Macroeconomic Theory : Fluctuations, Inflation and Growth in Closed and Open Economies

Macroeconomics is the application of economic theory to the study of the economy’s growth, cycle and price-level determination. Macroeconomics takes account of stylized facts observed in the real world and builds theoretical frameworks to explain such facts. Economic growth is a stylized fact of market economies, since England’s nineteenth-century industrial revolution. Until then, poverty was a common good for humanity. Economic growth consists in the persistent, smooth and sustained increase of per-capita income. A market economy shows periods of expanding and contracting economic activity. This phenomenon is the economic cycle. The price of money is the amount of goods bought with one unit of money, in other words, the inverse of the price level. Determination of the price level, or the value of money, is a fascinating subject in a fiat money economy. Front Matter ....Pages i-xxiv Front Matter ....Pages 1-1 The Representative Agent Model (Fernando de Holanda Barbosa)....Pages 3-32 The Open-Economy Representative Agent Model (Fernando de Holanda Barbosa)....Pages 33-61 Overlapping Generations (Fernando de Holanda Barbosa)....Pages 63-87 The Solow Growth Model (Fernando de Holanda Barbosa)....Pages 89-118 Economic Growth: Endogenous Savings and Growth (Fernando de Holanda Barbosa)....Pages 119-151 Front Matter ....Pages 153-153 Keynesian Models: The IS and LM Curves, the Taylor Rule, and the Phillips Curve (Fernando de Holanda Barbosa)....Pages 155-195 Economic Fluctuation and Stabilization (Fernando de Holanda Barbosa)....Pages 197-238 Open Economy Macroeconomics (Fernando de Holanda Barbosa)....Pages 239-265 Economic Fluctuation and Stabilization in an Open Economy (Fernando de Holanda Barbosa)....Pages 267-304 Front Matter ....Pages 305-305 Government Budget Constraint (Fernando de Holanda Barbosa)....Pages 307-338 Monetary Theory and Policy (Fernando de Holanda Barbosa)....Pages 339-369 Back Matter ....Pages 371-456 Introduction -- Part I: Models with Flexible Prices -- Chapter 1: Representative Agent Model -- Chapter 2: Open Economy Representative Model -- Chapter 3: Overlapping Generations -- Chapter 4: Solow Growth Model -- Chapter 5: Economic Growth: Endogenous Savings and Growth -- Part II: Models with Sticky Prices -- Chapter 6: Keynesian Models: IS and LM Curves, Taylor Rule and Phillips Curve -- Chapter 7: Fluctuation and Stabilization -- Chapter 8: Open Economy Macroeconomics -- Chapter 9: Open Economy Fluctuation and Stabilization -- Part III: Models of Monetary and Fiscal Policies -- Chapter 10: Government Budget Constraint -- Chapter 11: Monetary Theory and Policy -- Part IV: Mathematical Appendix -- Appendix A: Differential Equations -- Appendix B: Optimal Control Theory -- Appendix C: Finite Difference Equations