impact of an Increase In The Money Supply and Government Spending In The UK Economy
The Impact of an Increase In The Money Supply and Government Spending In The UK Economy 1/11/2016 Abstract The international economic medium has evolved in the direction of financial integration. In the
More informationECO403 - Macroeconomics Faqs For Midterm Exam Preparation Spring 2013
ECO403 - Macroeconomics Faqs For Midterm Exam Preparation Spring 2013 FAQs Question: 53-How the consumer can get the optimal level of satisfaction? Answer: A point where the indifference curve is tangent
More informationPrinciples of Macroeconomics December 17th, 2005 name: Final Exam (100 points)
EC132.02 Serge Kasyanenko Principles of Macroeconomics December 17th, 2005 name: Final Exam (100 points) This is a closed-book exam - you may not use your notes and textbooks. Calculators are not allowed.
More informationECONOMICS. of Macroeconomic. Paper 4: Basic Macroeconomics Module 1: Introduction: Issues studied in Macroeconomics, Schools of Macroeconomic
Subject Paper No and Title Module No and Title Module Tag 4: Basic s 1: Introduction: Issues studied in s, Schools of ECO_P4_M1 Paper 4: Basic s Module 1: Introduction: Issues studied in s, Schools of
More informationGarden City High School Course: AP Macroeconomics
Garden City High School Course: AP Macroeconomics Instructional Philosophy The Advanced Placement Macroeconomics curriculum is a full year program designed to provide both an overview of economics. Economics
More informationMACROECONOMICS FIFTH CANADIAN EDITION OLIVIER BLANCHARD
MACROECONOMICS FIFTH CANADIAN EDITION OLIVIER BLANCHARD Massachusetts Institute of Technology DAVID JOHNSON Wilfrid Laurier University Toronto À Noelle O.B. To Susan D.J. Vice-President, Editorial Director:
More informationIndex. exchange rates, 104 5, net inflows, 100, 115, Bretton Woods system, 96 7 business cycles, 57
Index additional monetary tightening (AMT), 43 4 advanced economies, central banks in, 35 6 agency problems, 153, 163n47 aggregate demand, 18, 138 9, 141 2 Asian financial crisis, 8, 10, 13 15, 57, 65,
More informationECON 3312 Macroeconomics Exam 3 Spring 2016
ECON 3312 Macroeconomics Exam 3 Spring 2016 Name MULTIPLE CHOICE. Choose the one alternative that best completes the statement or answers the question. 1) Suppose there is an increase in expected future
More informationModule 4: Applications of Supply and Demand
The following list shows a summary of the topics covered in the macroeconomics course. Module 1: Economic Thinking Understanding Economics and Scarcity The Concept of Opportunity Cost Labor, Markets, and
More informationBusiness Fluctuations. Notes 05. Preface. IS Relation. LM Relation. The IS and the LM Together. Does the IS-LM Model Fit the Facts?
ECON 421: Spring 2015 Tu 6:00PM 9:00PM Section 102 Created by Richard Schwinn Based on Macroeconomics, Blanchard and Johnson [2011] Before diving into this material, Take stock of the techniques and relationships
More informationPeriod 3 MBA Program January February MACROECONOMICS IN THE GLOBAL ECONOMY Core Course. Professor Ilian Mihov
Period 3 MBA Program January February 2008 MACROECONOMICS IN THE GLOBAL ECONOMY Core Course Professor SOLUTIONS Final Exam February 25, 2008 Time: 09:00 12:00 Note: These are only suggested solutions.
