Macroeconomics: A European Perspective

Front Cover
Half Title
Title Page
Copyright Page
Brief Contents
Contents
List of figures
List of tables
List of Focus boxes
About the authors
Preface
THE CORE
	INTRODUCTION
		Chapter 1 A tour of the world
			1.1 The pandemic of 2020
			1.2 The crisis of 2008-9
			1.3 The United States
			1.4 The EU and the euro area
			1.5 China
			1.6 Looking ahead
			Key terms
			Questions and problems
			Appendix 1: Where to find the numbers
			Appendix 2: What do macroeconomists do?
		Chapter 2 A tour of the book
			2.1 Aggregate output
			2.2 The unemployment rate
			2.3 The inflation rate
			2.4 Output, unemployment and the inflation rate: Okun's law and the Phillips curve
			2.5 The short run, the medium run and the long run
			2.6 A tour of the book
			Summary
			Key terms
			Questions and problems
			Further reading
			Appendix: The construction of real GDP and chain-type indexes
	THE SHORT RUN
		Chapter 3 The goods market
			3.1 The composition of GDP
			3.2 The demand for goods
			3.3 The determination of equilibrium output
			3.4 Investment equals saving: an alternative way of thinking about the goods-market equilibrium
			3.5 Is the government omnipotent? A warning
			Summary
			Key terms
			Questions and problems
		Chapter 4 Financial markets: I
			4.1 The demand for money
			4.2 Determining the interest rate: I
			4.3 Determining the interest rate: II
			4.4 The liquidity trap
			Summary
			Key terms
			Questions and problems
			Further reading
		Chapter 5 Goods and financial markets: the IS-LM model
			5.1 The goods market and the IS relation
			5.2 Financial markets and the LM relation
			5.3 Putting the IS and LM relations together
			5.4 Using a policy mix
			5.5 How does the IS-LM model fit the facts?
			Summary
			Key terms
			Questions and problems
			Further reading
		Chapter 6 Financial markets II: the extended IS-LM model
			6.1 Nominal versus real interest rates
			6.2 Risk and risk premiums
			6.3 The role of financial intermediaries
			6.4 Extending the IS-LM model
			6.5 From a housing problem to a financial crisis: 2006-8
			Summary
			Key terms
			Questions and problems
			Further reading
	THE MEDIUM RUN
		Chapter 7 The labour market
			7.1 A tour of the labour market
			7.2 Movements in unemployment
			7.3 Wage determination
			7.4 Price determination
			7.5 The natural rate of unemployment
			7.6 Where we go from here
			Summary
			Key terms
			Questions and problems
			Further reading
			Appendix: Wage- and price-setting relations versus labour supply and labour demand
		Chapter 8 The Phillips curve, the natural rate of unemployment and inflation
			8.1 Inflation, expected inflation and unemployment
			8.2 The Phillips curve and its mutations
			8.3 The Phillips curve and the natural rate of unemployment
			8.4 A summary and many warnings
			Summary
			Key terms
			Questions and problems
			Appendix: Derivation of the relation between inflation, expected inflation and unemployment
		Chapter 9 From the short to the medium run: the IS-LM-PC model
			9.1 The IS-LM-PC model
			9.2 From the short to the medium run
			9.3 Complications and how things can go wrong
			9.4 Fiscal consolidation revisited
			9.5 The effects of an increase in the price of oil
			9.6 Conclusions
			Summary
			Key terms
			Questions and problems
		Chapter 10 The COVID economic crisis
			10.1 The economic effects of the lockdown
			10.2 The macro policy response
			10.3 The economy post-lockdown
			10.4 The economy post-vaccine
			Summary
			Key terms
			Questions and problems
	THE LONG RUN
		Chapter 11 The facts of growth
			11.1 Measuring the standard of living
			11.2 Growth in rich countries since 1950
			11.3 A broader look across time and space
			11.4 Thinking about growth: a primer
			Summary
			Key terms
			Questions and problems
			Further reading
		Chapter 12 Saving, capital accumulation and output
			12.1 Interactions between output and capital
			12.2 The implications of alternative saving rates
			12.3 Getting a sense of magnitudes
			12.4 Physical versus human capital
			Summary
			Key terms
			Questions and problems
			Further reading
			Appendix: The Cobb-Douglas production function and the steady state
		Chapter 13 Technological progress and growth
			13.1 Technological progress and the rate of growth
			13.2 The determinants of technological progress
