Contemporary Macroeconomics: New Global Disorder

Foreword
Preface
Acknowledgments
Contents
About the Authors
Abbreviations
I Essentials of Macroeconomics
1 Introduction
	1.1  Subject of Macroeconomics
	1.2  Major Schools of Thought
		1.2.1  Classical School
		1.2.2  Keynesian School
		1.2.3  Monetarism
	1.3  Study of Macroeconomic Processes
		1.3.1  Aggregation
		1.3.2  Modelling
	1.4  Basic Concepts and Definitions
	1.5  National Economy and Reproduction
		1.5.1  Macroeconomics and National Economy
		1.5.2  Economic Reproduction
	References
2 Macroeconomic Indicators
	2.1  Costs, Revenues, and Profit
		2.1.1  Costs
		2.1.2  Revenues
		2.1.3  Profit
	2.2  Economies and Diseconomies of Scale
	2.3  Gross Domestic and National Products
	2.4  National Income and Wealth
	2.5  Quality of Macroeconomic Measurements
	References
3 Market Structures
	3.1  Market Structures and Concentration
	3.2  Competitive Markets
		3.2.1  Types of Competition
		3.2.2  Perfect Competition
		3.2.3  Monopolistic Competition
	3.3  Monopoly and Oligopoly
		3.3.1  Monopoly
		3.3.2  Oligopoly
	3.4  Monopsony and Oligopsony
		3.4.1  Monopsony
		3.4.2  Oligopsony
	References
4 Major Actors in Contemporary Markets
	4.1  Governments and Macroeconomic Policies
	4.2  Households
	4.3  Firms and Corporations
		4.3.1  Firms and the Theory of the Firm
		4.3.2  Transnational Corporations
	4.4  Countries and Alliances
		4.4.1  State as Economic Entity
		4.4.2  Integration of Countries
	4.5  International Organizations
		4.5.1  International Financial Organizations
			4.5.1.1  International Monetary Fund
			4.5.1.2  World Bank Group
			4.5.1.3  Bank for International Settlements
			4.5.1.4  Financial Stability Board
		4.5.2  International Trade Organizations
			4.5.2.1  World Trade Organization
			4.5.2.2  United Nations Conference on Trade and Development
			4.5.2.3  World Customs Organization
		4.5.3  Other International Economic Organizations
			4.5.3.1  United Nations Organization on Industrial Development
			4.5.3.2  Food and Agriculture Organization
			4.5.3.3  International Labor Organization
			4.5.3.4  European Bank for Reconstruction and Development
			4.5.3.5  Asian Development Bank
	References
II Disequilibrium Macroeconomics
5 Demand and Supply
	5.1  Demand, Supply, and Equilibrium in Markets
		5.1.1  Demand
		5.1.2  Supply
		5.1.3  Equilibrium
	5.2  Aggregate Demand and Aggregate Supply
		5.2.1  Aggregate Demand
		5.2.2  Aggregate Supply
	5.3  Shifts in Demand and Supply and Changes in Equilibrium
		5.3.1  Taxation
		5.3.2  Subsidies
		5.3.3  Price Administration
			5.3.3.1  Price Ceiling
			5.3.3.2  Price Floor
		5.3.4  Public Procurement
		5.3.5  Market Intervention
		5.3.6  International Trade
		5.3.7  Import Tariff and Import Quota
		5.3.8  Export Tariff
	5.4  Price Determination and Price Elasticities of Demand and Supply
		5.4.1  Elasticity of Demand
		5.4.2  Elasticity of Supply
	References
6 Macroeconomic Equilibrium
	6.1  Theory of Macroeconomic Equilibrium
		6.1.1  Classical Theory of Macroeconomic Equilibrium
		6.1.2  Keynesian Theory of Macroeconomic Equilibrium
		6.1.3  Marxian Model of Macroeconomic Equilibrium
		6.1.4  Walrasian General Equilibrium
	6.2  National Economic Performance
		6.2.1  Classical Economics
		6.2.2  Concept of Marginal Efficiency
		6.2.3  Neoclassical Economics
		6.2.4  Institutional Economics
	6.3  Consumption, Investment, and the Multiplier
		6.3.1  Neoclassical Concept of Consumption and Investment
		6.3.2  Keynesian Concept of Consumption and Investment
		6.3.3  The Multiplier
	6.4  Commodity Market Equilibrium
		6.4.1  Neoclassical Interpretation of Commodity Market Equilibrium
		6.4.2  Keynesian Interpretation of Commodity Market Equilibrium
	6.5  Equilibrium in Commodity and Money Markets: The IS-LM Model
	6.6  Equilibrium and the New Normal Approaches to Economic Policy
		6.6.1  Interpreting the IS-LM Model
		6.6.2  Equilibrium and Monetary Policy
		6.6.3  Equilibrium and Fiscal Policy
		6.6.4  The New Normal Equilibrium
	References
7 Economic Cycles
	7.1  Theory of Economic Cycles
		7.1.1  Marxian Interpretation of Economic Cycle
		7.1.2  Neoclassical Interpretation of Economic Cycle
		7.1.3  Keynesian Interpretation of Economic Cycle
