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. |
From inside the book
Results 1-3 of 26
... Proposition 2.1 . It says that the se- quence of gross interest rates in an equilibrium of an economy with only private borrowing and lending results in zero aggregate savings in every period . The condition expressed in the proposition ...
... proposition . The second proposition is equally disturbing . It says that one exchange rate is as good as any other in a perfect foresight , laissez - faire world . Proposition 11.1 In a perfect foresight , laissez - faire , monetary ...
... Proposition 11.3 Given g ^ > 0 and gB > 0 , if there exists an r > 0 , such that ( 1 − - r ) [ S ^ ( r ) + SB ( r ) ... proposition by guessing at a solution and then verifying that solution . We choose the r from the statement of the ...
Contents
Describing the Environment | 5 |
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
Copyright | |
11 other sections not shown