Macroeconomic analysis and policy : a systematic approach / Joshua E. Greene, Singapore Management University, Singapore.

Format:

Book

Author/Creator:

Greene, Joshua E., author.

Language:

English

Subjects (All):

Macroeconomics.

Macroeconomics--Mathematical models.

Economic policy.

Fiscal policy.

Monetary policy.

Physical Description:

xv, 227 pages : illustrations ; 24 cm

Place of Publication:

Singapore ; New Jersey : World Scientific Publishing Co. Pte Ltd., [2018]

Summary:

This book provides a systematic approach to analyzing macroeconomic developments, focusing on macroeconomic accounts, analysis, and the effects of selected policies on a nation's economy. The first part of the book describes the data, accounts, and analysis of the four main macroeconomic sectors - real, external, fiscal, and monetary - and discusses the accounting and economic relations among these sectors, using a flow of funds approach. Key indicators are presented of each sector and used to show how macroeconomic developments can be assessed and problems identified. The second part of the book discusses fiscal, monetary, and exchange rate policy and their economic implications. These policies, along with selected structural reforms, are compared along several dimensions and shown how they can be used, in various combinations or individually, to address a variety of macroeconomic difficulties. Book jacket.

Contents:

Chapter 1 Introduction to Macroeconomic Accounts, Analysis, and Related Policy Issues 1

I An Overview of the Accounts and Key Performance Indicators for Each Sector 3

II Linkages Among Sectors 5

III Macroeconomic Objectives and Policies to Attain Them 6

A Monetary Policy 10

B Fiscal Policy 12

C Exchange Rate Policy 13

D Price Adjustment Issues 14

E Structural Policies 15

IV Summary and Conclusions 16

Chapter 2 Real Sector Accounts and Analysis 19

I Economic Output, Growth, and Employment 19

A Macroeconomic Aggregates: Gross Domestic Product 19

B Other Macroeconomic Aggregates 24

C Linkages between Income and Absorption, or Savings and Investment, and the Current Account 26

D Economic Growth and Employment 29

II Inflation and Prices 30

III Miscellaneous Issues 34

A Rebasing National Accounts Data 34

B Relating Changes in the Nominal Value of a Variable to Changes in Price and Quantity 34

IV Summary 35

Chapter 3 External Sector Accounts and Analysis 37

I Balance of Payments 37

A Accounting Principles 38

B Schematic Presentations of the Balance of Payments 40

C Issues Concerning Specific Balances in the Balance of Payments 42

II Useful Indicators for Assessing the External Sector 48

A Terms of Trade 48

B The Current Account Balance 49

C The Overall Balance and External Sustainability 51

D Indicators of External Competitiveness: The Real Exchange Rate 51

E Capital Flows 53

F External Debt Indicators 54

G External Reserve Levels 55

III Summary 57

Chapter 4 Fiscal Accounts and Analysis 61

I Budget Accounts: Traditional and More Modern Formats 62

II Key Concepts of Fiscal Analysis 69

A Alternative Measures of the Fiscal Balance 69

B Effects of Alternative Types of Budget Financing 73

C Fiscal Space 75

D Revenue Analysis 76

E Expenditure Analysis 78

F Fiscal Sustainability 80

III Case Study of Fiscal Analysis: Singapore 81

IV Summary 86

Chapter 5 Monetary Sector Accounts and Analysis 91

I The Importance of Monetary Accounts 91

II Key Elements of the Banking System 93

A The Monetary Authorities 93

B Deposit Money (Commercial) Banks 96

III Important Analytical Concepts 99

A Money Demand and Supply 99

B The Quantity Theory of Money and Velocity 104

C The Money Multiplier 105

D The Valuation Adjustment 106

IV Using Monetary Accounts: An Example from Indonesia 108

V Summary 111

Chapter 6 Interrelations among Macroeconomic Sectors and the Flow of Funds 113

I Interrelations across Macroeconomic Sectors 114

II The Flow of Funds 115

A Structure of the Flow of Funds Matrix 116

B Conventions for the Flow of Funds Matrix 117

C General Approach to Constructing the Flow of Funds Matrix 118

III Illustrative Flow of Funds: Data for Indonesia, 2001 122

IV Summary 129

Chapter 7 Fiscal Policy 131

I Impact of Fiscal Policy on Macroeconomic Activity: Aggregate Demand 133

A Fiscal Policy during Severe Recessions in Advanced Economies 136

B Fiscal Policy when Sustainability in Threatened 137

C Pro-Cyclical vs. Counter-Cyclical Fiscal Policy 138

II Impact of Fiscal Policy on the Monetary Sector and Monetary Policy 139

III Impact of Fiscal Policy on the Balance of Payments 139

IV Fiscal Policy and Public Debt Sustainability 140

V Fiscal Policy for Promoting Growth 142

VI Fiscal Policy for Poverty Reduction 142

VII Special Fiscal Issues 143

VIII Summary 147

Chapter 8 Monetary Policy 149

I General Description of the Framework for Monetary Policy 150

A The Monetary Policy Objective 150

B Choosing among Policy Instruments 151

C The Operating Target 152

II The Transmission Mechanism for Monetary Policy 153

III The Approach to Monetary Policy: Alternative Monetary Frameworks 155

A Exchange Rate Targeting (Using the exchange Rate as a Nominal Anchor) 156

B Monetary Aggregate Targeting 156

C Inflation Targeting 157

D Eclectic Monetary Framework 159

IV Developments in Monetary Policy since the Global Financial Crisis 159

A Quantitative Easing 159

B Monetary Policy in Selected Asian Economies 160

V Summary 167

Chapter 9 Exchange Rate Policy 169

I Varieties of Exchange Rate Regimes 169

A "Hard Peg" Regimes 171

B "Soft Peg" Regimes 174

C Floating Regimes 175

II Interactions between Exchange Rate and Monetary Regimes 176

III Objectives for Exchange Rate Policy 178

IV Assessing the Appropriateness of the Exchange Rate 179

V Using Exchange Rate Policy 180

VI Summary 181

Chapter 10 Using Macroeconomic and Structural Policies to Attain Macroeconomic Objectives 183

I Assessing Internal and External Balance: The Swan Diagram 184

II Using the Swan Diagram to Develop Policy Responses to Macroeconomic Problems 187

III Policy Modalities and Coordination 191

IV Using Macroeconomic Indicators for Analysis and Policy Prescription: Three Case Studies 194

A Pakistan, 2013 194

B Iceland, 2008 198

B Russian Federation, 2015 205

V Promoting Stabilization and Growth through Financial Sector Reform 209

VI Summary 211.

Notes:

Includes bibliographical references (pages 213-218) and index.

Other Format:

Online version: Greene, Joshua E. Macroeconomic analysis and policy.

ISBN:

9813223820

9789813223820

OCLC:

987907780