Introduction to Dynamic Macroeconomic Theory: An Overlapping Generations ApproachEconomies are constantly in flux, and economists have long sought reliable means of analyzing their dynamic properties. This book provides a succinct and accessible exposition of modern dynamic (or intertemporal) macroeconomics. The authors use a microeconomics-based general equilibrium framework, specifically the overlapping generations model, which assumes that in every period there are two generations which overlap. This model allows the authors to fully describe economies over time and to employ traditional welfare analysis to judge the effects of various policies. By choosing to keep the mathematical level simple and to use the same modeling framework throughout, the authors are able to address many subtle economic issues. They analyze savings, social security systems, the determination of interest rates and asset prices for different types of assets, Ricardian equivalence, business cycles, chaos theory, investment, growth, and a variety of monetary phenomena. Introduction to Dynamic Macroeconomic Theory will become a classic of economic exposition and a standard teaching and reference tool for intertemporal macroeconomics and the overlapping generations model. The writing is exceptionally clear. Each result is illustrated with analytical derivations, graphically, and by worked out examples. Exercises, which are strategically placed, are an integral part of the book. |
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Results 1-3 of 55
... chooses for each of those cases . Suppose that the part in square brackets is positive : - [ r ( t ) ph ( t ) − phe ( t + 1 ) ] > 0 . As a consequence , the return on private bonds - the gross interest rate , r ( t ) —is greater than ...
... chooses to give some new fiat money to the old of each time period . In the next section , the government chooses to use newly issued fiat money to purchase some time t good for its own use in every period t . Let M ( t ) stand for the ...
... chooses to hold only bonds . If rm > rb ( t ) , then the individual chooses to hold only fiat money . If rm ( t ) = r ( t ) , then it does not matter . There cannot be an equilibrium with any individuals holding bonds if ( t ) > ( t ) ...
Contents
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
5 | 65 |
Copyright | |
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