Macroeconomics and New Macroeconomics

Definitions of Variables.- One. Fundamentals.- I. Some Methodological Considerations.- §1 Economic Theories.- §2 Economic Models.- §3 Methods.- §4 Equilibrium and Disequilibrium. Stability.- §5 Statics, Comparative Statics, and Dynamics.- §6 Ex Post versus Ex Ante Analysis.- §7 Partial versus Total Analysis. The Ceteris Paribus Clause.- §8 Microeconomics versus Macroeconomics.- II. A Historical Survey.- §9 The Predecessors.- §10 The Classical Economists.- §11 The Neoclassical Economists.- §12 From Keynes to the Present.- Further Reading.- III. National Income Accounting.- §13 The Economy as a Circular Flow.- §14 The Circular Flow-Model of François Quesnay.- §15 The System of Income Accounts.- §16 Notions of Income in the System of Income Accounts.- Two. Macroeconomics.- §17 Introduction to Part Two.- IV. The Classical Theory.- §18 The Classical Vision. Plan of the Chapter.- §19 Production Functions.- §20 The Firms.- §21 The Households.- §22 The Labor Market.- §23 The Capital Market.- §24 The Commodity Market.- §25 The Quantity Theory of Money.- §26 Say’s Law.- §27 The Classical Model.- §28 Digression: Walras’ Model.- §29 Conclusion.- Further Reading.- V. The Keynesian Theory.- §30 The Crisis.- §31 The “General Theory” and Its Interpreters.- §32 The Effective Demand.- §33 Consumption Demand.- §34 Investment Demand.- §35 The Income-Expenditure Model.- §36 The Simple Multiplier.- §37 The Markets for Money and Bonds. The LM Curve.- §38 The Capital Market. The IS Curve.- §39 The IS/LM Model.- §40 The Complete Keynesian Model.- §41 First Scenario: The Investment Trap.- §42 Second Scenario: The Liquidity Trap.- §43 An Under-employment Equilibrium with a Flexible Real Wage?.- §44 Third Scenario: Sticky Wages.- §45 Conclusion.- Further Reading.- VI. Political Implications: A Comparison.- §46 The Role of Government. Goals and Means of Economic Policy.- §47 Fiscal Policy.- §48 Fiscal Policy in the Classical Case.- §49 Fiscal Policy in the Complete Keynesian Case.- §50 Fiscal Policy with an Investment or Liquidity Trap.- §51 Fiscal Policy with Sticky Wages.- §52 The Concept of Counter-cyclical Fiscal Policy.- §53 Monetary Policy.- §54 Monetary Policy in the Classical Case.- §55 Monetary Policy in the Complete Keynesian Case.- §56 Monetary Policy with an Investment or Liquidity Trap.- §57 Monetary Policy with Sticky Wages.- §58 Conclusion.- Further Reading.- Three. New Macroeconomics.- §59 Introduction to Part Three.- VII. The Real-Balance Effect.- §60 A Criticism of Classical Monetary Theory.- §61 A Criticism of Keynesian Monetary Thoery.- §62 Conclusion.- Further Reading.- VIII. The Theory of Portfolio Selection.- §63 Microeconomic Foundations.- §64 Macroeconomic Applications.- §65 Conclusion.- Further Reading.- IX. Monetarism.- §66 The Theoretical Foundations, or: Monetarism versus Keynesianism.- §67 The Empirical Investigations, or: Monetarism versus Fiscalism.- §68 The Political Inferences, or: Monetarism versus Activism.- §69 Conclusion.- Further Reading.- X. New Classical Economics.- §70 Expectations and Rational Expectations.- §71 The Phillips-Curve. Stagflation.- §72 The New Classical Vision.- §73 The New Classical Model.- §74 Political Inferences.- §75 Conclusion.- Further Reading.- XI. Neokeynesian Theory.- §76 The Evolution of Neokeynesian Economics.- §77 The Dual Decision Hypothesis.- §78 The Logic of the Fix Price-Method.- §79 A Reconsideration of the Consumption Function.- §80 The Neokeynesian Model.- §81 Political Inferences.- §82 Walras’ Law with Quantity Constraints.- §83 Conclusion.- Further Reading.- Mathematical Appendix.- 1. Calculus of Functious of a Single Variable.- 1.1 Functions of a Single Variable.- 1.2 Derivatives.- 1.3 Taylor’s Theorem.- 1.4 Differentials.- 1.5 Concavity and Convexity.- 1.6 Maxima and Minima.- * 1.7 Profit Maximization.- 2. Linear Algebra.- 2.1 Vectors.- 2.2 Matrices and Determinants.- 2.3 Simultaneous Linear Equations.- 2.4 Characteristic Value Problems.- 2.5 Quadratic Forms.- 3. Calculus of Functious of Several Variables.- 3.1 Functions of Several Variables.- 3.2 Partial Derivatives. Gradients.- 3.3 Chain Rule.- 3.4 Taylor’s Theorem.- 3.5 Partial and Total Differentials.- 3.6 Concavity and Convexity.- 3.7 Maxima and Minima.- 3.8 Maxima and Minima under Constraints.- * 3.9 Profit Maximization.- 4. Implicit Functious.- 4.1 Explicit and Implicit Functions.- 4.2 Implicit Differentiation with Two Variables.- 4.3 Implicit Function Theorem.- * 4.4 The Slope of Equilibrium Loci.- * 4.5 Properties of Demand Functions.- * 4.6 Fiscal Policy in the Keynesian Model.- 5. Ordinary Differential Equatious.- 5.1 Function Equations and Functional Equations.- 5.2 Solution of a Linear Differential Equation.- * 5.3 Stability of a Market.- 5.4 Solution of Simultaneous Differential Equations.- * 5.5 Stability of the IS/LM Model.- * 5.6 Stability of the Neokeynesian Model.- Further Reading.- Author Index.