Macroeconomics: Policy and Practice, 2nd edition

✍ Scribed by Frederic S. Mishkin

• Tongue: English
• Leaves: 710
• Edition: 2
• Category: Library

✦ Table of Contents

Cover
Title Page
Copyright Page
Acknowledgments
About the Author
Contents
Preface
PART 1 Introduction
Chapter 1 THE POLICY AND PRACTICE OF MACROECONOMICS
PREVIEW
THE PRACTICE OF MACROECONOMICS
MACROECONOMIC POLICY
HOW WE WILL STUDY MACROECONOMICS
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 2 MEASURING MACROECONOMIC DATA
PREVIEW
MEASURING ECONOMIC ACTIVITY: NATIONAL INCOME ACCOUNTING
MEASURING GDP: THE PRODUCTION APPROACH
MEASURING GDP: THE EXPENDITURE APPROACH
MEASURING GDP: THE INCOME APPROACH
REAL VERSUS NOMINAL GDP
MEASURING INFLATION
MEASURING UNEMPLOYMENT
MEASURING INTEREST RATES
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
PART 2 Macroeconomic Basics
Chapter 3 AGGREGATE PRODUCTION AND PRODUCTIVITY
PREVIEW
DETERMINANTS OF AGGREGATE PRODUCTION
DETERMINATION OF FACTOR PRICES
DISTRIBUTION OF NATIONAL INCOME
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 4 SAVING AND INVESTMENT IN CLOSED AND OPEN ECONOMIES
PREVIEW
RELATIONSHIP BETWEEN SAVING AND WEALTH
SAVING, INVESTMENT, AND GOODS MARKET EQUILIBRIUM IN A CLOSED ECONOMY
RESPONSE TO CHANGES IN SAVING AND INVESTMENT IN A CLOSED ECONOMY
SAVING, INVESTMENT, AND GOODS MARKET EQUILIBRIUM IN AN OPEN ECONOMY
SAVING, INVESTMENT, AND THE TRADE BALANCE IN A SMALL OPEN ECONOMY
RESPONSE TO CHANGES IN SAVING AND INVESTMENT IN A SMALL OPEN ECONOMY
LARGE VERSUS SMALL OPEN ECONOMIES
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 5 MONEY AND INFLATION
PREVIEW
WHAT IS MONEY?
THE FEDERAL RESERVE SYSTEM AND THE CONTROL OF THE MONEY SUPPLY
MEASURING MONEY
QUANTITY THEORY OF MONEY
HYPERINFLATION
INFLATION AND INTEREST RATES
THE COST OF INFLATION
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 5 Appendix THE MONEY SUPPLY PROCESS
THE FED’S BALANCE SHEET
CONTROL OF THE MONETARY BASE
MULTIPLE DEPOSIT CREATION: A SIMPLE MODEL
FACTORS THAT DETERMINE THE MONEY SUPPLY
THE MONEY MULTIPLIER
SUMMARY
KEY TERMS
REVIEW QUESTIONS AND PROBLEMS
DATA ANALYSIS PROBLEMS
PART 3 Long-Run Economic Growth
Chapter 6 THE SOURCES OF GROWTH AND THE SOLOW MODEL
PREVIEW
ECONOMIC GROWTH AROUND THE WORLD
THE SOLOW GROWTH MODEL
SAVING RATE CHANGES IN THE SOLOW MODEL
POPULATION GROWTH IN THE SOLOW MODEL
PRODUCTIVITY GROWTH IN THE SOLOW MODEL
