Macroeconomics : theories and applications for emerging economies / Sreejata Banerjee and P. Nandakumar Warrier.

Includes index.

Contents
Machine generated contents note: 1.1.Introduction: What is Macroeconomics?
1.2.What Exactly Constitutes the Field of Study of Macroeconomics?
1.3.Myopic and Long-run Views: Supply Side Specifications and the Time Horizon for Macroeconomic Analysis
1.4.Macroeconomic Models for Industrial Nations and for Developing Countries: Stabilization and Growth
1.5.Why Study Macroeconomics?
1.6.Macroeconomic Aggregates
1.7.What is New in This Book?
1.8.Conclusion
Summary
Keywords
Concept Check
Discussion Questions
2.1.Introduction: The National Income Accounts
2.2.Measuring GDP
2.3.Real GDP, Nominal GDP and the Price Indices
2.4.Looking at GDP from the Production and Demand Sides
2.5.Problems and Issues in GDP Measurement
2.6.The Circular Flow of Income and the Macroeconomic Model
2.7.Conclusion
3.1.Introduction: The Basic Keynesian Model
Contents note continued: 3.2.Explaining the Multiplier: Cascading Effects on Consumer Spending
3.3.A Diagrammatic Representation of Consumption and Aggregate Demand: The 45 Degree Representation of the Keynesian Model
3.4.A New Diagrammatic Approach: The Hidden Cross in the Basic Keynesian Model
3.5.The Government Budget
3.6.Conclusion
4.1.Introduction: Growth Theory
4.2.What Drives Growth?
4.3.Measuring Growth
4.4.The Solow Growth Model in a Closed Economy
4.5.The Cobb Douglas Production Function
4.6.The Solow Residual
4.7.The Divergence Between Countries across the World
4.8.The Endogenous Growth Model
4.9.Conclusion
5.1.Introduction: The Financial Sector
5.2.The Bond Market: Bond Prices and Interest Rates
5.3.The Bond Market: Supply and Demand
5.4.The Bond Market: The Interest-Quantity Diagram
Contents note continued: 5.5.The Interest Rate and the Market for Money
5.6.The Term Structure of Interest Rates and the Yield Curve
5.7.Conclusion
6.1.Introduction
6.2.Money Supply
6.3.The Money Multiplier Approach
6.4.Credit Creation by Commercial Banks
6.5.The Determinants of Money Supply
6.6.Government Behaviour: Budget Deficit and the Money Supply
6.7.Conclusion
7.1.Introduction: The Demand for Money
7.2.The Quantity Theory of Money
7.3.The Demand for Money as Behaviour Towards Risk
7.4.Conclusion
8.1.Introduction to the IS-LM Model
8.2.Elements of the IS-LM model
8.3.Output and Interest Rate Determination in the IS-LM Model
8.4.Construction of the Aggregate Demand Curve from the IS-LM Curves
Contents note continued: 8.5.The LM Curve: The Balance of Payments and Adjustments over Time
8.6.Conclusion
9.1.Introduction: The IS-LM Model and Fiscal Policy
9.2.Deriving the Basic Keynesian Model as a Special Case of the IS-LM Model
9.3.Effects of Changes in Taxes on Autonomous Income and Spending
9.4.Conclusion
10.1.Introduction
10.2.Monetary Expansion in the IS-LM Model
10.3.What Decides the Effectiveness of Monetary Policy?
10.4.Monetary Policy and the State of the Economy
10.5.Policies, Policy Effects and Political Colour
10.6.The Multiplier with Price Changes
10.7.The Policy Mix in Action
10.8.Constraints on Government Policy
10.9.Conclusion
11.1.Introduction to Consumption and Investment
Contents note continued: 11.2.Consumption Based on the Present Value of Income
11.3.The Modigliani Life Cycle Theory
11.4.The Permanent Income Hypothesis
11.5.Investment Demand
11.6.The User Cost of Capital
11.7.The Extended Investment Function and the IS-LM Model Results
11.8.Tobin's 'q'
11.9.Conclusion
12.1.Introduction
12.2.The Size and Reach of the Public Sector in Different Types of National Economies
12.3.The Mixed Economy
12.4.Market Failures and Corrective Government Action
12.5.The Economies of Scale
12.6.Market Power
12.7.Automatic Stabilizers
12.8.The Government Budget Balance
12.9.The Fiscal Deficit
12.10.Conclusion
13.1.Introduction
13.2.The Slope of the Supply Curve
13.3.Policy Effects
Contents note continued: 13.4.The Keynesian Income Multiplier with an Upward-sloping Supply Curve: The Crowding-out Effect of a Price Rise
13.5.Inflation and Output
13.6.The Aggregate Supply Curve in the Long-run
13.7.The Complete IS-LM Model with the Supply Side Included
13.8.The Complete Macroeconomic Model with Labour Market Clearing
13.9.Conclusion
14.1.Introduction
14.2.Unemployment and the Government Budget
14.3.Unemployment and Full Employment: Frictional, Structural and Cyclical Unemployment
14.4.The Costs of Unemployment
14.5.Government Budget Balance and Its Macroeconomic Impacts
14.6.Stopping High Inflation
14.7.The Costs of Inflation and Disinflation
14.8.Government Budget Deficits and the Public Debt Burden
14.9.Derivation of the Debt Burden Stability Condition
14.10.Conclusion
Contents note continued: 15.1.Introduction to the Open Economy
15.2.The Balance of Payments
15.3.Trade and Capital Flows in an Open Economy
15.4.The Openness of an Economy
15.5.Conclusion
Appendix
16.1.Introduction
16.2.The Open Economy Model
16.3.Internal and External Balance in an Open Economy
16.4.Devaluation and the Trade Balance
16.5.Monetary and Fiscal Policies in Open Economies
16.6.Macroeconomic Policy with Imperfect Capital Mobility
16.7.Conclusion
17.1.Introduction to Exchange Rates
17.2.The Gold Standard, Bretton Woods and After: A Brief History of the Exchange Rate Regimes
17.3.Determinants of the Exchange Rate
17.4.The Time Frame
17.5.Exchange Rate Dynamics: The Short-run to the Long-run in Dornbusch's 'Overshooting Model'
Contents note continued: 17.6.The Portfolio Balance Model: Short-run Exchange Rate Determination and Overshooting
17.7.Fixed Exchange Rates and Managed Floats
17.8.The Pros and Cons of Fixed and Floating Exchange Rates
17.9.Conclusion
18.1.Introduction
18.2.The Simple Income Determination Model
18.3.The Monetarist Theory of Business Cycles
18.4.The Real Business Cycle Theory
18.5.Dating Business Cycles
18.6.Conclusion
19.1.Introduction
19.2.The Classical Model
19.3.The Monetarist Model
19.4.A Synthesis of the Keynesian, Classical and Monetarist Approaches
19.5.The Future's Ours' To See: New Classical Economics and Rational Expectations by the Labour Market Participants
19.6.New Keynesian Economics and Other Labour Market Theories
19.7.Real Business Cycle Models with Exogenous Labour Productivity Shocks
Contents note continued: 19.8.The Natural Rate of Unemployment and Labour Market Equilibrium
19.9.Conclusion
20.1.Introduction: Multi-sector Models
20.2.Policy Results in the Aggregated Models
20.3.Two Sector Models
20.4.The Small Open Economy Model for Industrialized Nations
20.5.The Bose Model: A Model for Developing Nations
20.6.Conclusion
Discussion Questions.