Macroeconomic Theory

This textbook offers a unique approach to macroeconomic theory built on microeconomic foundations of monetary macroeconomics within a unified framework of an intertemporal general equilibrium model extended to a sequential and dynamic analysis. It investigates the implications of expectations and of stationary fiscal policies on allocations, on the quantity of money, and on the dynamic evolution of the economy with and without noise. The text contrasts and compares the two main competing approaches in macroeconomics within the same intertemporal model of a closed monetary economy: the one postulating full price flexibility to guarantee equilibrium in all markets at all times under perfect foresight or rational expectations, versus the so called disequilibrium approach where trading occurs at non- market-clearing prices and wages when these adjust sluggishly from period to period in response to market disequilibrium signals.

List of contents

Introduction.- Microeconomic Foundations.- Models of Monetary Equilibrium.- Dynamics of Monetary Equilibrium Models.- Fiscal Policy and the Dynamics of Monetary Equilibrium.- The Keynesian Model with Money.- Dynamics in Disequilibrium - Endogenous Business Cycles.- Disequilibrium Dynamics with Random Perturbations.- Dynamical Systems in Discrete Time.- Proofs and Further Results.

About the author

Volker Böhm is a Professor Emeritus at Bielefeld University.

Summary

Presents a unique approach to macroeconomic theory based on microeconomic foundations, general equilibrium theory, and dynamic analysis of fiscal and monetary policies
Provides a synthesis of equilibrium and disequilibrium macro models with money unifying the features of microfounded temporary equilibrium and Keynesian models
Analyzes the dynamics of business cycles in deterministic and stochastic environments using bifurcation theory

Exhibits the power of numerical methods to investigate time series of explicit nonlinear dynamic stochastic monetary models

Product details

• Authors: Volker Böhm
• Publisher: Springer, Berlin
• Languages: English
• Product format: Hardback
• Released: 03.12.2017
• EAN: 9783319601489
• ISBN: 978-3-31-960148-9
• No. of pages: 423
• Dimensions: 160 mm x 243 mm x 25 mm
• Weight: 852 g
• Illustrations: XVII, 423 p. 175 illus., 76 illus. in color.
• Series: Springer Texts in Business and Economics; Springer Texts in Business and Economics
• Subjects: Social sciences, law, business > Business > Economics; B, macroeconomics, Economic theory & philosophy, Economics and Finance, Economic Theory, Macroeconomics and Monetary Economics, Macroeconomics/Monetary Economics//Financial Economics, Game Theory, Economics, Social and Behav. Sciences, Philosophy of Mathematics, game theory, Monetary Economics, Management science, Quantitative Economics, Public finance, Public finance & taxation, Economic Theory/Quantitative Economics/Mathematical Methods, Finance, Public