			13.3 Institutions, technological progress and growth
			Summary
			Key terms
			Questions and problems
			Further reading
			Appendix: How to measure technological progress and the application to China
		Chapter 14 The challenges of growth
			14.1 The future of technological progress
			14.2 Robots and unemployment
			14.3 Growth, churn and inequality
			14.4 Climate change and global warming
			Summary
			Key terms
			Questions and problems
			Further reading
EXTENSIONS
	EXPECTATIONS
		Chapter 15 Financial markets and expectations
			15.1 Expected present discounted values
			15.2 Bond prices and bond yields
			15.3 The stock market and movements in stock prices
			15.4 Risk, bubbles, fads and asset prices
			Summary
			Key terms
			Questions and problems
			Further reading
			Appendix: Deriving the expected present discounted value using real or nominal interest rates
		Chapter 16 Expectations, consumption and investment
			16.1 Consumption
			16.2 Investment
			16.3 The volatility of consumption and investment
			Summary
			Key terms
			Questions and problems
			Appendix: Derivation of the expected present value of profits under static expectations
		Chapter 17 Expectations, output and policy
			17.1 Expectations and decisions: taking stock
			17.2 Monetary policy, expectations and output
			17.3 Deficit reduction, expectations and output
			Summary
			Key terms
			Questions and problems
			Further reading
	THE OPEN ECONOMY
		Chapter 18 Openness in goods and financial markets
			18.1 Openness in goods markets
			18.2 Openness in financial markets
			18.3 Conclusions and a look ahead
			Summary
			Key terms
			Questions and problems
			Further reading
		Chapter 19 The goods market in an open economy
			19.1 The IS relation in the open economy
			19.2 Equilibrium output and the trade balance
			19.3 Increases in demand - domestic or foreign
			19.4 Depreciation, the trade balance and output
			19.5 Saving, investment and the current account balance
			Summary
			Key terms
			Questions and problems
			Further reading
			Appendix: Derivation of the Marshall-Lerner condition
		Chapter 20 Output, the interest rate and the exchange rate
			20.1 Equilibrium in the goods market
			20.2 Equilibrium in financial markets
			20.3 Putting goods and financial markets together
			20.4 The effects of policy in an open economy
			20.5 Fixed exchange rates
			Summary
			Key terms
			Questions and problems
			Appendix: Fixed exchange rates, interest rates and capital mobility
		Chapter 21 Exchange rate regimes
			21.1 The medium run
			21.2 Exchange rate crises under fixed exchange rates
			21.3 Exchange rate movements under flexible exchange rates
			21.4 Choosing between exchange rate regimes
			Summary
			Key terms
			Questions and problems
			Further reading
			Appendix 1: Deriving the IS relation under fixed exchange rates
			Appendix 2: The real exchange rate and domestic and foreign real interest rates
	BACK TO POLICY
		Chapter 22 Should policymakers be restrained?
			22.1 Uncertainty and policy
			22.2 Expectations and policy
			22.3 Politics and policy
			Summary
			Key terms
			Questions and problems
			Further reading
		Chapter 23 Fiscal policy: a summing up
			23.1 What we have learned
			23.2 The government budget constraint: deficits, debt, spending and taxes
			23.3 Ricardian equivalence, cyclical adjusted deficits and war finance
			23.4 The dangers of high debt
			23.5 The challenges facing fiscal policy today
			Summary
			Key terms
			Questions and problems
			Further reading
		Chapter 24 Monetary policy: a summing up
			24.1 What we have learned
			24.2 From money targeting to inflation targeting
			24.3 The optimal inflation rate
			24.4 Unconventional monetary policy
			24.5 Monetary policy and financial stability
			Summary
			Key terms
			Questions and problems
			Further reading
	EPILOGUE
		Chapter 25 The story of macroeconomics
			25.1 Keynes and the Great Depression
			25.2 The neoclassical synthesis
			25.3 The rational expectations critique
			25.4 Developments in macroeconomics up to the 2009 crisis
			25.5 First lessons for macroeconomics after the crisis
			Summary
			Key terms
			Further reading
APPENDICES
Appendix 1 An introduction to national income and product accounts
Appendix 2 A maths refresher
Appendix 3 An introduction to econometrics
Glossary
Symbols used in this book
Index
Publisher's Acknowledgements
Back Cover