More informationEC202 Macroeconomics
EC202 Macroeconomics Koç University, Summer 2014 by Arhan Ertan Study Questions - 3 1. Suppose a government is able to permanently reduce its budget deficit. Use the Solow growth model of Chapter 9 to
More informationECON Intermediate Macroeconomic Theory
ECON 3510 - Intermediate Macroeconomic Theory Fall 2015 Mankiw, Macroeconomics, 8th ed., Chapter 12 Chapter 12: Aggregate Demand 2: Applying the IS-LM Model Key points: Policy in the IS LM model: Monetary
More informationWhat we know about monetary policy
Apostolis Philippopoulos What we know about monetary policy The government may have a potentially stabilizing policy instrument in its hands. But is it effective? In other words, is the relevant policy
More informationMacroeconomics, Cdn. 4e (Williamson) Chapter 1 Introduction
Macroeconomics, Cdn. 4e (Williamson) Chapter 1 Introduction 1) Which of the following topics is a primary concern of macro economists? A) standards of living of individuals B) choices of individual consumers
More informationTrade and Development
Trade and Development Table of Contents 2.2 Growth theory revisited a) Post Keynesian Growth Theory the Harrod Domar Growth Model b) Structural Change Models the Lewis Model c) Neoclassical Growth Theory
More informationMacroeconomic Theory and Stabilization Policy. Multiple Choice Problems [Select the best alternative]
1 Macroeconomic Theory and Stabilization Policy Module 1: Introduction Multiple Choice Problems [Select the best alternative] 1. In stagflation potential output of the economy declines. the inflation rate
More informationAggregate Demand, Aggregate Supply, and the Self-Correcting Economy
Aggregate Demand, Aggregate Supply, and the Self-Correcting Economy The Role of Aggregate Demand & Supply Endogenizing the Price Level Inflation Deflation Price Stability The Aggregate Demand Curve Relates
More informationSIS 628 Jan. 16, 2019 INCOME
SIS 628 Jan. 16, 2019 INCOME 1 What is macro about? Macroeconomics is the study of income. Why do incomes vary over time? Why do they differ across countries? Why do they differ among people? If we try
More informationCHAPTER 2. A TOUR OF THE BOOK
CHAPTER 2. A TOUR OF THE BOOK I. MOTIVATING QUESTIONS 1. How do economists define output, the unemployment rate, and the inflation rate, and why do economists care about these variables? Output and the
More informationSimultaneous Equilibrium in Output and Financial Markets: The Short Run Determination of Output, the Exchange Rate and the Current Account
Fletcher School, Tufts University Simultaneous Equilibrium in Output and Financial Markets: The Short Run Determination of Output, the Exchange Rate and the Current Account Prof. George Alogoskoufis The
More informationCHAPTER 11. SAVING, CAPITAL ACCUMULATION, AND OUTPUT
CHAPTER 11. SAVING, CAPITAL ACCUMULATION, AND OUTPUT I. MOTIVATING QUESTION Does the Saving Rate Affect Growth? In the long run, saving does not affect growth, but does affect the level of per capita output.
More informationMonetary Economics July 2014
ECON40013 ECON90011 Monetary Economics July 2014 Chris Edmond Office hours: by appointment Office: Business & Economics 423 Phone: 8344 9733 Email: cedmond@unimelb.edu.au Course description This year I
More informationNo 02. Chapter 1. Chapter Outline. What Macroeconomics Is About. Introduction to Macroeconomics
No 02. Chapter 1 Introduction to Macroeconomics Chapter Outline What Macroeconomists Do Why Macroeconomists Disagree Macroeconomics: the study of structure and performance of national economies and government
More informationIntroduction to Macroeconomics
Robert M. Kunst robert.kunst@univie.ac.at University of Vienna and Institute for Advanced Studies Vienna June 19, 2012 Outline Introduction National accounts The goods market The financial market The IS-LM
More informationEco202 Review, April 2013, Prof. Bill Even. I. Chapter 4: Measuring GDP and Economic Growth
Eco202 Review, April 2013, Prof. Bill Even I. Chapter 4: Measuring GDP and Economic Growth A. Definition of GDP B. Measuring GDP 1. Expenditure side a) C+I+G+NX b) Definition of each component 2. Income
More information1 of 15 12/1/2013 1:28 PM
1 of 15 12/1/2013 1:28 PM Policy tools include Population growth, spending behavior, and invention. Wars, natural disasters, and trade disruptions. Tax policy, government spending, and the availability
More informationEconomics II/Intermediate Macroeconomics (No. 5025) Prof. Dr. Gerhard Schwödiauer/ Prof. Dr. Joachim Weimann. Semester: Summer Semester 2004
Matr.-Nr. Name: Examination Examiners: Economics II/Intermediate Macroeconomics (No. 5025) Prof. Dr. Gerhard Schwödiauer/ Prof. Dr. Joachim Weimann Semester: Summer Semester 2004 The following aids may
