Macroeconomics A European Text

by Burda, Michael; Wyplosz, Charles

• ISBN13: 9780199264964
• ISBN10: 0199264961
• Edition: 4th
• Format: Paperback
• Copyright: 2005-12-01
• Publisher: Oxford University Press

Summary

Building on the considerable success of previous editions, this fourth edition of Macroeconomics has been further simplified to provide an accessible yet comprehensive analysis of modern macroeconomics within both a European and a global context.

Author Biography

Charles Wyplosz is Professor of Economics at the Graduate Institute of International Studies in the University of Geneva.

Table of Contents

List of Figures	p. xi
List of Tables	p. xvi
List of Boxes	p. xviii
Introduction to Macroeconomics	p. 1
What is Macroeconomics?	p. 3
Overview	p. 4
Macroeconomics as a Discipline	p. 10
The Methodology of Macroeconomics	p. 14
Preview of the Book	p. 17
Macroeconomic Accounts	p. 21
Overview	p. 22
Gross Domestic Product	p. 22
Flows of Incomes and Expenditures	p. 30
Balance of Payments	p. 36
Summary	p. 40
The Real Macroeconomy	p. 43
Economic Growth	p. 45
Overview	p. 45
Stylized Facts and Steady States	p. 47
Capital Accumulation	p. 49
Population Growth	p. 58
Technological Progress	p. 61
Putting It All Together: Growth Accounting	p. 62
Endogenous Growth: A Primer	p. 65
Summary	p. 67
Labour Markets and Unemployment	p. 71
Overview	p. 72
Demand and Supply in the Labour Market	p. 73
A Static Interpretation of Unemployment	p. 82
A Dynamic Interpretation of Unemployment	p. 90
The Equilibrium Rate of Unemployment	p. 94
Summary	p. 97
Borrowing, Lending, and Budget Constraints	p. 101
Overview	p. 102
Thinking about the Future	p. 103
The Household's Intertemporal Budget Constraint	p. 104
The Firm and the Private Sector's Intertemporal Budget Constraint	p. 108
Public and Private Budget Constraints	p. 113
The Current Account and the Budget Constraint of the Nation	p. 120
Summary	p. 122
Private Sector Demand: Consumption and Investment	p. 125
Overview	p. 126
Consumption	p. 127
Investment	p. 138
Summary	p. 148
The Real Exchange Rate	p. 151
Overview	p. 152
The Real Exchange Rate and the Primary Current Account Function	p. 153
The Real Exchange Rate as the Relative Price of Non-traded Goods	p. 156
The National Intertemporal Budget Constraint and the Equilibrium Real Exchange Rate	p. 161
Summary	p. 168
Money	p. 171
Money and the Demand for Money	p. 173
Overview	p. 174
Technical Definitions of Money	p. 174
Why Is this Money?	p. 177
Money: A Balance Sheet Approach	p. 179
The Demand for Money	p. 181
Equilibrium in the Money Market: The Short Run	p. 186
Equilibrium in the Money Market: The Long Run	p. 188
Summary	p. 194
The Supply of Money and Monetary Policy	p. 199
Overview	p. 200
Objectives, Targets, and Instruments	p. 201
Money Creation	p. 203
Controlling Monetary Conditions	p. 209
Monetary Policy in an Open Economy	p. 216
Monetary Financing of the Government: A Slippery Objective	p. 217
Bank Regulation and Monetary Control	p. 220
Summary	p. 223
Macroeconomic Equilibrium	p. 227
Aggregate Demand, Output, and the Interest Rate	p. 229
Overview	p. 230
Aggregate Demand and the Goods Market	p. 232
The Goods Market and the IS Curve	p. 237
The Money Market and the LM Curve	p. 241
International Capital Flows and Macroeconomic Equilibrium	p. 243
Output and Interest Rate Determination under Fixed Exchange Rates	p. 246
Output and Interest Rate Determination under Flexible Exchange Rates	p. 252
Fixed and Flexible Rates: A Wrap-Up	p. 255
Summary	p. 256
Output, Employment and Prices	p. 261
Overview	p. 262
The IS-LM Model	p. 263
General Equilibrium	p. 264
General Equilibrium with Flexible Prices: The Neoclassical Case	p. 268
General Equilibrium with Sticky Prices: The Keynesian Case	p. 272
Summary	p. 276
Inflation and Business Cycles	p. 279
Aggregate Supply and Inflation	p. 281
Overview	p. 282
The Phillips Curve: Chimera or a Stylized Fact?	p. 283
Accounting for Inflation: The Battle of the Mark-ups	p. 288
Inflation, Unemployment, and Output	p. 294
Summary	p. 299
Aggregate Demand and Aggregate Supply	p. 303
Overview	p. 304
Aggregate Demand and Supply under Fixed Exchange Rates	p. 305
Aggregate Demand and Supply under Flexible Exchange Rates	p. 315
How to Use the AS-AD Framework	p. 319
Summary	p. 327
Business Cycles	p. 331
Overview	p. 332
Stylized Facts about Business Cycles	p. 333
Deterministic and Stochastic Interpretations of the Business Cycle	p. 341
Sticky Price Business Cycles	p. 346
Real Business Cycles	p. 349
Taking Stock of the Two Theories	p. 352
Summary	p. 355
Macroeconomic Policy	p. 359
Fiscal Policy, Debt, and Seigniorage	p. 361
Overview	p. 362
Fiscal Policy and Economic Welfare	p. 363
Macroeconomic Stabilization	p. 365
Deficit Financing: Public Debt and Seigniorage	p. 373
Three Ways to Stabilize the Public Debt	p. 376
Summary	p. 379
The Limits of Demand Management	p. 383
Overview	p. 384
Policy Activism and Demand Management: What are the Issues?	p. 385
Macroeconomic Policy and Expectations	p. 393
The Institutions of Policy-Making	p. 394
Politics and Economics	p. 402
Summary	p. 404
Supply-Side Policy	p. 407
Overview	p. 408
Market Efficiency and Equilibrium Output	p. 409
Improving the Effectiveness of Goods Markets	p. 414
Improving the Efficiency of Labour Markets	p. 420
Summary	p. 432
Economic Growth: Theory and Policy	p. 435
Overview	p. 436
Growth and Complementary Inputs	p. 437
Growth, Knowledge, and Innovation	p. 441
Growth and the Economic Environment	p. 446
Growth and Politics	p. 452
Summary	p. 454
Asset Markets and International Financial Architecture	p. 457
Asset Markets and Macroeconomics	p. 459
Overview	p. 460
How Asset Markets Work	p. 460
Linking Asset Markets and Macroeconomics	p. 470
Exchange Rate Determination in the Short Run	p. 479
Summary	p. 486
The Architecture of the International Monetary System	p. 491
Overview	p. 492
History of Monetary Arrangements	p. 493
The International Monetary Fund	p. 504
Currency Crises	p. 506
The Choice of an Exchange Rate Regime	p. 514
Summary	p. 521
Epilogue	p. 525
The Keynesian Revolution	p. 526
The Monetarist Revolution	p. 528
The Rational Expectations Revolution	p. 531
Microfoundations of Macroeconomics	p. 532
Institutional and Political Economics	p. 533
Labour Markets	p. 534
Growth and Development	p. 536
Conclusions	p. 537
References	p. 539
Glossary	p. 541
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