GLOBAL EDITION. Macroeconomics EIGHTH EDITION. Abel Bernanke Croushore

Transcription

1 GLOBAL EDITION Macroeconomics EIGHTH EDITION Abel Bernanke Croushore

2 Symbols Used in This Book A productivity B government debt BASE monetary base C consumption CA current account balance CU currency held by nonbank public DEP bank deposits E worker effort G government purchases I investment INT net interest payments K capital stock KFA capital and financial account balance M money supply MC marginal cost MPK marginal product of capital MPN marginal product of labor MRPN marginal revenue product of labor N employment, labor N full-employment level of employment NFP net factor payments NM nonmonetary assets NX net exports P price level P e expected price level P sr short-run price level R real seignorage revenue RES bank reserves S national saving S pvt private saving S govt government saving T taxes TR transfers V W Y Y a c cu d e e nom e nom i i m k n p K r r w r a-t res s t u u uc w y p p e h Y t velocity nominal wage total income or output full-employment output individual wealth or assets individual consumption; consumption per worker currency deposit ratio depreciation rate real exchange rate nominal exchange rate official value of nominal exchange rate nominal interest rate nominal interest rate on money capital labor ratio growth rate of labor force price of capital goods expected real interest rate world real interest rate expected after-tax real interest rate reserve deposit ratio individual saving; saving rate income tax rate unemployment rate natural unemployment rate user cost of capital real wage individual labor income; output per worker inflation rate expected inflation rate income elasticity of money demand tax rate on firm revenues

3 Macroeconomics, Global Edition - PDF - PDF - PDF Table of Contents Cover Detailed Contents Preface Part 1 Introduction Chapter 1 Introduction to Macroeconomics 1.1 What Macroeconomics Is About Long-Run Economic Growth Business Cycles Unemployment Inflation The International Economy Macroeconomic Policy Aggregation 1.2 What Macroeconomists Do Macroeconomic Forecasting Macroeconomic Analysis Macroeconomic Research In Touch with Data and Research: Developing and Testing an Economic Theory Data Development 1.3 Why Macroeconomists Disagree Classicals Versus Keynesians A Unified Approach to Macroeconomics Chapter 2 The Measurement and Structure of the National Economy 2.1 National Income Accounting: The Measurement of Production, Income, and Expenditure In Touch with Data and Research: The National Income and Product Accounts in Malaysia Why the Three Approaches Are Equivalent 2.2 Gross Domestic Product The Product Approach to Measuring GDP In Touch with Data and Research: Natural Resources, the Environment, and the National Income Accounts The Expenditure Approach to Measuring GDP The Income Approach to Measuring GDP 2.3 Saving and Wealth Measures of Aggregate Saving The Uses of Private Saving Relating Saving and Wealth

4 2.4 Real GDP, Price Indexes, and Inflation Real GDP Price Indexes In Touch with Data and Research: The Computer Revolution and Chain-Weighted GDP In Touch with Data and Research: CPI Inflation vs. Core Inflation APPLICATION T he Federal Reserves Preferred Inflation Measures 2.5 Interest Rates Part 2 Long-Run Economic Performance Chapter 3 Productivity, Output, and Employment 3.1 How Much Does the Economy Produce? The Production Function Application The Production Function of the U.S. Economy and U.S. Productivity Growth The Shape of the Production Function The Marginal Product of Capital The Marginal Product of Labor Supply Shocks 3.2 The Demand for Labor The Marginal Product of Labor and Labor Demand: An Example A Change in the Wage The Marginal Product of Labor and the Labor Demand Curve Factors That Shift the Labor Demand Curve Aggregate Labor Demand 3.3 The Supply of Labor The IncomeLeisure Trade-Off Real Wages and Labor Supply The Labor Supply Curve Aggregate Labor Supply 3.4 Labor Market Equilibrium Full-Employment Output Application Output, Employment, and the Real Wage During Oil Price Shocks 3.5 Unemployment Measuring Unemployment In Touch with Data and Research: Labor Market Data in Kazakhstan Changes in Employment Status How Long Are People Unemployed? Application Unemployment Duration and the Recession Why There Always Are Unemployed People 3.6 Relating Output and Unemployment: Okuns Law Appendix 3.A The Growth Rate Form of Okuns Law Chapter 4 Consumption, Saving, and Investment