	7.2  Types of Economic Cycles
		7.2.1  Kitchin Inventory Cycles
		7.2.2  Juglar Fixed-Investment Cycles
		7.2.3  Kuznets Infrastructural Investment Cycles
		7.2.4  Kondratiev Waves
	7.3  Crises of the Modern Age: From the Great Depression to the COVID-19
		7.3.1  Structural Crises
		7.3.2  Agrarian Crises
		7.3.3  Financial Crises
		7.3.4  Monetary Crises
		7.3.5  Stock Market Crises
		7.3.6  Modern Crises of Economic Transformation
	7.4  Equilibrium Determinants
		7.4.1  Approaches to Interpretation of the Equilibrium Determinants
		7.4.2  Self-sustaining Fluctuations
	7.5  Stabilization Policies
	References
8 Disequilibrium and Unemployment
	8.1  Labor Market
	8.2  Unemployment
		8.2.1  Foundations of Unemployment
		8.2.2  Theories of Unemployment
	8.3  Effects of Unemployment
	8.4  Labor Market Regulation
	References
9 Disequilibrium and Inflation
	9.1  Foundations of Inflation
		9.1.1  Meaning of Inflation
		9.1.2  Types of Inflation
		9.1.3  Theories of Inflation
	9.2  Causes and Effects of Inflation
		9.2.1  Causes
		9.2.2  Effects
	9.3  Measuring Inflation
	9.4  Dealing with Inflation in the New Normal
	References
III Market Failure
10 Government Interventions in Unbalanced Markets
	10.1  Failures and Imbalances in Markets
		10.1.1  Market Failures
		10.1.2  Government Failures
		10.1.3  Government Regulations
	10.2  Rise in Monopoly Power and Antitrust Regulation
	10.3  Asymmetrical Information
	10.4  Market Externalities
		10.4.1  Internalization of Externalities
		10.4.2  Corrective Taxes and Subsidies
		10.4.3  Distribution of Property Rights
		10.4.4  Direct Government Control
	10.5  Public Goods
	10.6  Lockdowns and Disruptions to Supply Chains
	References
11 Money
	11.1  Fundamentals of Money
		11.1.1  Role of Money
		11.1.2  Theories of Money
	11.2  Monetary System
		11.2.1  Forms of Money
		11.2.2  Money Circulation
	11.3  Money Market
	11.4  Monetary Policy
	11.5  Monetary Approaches to the New Normal Equilibrium
	References
12 Credit and Banking
	12.1  Fundamentals of Credit
	12.2  Lending and Lending Rate
	12.3  Central Banks and Credit System
	12.4  Commercial Banks
	Reference
13 Public Finance
	13.1  Fundamentals of Finance
	13.2  Government Budget and Public Debt
	13.3  Taxes and Taxation
	13.4  Fiscal Policy
	13.5  Fiscal Approaches to the New Normal Equilibrium
	References
14 Social Issues of Economic Growth
	14.1  Social Policy
	14.2  Economic Growth and Social Justice
	14.3  Welfare and Wellbeing
		14.3.1  The Concept of Social Welfare
		14.3.2  The Pareto Criterion
		14.3.3  The Utilitarian Concept
		14.3.4  Cardinal Utility
		14.3.5  The Rawls Criterion
		14.3.6  The Concept of Social Wellbeing
	14.4  Poverty
	14.5  Inequality
	References
IV The New Normal Development and Growth
15 Foundations of Economic Development
	15.1  Basic Economic Development Concepts
		15.1.1  Economic Development and Economic Growth
		15.1.2  Institutional Development
		15.1.3  Stable and Sustainable Economic Development
	15.2  Classical Theories
		15.2.1  Smith’s Self-interested Competition
		15.2.2  Ricardo’s Specialization
		15.2.3  Malthus’s Constant Productivity Constraints
	15.3  Marxism and Neo-Marxism
		15.3.1  Marx’s Capital Accumulation
		15.3.2  Rostow’s Linear Growth Model
		15.3.3  Baran’s Economic Surplus
		15.3.4  The Neocolonial Dependence Model
		15.3.5  Warren’s Shift Toward Socialism
	15.4  Neoclassical Theories
		15.4.1  The Harrod-Domar Growth Model
		15.4.2  The Robinson Growth Model
		15.4.3  The Solow-Swan Growth Model
		15.4.4  The Mankiw-Romer-Weil Model
		15.4.5  The Kaldor Growth Model
	15.5  Developmentalist Theories
		15.5.1  Lewis’s Unlimited Supply of Labor
		15.5.2  Hirschman’s Unbalanced Growth
		15.5.3  Nurkse’s Balanced Growth
		15.5.4  The Rosenstein-Rodan Big Push
	15.6  Contemporary Interpretations of Economic Development
		15.6.1  Structuralism
		15.6.2  Institutionalism
		15.6.3  International Dependence
	References
16 Technological Choice and Development
	16.1  Technologies and the New Normal Economy
		16.1.1  Innovation-Driven Development
		16.1.2  Innovations and the New Normal Economic Development
	16.2  Technological Development Priorities
		16.2.1  International Development Agenda