SUMMING UP THE SOLOW MODEL
SOURCES OF ECONOMIC GROWTH: GROWTH ACCOUNTING
CROSS-COUNTRY DIFFERENCES IN GROWTH ACCOUNTING RATES
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 6 Appendix THE ALGEBRA OF THE SOLOW GROWTH MODEL
SOLVING FOR THE STEADY STATE
SUMMARY AND RESULTS
REVIEW QUESTIONS AND PROBLEMS
Chapter 7 DRIVERS OF GROWTH: TECHNOLOGY, POLICY, AND INSTITUTIONS
PREVIEW
TECHNOLOGY AS A PRODUCTION INPUT
POLICIES TO PROMOTE PRODUCTIVITY
INSTITUTIONS AND PROPERTY RIGHTS
ENDOGENOUS GROWTH THEORY
FACTORS THAT AFFECT ENDOGENOUS GROWTH
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
PART 4 Business Cycles: The Short Run
Chapter 8 BUSINESS CYCLES: AN INTRODUCTION
PREVIEW
BUSINESS CYCLE BASICS
MACROECONOMIC VARIABLES AND THE BUSINESS CYCLE
A BRIEF HISTORY OF U.S. BUSINESS CYCLES
TIME HORIZONS IN MACROECONOMICS
PRICE STICKINESS
ROAD MAP FOR OUR STUDY OF BUSINESS CYCLES
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 9 THE IS CURVE
PREVIEW
PLANNED EXPENDITURE
THE COMPONENTS OF EXPENDITURE
GOODS MARKET EQUILIBRIUM
UNDERSTANDING THE IS CURVE
FACTORS THAT SHIFT THE IS CURVE
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 10 MONETARY POLICY AND AGGREGATE DEMAND
PREVIEW
THE FEDERAL RESERVE AND MONETARY POLICY
THE MONETARY POLICY CURVE
THE AGGREGATE DEMAND CURVE
THE MONEY MARKET AND INTEREST RATES
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 10 Appendix THE DEMAND FOR MONEY
KEYNESIAN THEORIES OF MONEY DEMAND
PORTFOLIO THEORIES OF MONEY DEMAND
EMPIRICAL EVIDENCE ON THE DEMAND FOR MONEY
SUMMARY
KEY TERMS
REVIEW QUESTIONS AND PROBLEMS
Chapter 11 AGGREGATE SUPPLY AND THE PHILLIPS CURVE
PREVIEW
THE PHILLIPS CURVE
THE AGGREGATE SUPPLY CURVE
SHIFTS IN AGGREGATE SUPPLY CURVES
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 12 THE AGGREGATE DEMAND AND SUPPLY MODEL
PREVIEW
RECAP OF THE AGGREGATE DEMAND AND SUPPLY CURVES
EQUILIBRIUM IN AGGREGATE DEMAND AND SUPPLY ANALYSIS
CHANGES IN EQUILIBRIUM: AGGREGATE DEMAND SHOCKS
CHANGES IN EQUILIBRIUM: AGGREGATE SUPPLY (PRICE) SHOCKS
AD/AS ANALYSIS OF FOREIGN BUSINESS CYCLE EPISODES
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 13 MACROECONOMIC POLICY AND AGGREGATE DEMAND AND SUPPLY ANALYSIS
PREVIEW
THE OBJECTIVES OF MACROECONOMIC POLICY
THE RELATIONSHIP BETWEEN STABILIZING INFLATION AND STABILIZING ECONOMIC ACTIVITY
HOW ACTIVELY SHOULD POLICY MAKERS TRY TO STABILIZE ECONOMIC ACTIVITY?
