Peter Sorensen – Introducing Advanced Macroeconomics: Growth and Business Cycles (2nd Edition)
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Introducing Advanced Macroeconomics: Growth and Business Cycles, 2nd edition provides students with a thorough understanding of fundamental models in macroeconomics and introduces them to methods of formal macroeconomic analysis.
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Introducing Advanced Macroeconomics: Growth and Business Cycles (2nd Edition)
Introducing Advanced Macroeconomics: Growth and Business Cycles, 2nd edition provides students with a thorough understanding of fundamental models in macroeconomics and introduces them to methods of formal macroeconomic analysis. Split into two sections, the first half of the book focuses on macroeconomics for the long run, introducing and developing basic models of growth and structural unemployment. The second half of the book deals with the economy in the short run, focusing on the explanation of business fluctuations. This new edition retains the popular pitch and level established in the 1st edition and continues to bridge the gap between intermediate macroeconomics texts and more advanced textbooks.
Key features include:
Fully updated and revised: The empirical material has been updated and new case studies have been added to illustrate the importance of institutions for long run prosperity and to show how business cycle theory can help us understand the dramatic events during the economic crisis which began in 2007.
Empirical motivation and policy orientation: This book reviews the stylised empirical facts to be explained by the models and systematically confronts theoretical predictions with empirical data. The policy implications of the theories presented are highlighted.
Respect for rigour: In the presentation of models, mathematics is used to a degree required for a thorough understanding, but unnecessary technicalities are avoided and a balance between formalism and verbal explanation is maintained throughout.
Table Of Contents:
About the authors
Macroeconomics for the long run and for the short run
Book One: The Long Run
Some Facts about Prosperity and Growth
Part 1: Basic Theory and Empirics about Prosperity and Growth
Capital Accumulation and Growth: The Basic Solow Model
Wealth Accumulation and Capital Mobility: The Solow Model for a Small Open Economy
Part 2: Exogenous Growth
Technological Progress and Growth: The General Solow Model
Education and Growth: The Solow Model with Human Capital
Limits to Growth? The Solow Model with Scarce Natural Resources
Part 3: Endogenous Growth
Productive Externalities and Endogenous Growth
R&D-Based Endogenous Growth
Part 4: Structural Unemployment
Some Facts and Introductory Theory about Unemployment
Efficiency Wages and Unemployment
Trade Unions and Unemployment
Appendix: Table A: Some growth relevant country data
Book Two: The Short Run
Some Facts about Business Cycles
Part 5: The Building Blocks for the Short-run Model
Investment and Asset Prices
Consumption, Income and Wealth
Monetary Policy and Aggregate Demand
Inflation, Unemployment and Aggregate Supply
Part 6: The Short-run Model for the Closed Economy
Explaining Business Cycles: Aggregate Supply and Aggregate Demand in Action
Stabilization Policy: Why
Stabilization Policy: How?
Stabilization Policy with Rational Expectations
The Limits to Stabilization Policy: Credibility and Uncertainty
Part 7: The Short-run Model for the Open Economy
Aggregate Demand and Aggregate Supply in the Open Economy
Chapter 24 The Open Economy with Fixed Exchange Rates
Chapter 25 The Open Economy with Flexible Exchange Rates
Appendix: Basic regression analysis
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