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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... private borrowing market and to use the revenues from the borrowing to purchase government bonds . A profit of 1 / p ( t ) is made on each purchased bond that is financed by borrowing on the private loan market . Each additional bond ...
... borrow an unlimited amount , that option cannot be an equilibrium . Neither the market in land nor the market in private lending and borrowing can clear , and market clearing is one of the conditions for an equilibrium . The only ...
... private borrowing and lending , government bonds , and fiat money . They also face a reserve require- ment . Individuals wishing to lend to either private individuals or to the government are required to hold a quantity of fiat money ...
Contents
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
5 | 65 |
Copyright | |
11 other sections not shown