Essentials of Macroeconomics
Publisher: Bookboon.com
Published: 2013
ISBN-13: 9788776815585
Table of contents: title: 1. Prices and inflation; title: 1.1. Prices and price level; title: 1.1.1. Price level; title: 1.1.2. Price level and time; title: 1.1.3. Price index; title: 1.1.4. Consumer Price Index, CPI; title: 1.1.5. Problems with CPI; title: 1.2. Inflation; title: 1.2.1. Definition; title: 1.2.2. Inflation in Germany; title: 1.2.3. Inflation in Sweden; title: 2. Exchange rate; title: 2.1. Definition; title: 2.2. Exchange rate systems; title: 2.3. Changes in the exchange rate; title: 2.4. The euro against the US dollar; title: 2.5. Effective exchange rate; title: 3. Gross domestic product; title: 3.1. Definition; title: 3.2. Real GDP; title: 3.3. Growth; title: 3.4. Purchasing power; title: 3.5. GDP is a flow!; title: 4. The components of GDP; title: 4.1. The circular flow – simple version; title: 4.2. The circular flow – a more detailed version; title: 4.3. Modeling a firm and the concept value added; title: 4.4. Firms in the circular flow; title: 4.5. Circular flow – circulation of goods; title: 4.6. Circular flow – circulation of money; title: 4.7. Private sector in the circular flow; title: 4.8. The Government, Rest of the World and the financial markets; title: 4.9. Components of GDP; title: 4.10. Four different measures of GDP; title: 4.11. Capital; title: 4.12. Investment; title: 4.13. Components of GDP in numbers 200x; title: 5. The Labor Market; title: 5.1. Introduction; title: 5.2. Uneployment classification; title: 5.3. Full employment; title: 5.4. Wages; title: 5.4.1. Nominal wages; title: 5.4.2. Wages and income; title: 5.4.3. Nominal wage level; title: 5.4.4. Real wage; title: 6. Money and banks; title: 6.1. Money; title: 6.1.1. Money, definition; title: 6.1.2. Two types of money; title: 6.1.3. What is money and what is not money; title: 6.1.4. Money, wealth and income; title: 6.1.5. Economic functions of money; title: 6.2. Central banks; title: 6.2.1. Introduction; title: 6.2.2. Monetary base; title: 6.3. Commercial banks; title: 6.3.1. Currency inside banks is not money; title: 6.3.2. How commercial banks “create money”; title: 6.3.3. How much money can banks create?; title: 6.3.4. The multiplier effect; title: 7. Interest rate; title: 7.1. Introduction; title: 7.2. Market interest rates; title: 7.2.1. Relationship between the interest rate and the bond price; title: 7.2.2. Calculating interest rates on a yearly basis; title: 7.2.3. The yield curve; title: 7.2.4. Other interest rates; title: 7.3. Overnight interest rates; title: 7.3.1. The market for overnight loans; title: 7.3.2. Central bank overnight interest rate; title: 7.4. Monetary policy; title: 7.4.1. Central bank and monetary policy; title: 7.4.2. Monetary base and the supply of money; title: 7.4.3. Overnight interest rates targets and money supply; title: 7.4.4. Overnight rates and interest rates with longer maturity; title: 7.4.5. Overnight target rates and inflation; title: 7.5. The real interest rate; title: 7.5.1. Interest rates and inflation; title: 7.5.2. Nominal and real interest rates; title: 7.5.3. Expected inflation; title: 7.5.4. Relation between nominal interest rate, real interest rate and inflation; title: 8. Macroeconomic models; title: 8.1. Introduction; title: 8.2. Common assumptions; title: 8.2.1. Unemployment and hours worked are directly related; title: 8.2.2. The central bank has complete control over money supply; title: 8.2.3. Monetary policy = change in money supply; title: 8.2.4. There is just one interest rate; title: 8.2.5. Exchange rate; title: 8.2.6. Capital Flows; title: 8.3. The macroeconomic variables; title: 8.3.1. Supply and demand; title: 8.4. About the various models; title: 9. Growth theory; title: 9.1. Introduction; title: 9.2. The aggregate production function; title: 9.2.1. Definition; title: 9.2.2. The marginal product of labor and capital; title: 9.2.3. Production function and Growth; title: 9.3. Growth Theories; title: 9.3.1. The classical growth theory; title: 9.3.2. The neo-classical growth model; title: 9.4. Endogenous growth theory; title: 9.5. Separation of growth and fluctuation; title: 10. The classical model; title: 10.1. Introduction; title: 10.2. Labor Market; title: 10.2.1. Demand for labor; title: 10.2.2. The supply of labor; title: 10.2.3. Equilibrium in the labor market; title: 10.3. GDP, and Say’s Law; title: 10.3.1. Aggregate supply; title: 10.3.2. Aggregate demand and Say’s Law; title: 10.3.3. How not to justify Say’s Law; title: 10.4. The price level and the quantity theory of money; title: 10.4.1. The quantity theory of money; title: 10.4.2. The price level; title: 10.4.3. Aggregate demand; title: 10.4.4. Nominal wages; title: 10.5. Interest rate, consumption and investment; title: 10.5.1. The consumption function; title: 10.5.2. Investment demand; title: 10.5.3. Government revenue, government spending and net exports; title: 10.5.4. Household savings; title: 10.5.5. Total savings; title: 10.5.6. Interest rate determination; title: 10.5.7. Consumption; title: 10.6. Determination of all the variables in the classical model; title: 11. Keynesian cross model; title: 11.1. Introduction; title: 11.1.1. The Keynesian model; title: 11.1.2. Summary of the cross model; title: 11.2. Aggregate demand; title: 11.2.1. The consumption function; title: 11.2.2. Consumption and GDP; title: 