Macroeconomics.

Format:

Book

Author/Creator:

Errol, D'Souza.

Language:

English

Subjects (All):

Macroeconomics.

Physical Description:

1 online resource (514 pages)

Edition:

Second edition.

Place of Publication:

Noida : Pearson India, 2006.

Summary:

Errol D'Souza's Macroeconomics helps students realize the connections between theoretical frameworks and the actual behaviour of the economy; enables instructors to teach macroeconomics concepts within the context of both the Indian and global economy; and provides policymakers with material from current research in macroeconomics. The focus of the book rests on the analysis of macroeconomic thought in terms of the intuition and underlying logic that forms its basis. This book has been designed to help readers think independently about real-world situations, by helping them master the basic technical tools that enable them to do this. At a conceptual level, the book focuses on the most current and relevant issues, while also understanding the fluidity of the subject.

Contents:

Cover

Macroeconomics

Copyright

About the Author

Brief Contents

Contents

MacroFocus Boxes: Tying Theory to the Real World

Preface

The Development of This Book

A Word of Thanks

Macroeconomics: what is it About?

Aggregate Income and Its Dimensions

Income and Welfare

Omissions in the Measurement of Aggregate Income

Measuring Output

The Underground Economy: Beneficial or Subversive?

Connecting Output with Income

Aggregate Income Categories

Components of Aggregate Expenditure

Chinese and Indian GDP: Re-emerging Economies?

Real and Nominal Incomes

Comparing Income Across Time

Measures of Inflation

Summary

Notes

Test Yourself

Online Application

The GDP Deflator

Savings, the Balance of Payments, and the Money Supply

The Sources and Use of Savings

The Balance of Payments

Forex Reserves: Index of Economic Strength?

The Money Supply

Bank Balance Sheets and the Money Supply

Does Money Have a Future?

The Money Multiplier

Open-Market Operations and Reserves

The Formula for theMoney Multiplier

Consumption

Keynes on Consumption

Consumption Smoothing

Intertemporal Constraints and Preferences

Time Preference and the Permanent Income

Emotions and Intertemporal Decisions

Temporary and Permanent Shocks

Stochastic Income Expectations

Joint Families and Borrowing Constraints

Effect of Interest Rates

Aggregating Across Individuals

Savings and Portfolio Choice

House Prices and Consumption

Ocline Application

Borrowing Constraints

Investment

Profit Maximization and the Optimal Capital Stock

Adjustment Costs and Investment Decisions

Financial Structure and Investment

Overconfidence and Investment.

The Equity and the Value of the Firm

Debt and Investment Financing

Mature Firms and External Financing

Collateral and Liquidity Constraints

Residential and Inventory Investment

Irreversibility and Investment

India: An Inverted Pecking Order?

Investment in Developing Countries

Investment in India

The Optimal Capital Stock When the Production Function Is Cobb-Douglas

The Firm's Optimal Decision for Hiring Labour and Accumulating Capital (Investment)

The Dynamic Optimization Approach to the Firm's Factor Accumulation Decision

Value of the Firm's Equity

Tobin's Q and the Rate of Interest

The Trade Balance and Exchange Rates

The Real Exchange Rate

Real Exchange Rates and Net Exports

The Marshall-Lerner Condition

Other Approaches to the Trade Balance

Devaluation in Developing Countries

Does Devaluation Raise the Price of Imported Goods?

Evidence on Devaluation

Exchange Rates and Assets

Uncovered and Covered Interest Parity

Exchange Rate Determination

Purchasing Power Parity

Big Macs, iPods, and Professors' Salaries

Choice of Exchange-Rate Regimes

TheE uro

The Trade Balance and the Real Exchange Rate

The Demand for Money

Money, Bonds, and Private Wealth

Bond Pricing

Private Sector Net Wealth

Nominal and Real Interest Rates

Financial Assets and the Budget Constraint

The Determinants of the Real Money Demand

Parametric Changes on the Money Demand

Stock Markets, Exchange Rates, and the Money Demand

Money as a Store of Value

Seigniorage

The Optimal Level of Seigniorage

Saddam Dinars and Swiss Dinars

Alternative Means of Obtaining Seigniorage

Online Application.

Preference Maximizing Choice of Consumption and Real Money Balances

The Two-Period Budget Constraint

Seigniorage and the Real Money Demand

Currency Crises and Speculative Attacks

The Inventory Demand for Money (Baumol-Tobin)

The Labour Market

Profit Maximization and Labour Demand

Utility and Labour Supply

Aggregate Supply with/without Money Illusion

Introducing Unemployment

Why Has Wage Inequality Increased?

