Full Description
Macroeconomics is the application of economic theory to the study of the economy's growth, cycle and price-level determination. Macroeconomics takes account of stylized facts observed in the real world and builds theoretical frameworks to explain such facts. Economic growth is a stylized fact of market economies, since England's nineteenth-century industrial revolution. Until then, poverty was a common good for humanity. Economic growth consists in the persistent, smooth and sustained increase of per-capita income. A market economy shows periods of expanding and contracting economic activity. This phenomenon is the economic cycle. The price of money is the amount of goods bought with one unit of money, in other words, the inverse of the price level. Determination of the price level, or the value of money, is a fascinating subject in a fiat money economy.
Contents
Introduction.- Part I: Models with Flexible Prices.- Chapter 1: Representative Agent Model.- Chapter 2: Open Economy Representative Model.- Chapter 3: Overlapping Generations.- Chapter 4: Solow Growth Model.- Chapter 5: Economic Growth: Endogenous Savings and Growth.- Part II: Models with Sticky Prices.- Chapter 6: Keynesian Models: IS and LM Curves, Taylor Rule and Phillips Curve.- Chapter 7: Fluctuation and Stabilization.- Chapter 8: Open Economy Macroeconomics.- Chapter 9: Open Economy Fluctuation and Stabilization.- Part III: Models of Monetary and Fiscal Policies.- Chapter 10: Government Budget Constraint.- Chapter 11: Monetary Theory and Policy.- Part IV: Mathematical Appendix.- Appendix A: Differential Equations.- Appendix B: Optimal Control Theory.- Appendix C: Finite Difference Equations.
