• MGWK (ENG)
  • Preface
    • Why read this book?
    • The project
    • Brief overview
    • Acknowledgements
  • Contents
  • About the authors
  • I Measurement of aggregate economic activity
  • 1 The empirical reference point of our model world
    • 1.1 The national accounts
    • 1.2 The circular flow of the macroeconomy
    • 1.3 An important macroeconomic variable - GDP
      • 1.3.1 Three definitions of GDP
      • 1.3.2 GDP does not measure quality of life
    • 1.4 Sectoral financial balances
    • 1.5 Growth rates of economic variables
    • 1.6 Nominal vs. real variables and the price level
    • Further reading on chapter 1
  • II The demand side in the model economy
  • 2 Aggregate demand: introduction
    • Further reading on chapter 2
  • 3 Private consumption
    • 3.1 The absolute income hypothesis and the Keynesian consumption function
    • 3.2 Taxes in the consumption function
    • 3.3 The saving function of private households
    • Further reading on chapter 3
  • 4 Investment
    • 4.1 The investment function and corporate expectations
    • 4.2 The effect of the interest rate on investment demand
    • 4.3 The effect of demand on investment
    • Further reading on chapter 4
  • 5 Government demand
    • Further reading on chapter 5
  • 6 The goods market equilibrium and the multiplier
    • 6.1 The simple income-expenditure model of a closed economy
      • 6.1.1 The equilibrium GDP
      • 6.1.2 The adjustment process to the equilibrium and the multiplier
    • 6.2 Taxes in the income-expenditure model
      • 6.2.1 Government expenditure multiplier with taxes independent of income
      • 6.2.2 Government spending multiplier with taxes based on income
    • 6.3 Employment and fiscal policy in the income-expenditure model
    • 6.4 Interest rate sensitivity of investment in the income-expenditure model
    • 6.5 Accelerator effect in the income-expenditure model
    • Further reading on chapter 6
  • 7 The IS curve: the interest rate and the goods market equilibrium
    • 7.1 The interest rate elastic IS curve
    • 7.2 The IS curve and the multiplier
    • 7.3 When interest rate policy is ineffective - the vertical IS curve
    • 7.4 Delayed effect of interest rate policy
    • 7.5 The IS curve with a nominal interest rate
    • Further reading on chapter 7
  • III The supply side of the model economy
  • 8 Labour supply, employment and productivity
  • 9 Inflation - the conflict between wage and profit claims
    • 9.1 Wage bargaining in the “labour market” and the real wage targets of employees
    • 9.2 Price-setting and the real wage targets of companies
    • 9.3 Wage-setting, price-setting and equilibrium distribution
    • 9.4 The inflation rate as an expression of a distributional conflict: inflation-stable employment and the NAIRU
    • 9.5 Determinants of the NAIRU and ways of changing it
    • Further reading on chapter 9
  • IV Macroeconomic models
  • 10 The interaction of the supply and the demand side: economic shocks and inflation
    • 10.1 Goods market and distributional equilibrium
    • 10.2 Demand shocks and wage-price spirals
    • 10.3 Supply shocks
    • Further reading on chapter 10
  • 11 Economic policy in the 3-equation model of the “new consensus” macroeconomics
    • 11.1 How can policies respond to demand and supply shocks?
    • 11.2 Central bank interest rate policy and macroeconomic stabilisation
    • 11.3 Different central bank objectives: the central bank reaction function and the monetary policy rule
    • 11.4 The 3-equation model of the NCM
    • 11.5 Reaction to shocks
    • 11.6 Limits to stabilisation by the central bank’s interest rate policy: deflation trap, the zero lower bound and the investment trap
    • 11.7 Summary of the economic policy implications of the NCM 3-equation model
    • Further reading on chapter 11
  • 12 From the 3-equation of the new consensus to the post-Keynesian model
    • 12.1 Endogeneity of the NAIRU 1: labour market hysteresis
    • 12.2 Endogeneity of the NAIRU 2: interest rate elastic mark-up
    • 12.3 The NAIRU as a corridor: a horizontal element in the Phillips curve
    • 12.4 Economic policy in the post-Keynesian model
    • Further reading on chapter 12
  • 13 Summary
  • List of used symbols
  • Appendix
  • A Three definitions of GDP - detailed breakdown
  • B Derivative rules
  • C Real vs. nominal interest rate
  • D Simple interest rate calculation
  • E Net present value of an investment
  • F Simplified representation of the sum of a geometric series
  • G Derivation of the multiplier
  • Literature
  • The project

Introduction to Macroeconomics: Pluralist and Interactive

Contents

Preface

About the authors

Part I - Measurement of aggregate economic activity

1 The empirical reference point of our model world

Part II - The demand side in the model economy

2 Aggregate demand: introduction

3 Private consumption

4 Investment

5 Government demand

6 The goods market equilibrium and the multiplier

7 The IS curve: the interest rate and the goods market equilibrium

Part III - The supply side of the model economy

8 Labour supply, employment and productivity

9 Inflation - the conflict between wage and profit claims

Part IV - Macroeconomic models

10 The interaction of the supply and the demand side: economic shocks and inflation

11 Economic policy in the 3-equation model of the “new consensus” macroeconomics

12 From the 3-equation model of the New consensus to the post-Keynesian model

13 Summary

List of used symbols

Appendix

Literature