Macroeconomics

Series
Pearson
Author
Manfred Gartner  
Publisher
Pearson
Cover
Softcover
Edition
5
Language
English
Total pages
576
Pub.-date
May 2016
ISBN13
9781292115207
ISBN
1292115203
Related Titles



Description

Using real-world case studies and examples, this comprehensive text offers intermediate and applied macroeconomics students a truly European and global perspective. Continuing to successfully combine theory with application, Macroeconomics has been fully updated in this fifth edition to keep students up-to-date with the ever changing macroeconomic environment we are experiencing today.

 

Features

This book presents macroeconomics as an applied science designed to improve our understanding of current and past policy issues.

  • The unique mix of theory, analysis and policy issues takes students from macroeconomic basics to cutting-edge research topics

  • Includes case studies addressing major policy issues in detail, supported by a wealth of economic data 

  • Moves beyond standard intermediate macroeconomics content by discussing liquidity traps, quantitative easing, price bubbles, multiple equilibria, self-fulfilling prophecy, ratings agencies, debt brakes and austerity

  • Self quizzes, road map, glossary and other content also available for mobile devices

 

Table of Contents

Guided tour of the book

 

List of case studies and boxes

 

Preface


Publisher’s acknowledgements


1 Macroeconomic essentials
1.1 The issues of macroeconomics
1.2 Essentials of macroeconomic accounting
1.3 Beyond accounting
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Appendix: Logarithms, growth rates and logarithmic scales


2 Booms and recessions (I): the Keynesian cross
2.1 The circular flow model revisited: terminology
and overview
2.2 Income determination: a first look
2.3 Income determination: a second look
2.4 An intertemporal view of consumption and investment
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Applied problems


3 Money, interest rates and the global economy
3.1 The money market, the interest rate and the LM curve
3.2 Aggregate expenditure, the interest rate and the exchange rate: the IS curve 80
3.3 The IS-LM or the global-economy model
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Applied problems


4 Exchange rates and the balance of payments
4.1 Globalization
4.2 The exchange rate and the balance of payments
4.3 Back to IS-LM: enter the FE curve
4.4 Equilibrium in all three markets
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Applied problems


5 Booms and recessions (II): the national economy
5.1 Fiscal policy in the Mundell–Fleming model
5.2 Monetary policy in the Mundell–Fleming model
5.3 The algebra of monetary and fiscal policy in the Mundell–Fleming model
5.4 Comparative statics versus adjustment dynamics
5.5 Adjustment dynamics with expected depreciation
5.6 When prices move
5.7 Today’s exchange rate and the future
5.8 Speculative bubbles
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Applied problems


6 Enter aggregate supply
6.1 Potential income and the labour market
6.2 Why is there unemployment in equilibrium?
6.3 Why may actual output deviate from potential output?
Chapter summary
Key terms and concepts
Exercises 185
Online resources
Recommended reading
Applied problems


7 Booms and recessions (III): aggregate supply and demand
7.1 The short-run aggregate supply curve
7.2 The aggregate demand curve
7.3 The AD-AS model: basics
7.4 Policy and shocks in the AD-AS model
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Appendix: The algebra of the AD curve


8 Booms and recessions (IV): dynamic aggregate
supply and demand
8.1 The aggregate supply curve in an inflation–income
diagram
8.2 Equilibrium income and inflation: the DAD curve
8.3 The DAD-SAS model
8.4 Inflation expectations
8.5 The DAD-SAS model at work
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Appendix: The algebra of the DAD curve
Appendix: The genesis of the DAD-SAS model
Applied problems


9 Economic growth (I): basics
9.1 Stylized facts of income and growth
9.2 The production function and growth accounting
9.3 Growth theory: the Solow model
9.4 Why incomes may differ
9.5 What about consumption?
9.6 Population growth and technological progress
9.7 Empirical merits and deficiencies of the Solow model
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Applied problems