More informationA macroeconomic survey of Europe
A macroeconomic survey of Europe Olivier Blanchard January 2007 Nr. 1 Four themes A broad based (both across countries, across consumption, investment and exports) expansion. Not a boom. Fundamentals in
More information4. Simultaneous Goods and Financial Markets Equilibrium in the Short Run: The IS-LM Model
Fletcher School of Law and Diplomacy, Tufts University 4. Simultaneous Goods and Financial Markets Equilibrium in the Short Run: The IS-LM Model E212 Macroeconomics Prof. George Alogoskoufis Aggregate
More informationMidterm Examination Number 1 February 19, 1996
Economics 200 Macroeconomic Theory Midterm Examination Number 1 February 19, 1996 You have 1 hour to complete this exam. Answer any four questions you wish. 1. Suppose that an increase in consumer confidence
More informationLecture 1. Macroeconomic Modeling: From Keynes and the Classics to DSGE. Randall Romero Aguilar, PhD I Semestre 2017 Last updated: March 12, 2017
Lecture 1 Macroeconomic Modeling: From Keynes and the Classics to DSGE Randall Romero Aguilar, PhD I Semestre 2017 Last updated: March 12, 2017 Universidad de Costa Rica EC3201 - Teoría Macroeconómica
More informationMacroeconomic Modeling: From Keynes and the Classics to DSGE. Randall Romero Aguilar, PhD II Semestre 2018 Last updated: August 16, 2018
Macroeconomic Modeling: From Keynes and the Classics to DSGE Randall Romero Aguilar, PhD II Semestre 2018 Last updated: August 16, 2018 Table of contents 1. Introduction 2. The Classical model 3. The Keynesian
More informationEconomic Importance of Keynesian and Neoclassical Economic Theories to Development
University of Turin From the SelectedWorks of Prince Opoku Agyemang May 1, 2014 Economic Importance of Keynesian and Neoclassical Economic Theories to Development Prince Opoku Agyemang Available at: https://works.bepress.com/prince_opokuagyemang/2/
More informationEco202 Review, April 2011, Prof. Bill Even. I. Introduction. A. The causes of the great recession B. Government responses to great recession
Eco202 Review, April 2011, Prof. Bill Even I. Introduction. A. The causes of the great recession B. Government responses to great recession II. III. Chapter 4: Measuring GDP and Economic Growth A. Definition
More information396 Index Budget deficits: asset stocks and, 285; bequests and, ; bondfinanced, 12, 248; buffer shocks and, 119; capital flows and, 58n. 10, 372
Subject Index Accelerator effects, 70 Arbitrage: capital mobility and, 365; panty levels and, 202, 321, 378-79 Asset(s): defined, 54; financial institutions and, 365; futures, 197; real foreign position,
More informationPractice Problems
Practice Problems 33-34-36 1. The inflation tax is: A. the higher tax paid by individuals whose incomes are indexed to inflation. B. the taxes paid during periods of inflation. C. the reduction in the
More informationAdvanced Macroeconomics
Advanced Macroeconomics Lecture and Tutorials Winter 2016/2017 Economics (Master) Prof. Dr. Thomas Beissinger Contact information Lehrstuhl für Dienstleistungs- und Arbeitsmarktökonmik (520G) Schloss,
More informationSyllabus and timeline, Macroeconomics,
Coordinator: Belén Jerez. Office: 5.2.5. E-mail: mjerez@eco.uc3m.es Syllabus and timeline, Macroeconomics, 206-7 We will have two weekly lectures (each lasting one and a half hours). The first is a theory
More informationJOSEPH HASLAG University of Missouri-Columbia
Modeimg Monetary Economies Fourth Edition BRUCE CHAMP SCOTT FREEMAN JOSEPH HASLAG University of Missouri-Columbia gif CAMBRIDGE $0? UNIVERSITY PRESS Contents Preface page xv Parti Money 1 Trade without
More informationMacroeconomics: Fluctuations and Growth
Macroeconomics: Fluctuations and Growth Francesco Franco 1 1 Nova School of Business and Economics Fluctuations and Growth, 2011 Francesco Franco Macroeconomics: Fluctuations and Growth 1/43 Outline 1
More informationMODERN PRINCIPLES: MACROECONOMICS. Tyler Cowen George Mason University. Alex Tabarrok George Mason University. Worth Publishers
MODERN PRINCIPLES: MACROECONOMICS Tyler Cowen George Mason University Alex Tabarrok George Mason University Worth Publishers CONTENTS Preface xv CHAPTER 1 The Big Ideas 1 Big Idea One: Incentives Matter
More informationUNIVERSITY OF TORONTO Faculty of Arts and Science APRIL/MAY EXAMINATIONS 2006 ECO 209Y1 Y. Duration: 2 hours
UNIVERSITY OF TORONTO Faculty of Arts and Science APRIL/MAY EXAMINATIONS 2006 ECO 209Y1 Y Duration: 2 hours Examination Aids allowed: Non-programmable calculator only There are five parts to the exam PART