5 4.1 Consumption and Saving The Consumption and Saving Decision of an Individual Effect of Changes in Current Income Effect of Changes in Expected Future Income Application The Idiosyncrasy of Singapore Aggregate Consumption Effect of Changes in Wealth Effect of Changes in the Real Interest Rate Fiscal Policy In Touch with Data and Research: Interest Rates Application How Consumers Respond to Tax Rebates 4.2 Investment The Desired Capital Stock Changes in the Desired Capital Stock Application Measuring the Effects of Taxes on Investment From the Desired Capital Stock to Investment Investment in Inventories and Housing In Touch with Data and Research: Investment and the Stock Market 4.3 Goods Market Equilibrium The SavingInvestment Diagram Application Macroeconomic Consequences of the Boom and Bust in Stock Prices Appendix 4.A A Formal Model of Consumption and Saving Chapter 5 Saving and Investment in the Open Economy 5.1 Balance of Payments Accounting The Current Account In Touch with Data and Research: The Balance of Payments Accounts in Malaysia The Capital and Financial Account The Relationship Between the Current Account and the Capital and Financial Account Net Foreign Assets and the Balance of Payments Accounts Application The United States as International Debtor 5.2 Goods Market Equilibrium in an Open Economy 5.3 Saving and Investment in a Small Open Economy The Effects of Economic Shocks in a Small Open Economy 5.4 Saving and Investment in Large Open Economies Application The Impact of Globalization on High-Income Economies Application Recent Trends in the U.S. Current Account Deficit 5.5 Fiscal Policy and the Current Account The Critical Factor: The Response of National Saving The Government Budget Deficit and National Saving Application The Twin Deficits Chapter 6 Long-Run Economic Growth

6 6.1 The Sources of Economic Growth Growth Accounting Application The Post1973 Slowdown in Productivity Growth Application The Recent Trends in UK Productivity 6.2 Long-Run Growth: The Solow Model Setup of the Solow Model The Fundamental Determinants of Long-Run Living Standards Application The Growth of China 6.3 Endogenous Growth Theory 6.4 Government Policies to Raise Long-Run Living Standards Policies to Affect the Saving Rate Policies to Raise the Rate of Productivity Growth Chapter 7 The Asset Market, Money, and Prices 7.1 What Is Money? In Touch with Data and Research: Money in a Prisoner-of-War Camp The Functions of Money In Touch with Data and Research: The Monetary Aggregates In Touch with Data and Research: The Effect of Dollarization on the United States and Foreign Nations 7.2 Portfolio Allocation and the Demand for Assets Expected Return Risk Liquidity Time to Maturity Types of Assets and Their Characteristics In Touch with Data and Research: Capital Flows and Property Prices Asset Demands 7.3 The Demand for Money The Price Level Real Income Interest Rates The Money Demand Function Other Factors Affecting Money Demand Velocity and the Quantity Theory of Money 7.4 Asset Market Equilibrium Asset Market Equilibrium: An Aggregation Assumption The Asset Market Equilibrium Condition 7.5 Money Growth and Inflation Application Money Growth and Inflation in European Countries in Transition The Expected Inflation Rate and the Nominal Interest Rate Application Measuring Inflation Expectations

