Political dimensions of the American macroeconomy / Gerald T. Fox.

Format:

Book

Author/Creator:

Fox, Gerald T., author.

Series:

Economics and public policy collection. 2163-7628

Economics and public policy collection, 2163-7628

Language:

English

Subjects (All):

Macroeconomics.

United States--Economic policy.

United States.

Physical Description:

1 online resource (196 pages) : illustrations

Edition:

2nd edition.

Place of Publication:

New York : Business Expert Press, [2020]

System Details:

Mode of access: World Wide Web.

System requirements: Adobe Acrobat reader.

Summary:

Political macroeconomy refers to the interconnection between macroeconomic politics and macroeconomic performance. The expectational Phillips curve may be used to examine the economic aspects of this interrelation. Macroeconomic politics relates to voter behavior, presidential reelection ambition, partisan economic priorities, and special interests. These factors impact the fiscal and monetary policy actions of the president, Congress, and central bank. According to the electoral effect, presidents attempt to boost the economy before an election to increase reelection votes. According to the partisan effect, conservative presidencies are relatively inflation averse, while liberal administrations are relatively unemployment averse. The evidence, however, suggests that the electoral and partisan effects occurred idiosyncratically in the U.S. economy during 1961-2016. The economy also affects presidential approval, Congressional elections, consumer sentiment, voter participation, and macropartisanship. An international dimension of the political macroeconomy is the issue of free trade versus protectionism and the perspectives of economic liberalism, neomercantilism, and structuralism.

Contents:

Cover

Political Dimensions of the American Macroeconomy

Contents

Acknowledgments

Chapter 1: The Political Macroeconomy

Macroeconomics and National Politics

Intersection between Macroeconomic Performance and Macroeconomic Politics

Political Macroeconomy of Peace and Prosperity versus Conflict and Poverty

The Classical View versus Keynesianism

Median Voter Model and Political Business Cycle Effects

Chapter 2: Refresher on Macroeconomic Measurements and the Business Cycle

Introduction

Inflation

Nominal GDP versus Real GDP

Components of GDP

Unemployment

Business Cycle

Okun's Law

Chapter 3: Mainstream Macroeconomic Theory and the Expectational Phillips Curve

Macroeconomic Efficiency versus Inefficiency

Macroeconomic Supply and Demand

Expectational Phillips Curve

Resolving a Recession: The Classical View versus the Keynesian View

Impact of Energy Prices on the Macroeconomy

Chapter 4: Fiscal and Monetary Policies

Introduction: Expansionary and Contractionary Policies

Fiscal Policy: Government Spending and Taxes

Monetary Policy: Money Supply and Interest Rates

Fiscal and Monetary Policy Coordination and Time Lags

Chapter 5: Voter Rationality and Macroeconomic Preferences

Introduction: Rational Voting, Rational Ignorance, and Political Parties

Normal Distribution of Voter Preferences: The Partisan Model and the Median Voter Model

Bimodal Distribution of Preferences, Protest Vote Abstention, and the Partisan Influence Model

Conclusion

Chapter 6: Electoral Political Business Cycle

Introduction: Political Business Cycle Effects

Macroeconomic Time Inconsistency and the Electoral Cycle

Electoral Cycle: Asymmetric Information and the Principal-Agent Problem

Short-Run and Long-Run Effects in Preelection Phase.

Short-Run and Long-Run Effects in the Second Phase

Summary of the Electoral Cycle

Electoral Cycle Implications

Chapter 7: Partisan Political Business Cycle

Liberal Partisan Cycle

Conservative Partisan Cycle

Chapter 8: Evidence of Electoral and Partisan Cycles

Primary and Secondary Electoral and Partisan Effects

Evidence of PBC Effects during Democratic Presidencies

Evidence of PBC Effects during Republican Presidencies

Summary of PBC Effects across Political Parties and Presidencies

Synthesis of PBC Effects

Chapter 9: Other Political Business Cycle Considerations

Main Assumptions of the Electoral and Partisan Effects

Macroeconomic Uncertainty and Presidential Reelection Vulnerability

Central Bank Independence?

Chapter 10: Economic Influence on Public Sentiment and Voter Behavior

Macroeconomic Accountability and Electoral Efficiency

Economic and Noneconomic Effects on Presidential Elections and Presidential Approval

Economic Influence on Congressional Elections

Other Measures of Public Sentiment Relating to the Economy

Chapter 11: Trade Policies and International Political Perspectives

Relation between Net Exports, GDP, Unemployment, and the Exchange Rate

Comparative Advantage, Free Trade, and Economic Liberalism

Trade Protectionism and Neomercantilism

Political Pressures on Trade Policy

Mercantilism and Neomercantilism

Economic Structuralism

Modern World Systems View and Dependency Theory

Summary

Chapter 12: Conclusion

References

About the Author

Index

Ad Page

Back Cover.

Notes:

Includes bibliographical references (pages 185-187) and index.

Description based on print version record.

Other Format:

hardback ;

ISBN:

1-948976-36-6