The Advanced Macroeconomics book is useful to policy makers, planners, industry and academicians. This book gives two distinct parts. The first part provides the fundamentals of basic macroeconomic identities. The second part explains about the open economy and macro economy issues. In our global era, all economies are subjected to fluctuation of external factors. They are affected by exchange rates, balances of payment, income and inflation. Such indicators are more visible in the money, capital, equity and commodity markets. This book explains different issues and provides macroeconomic solutions at national and global levels. Therefore, this book especially helps postgraduate students to understand the subject in greater depth.
Description
Content
- Introduction to Macroeconomics
- From a closed to an open economy
- The IS-LM Framework
- Aggregate demand and supply
- The Consumption Function
- Introduction
- The Ando-Modigliani Approach: The life cycle hypothesis
- The Friedman approach: Permanent income
- Friedman’s consumption function: Cyclical movement
- The Duesenberry Approach: Relative income
- Money: Definition and function
- Aggregate supply, wages, prices and employment
- The Philips Curve
- The dynamic aggregate supply curve
- The production function
- The properties of the aggregate supply curve
- Inflation expectations and the aggregate supply curve
- The aggregate supply curve (ASC)
- The modified Philips Curve
- The expected augmented Philips Curve
- Criticism
- The open economy: Macroeconomy
- Introduction
- The open economy and the goods market
- The Mundell-Fleming model
- Competitive depreciation
- The role of prices in an open economy
- Automatic adjustment
- Expenditure switching and expenditure reducing policies
- Devaluation
- The exchange rate and prices
- The crawling peg exchange rate
- The J curve effect
- The Monetary Approach to Balance of Payments (MABoP): the IMF approach to macroeconomic stabilization
- Exchange rate overshooting
- Modern Macroeconomics
- Introduction
- The efficiency wage hypothesis
- The government budget constraints and debt dynamics
- Rational expectations
- The new Keynesian alternative
- The Ricardian Equivalence (RE)
- The search and matching model
- Implicit contracts
- The insider–outsider model
- The real business cycle theory
- International adjustments:Policy implications
- Government budget constraints
- Hyperinflation
- The Laffer curve
- Controlling the deficit
- Debt management
- The dynamics of the deficit and debts
- The Barro-Ricardo problem
- Money and debt financing
- The burden of debt
- Government assets
- The budget deficit
- The size of debt /budget
- The merged Bank-Fund model
- Rules versus discretion
- Lags in the effects of policy
- Gradualism vs. shock therapy
- Credibility
- References:
- Glossary
