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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... money creation , this type of curve was shown in work by Martin Bailey ( 1956 ) . In honor of Bailey , we call this graph a Bailey curve . Note that as the rate of growth of the money supply increases from 0 , the real government ...
... money and Treasury bills was equal to the real cost that the banks ( or individuals ) face in doing the interme- diation . This behavior is a result of the ... money creation or borrowing to Legal Restrictions and Monetary Policy 327.
... money ( one to one , in this case ) , the government has a deficit in the monetary policy it follows if the rate of money creation is low . At low rates of money creation , the government is paying more in interest on bonds than it is ...
Contents
Describing the Environment | 5 |
Competitive Equilibrium | 32 |
Introducing a Government | 55 |
Copyright | |
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