10 Economic growth (II): advanced issues
10.1 The government in the Solow model
10.2 Economic growth and capital markets
10.3 Extending the Solow model and moving beyond
10.4 Poverty traps in the Solow model
10.5 Human capital
10.6 Endogenous growth
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Appendix: A synthesis of the DAD-SAS and the Solow model
Applied problems

11 Endogenous economic policy
11.1 What do politicians want?
11.2 Political business cycles
11.3 Rational expectations
11.4 Policy games
11.5 Ways out of the time inconsistency trap
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Applied problems


12 The European Monetary System and the Eurozone at work
12.1 Preliminaries
12.2 The 1992 EMS crisis
12.3 Exchange rate target zones
12.4 Speculative attacks
12.5 Monetary and fiscal policy in the euro area
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Appendix: The two-country Mundell–Fleming model
Applied problems


13 Inflation and central bank independence
13.1 Inflation, central bank independence and the EMS
13.2 Supply shocks and central bank independence
13.3 D isinflations and the sacrifice ratio
13.4 Lessons for European Monetary Union
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Applied problems


14 Budget deficits and public debt
14.1 The government budget
14.2 The dynamics of budget deficits and the public debt
14.3 What is wrong with having deficits and debt?
14.4 D oes monetary union need budget rules?
14.5 Government debt and the financial markets
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Applied problems


15 A closer look at economic crises
15.1 Linking unemployment and growth
15.2 The price of oil (and other raw materials)
15.3 Persistence in the DAD-SAS model
15.4 Financial crises and risk premiums: a closer look
15.5 Quantitative easing: unorthodox monetary policy
15.6 From financial crises to debt crises and austerity
15.7 Lessons learned
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading
Applied problems


16 Sticky prices and sticky information:
new perspectives on booms and recessions (I)
16.1 Reality check: business cycle patterns and the DAD-SAS model
16.2 New Keynesian responses
16.3 The Phillips curves and monetary policy rules of current research
16.4 Supply shocks in the DAD-SAS model
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading


17 Real business cycles: new perspectives on booms and recessions (II)
17.1 Real business cycle philosophy
17.2 A real business cycle model
17.3 A graphical real business cycle
Chapter summary
Key terms and concepts
Exercises
Online resources
Recommended reading


Appendix A: A primer in econometrics
A.1 First task: estimating unknown parameters
A.2 Second task: testing hypotheses
A.3 A closer look at oLS estimation
Appendix summary
Key terms and concepts
Exercises
Recommended reading


Appendix B: Glossary
Online resources


Appendix C: Economics Nobel Prize winners and earlier giants


Online resources


Index

Back Cover

“Really up-to-date…gives a fantastic overview of the financial crisis”

Fabian Kreutzer, University of Applied Science Niederrhein, Germany

 

“Extensive references to and content regarding crises. It’s really amazing”

Yioryos Georgios Makedonis, Queen Mary University of London

 

Using real-world case studies and examples, this comprehensive text offers intermediate and applied macroeconomics students a truly European and global perspective. Continuing to successfully combine theory with application, Macroeconomics has been fully updated in this fifth edition to keep students up-to-date with the ever changing macroeconomic environment we are experiencing today.

 

This book presents macroeconomics as an applied science designed to improve our understanding of current and past policy issues.

  • The unique mix of theory, analysis and policy issues takes students from macroeconomic basics to cutting-edge research topics

  • Includes case studies addressing major policy issues in detail, supported by a wealth of economic data 

  • Moves beyond standard intermediate macroeconomics content by discussing liquidity traps, quantitative easing, price bubbles, multiple equilibria, self-fulfilling prophecy, ratings agencies, debt brakes and austerity

  • Self quizzes, road map, glossary and other content also available for mobile devices

 

Visit www.pearsoned.co.uk/gartner for a comprehensive companion website featuring interactive macroeconomic models equipped with guided exercises, state of the art data display and analysis, quizzes and more.