7 Part 3 Business Cycles and Macroeconomic Policy Chapter 8 Business Cycles 8.1 What Is a Business Cycle? 8.2 The American Business Cycle: The Historical Record The PreWorld War I Period The Great Depression and World War II PostWorld War II U.S. Business Cycles The Long Boom The Great Recession Have American Business Cycles Become Less Severe? 8.3 Business Cycle Facts The Cyclical Behavior of Economic Variables: Direction and Timing Production Expenditure Employment and Unemployment Application The Job Finding Rate and the Job Loss Rate Average Labor Productivity and the Real Wage Money Growth and Inflation Financial Variables International Aspects of the Business Cycle In Touch with Data and Research: Coincident and Leading Indexes 8.4 Business Cycle Analysis: A Preview In Touch with Data and Research: The Seasonal Cycle and the Business Cycle Aggregate Demand and Aggregate Supply: A Brief Introduction Chapter 9 The ISLM/ADAS Model: A General Framework for Macroeconomic Analysis 9.1 The FE Line: Equilibrium in the Labor Market Factors That Shift the FE Line 9.2 The IS Curve: Equilibrium in the Goods Market Factors That Shift the IS Curve 9.3 The LM Curve: Asset Market Equilibrium The Interest Rate and the Price of a Nonmonetary Asset The Equality of Money Demanded and Money Supplied Factors That Shift the LM Curve 9.4 General Equilibrium in the Complete ISLM Model Applying the ISLM Framework: A Temporary Adverse Supply Shock Application Oil Price Shocks Revisited In Touch with Data and Research: Econometric Models and Macroeconomic Forecasts for Monetary Policy Analysis 9.5 Price Adjustment and the Attainment of General Equilibrium

8 The Effects of a Monetary Expansion Classical Versus Keynesian Versions of the ISLM Model 9.6 Aggregate Demand and Aggregate Supply The Aggregate Demand Curve The Aggregate Supply Curve Equilibrium in the ADAS Model Monetary Neutrality in the ADAS Model Appendix 9.A Worked-Out Numerical Exercise for Solving the ISLM/ADAS Model Appendix 9.B Algebraic Versions of the ISLM and ADAS Models Chapter 10 Classical Business Cycle Analysis: Market-Clearing Macroeconomics 10.1 Business Cycles in the Classical Model The Real Business Cycle Theory Application Calibrating the Business Cycle 10.2 Fiscal Policy Shocks in the Classical Model 10.3 Unemployment in the Classical Model Jobless Recoveries 10.4 Money in the Classical Model Monetary Policy and the Economy Monetary Nonneutrality and Reverse Causation The Nonneutrality of Money: Additional Evidence 10.5 The Misperceptions Theory and the Nonneutrality of Money Monetary Policy and the Misperceptions Theory Rational Expectations and the Role of Monetary Policy In Touch with Data and Research: Are Price Forecasts Rational? Appendix 10.A Worked-Out Numerical Exercise for Solving the Classical ADAS Model with Misperceptions Appendix 10.B An Algebraic Version of the Classical ADAS Model with Misperceptions Chapter 11 Keynesianism: The Macroeconomics of Wage and Price Rigidity 11.1 Real-Wage Rigidity Some Reasons for Real-Wage Rigidity The Efficiency Wage Model Wage Determination in the Efficiency Wage Model Employment and Unemployment in the Efficiency Wage Model Efficiency Wages and the FE Line In Touch with Data and Research: Efficiency Wages 11.2 Price Stickiness Sources of Price Stickiness: Monopolistic Competition and Menu Costs 11.3 Monetary and Fiscal Policy in the Keynesian Model Monetary Policy

