Macroeconomic Policy: Demystifying Monetary and Fiscal PolicyMacroeconomic Policy is an applications oriented text designed for individuals who desire a hands-on approach to analyzing the effects of fiscal and monetary policies. The book demystifies the linkages between monetary and fiscal policies and key macroeconomic variables such as income, unemployment, inflation and interest rates. MBA and Executive MBA students who appreciate the importance of monetary and fiscal analysis will find this text to be right on target. Financial analysts and individual investors who need to strip away economic myths and jargon and systematically examine and understand the effects of macro policies will also find the book extremely useful. A unique feature of this book is the extensive use of specially written "newspaper" articles designed to simulate current macroeconomic news. Topics such as unemployment, soft landings, overheated economies, asset-price bubbles, liquidity traps, hyperinflations, and exchange rate meltdowns are incorporated in these articles. Each chapter contains exercises that enable the reader to relate specific underlined passages in these articles to the theory presented in preceding chapters. This distinctive approach ensures real-world applicability, and supporting diagrams further enable the reader to relate current economic news to the theoretical material discussed. Macroeconomic Policy is designed for a global audience. A key feature of this book is its emphasis on the role of expectations and "paradigm shifts" in implementing fiscal and monetary policies, both in developed as well as in emerging economies. This approach explains why once-successful macroeconomic models suddenly cease to be effective, and why Keynesian as well as Supply-Side models can legitimately coexist in several developed economies. |
Contents
1 INTRODUCTION AND OVERVIEW | 1 |
2 NATIONAL INCOME ACCOUNTS | 7 |
THE NATIONAL SAVINGS IDENTITY | 25 |
SETTING THE STAGE FOR DEMANDSIDE STABILIZATION | 49 |
OVERHEATING HARD LANDING AND EVERYTHING IN BETWEEN | 71 |
6 LONGTERM INTEREST RATES THE YIELD CURVE AND HYPERINFLATION | 109 |
THE ENGINE ROOM | 131 |
Other editions - View all
Macroeconomic Policy: Demystifying Monetary and Fiscal Policy Farrokh K. Langdana Limited preview - 2013 |
Macroeconomic Policy: Demystifying Monetary and Fiscal Policy Farrokh K. Langdana No preview available - 2013 |
Common terms and phrases
aggregate demand bond financed bond market budget deficits business cycles capital inflows central bank chapter Classical current account deficit decrease deflator demand-side stabilization developed economies discussed employment equilibrium European Central Bank Eurozone example exchange rates federal funds rate Federal Reserve Figure finance fiscal and monetary GDP growth government spending hyperinflation increase in G increase in government increases in inflation interest rates investor confidence ISLM ISLM-ADAS Keynesian labor demand labor market labor supply loanable funds long-term rates macroeconomic macroeconomic policy monetary discipline monetary growth monetary policy monetization money supply multiplier effect national income nominal wages open market operations output overheating P₁ paradigm shift percent Phillips curve policy makers production function rate of inflation rational expectations real wage recession result Rutgers Business School SAP bubbles Savings Identity sector short-term soft landing supply-side tax cuts tax rates vertical workers Y₁ yield curve Ymax