A study in monetary macroeconomics
By: Stefan Homburg
Edition: First edition.
Publisher: Oxford University Press
Published: 2017
Language: eng
Number of pages: 205
ISBN-13: 9780198807537
Copyright date: 2017
Subjects: Macroeconomics; Mathematical models; Monetary policy; Money supply
Description: The financial crisis of 2007 and the following recession present a major challenge to macroeconomic theory. The same holds true for exceptionally low interest rates during the recent years and for the puzzle that super-expansive monetary policies failed to produce high inflation. Approaches that focus on steady states, rational expectations, and individuals planning over infinite horizons, are not suitable for analysing such abnormal situations. 'A Study in Monetary Macroeconomics' refines and improves mainstream approaches to resolve these puzzles and to contribute to a better understanding of monetary and fiscal policies. Using a rich institutional structure that includes features such as credit money, external finance, borrowing constraints, net worth, real estate and commercial banks, this timely study reduces rationality requirements to cope with its complex setting. It starts with a simple baseline model, deriving results from mathematical reasoning and simulations whilst adhering to the method of dynamic general equilibrium (DGE) with optimizing agents and fully specified models. Highly topical, 'A Study in Monetary Macroeconomics' uses a unified theoretical framework to demonstrate that a DGE approach makes it possible to develop clean models that work outside steady states and are appropriate for answering macroeconomic questions of actual interest.
Notes: Includes bibliographical references (pages 189-200) and index.
Table of contents: title: ch. 1; title: Introduction -- -- ch. 2; title: Framework -- -- 2.1.; title: General Structure -- -- 2.2.; title: Expectations -- -- 2.3.; title: Central Bank -- -- 2.4.; title: Producers -- -- 2.5.; title: Consumers -- -- 2.6.; title: Temporary Equilibrium -- -- 2.7.; title: Setup for Simulations -- -- ch. 3; title: Traditional Topics -- -- 3.1.; title: Basic Lessons -- -- 3.1.1.; title: Quantity Theory of Money -- -- 3.1.2.; title: Fisher Effect -- -- 3.1.3.; title: Erratic Expectations -- -- 3.1.4.; title: Superneutrality -- -- 3.1.5.; title: Forced Saving and Distributive Justice -- -- 3.1.6.; title: Welfare -- -- 3.2.; title: Arguable Lessons -- -- 3.2.1.; title: Endogenous Money and Interest Pegs -- -- 3.2.2.; title: Tobin Effect -- -- 3.2.3.; title: Money Irrelevance -- -- 3.2.4.; title: Interest on Money -- -- 3.2.5.; title: Digression on RE -- -- 3.3.; title: Fiscal Policy -- -- 3.3.1.; title: Superneutrality Revisited -- -- 3.3.2.; title: Ricardian Equivalence -- -- 3.3.3.; title: Leviathan -- -- 3.3.4.; title: Debt Monetization -- -- 3.4.; title: Wage Rigidities -- -- 3.4.1.; title: Employment Trap -- -- 3.4.2.; title: Phillips Curve -- -- 3.4.3.; title: Policy Implications -- -- 3.5.; title: Price Rigidities -- -- 3.5.1.; title: Liquidity Effect -- -- 3.5.2.; title: Deterministic Business Cycles -- -- 3.5.3.; title: Limit Economy -- -- ch. 4; title: Constrained Credit -- -- 4.1.; title: Liquidity Traps -- -- 4.2.; title: Borrowing Constraint -- -- 4.3.; title: Policy Implications -- -- 4.4.; title: Evaluation -- -- 4.5.; title: Conclusion -- -- ch. 5; title: Net Worth -- -- 5.1.; title: Entrepreneurs -- -- 5.2.; title: Corporations -- -- 5.3.; title: Stock Manias -- -- 5.4.; title: Limited Leverage -- -- 5.5.; title: Fisherian Debt-deflations -- -- ch. 6; title: Real Estate -- -- 6.1.; title: Empirical Overview -- -- 6.2.; title: Modeling Real Estate -- -- 6.3.; title: Dynamic Inefficiency -- -- 6.4.; title: Quasi-Ricardian Equivalence -- -- 6.5.; title: Housing Manias -- -- 6.6.; title: Housing Cycle -- -- ch. 7; title: Commercial Banks -- -- 7.1.; title: Institutional Background -- -- 7.2.; title: Traditional Banking Model -- -- 7.3.; title: Funds Rate Determination -- -- 7.4.; title: Excess Reserves -- -- 7.5.; title: Interest on Reserves -- -- 7.6.; title: Currency and the Money Base -- -- 7.7.; title: Conclusion -- -- ch. 8; title: Methods -- -- 8.1.; title: Expectations -- -- 8.2.; title: Intertemporal Choice -- -- 8.3.; title: Modeling Money -- -- 8.4.; title: Labor Supply -- -- 8.5.; title: Price Determination --; title: Appendices -- -- A.; title: Producer Behavior -- -- B.; title: Consumer Behavior -- -- C.; title: Walras' Law -- -- D.; title: Existence -- -- E.; title: Superneutrality -- -- F.; title: Fiscal Model -- -- G.; title: Borrowing Constraints -- -- H.; title: Net Worth -- -- I.; title: Real Estate -- -- J.; title: Commercial Banks -- -- K.; title: Matlab Sample Codes.