Essentials of Advanced Macroeconomic Theory

Front Cover
Essentials of Advanced
Macroeconomic Theory
Copyright Page
Contents
List of figures
Preface
1. Introduction
	1.1 The issues
	1.2 The national accounts identity
	1.3 Outline
Part I: The Long Run
	2. The Malthusian World
		2.1 Introduction
		2.2 The law of diminishing returns
		2.3 The Malthusian trap
		2.4 Endogenous fertility
		2.5 The collapse of the Malthusian link
	3.
The Solow Growth Model
		3.1 Introduction
		3.2 Basic assumptions
		3.3 Dynamics
		3.4 Equilibrium
		3.5 Implications
		3.6 Extensions
	4.
Endogenous Growth Theory
		4.1 Introduction
		4.2 AK model 29
		4.3 Endogenous technological change
		4.4 Romer’s product variety model
		4.5 Schumpeterian growth models
		4.6 Innovation versus imitation
	5.
The Overlapping Generations Model
		5.1 Household optimization
		5.2 Endogenous saving
		5.3 Endogenous growth
Part II: The Short and Medium Run
	6.
Equilibrium Business Cycles
		6.1 Technology shocks to production
		6.2 Labor demand
		6.3 Households
	7.
Financial Crises
		7.1 Basic assumptions
		7.2 Banks
		7.3 A bank run equilibrium
		7.4 Foreign credit
		7.5 Short-term debt
		7.6 Liberalizing international credit markets
	8.
Consumption and Saving
		8.1 The Keynesian consumption function
		8.2 Friedman’s critique
		8.3 The permanent income hypothesis
		8.4 An example
		8.5 The random-walk model
		8.6 Precautionary saving
		8.7 Interest rates and time discount rates
		8.8 Relative consumption
		8.9 Time inconsistency
	9.
Investment and Asset Markets
		9.1 The Keynesian investment function
		9.2 The firm’s investment decision
		9.3 Adjustment costs
		9.4 The housing market
	10.
Unemployment and the Labor Market
		10.1 Labor market disequilibrium
		10.2 Efficiency wages
		10.3 The Shapiro–Stiglitz model
		10.4 Insider–outsider models
		10.5 Search and matching models
Part III: Macroeconomic Policy
	11.
IS–MP, Aggregate Demand, and Aggregate Supply
		11.1 Aggregate expenditure and the multiplier
		11.2 The IS–MP model
		11.3 Aggregate demand
		11.4 Aggregate supply
		11.5 Financial intermediation
		11.6 New Keynesian models
	12.
Public Finance and Fiscal Policy
		12.1 The government budget identity
		12.2 Ricardian equivalence
		12.3 Tax smoothing
		12.4 Political economy of government debt
		12.5 Debt financing versus debt forgiveness
	13.
Inflation and Monetary Policy
		13.1 The quantity theory of money
		13.2 Inflation and the money market
		13.3 Time inconsistency in monetary policy
		13.4 Political business cycles
		13.5 The Taylor rule
		13.6 Seigniorage
	14.
The Open Economy
		14.1 Open economy accounting
		14.2 A representative agent framework
		14.3 The Mundell–Fleming model
		14.4 Exchange rate overshooting
		14.5 Currency unions
	15.
Mathematical Appendix
		15.1 Introduction
		15.2 Derivatives of some basic functions
		15.3 Differentiation rules
		15.4 Chain differentiation
		15.5 Implicit function differentiation
		15.6 Applications to macroeconomics
		15.7 Basic properties of exponents and logarithms
Notes
Bibliography
Index