11.2.3. The rest of the world in the cross model; title: 11.2.4. The government in the cross model; title: 11.2.5. Savings; title: 11.2.6. Aggregate demand in the cross model; title: 11.3. Determination of GDP in the cross model; title: 11.3.1. Main result; title: 11.3.2. Justification; title: 11.3.3. Say’s Law; title: 11.3.4. Reversed Say’s Law; title: 11.3.5. Determination of other variables; title: 11.4. Labor market; title: 11.4.1. Labor supply and labor demand in the Keynesian model; title: 11.4.2. The labor in the cross model; title: 11.4.3. Aggregate supply; title: 11.4.4. Determination of L in the cross model; title: 11.4.5. Equilibrium analysis; title: 12. IS-LM-model; title: 12.1. Introduction; title: 12.2. Aggregate demand; title: 12.2.1. The investment function in the IS-LM model; title: 12.2.2. The consumption function in the IS-LM model; title: 12.2.3. Aggregate demand; title: 12.3. The money market; title: 12.3.1. Demand for money; title: 12.3.2. Demand for money and the interest rate; title: 12.3.3. Demand for money and GDP; title: 12.3.4. Supply of money; title: 12.3.5. Equilibrium in the money market; title: 12.3.6. Money market diagram; title: 12.4. IS-LM diagram; title: 12.4.1. IS-curve; title: 12.4.2. The LM curve; title: 12.4.3. Simultaneous determination of Y and R in the IS-LM model; title: 12.5. The Labor Market; title: 13. The AS-AD-model; title: 13.1. Introduction; title: 13.1.1. The problem with the IS-LM model; title: 13.1.2. How the AS-AD model solves the problem; title: 13.2. The assumptions of the AS-AD model; title: 13.2.1. Summary; title: 13.2.2. The AS-AD model and inflation; title: 13.3. The goods and the money market in the AS-AD model; title: 13.3.1. The goods market and aggregate demand; title: 13.4. The money market; title: 13.4.1. The money market and price changes; title: 13.4.2. The IS-curve in the AS-AD model; title: 13.4.3. The LM-curve in the AS-AD model; title: 13.4.4. Equilibrium in both the goods and in the money market; title: 13.4.5. The AD curve; title: 13.4.6. The AD curve is the aggregate demand; title: 13.5. Aggregate supply; title: 13.5.1. The Labor Market; title: 13.5.2. Aggregate supply and the AS curve; title: 13.6. Determination of all the endogenous variables in the AS-AD model; title: 13.6.1. Determination of P and Y; title: 13.6.2. Determination of other variables; title: 13.6.3. The equations of the AS-AD model; title: 14. The complete Keynesian model; title: 14.1. Introduction; title: 14.1.1. Wage inflation; title: 14.1.2. Price Inflation; title: 14.2. Adjustments to the Keynesian models when wages are no longer constant; title: 14.2.1. Real interest rates, nominal interest rate and expected inflation; title: 14.2.2. Aggregate demand with inflation; title: 14.2.3. The IS curve with inflation; title: 14.2.4. The money market with inflation; title: 14.2.5. The LM curve with inflation; title: 14.3. The IS-LM model with inflation; title: 14.3.1. The basic assumption; title: 14.3.2. Results; title: 14.4. The AS-AD model with inflation; title: 14.4.1. The AD-curve at a given point in time; title: 14.4.2. The AD curve over time; title: 14.4.3. The Labor Market; title: 14.4.4. The AS curve; title: 14.4.5. The AS-AD model with inflation; title: 14.5. The Phillips curve; title: 14.5.1. The problem with the Keynesian model; title: 14.5.2. The Phillips curve; title: 14.5.3. Determination of all endogenous variables; title: 15. The neo-classical synthesis; title: 15.1. Introduction; title: 15.2. The various Phillips curves; title: 15.2.1. The augmented Phillips curve; title: 15.2.2. Money illusion; title: 15.2.3. The long-run Phillips curve; title: 15.2.4. Summary of the Phillips curves; title: 15.2.5. The classical model and the long-term Phillips curve; title: 15.2.6. Developments around 1960; title: 15.3. From short to long run; title: 15.3.1. The dynamics from the short to the long run; title: 15.3.2. NAIRU; title: 15.4. SAS-LAS-AD model of the neo-classical synthesis; title: 15.4.1. AS-AD in the Keynesian and the classical model; title: 15.4.2. SAS, LAS, and AD; title: 15.4.3. The dynamics from the short to the long run; title: 16. Exchange rate determination and the Mundell-Fleming model; title: 16.1. Introduction; title: 16.1.1. The open economy; title: 16.1.2. The rest of the world as one country; title: 16.1.3. Exchange rate systems; title: 16.2. The classical model of exchange rate determination; title: 16.2.1. The law of one price; title: 16.2.2. PPP; title: 16.2.3. The Big Mac Index; title: 16.2.4. Exchange rate determination; title: 16.2.5. Inflation; title: 16.2.6. Differences in inflation under fixed exchange rates; title: 16.2.7. Differences in inflation under flexible exchange rates; title: 16.3. The exchange rate; title: 16.3.1. Trade and tourism; title: 16.3.2. Capital flows; title: 16.3.3. Trade and exchange rate; title: 16.3.4. Investment and the exchange rate; title: 16.3.5. Supply and demand for the foreign currency; title: 16.3.6. Factors affecting E*; title: 16.4. Mundell-Fleming model; title: 16.4.1. Interest rates within in the same currency area; title: 16.4.2. Interest rates between currency areas; title: 16.4.3. Expected depreciation; title: 16.4.4. Interest rate parity; title: 16.4.5. Modeling expected depreciation; title: 16.4.6. The IS-LM model under fixed exchange rates; title: 16.4.7. The IS-LM model with flexible exchange rates