Keynesian Aggregate Supply

Friedman on Mistaken Expectations

Cyclical Unemployment and the Output Gap

Unemployment and Wages in India

The Static Phillips Curve

The Dynamic Phillips Curve

Test Youself

The Mistaken Expectations Aggregate Supply Curve

Separability Between Aggregate Demand and Supply

The IS-LM Model

Walras' Law

Nominal Versus Real Rate of Interest

The IS Curve

Parametric Shifts of the IS Curve

Slope of the IS Curve

The LM Curve

Impact of Varying the Money Supply

Slope of the LM Curve

IS and LM -Fiscal and Monetary Policy

Interest Rate Targets and Monetary Policy

Crowding Out

Fiscalist and Monetarist Intervention

Zero Interest Rates and Macro Policy in Japan

IS-LM in India

Ricardian Equivalence

IS-LM in Japan

Aggregate Demand and Aggregate Supply

The Aggregate Demand Curve

AD-AS Equilibrium in the Keynesian Case

Fiscal Policy and Working Capital

AD and the Mistaken Expectations Aggregate Supply

Policy Lags

Real Business Cycles

Nominal Anchors and Intertemporal Policy Constraints

Summray

More on Unemployment

Shirking and Efficiency Wages

The Long-Run and Staggered Wage Setting

Staggered Wage Contracts.

Wage Adjustment

Henry Ford and Efficiency Wages

The Insider-Outsider Approach

Macroeconomic Policy with Insiders

Open Economy I: The Mundell-Fleming Model

Accounting for an Open Economy

Capital Mobility and the Balance of Payments

Capital Account Convertibility

Monetary Policy under Flexible Exchange Rates

Fiscal Policy under Flexible Exchange Rates

Fixed Exchange Rates and the Monetary Policy

Fixed Exchange Rates and the Fiscal Policy

Capital Flows and Macro Policy

The Pressure on China to Float

Online Applcation

Slopes of the BPand LM Curves

Stabilization and Government Deficits

Limits to Discretionary Policy

The Government Budget Constraint and Debt Dynamics

Primary Deficits and Stability

Fiscal Surpluses

Primary Surpluses

Debt and Deficits in India

Sustainable Primary Deficits

Fiscal Rules for Adjustment

Are Fiscal Rules a Good Way to Bind Policymakers?

Fiscal Restructuring

Open Economy II: The Current Account in an Intertemporal Framework

Intertemporal Accounting and the Current Account Determination

Intertemporal Accounts of a Nation

Intertemporal Budget Constraint In a Two-Period Model

Current Account Determination

Global Imbalances

Three Determinants of Borrowing/Lending

Current Account and Shocks to the Output

The Current Account in the Medium Run

Determination of Expenditure-Output

Fiscal Adjustment and the Aggregate Income

Expansionary Fiscal Contractions

The External Debt Burden and Sustainability

Financial Sector Reforms

Features of Financial Markets

Adverse Selection

Moral Hazard.

Expost State Verification

Banks and Debt Markets

Functions of Financial Markets

Types of Banking Reforms

Financial Repression and Major Financial Reforms in India

Financial Repression-Revenues and Liberalization

The Supply of Loans and the Demand for Deposits

Risk and the Supply of Credit

Banks' Response to Financial Liberalization

Liberalization, Growth, and Collateral Benefits

Human Capital: A Keystone of Financial Reforms

Monetary Policy Objectives and Targets

Goals of Monetary Policy and Intermediate Targets

Evolution of the Operating Instruments of the Monetary Policy in India

Choosing Intermediate Targets in the Case of Demand Shocks

IS Curve Shocks

LM Curve Shocks

Choosing Intermediate Targets in the Case of Supply Shocks

Targeting the Nominal GDP

Rules Versus Discretion in the Monetary Policy

The Social Welfare Function of Policymakers

The Private Sector and Central Bank Policy

Discretion and Surprise (Unanticipated) Inflation

Commitment to a Policy Rule

Achieving Credibility

Monetary Policy Rules

N ominal Spending, the Short-Run and the Long-Run Full-Information Supply Curve

Derivations of the Equations in Section 15.5 on Rules Versus Discretion

Economic Growth

Sources of Growth

Growth Accounting-China and India

Potential and Feasible Output

The Determinants of Long-Run Growth

The Solow Diagram

Comparative Statics

The Golden Rule

Calculating the Golden Rule Saving Rate

Convergence

Poverty Traps

Lawyers-Do They Reduce Economic Growth?

Endogenous Growth

Derivations of Important Equations

Bibliography

Glossary

Index.

Notes:

Description based on publisher supplied metadata and other sources.

ISBN:

1-282-65236-2

81-317-4290-3

9786612652363

OCLC:

1024246031