		16.2.2  Technological Development Regimes
		16.2.3  The New Normal Technological Trends
	16.3  Production and Technological Possibilities
	16.4  Innovation Pessimism
	16.5  Creative Destruction
	References
17 Human Capital and Economic Development
	17.1  Approaches to Understanding Human Capital
	17.2  Theories of Economic Growth and Human Capital
		17.2.1  Classical School, Marxism, and Neoclassics
		17.2.2  Schultz’s Human Capital Theory
		17.2.3  Becker’s Neoclassical Human Capital Theory
		17.2.4  Modern Interpretations of Human Capital Development and Economic Growth
	17.3  Investing in Human Capital: Growth Effects and Returns
	17.4  Inequalities in Human Capital Development
	17.5  Human Capital and Education
	17.6  Human Capital and Health
	References
18 Post-pandemic Sustainable Development: The Farer-Reaching Perspective
	18.1  Sustainable Development Concepts
	18.2  Sustainable Economic Development
		18.2.1  Understanding and Measuring Sustainable Economic Development
		18.2.2  Green Economy
		18.2.3  Blue Economy
	18.3  Economics and Environment
	18.4  Environmental Footprints
		18.4.1  The Ecological Footprint Concept
		18.4.2  Air Pollution
		18.4.3  Climate Change
		18.4.4  Water Pollution
		18.4.5  Soil Pollution
		18.4.6  Biodiversity Loss
	18.5  Pursuing Sustainable Development
	References
V Globalization and International Competitiveness
19 Theories of International Trade and Competitiveness
	19.1  Classical Country-Based Theories
		19.1.1  Mercantilism
		19.1.2  Smith’s Absolute Advantage
		19.1.3  Ricardo’s Comparative Advantage
		19.1.4  The Heckscher-Ohlin Theorem
	19.2  Modern Firm-Based Theories
		19.2.1  Vernon’s Model of International Product Life Cycle
		19.2.2  Linder’s Hypothesis
		19.2.3  Posner’s Technological Gap Theory
		19.2.4  Hicks’ Theory of Technological Progress
		19.2.5  Krugman’s Economies of Scale
	19.3  Alternative Concepts of International Trade
		19.3.1  Haberler’s Theory of Opportunity Costs
		19.3.2  Minhas’ Theory of Factor Intensity Reversal
		19.3.3  The Samuelson-Jones Theorem
		19.3.4  Balassa’s Theory of Intra-industry Trade
	19.4  Emerging Theories of International Trade
		19.4.1  Melitz’s Model of Heterogeneous Firms
		19.4.2  Theory of Incomplete Contracts
		19.4.3  Porter’s Theory of Competitive Advantage
		19.4.4  The Gravity Model
		19.4.5  Spatial Economy and International Trade
	References
20 International Capital Flows and Exchange
	20.1  International Capital Movement
		20.1.1  Foundations of Capital Exchange
		20.1.2  Classical Theories of International Capital Movement
		20.1.3  The Keynesian Interpretation of International Capital Movement
		20.1.4  Theories of International Financing for Development
	20.2  International Investment
		20.2.1  Direct Investment
		20.2.2  Portfolio Investment
	20.3  External Debt
	20.4  Exchange Rates and Currency Trading
		20.4.1  Currency
		20.4.2  Exchange Rate
	20.5  Foreign Exchange Market
	References
21 International Migration of Labor
	21.1  Fundamentals of International Migration
	21.2  Theories of International Migration of Labor
		21.2.1  Ravenstein’s Migration Laws
		21.2.2  Lee’s Push and Pull Factors
		21.2.3  Neoclassical Theory of Migration
		21.2.4  Piore’s Dual Labor Market
		21.2.5  New Economics of Labor Migration
		21.2.6  Wallerstein’s World Systems
		21.2.7  Human Capital in the Context of Labor Migration
	21.3  Drivers and Effects of International Migration
		21.3.1  Drivers
		21.3.2  Effects
	21.4  Governance of International Migration
	21.5  The New Normal Trends
	References
22 Liberalization and Protectionism
	22.1  Free Trade and Protectionism
		22.1.1  Free Trade
		22.1.2  Protectionism
	22.2  Foreign Trade Policy
		22.2.1  Theories of Foreign Trade Policy
		22.2.2  Tariff Regulation
		22.2.3  Non-tariff Regulation
	22.3  Multilateral Regulation of International Trade
	22.4  The New Rise in Protectionism
	References
23 Globalization and Regionalization
	23.1  Globalization Through the Ages
	23.2  Measuring Globalization
	23.3  Effects and Controversies of Globalization
	23.4  The New Anti-globalization
	23.5  Globalization and Social Policy in the New Normal
	References
Glossary
Further Reading
Index