Intermediate Macroeconomics

Cover
Contents
Preface
About the authors
Acknowledgements
Part I: Introduction
	Chapter 1: Thinking about macroeconomics
		Output, unemployment and prices
		Economic models
		A Simple Example: The Coffee Market
		Flexible Versus Sticky Prices
		Key Terms and Concepts
	Chapter 2: National-Income accounting: Gross domestic product and the price level
		Nominal and real GDP
		Calculating Real GDP
		Real GDP As A Measure Of Welfare
		Alternative views of GDP: Expenditure, income and production
		Measuring GDP By Expenditure
		Measuring GDP By Income
		Measuring GDP By Production
		Seasonal Adjustment
		Prices
Part II: Economic Growth
	Chapter 3: Introduction to economic growth
		Facts about economic growth
		Economic Growth Around The World, 1960 To 2011
		World Poverty And Income Inequality
		Long-term Growth In Rich Countries
		Patterns Of World Economic Growth
		Theory of economic growth
		The Production Function
		Growth Accounting
		The Solow Growth Model
	Chapter 4: Working with the Solow growth model
		A change in the saving rate
		A change in the technology level
		Changes in labour input and the population growth rate
		A Change In Labour Input
		A Change In The Population Growth Rate
		Convergence
		Convergence In The Solow Model
		Facts About Convergence
		Conditional Convergence In The Solow Model
		Where do we stand with the Solow model?
	Chapter 5: Conditional convergence and long-run economic growth
		Conditional convergence in practice
		Recent Research On The Determinants Of Economic Growth
		Examples Of Conditional Convergence
		Long-run economic growth
		Models With Constant Average Product Of Capital
		Exogenous Technological Progress
		Endogenous Growth Theory
		The Diffusion Of Technology
		What do we know about economic growth?
Part III: Economic Fluctuations
	Chapter 6: Macroeconomics without microeconomic foundations
		The IS-LM model
		Fiscal Policy In The IS-LM Model
		Investor Sentiment In The IS-LM Model
		Monetary Policy In The IS-LM Model
		The IS-MP model
		The IS-MP-PC model
		Macroeconomics with microeconomic foundations
	Chapter 7: Markets, prices, supply and demand
		Markets in the macroeconomy
		The Goods Market
		The Labour Market
		The Rental Market
		The Bond Market
		Money as a medium of exchange
		Markets and prices
		The Goods Market
		The Labour Market
		The Rental Market
		The Bond Market
		Constructing the budget constraint
		Income
		Consumption
		Assets
		Household Budget Constraint
		Clearing of the markets for labour and capital services
		Profit Maximization
		The Labour Market
		The Market For Capital Services
		Profit In Equilibrium
	Chapter 8: Consumption, saving and investment
		Consumption and saving
		Consumption Over Two Years
		Consumption Over Many Years
		Consumption, saving and investment in equilibrium
	Chapter 9: An equilibrium business-cycle model
		Cyclical behaviour of real GDP: Recessions and booms
		An equilibrium business-cycle model
		Conceptual Issues
		The Model
		Matching the theory with the facts
		Consumption And Investment
		The Real Wage Rate
		The Real Rental Price
		The Interest Rate
		Temporary changes in the technology level
		Variations in labour input
		Labour Supply
		Fluctuations In Labour Input
	Chapter 10: Capital utilization and unemployment
		Capital input
		The Demand For Capital Services
		The Supply Of Capital Services
		Market Clearing And Capital Utilization
		The Cyclical Behaviour Of Capacity Utilization
		The labour force, employment and unemployment
		Basic Concepts And Empirical Patterns
		A Model Of Job Finding
		Search By Firms
		Job Separations
		Job Separations, Job Finding And The Natural Unemployment Rate
		Economic Fluctuations, Employment And Unemployment
		Vacancies
Part IV: Money And Prices
	Chapter 11: The demand for money and the price level
		Concepts of money
		The demand for money
		The Interest Rate And The Demand For Money
		The Price Level And The Demand For Money
		Real Gdp And The Demand For Money
		Other Influences On The Demand For Money
		The Money-demand Function
		Empirical Evidence On The Demand For Money
		Determination of the price level
		The Nominal Quantity Of Money Supplied Equals The Nominal Quantity Demanded
		A Change In The Nominal Quantity Of Money
