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Macroeconomic Theory and Policy

by: Branson, William H.

Macroeconomic Theory and Policy

by: Branson, William H.

ISBN 13:
9780060409326
ISBN 10:
0060409320
Edition: 3rd
Format: Paperback
Copyright: 01/09/1997
Publisher: Pearson

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Summary

This widely respected classic continues to offer the state-of-the-art coverage of advanced macroeconomics. Detailed and clear exposition of such topics as traditional expectations, money demand, and policy rules are well integrated.

Preface

xiii

Part One AN INTRODUCTION TO MACROECONOMICS

(52)

Actual and Potential GNP: Fluctuations and Growth

(12)

The Development of Macroeconomics

(2)

Actual and Potential Output

(6)

An Analytical Approach to Macroeconomics

(4)

A Review of the National Income and Product Accounts

(20)

Some Principles Behind the Accounts

(1)

The Circular Flow of Product and Income

(2)

GNP on the Product Side

(3)

GNP by Type of Income, and National Income

(2)

The Disposition of National Income

(2)

Summary of the GNP Identity

(2)

The Government Sector in the Accounts

(3)

GNP as a Welfare Measure

(3)

Introduction to Income Determination: The Multiplier

(18)

The Saving-Investment Balance

(1)

Planned and Realized Investment

(1)

The Tax, Consumption, and Saving Functions

(2)

Determination of Equilibrium Income

(5)

Derivation of the Expenditure Multiplier

(6)

Conclusion to Part I

(2)

Part Two NATIONAL INCOME DETERMINATION: THE STATIC EQUILIBRIUM MODEL

(184)

Demand-Side Equilibrium: Income and the Interest Rate

(20)

Equilibrium Income and the Interest Rate in the Product Market

(6)

Equilibrium Income and the Interest Rate in the Money Market

(7)

Equilibrium in the Product and Money Markets

(3)

Income and the Price Level on the Demand Side

(3)

An Introduction to Monetary and Fiscal Policy

(30)

Fiscal Policy Effects on Demand

(11)

Monetary Policy Effects on Demand

(6)

The Interaction of Monetary and Fiscal Policies

(4)

Multipliers and the Aggregate Demand Curve

(7)

Appendix: Matrix Algebra

101

(4)

Demand and Supply in the Labor Market

105

(22)

The Simple Depression Model

106

(3)

The Demand for Labor

109

(5)

The Supply of Labor

114

(5)

Equilibrium in the Labor Market

119

(2)

Equilibrium Unemployment

121

(6)

Supply-Side Equilibrium: Output and the Price Level

127

(18)

Expectations and Aggregate Supply

128

(8)

Introduction to the Formation of Expectations

136

(4)

Supply-Side Disturbances

140

(5)

Equilibrium in the Static Model

145

(20)

Determination of Equilibrium y, N, r, and P

145

(2)

Reaction to Demand Disturbances

147

(9)

Reaction to Supply Disturbances

156

(9)

Monetary, Fiscal, and Incomes Policy

165

(22)

Monetary and Fiscal Policy in the Static Model

166

(6)

Monetary and Fiscal Policy in the Classical Case

172

(2)

Fiscal and Monetary Multipliers in the Static Model

174

(7)

Incomes Policy in the Static Model

181

(1)

Incomes Policy and Excess Demand

182

(5)

Search, Wage Rigidity, and Unemployment

187

(18)

Labor Market Search and Employment

188

(2)

Search Costs and Wage Rigidity

190

(2)

Wage Rigidity in the Aggregate Labor Market

192

(7)

Local Wage Rigidities and Aggregate Unemployment

199

(2)

Price Stickiness and the Aggregate Supply Function

201

(2)

Summary: An Eclectic View of Unemployment

203

(2)

Rational Expectations and Demand Policy

205

(32)

Two Preliminaries

206

(1)

The Basic Model with Exogenous Expectations

207

(6)

The Basic Model with Expectations Endogenous

213

(3)

The Rational Expectations Hypothesis

216

(7)

One-Period Contracts and Aggregate Supply

223

(6)

Long-Term Contracts and Economic Policy

229

(5)

Conclusion: Rational Expectations and the New Classical View

234

(3)

Part Three SECTORAL DEMAND FUNCTIONS AND EXTENSIONS OF THE STATIC MODEL

237

(232)

Consumption and Consumer Expenditure

239

(46)

Background: Cross Sections, Cycles, and Trends

240

(3)

The Basic Model of Consumer Behavior

243

(9)

Three Theories of the Consumption Function

252

(16)

Two Alternatives in Consumption Theory

268

(5)

Choice Structure and Disequilibrium

273

(2)

The MPS Model

275

(1)

The Wealth Effect in the Static Model

276

(5)

Conclusion: Some Implications for Stabilization Policy

281

(4)

Investment Demand

285

(34)

The Present Value Criterion for Investment

286

(4)

The Marginal Efficiency of Investment

290

(5)

Investment Demand and Output Growth

295

(10)

The q-Theory of Investment

305

(2)

The User Cost and Liquidity Effects

307

(3)

Lags in Investment Demand

310

(4)

Investment in the Static Model

314

(3)

Conclusion: Investment Demand and Monetary and Fiscal Policy

317

(2)

The Demand for Money

319

(28)

The Regressive Expectations Model

320

(7)

The Portfolio Balance Approach

327

(8)

The Transactions Demand for Money

335

(5)

