## Introduction to Dynamic Macroeconomic Theory: An Overlapping Generations ApproachEconomies are constantly in flux, and economists have long sought reliable means of analysing their dynamic properties. This book aims to provide a succinct and accessible exposition of modern dynamic (or intertemporal) macroeconomics. |

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Page 250

An interesting characteristic of this economy is that the limit of the rate of growth

of the capital stock is greater than the rate of growth of technology. We can

calculate the limit of the

end ...

An interesting characteristic of this economy is that the limit of the rate of growth

of the capital stock is greater than the rate of growth of technology. We can

calculate the limit of the

**growth rate**in a manner similar to the one we used at theend ...

Page 303

An Overlapping Generations Approach George T. McCandless, Neil Wallace.

supply at time t, i = A and B. Each of these equations can be solved for the

t ...

An Overlapping Generations Approach George T. McCandless, Neil Wallace.

supply at time t, i = A and B. Each of these equations can be solved for the

**growth****rate**of the money supply. These are gA+pA(<)MA(/- 1) ixA(0 = , (1 1-5) p pA(t)MA(t ...

Page 305

Using this gross interest rate in the aggregate savings function, we find that

aggregate savings for the world are 87 units of the good in each period. Because

we know the

the ...

Using this gross interest rate in the aggregate savings function, we find that

aggregate savings for the world are 87 units of the good in each period. Because

we know the

**growth rate**of the world money supply (jtw = 1/r = 1.13), we can findthe ...

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### Contents

Describing the Environment | 5 |

Competitive Equilibrium | 32 |

Introducing a Government | 55 |

Copyright | |

10 other sections not shown

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### Common terms and phrases

45-degree line A-period bonds aggregate savings function amount arbitrage assets autarky Bailey curve bequests bliss point borrowing and lending budget line capital stock Chapter chooses competitive equilibrium Consider an economy consumption allocation consumption point consumption when old consumption when young credit controls crop endowment point equal Equation equilib equilibrium condition equilibrium price example economy exchange rate EXERCISE expected price fiat money Figure given gives government bonds government revenues gross interest rate growth rate hold indifference curve individual h inflation labor lifetime budget constraint market clearing maximize member h money creation money supply output Pareto optimal Pareto superior perfect foresight period person h pm(t present value price of land price path price sequence private borrowing production function Proposition purchase quantity rate of return reserve requirement restrictions result Ricardian equivalence seignorage solve stationary equilibrium stationary monetary equilibrium storage sumption tax-transfer scheme taxes and transfers temporary equilibrium tion utility function