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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... Inflation The price of money that we have been using , p TM ( t ) , is not what we normally think of as prices . This price tells us how many goods are given up to purchase 1 unit of money . Normally , prices are ... Inflation 267 Inflation.
... inflation in which the inflation rate is continually increasing . Others use the term to refer to an inflation rate above some specific - high - level . Phillip Cagan , for example , has fixed on a monthly inflation rate of 50 percent ...
... inflation rate . You cannot simply use the seignorage equation given above . ) How is the burden of the inflation tax shared between the young and old of period 1 ? In Exercise 10.12 we assumed that the government keeps the money supply ...
Contents
Describing the Environment | 5 |
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
Copyright | |
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