More information7) What is the money demand function when the utility of money for the representative household is M M
1) The savings curve is upward sloping, because (a) high interest rates increase the future returns that households obtain from their savings. (b) high interest rates increase the opportunity cost of consuming
More information1 Introduction and Overview of the Second Edition Chapter Overview What s New in This Second Edition... 5
Contents 1 Introduction and Overview of the Second Edition.... 1 1.1 Chapter Overview................................... 4 1.2 What s New in This Second Edition.................... 5 2 National Income
More informationIntermediate Macroeconomic Theory II, Fall 2006 Solutions to Problem Set 4 (35 points)
Intermediate Macroeconomic Theory II, Fall 2006 Solutions to Problem Set 4 (35 points) 1. (16 points) For all of the questions below, draw the relevant curves. (a) (2 points) Suppose that the government
More information101: MICRO ECONOMIC ANALYSIS
101: MICRO ECONOMIC ANALYSIS Unit I: Consumer Behaviour: Theory of consumer Behaviour, Theory of Demand, Recent Development of Demand Theory, Producer Behaviour: Theory of Production, Theory of Cost, Production
More informationThe Theory of Economic Growth
The Theory of The Importance of Growth of real GDP per capita A measure of standards of living Small changes make large differences over long periods of time The causes and consequences of sustained increases
More information8/23/2018. Where You Are! Course Webpage. Who am I? Dr. John Neri Office: Morrill Hall, Room 1106D, M and W 10:30am to 11:30am
Where You Are! Economics 305 Macroeconomic Theory M, W, F from 12:00pm to 12:50pm The Friday class is primarily graded quizzes and 3 midterm exams see the syllabus. Text: Gregory Mankiw: Macroeconomics,
More informationThe Theory of Economic Growth
The Theory of 1 The Importance of Growth of real GDP per capita A measure of standards of living Small changes make large differences over long periods of time The causes and consequences of sustained
More informationThis paper is not to be removed from the Examination Halls
~~EC2065 ZA d0 This paper is not to be removed from the Examination Halls UNIVERSITY OF LONDON EC2065 ZA BSc degrees and Diplomas for Graduates in Economics, Management, Finance and the Social Sciences,
More information13. CHAPTER: Aggregate Supply
TOBB-ETU, Economics Department Macroeconomics I (IKT 233) Ozan Eksi Practice Questions with Answers (for Final) 13. CHAPTER: Aggregate Supply 1-) What can you expect when there s an oil shock? (c) a-)
More informationMacroeconomic Modeling: From Keynes and the Classics to DSGE
Macroeconomic Modeling: From Keynes and the Classics to DSGE Randall Romero Aguilar, PhD I Semestre 2019 Last updated: March 11, 2019 Table of contents 1. Introduction 2. The Classical model 3. The Keynesian
More information2) analytical concepts and frameworks that enable us to deal with the interactions between goods, labor and assets markets.
Module: I - Quantitative Methods I Name of course: Macroeconomics Duration: 24 hours Course instructor: Alessandro Piergallini Lecturer in Economics University of Rome Tor Vergata Email: alessandro.piergallini@uniroma2.it
More informationPart III. Cycles and Growth:
Part III. Cycles and Growth: UMSL Max Gillman Max Gillman () AS-AD 1 / 56 AS-AD, Relative Prices & Business Cycles Facts: Nominal Prices are Not Real Prices Price of goods in nominal terms: eg. Consumer
More information5 Macroeconomics SAMPLE QUESTIONS
MULTIPLE-CHOICE UNIT E09 Macroeconomics Summative Exam Sample Multiple-Choice Questions Circle the letter of each correct answer. 1. Which of the following monetary and fiscal policy combinations would
More information13. CHAPTER: Aggregate Supply
TOBB-ETU, Economics Department Macroeconomics I (IKT 233) 2017/18 Fall-Ozan Eksi Practice Questions with Answers (for Final) 13. CHAPTER: Aggregate Supply 1-) What can you expect when there s an oil shock?
More informationThe Goals of Stabilization Policy. The Goals of Stabilization Policy: Low Inflation and Low Unemployment. The Goals of Stabilization Policy
: Low Inflation and Low Unemployment The Costs and Causes of Inflation While inflation is viewed as evil the degree of evilness is highly and hotly debated Basic cause of inflation is excessive growth
More informationVHS AP Economics Syllabus Microeconomics and Macroeconomics Syllabus 33 week course
VHS AP Economics Syllabus Microeconomics and Macroeconomics Syllabus 33 week course Textbook: Krugman, P., & Wells, R., (2006). Economics. NY: Worth Publishers Recommended Reading: Buccholz,, Todd, New
More information