		The Neutrality Of Money
		A Change In The Demand For Money
		The Cyclical Behaviour Of The Price Level
		Price-level Targeting And Endogenous Money
	Chapter 12: Inflation, money growth and interest rates
		Cross-country data on in ation and money growth
		In ation and interest rates
		Actual And Expected Inflation
		Real And Nominal Interest Rates
		The Real Interest Rate And Intertemporal Substitution
		Actual And Expected Real Interest Rates
		Interest Rates On Money
		In ation in the equilibrium business-cycle model
		Intertemporal-substitution Effects
		Bonds And Capital
		Interest Rates And The Demand For Money
		Inflation And The Real Economy
		Money Growth, Inflation And The Nominal Interest Rate
		A Trend In The Real Demand For Money
		A Shift In The Money Growth Rate
		Government Revenue From Printing Money
Part V: The Government Sector
	Chapter 13: Government Expenditure
		Data on government expenditure
		The government’s budget constraint
		Public production
		Public services
		The household’s budget constraint
		Permanent changes in government purchases
		A Permanent Change In Government Purchases: Theory
		The Cyclical Behaviour Of Government Purchases
		Temporary changes in government purchases
		A Temporary Change In Government Purchases: Theory
		Government Purchases And Real GDP During Wartime: Empirical
		Wartime Effects On The Economy
	Chapter 14: Taxes
		Government revenue in the Eurozone
		Types of taxes
		Taxes in the model
		A Tax On Labour Income
		A Tax On Asset Income
		An increase in government purchases nanced by a labour-income tax
		Transfer payments
	Chapter 15: Public debt
		The history of UK public debt
		Characteristics of government bonds
		Budget constraints and budget deficits
		The Government’s Budget Constraint
		The Budget Deficit
		Public Saving, Private Saving And National Saving
		Public debt and households’ budget constraints
		A Simple Case Of Ricardian Equivalence
		Another Case Of Ricardian Equivalence
		Ricardian Equivalence More Generally
		Economic effects of a budget deficit
		Lump-Sum Taxes
		Labour-income Taxes
		Asset-income Taxes
		The Timing Of Taxes And Tax-rate Smoothing
		Strategic Budget Deficits
		The Standard View Of A Budget Deficit
		Social security
		Open-market operations
Part VI: Money And Business Cycles
	Chapter 16: Money and business cycles I: The price-misperceptions model
		Effects of money in the equilibrium business-cycle model
		The price-misperceptions model
		A Model With Non-neutral Effects Of Money
		Money Is Neutral In The Long Run
		Only Unperceived Inflation Affects Real Variables
		Predictions For Economic Fluctuations
		Empirical Evidence On The Real Effects Of Monetary Shocks
		Real Shocks
		Rules versus discretion
	Chapter 17: Money and business cycles II: Sticky prices and nominal wage rates
		The New Keynesian model
		Price Setting Under Imperfect Competition
		Short-run Responses To A Monetary Shock
		New Keynesian Predictions
		Price Adjustment In The Long Run
		Comparing Predictions For Economic Fluctuations
		Shocks To Aggregate Demand
		Money and nominal interest rates
		The Keynesian model: Sticky nominal wage rates
		Long-term contracts and sticky nominal wage rates
Part VII: International Macroeconomics
	Chapter 18: World markets in goods and credit
		The balance of international payments
		History of the UK current-account balance
		Determinants of the current-account balance
		Economic Fluctuations
		Harvest Failures, Government Purchases, Developing Countries
		Examples Of International Borrowing And Lending
		The Current-account Deficit And The Budget Deficit
		The terms of trade
		The Terms Of Trade And The Current-account Balance
		The Terms Of Trade And Investment
		Empirical Evidence From Oil Producers
		The volume of international trade
	Chapter 19: Exchange Rates
		Different currencies and exchange rates
		Purchasing-power parity
		The PPP Condition And The Real Exchange Rate
		The Relative Ppp Condition
		Interest-rate parity
		Fixed exchange rates
		Purchasing-power Parity Under Fixed Exchange Rates
		The Nominal Quantity Of Money Under Fixed Exchange Rates
		Devaluation And Revaluation
		Flexible exchange rates
		Fixed and exible exchange rates: A comparison
	Bibliography
	Glossary
	Index