THE TAYLOR RULE
INFLATION: ALWAYS AND EVERYWHERE A MONETARY PHENOMENON
CAUSES OF INFLATIONARY MONETARY POLICY
MONETARY POLICY AT THE ZERO LOWER BOUND
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
PART 5 Finance and the Macroeconomy
Chapter 14 THE FINANCIAL SYSTEM AND ECONOMIC GROWTH
PREVIEW
THE ROLE OF THE FINANCIAL SYSTEM
INFORMATION CHALLENGES AND THE FINANCIAL SYSTEM
GOVERNMENT REGULATION AND SUPERVISION8 OF THE FINANCIAL SECTOR
FINANCIAL DEVELOPMENT AND ECONOMIC GROWTH: THE EVIDENCE
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 15 FINANCIAL CRISES AND THE ECONOMY
PREVIEW
ASYMMETRIC INFORMATION AND FINANCIAL CRISES
DYNAMICS OF FINANCIAL CRISES
WHY THE 2007–2009 FINANCIAL CRISIS DID NOT LEAD TO A DEPRESSION
POLICY RESPONSE TO ASSET-PRICE BUBBLES
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
PART 6 Macroeconomic Policy
Chapter 16 FISCAL POLICY AND THE GOVERNMENT BUDGET
PREVIEW
THE GOVERNMENT BUDGET
SIZE OF THE GOVERNMENT DEBT
SOVEREIGN DEBT CRISES
FISCAL POLICY AND THE ECONOMY IN THE LONG RUN
FISCAL POLICY AND THE ECONOMY IN THE SHORT RUN
BUDGET DEFICITS AND INFLATION
BUDGET DEFICITS AND RICARDIAN EQUIVALENCE
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 17 EXCHANGE RATES AND INTERNATIONAL ECONOMIC POLICY
PREVIEW
FOREIGN EXCHANGE MARKET AND EXCHANGE RATES
EXCHANGE RATES IN THE LONG RUN
EXCHANGE RATES IN THE SHORT RUN
ANALYSIS OF CHANGES IN EXCHANGE RATES
EXCHANGE RATES AND AGGREGATE DEMAND AND SUPPLY ANALYSIS
INTERVENTION IN THE FOREIGN EXCHANGE MARKET
FIXED EXCHANGE RATE REGIMES
TO PEG OR NOT TO PEG
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
PART 7 Microeconomic Foundations of Macroeconomics
Chapter 18 CONSUMPTION AND SAVING
PREVIEW
THE RELATIONSHIP BETWEEN CONSUMPTION AND SAVING
INTERTEMPORAL CHOICE AND CONSUMPTION
THE INTERTEMPORAL CHOICE MODEL IN PRACTICE: INCOME AND WEALTH
THE INTERTEMPORAL CHOICE MODEL IN PRACTICE: INTEREST RATES
THE KEYNESIAN THEORY OF CONSUMPTION
THE PERMANENT INCOME HYPOTHESIS
THE LIFE CYCLE HYPOTHESIS
TWO MODIFICATIONS OF THE THEORY: THE RANDOM WALK HYPOTHESIS AND BEHAVIORAL ECONOMICS
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 19 INVESTMENT
PREVIEW
DATA ON INVESTMENT SPENDING
THE NEOCLASSICAL THEORY OF INVESTMENT
INVENTORY INVESTMENT
TOBIN’S q AND INVESTMENT
RESIDENTIAL INVESTMENT
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 20 THE LABOR MARKET, EMPLOYMENT, AND UNEMPLOYMENT
PREVIEW
DEVELOPMENTS IN THE U.S. LABOR MARKET
SUPPLY AND DEMAND IN THE LABOR MARKET
RESPONSE OF EMPLOYMENT AND WAGES TO CHANGES IN LABOR DEMAND AND LABOR SUPPLY
DYNAMICS OF UNEMPLOYMENT
CAUSES OF UNEMPLOYMENT
NATURAL RATE OF UNEMPLOYMENT
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
PART 8 Modern Business Cycle Analysis and Macroeconomic Policy
Chapter 21 THE ROLE OF EXPECTATIONS IN MACROECONOMIC POLICY
PREVIEW
RATIONAL EXPECTATIONS AND POLICY MAKING
LUCAS CRITIQUE OF POLICY EVALUATION
POLICY CONDUCT: RULES OR DISCRETION?
THE ROLE OF CREDIBILITY AND A NOMINAL ANCHOR
APPROACHES TO ESTABLISHING CENTRAL BANK CREDIBILITY
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Chapter 22 MODERN BUSINESS CYCLE THEORY
PREVIEW
REAL BUSINESS CYCLE MODEL
NEW KEYNESIAN MODEL
A COMPARISON OF BUSINESS CYCLE MODELS
SUMMARY
KEY TERMS
REVIEW QUESTIONS
PROBLEMS
DATA ANALYSIS PROBLEMS
Epilogue
POLICY AND PRACTICE: WHERE DO MACROECONOMISTS AGREE AND DISAGREE?
PREVIEW
WHERE MACROECONOMISTS AGREE
WHERE MACROECONOMISTS DISAGREE
THE FUTURE OF BUSINESS CYCLE THEORY
SUMMARY
KEY TERMS
Glossary
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Index
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