9 Fiscal Policy 11.4 The Keynesian Theory of Business Cycles and Macroeconomic Stabilization Keynesian Business Cycle Theory Macroeconomic Stabilization Supply Shocks in the Keynesian Model In Touch with Data and Research:DSGE Models and the ClassicalKeynesian Debate Appendix 11.A Labor Contracts and Nominal-Wage Rigidity Appendix 11.B Worked-Out Numerical Exercise forcalculating the Multiplier in a Keynesian Model Appendix 11.C The Multiplier in the Keynesian Model Part 4 Macroeconomic Policy: Its Environment and Institutions Chapter 12 Unemployment and Inflation 12.1 Unemployment and Inflation: Is Therea Trade-Off? The Expectations-Augmented Phillips Curve The Shifting Phillips Curve 12.2 Macroeconomic Policy and the Phillips Curve In Touch with Data and Research: The Lucas Critique The Long-Run Phillips Curve 12.3 The Problem of Unemployment The Costs of Unemployment The Long-Term Behavior of the Unemployment Rate 12.4 The Problem of Inflation The Costs of Inflation In Touch with Data and Research: Indexed Contracts 12.5 Fighting Inflation: The Role of Inflationary Expectations In Touch with Data and Research: The Sacrifice Ratio The U.S. Disinflation of the 1980s and 1990s Chapter 13 Exchange Rates, Business Cycles, and Macroeconomic Policy in the Open Economy 13.1 Exchange Rates Nominal Exchange Rates In Touch with Data and Research: Exchange Rates Real Exchange Rates Appreciation and Depreciation Purchasing Power Parity In Touch with Data and Research:McParity The Real Exchange Rate and Net Exports Application The Value of the Hong Kong Dollarand Net Exports 13.2 How Exchange Rates Are Determined:A Supply-and-Demand Analysis Macroeconomic Determinants of the Exchange Rateand Net Export Demand

10 13.3 The ISLM Model for an Open Economy The Open-Economy IS Curve Factors That Shift the Open-Economy IS Curve The International Transmission of BusinessCycles 13.4 Macroeconomic Policy in an Open Economy with Flexible Exchange Rates A Fiscal Expansion A Monetary Contraction 13.5 Fixed Exchange Rates Fixing the Exchange Rate Monetary Policy and the Fixed Exchange Rate Fixed Versus Flexible Exchange Rates Currency Unions Application European Monetary Unification Application Crisis in Argentina Apendix 13.A Worked-Out Numerical Exercise for theopen-economy ISLM Model Apendix 13.B An Algebraic Version of the Open-Economy ISLM Model Chapter 14 Monetary Policy and the Federal Reserve System 14.1 Principles of Money Supply Determination Open-Market Operations The Money Multiplier Bank Runs Application The Money Multiplier During Severe Financial Crises 14.2 Monetary Control in the United States The Federal Reserve System The Federal Reserves Balance Sheet and Open-Market Operations Reserve Requirements Discount Window Lending Interest Rate on Reserves 14.3 Setting Monetary Policy Targets Targeting the Federal Funds Rate 14.4 Making Monetary Policy in Practice Lags in the Effect of Monetary Policy Conducting Monetary Policy Under Uncertainty Monetary Policy in the Great Recession Application The Financial Crisis of The Conduct of Monetary Policy:Rules Versus Discretion The Monetarist Case for Rules Rules and Central Bank Credibility The Taylor Rule Other Ways to Achieve Central Bank Credibility

11 Application Inflation Targeting Chapter 15 Government Spending and Its Financing 15.1 The Government Budget: Some Facts andfigures Government Outlays Taxes Deficits and Surpluses 15.2 Government Spending, Taxes, and the Macroeconomy Fiscal Policy and Aggregate Demand Government Capital Formation Incentive Effects of Fiscal Policy Application Labor Supply and Tax Reform in the1980s 15.3 Government Deficits and Debt The Growth of the Government Debt Application Social Security: How Can It Be Fixed? The Burden of the Government Debt on FutureGenerations Budget Deficits and National Saving: RicardianEquivalence Revisited Departures from Ricardian Equivalence In Touch with Data and Research:Measuring the Impact of Government Purchaseson the Economy 15.4 Deficits and Inflation The Deficit and the Money Supply Real Seignorage Collection and Inflation Apendix 15.A The DebtGDP Ratio Apendix A Some Useful AnalyticalTools A.1 Functions and Graphs A.2 Slopes of Functions A.3 Elasticities A.4 Functions of Several Variables A.5 Shifts of a Curve A.6 Exponents A.7 Growth Rate Formulas Problems Glossary Name Index Subject Index