Money as a Consumer's and Producer's Good

340

(3)

Empirical Estimates of Income and Interest Elasticities

343

(4)

The Supply of Money

347

(20)

The Instruments of Monetary Policy

348

(2)

The Mechanism of Monetary Expansion

350

(2)

The Determinants of the Money Supply

352

(2)

Empirical Estimates of Interest Elasticity

354

(3)

The Money Supply in the Static Model

357

(4)

Intermediate Targets and the Practice of Monetary Policy

361

(6)

Monetary and Fiscal Policy in the Extended Model

367

(34)

The Static Model Extended

368

(11)

The Effects of Fiscal Policy Changes

379

(3)

The Effectiveness of Aggregate Demand Policy: Monetarists, Fiscalists, and New Classicals

382

(9)

Tax Rate Changes and the Budget Deficit

391

(5)

Fiscal Stimulus and Deficit Financing

396

(5)

The Foreign Sector and the Balance of Payments

401

(28)

The Current Account and Product Market Equilibrium

404

(3)

The Capital Account and Balance-of-Payments Equilibrium

407

(6)

Balance-of-Payments Adjustment and the LM Curve

413

(3)

Balance-of-Payments Adjustment Policy with Fixed Rates

416

(3)

Flexible Exchange Rates

419

(4)

The Domestic Economy as a Price-Taker

423

(6)

Macroeconomics When Markets Do Not Clear

429

(40)

The Reappraisal of the Foundations of Macroeconomics

429

(3)

Some Analytic Preliminaries for the ``Reappraisal'' Model

432

(7)

Microeconomic Foundations for the Reappraisal Model

439

(7)

The Complete Model

446

(9)

The Model in a Small Open Economy

455

(1)

The Importance of Time and the Future

456

(4)

Comparative Statics, Multipliers, and Dynamics

460

(3)

The Model and Actual Economies

463

(2)

Conclusion: Some Future Research in Macro Theory

465

(4)

Part Four MEDIUM-TERM DYNAMICS: BETWEEN STATIC EQUILIBRIUM AND LONG-RUN GROWTH

469

(90)

Inflation, Productivity, and Income Distribution

471

(24)

Inflation in the Static Model

472

(8)

Wages, Prices, and Productivity

480

(5)

The Wage-Price Guideposts and Income Distribution

485

(10)

Appendix: The Uses of Logarithms

489

(1)

The Natural Constant e

489

(1)

Natural Logarithms

490

(2)

Point Elasticities

492

(3)

Inflation and Unemployment: The Phillips Curve

495

(22)

The Basic Analytics of Inflation and Unemployment

496

(3)

The Long-Run Phillips Curve

499

(5)

Adaptive Expectations in the Phillips Curve

504

(4)

Inflation and Unemployment 1960-1986

508

(9)

Introduction to Stock-Adjustment Dynamics

517

(24)

Money Finance of the Budget Deficit

518

(7)

Introduction of Wealth Effects

525

(5)

Bond Finance of the Deficit and Crowding Out

530

(4)

Interaction Between the Government Budget and the Balance of Payments

534

(4)

A General View of Asset Stock Adjustment

538

(3)

Trend Growth in the Static Model

541

(18)

Assumptions Underlying Trend Growth

543

(1)

Trend Growth of Output and Prices

544

(3)

Trend Growth of the Money Supply

547

(2)

Product Market Equilibrium and the Budget

549

(3)

The Monetary-Fiscal Policy Mix Along Trend

552

(4)

Fiscal Drag and the Full-Employment Surplus

556

(1)

Public Debt with Trend Growth

557

(2)

Part Five LONG-RUN GROWTH WITH FULL EMPLOYMENT

559

(87)

Introduction to Growth Models

561

(14)

The Stylized Facts of Growth

564

(4)

Basic Assumptions of One-Sector Growth Models

568

(2)

The Harrod-Domar Condition for Equilibrium Growth

570

(5)

The Basic Neoclassical Growth Model

575

(20)

The Constant-Returns Production Function

576

(3)

Equilibrium Growth in the Neoclassical Model

579

(9)

The Neoclassical Model with Technical Progress

588

(3)

Multiple Equilibria in the Neoclassical Model

591

(4)

The Basic Model Extended: Varying Saving Assumptions

595

(16)

The Classical Saving Function

599

(3)

The Characteristic Equations of a One-Sector Growth Model

602

(2)

The Kaldor Saving Function

604

(2)

The Ando-Modigliani (A-M) Consumption Function

606

(5)

The Golden Rule and an Introduction to Optimal Growth Models

611

(18)

The Basic Neoclassical Model Once More

612

(4)

Saving and Consumption in Growth Equilibrium

616

(3)

Phelps' Golden Rule of Accumulation

619

(3)

Optimal Growth Turnpikes

622

(5)

Conclusion

627

(2)

Medium-Term Growth and ``the Measure of Our Ignorance''

629

(17)

Output Growth, Input Growth, and the Constant-Returns-to-Scale Production Function

633

(4)

Neutral Disembodied Technical Progress

637

(1)

Labor-Augmenting Disembodied Technical Progress

638

(1)

Capital-Embodied Technical Progress

639

(7)

Index

646

Amazon no longer offers textbook rentals. We do!

Macroeconomic Theory and Policy

Macroeconomic Theory and Policy

9780060409326

0060409320

Summary

Table of Contents

Supplemental Materials

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