Intermediate Macroeconomics

✍ Scribed by Robert J Barro

• Publisher: Cengage Learning
• Year: 2017
• Tongue: English
• Leaves: 411
• Edition: 1
• Category: Library

✦ Synopsis

This brand new EMEA edition of Robert Barro’s popular text brings an EMEA perspective whilst also being fully updated to reflect the macroeconomics of a post-financial crisis world. Starting with long-run macroeconomics, this text explores some of the key theories and models in macroeconomics such as the Keynesian model and the business-cycle model, finishing with extending the equilibrium model to the open economy. This exciting new edition, which has been fully updated by Professor Angus Chu and Professor Guido Cozzi, provides an accurate and unified presentation of current macroeconomic thought whilst maintaining Professor Barro’s original vision for his textbook. This edition also comes with the optional extra of Aplia, a comprehensive online learning assessment tool with autograded randomised questions to test students’ understanding.

✦ Table of Contents

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