Chapter 11 - Classical and Keynesian economics. This chapter include objectives: Say’s law; classical equilibrium; real balance, interest rate, and foreign exchange effects; aggregate demand; aggregate supply in the long run and short run.
Hayek uses flawless logic to prove that Keynesian economics, which is touted today as our own modern monetary policy, is inflationary economics. The end result of this application can only be a situation which is worse than the one it was intended to remedy. Hayek proves that individuals acting independently are unable to provide the consistent statistical information necessary on which to base an ordered economy.
Bài giảng "Kinh tế vĩ mô - Chapter 19: Advances in Business Cycle Theory" cung cấp cho người học các kiến thức: An overview of recent work in two areas, real business cycle theory, new keynesian economics. Mời các bạn cùng tham khảo nội dung chi tiết.
This is a short book. It aims to get across the essential elements of dynamics
that are used in modern treatments of the subject. More significantly, it aims
to do this through the means of examples. Some of these examples are purely
algebraic. But many others consider economic models: both microeconomic
and macroeconomic. Macroeconomics is replete with dynamic models – some
simple and others quite complex. But this is not true of microeconomics.
I. Economic Truth vs. Political PowerOutlawing Jobs: The Minimum Wage, Once More (Murray N. Rothbard) The Scourge of Unionism (Llewellyn H. Rockwell) Keynesianism Redux (Murray N. Rothbard) The Keynesian Dream (Murray N. Rothbard) The Free-Rider Confusion (Tom Bethell) Property Rights, Taxation, and the Supply-Siders (Tom Bethell) The Regulatory Attack on the Market (Llewellyn H. Rockwell) Are Savings Too Low? (Murray N. Rothbard) The "We" Fallacy (Sheldon L. Richman) U.S. Trade Law: Losing Its Bearings (Alex Taborrok) Statistics: Destroyed from Within? (Murray N.
In chapter 18, you will learn to solve these economic puzzles: Why did Keynes believe that “animal spirits” and government policy were important to maintain full employment? What are the components of the Keynesian Cross? Why did economists believe the Great Depression was impossible?...
After studying this chapter you will be able to understand: Why does Keynes argue that the government should adopt active policies, rather than allowing the price system to prevail? Can the Keynesian Model explain an ice cream war? Why did Keynes reject the classical theory that “supply creates its own demand”?...
This chapter define fiscal policy and describe fiscal goals and instruments at the macroeconomic, sectoral and microeconomic levels; discuss the evolution of views on the macroeconomic role of fiscal policy, focusing on the distinction between the Keynesian and structural approaches and the choice between discretionary and rulesbased fiscal regimes; distinguish between the various definitions of budget balance and explain the economic significance of each;...
Chapter 18 - Spending, output, and fiscal policy. After completing this unit, you should be able to: Identify the key assumptions of the basic Keynesian model and explain how this affects firms' production decisions; discuss the determination of planned investment and aggregate consumption spending and how these concepts are used to develop a model of planned aggregate expenditure; analyze how an economy reaches short-run equilibrium in the basic Keynesian model, using both numbers and graphs,…
Chapter 24 - Economic growth, business cycles, and structural stagnation. After reading this chapter, you should be able to: Discuss the history of macro, distinguishing Classical and Keynesian, macroeconomists; define growth and discuss its recent history; distinguish a business cycle from structural stagnation; relate unemployment to business cycles and distinguish cyclical unemployment from structural unemployment.
Chapter 26 - The short-run Keynesian policy model: Demand-side policies. After reading this chapter, you should be able to: Discuss the key insight of the AS/AD model and list both its assumptions and its components, describe the shape of the aggregate demand curve and what factors shift the curve, explain the shape of the short-run and long-run aggregate supply curves and what factors shift the curves.
Chapter 33 - The fiscal policy dilemma. After reading this chapter, you should be able to: Summarize the Classical view of sound finance, summarize the Keynesian view of functional finance, list six assumptions of the AS/AD model that lead to potential problems with the use of fiscal policy.
From one of the most influential economists of the modern era, Keynes and his "General Theory" shaped economic thought and government policies for decades to come. Out of this magnum opus arose the Keynesian school of economics. Keynes argues that the level of employment in a modern economy was determined by three factors: the marginal propensity to consume (income that people chose to spend on goods and services), the marginal efficiency of capital (the rate used to see whether investments are worthy) and the rate of interest.
MONEY, MACROECONOMICS AND KEYNES
This volume, along with its companion volume Methodology, Microeconomics and Keynes, is published in honour of Victoria Chick, inspired by her own contributions to knowledge in all of these areas and their interconnections. It represents both consolidation and the breaking of new ground in Keynesian monetary theory and macroeconomics by leading figures in these fields. The chapters have been contributed by some of the many who admire Chick’s work:
C. Rogers, Rogério Studart and Fernando J.
For the past fifteen years the New Keynesian model has
served as a frame of reference for analyses of fluctuations
and stabilization policies.1 That framework has allowed the
rigor and internal consistency of dynamic general equilibrium
models to be combined with typically Keynesian
assumptions, like monopolistic competition and nominal
rigidities, thus setting the stage for a meaningful, welfarebased
analysis of the effects of alternative monetary policy
In this book we try to present a balanced overview of modern macroeconomic theory.
We have adhered to two guiding principles in writing this book. First, we have
adopted a rather eclectic approach by paying attention not just to the most recent
insights in the field but also to developments that are currently less fashionable. In
doing so we hope to provide the students with a better overview of current and past
debates in macroeconomic theory.
When the IMF focused exclusively on policy-driven fiscal adjustments it got results that were
consistent with standard Keynesian analysis. In the short run, fiscal adjustment is contractionary,
with cuts in spending being more contractionary than increases in taxes. This is consistent with both
the theoretical view that spending will more directly impact the economy than taxes and also a large
amount of research that has found higher multipliers for changes in spending than changes in taxes.
In this chapter, students will be able to understand: What is a monetary policy transmission mechanism? Why would a Nobel Laureate economist suggest replacing the Federal Reserve with an intelligent horse? Why do people wish to hold money balances?,...
Chapter 6: Economic growth, business cycles, and structural stagnation. After reading this chapter, you should be able to: Discuss the history of macro, distinguishing Classical and Keynesian, macroeconomists; define growth and discuss its recent history; distinguish a business cycle from structural stagnation; relate unemployment to business cycles and distinguish cyclical unemployment from structural unemployment.
For the applied economist, the confident and apparently successful application of Keynesian
principles to economic policy which occurred in the United States in the 1960s was an
event of incomparable significance and satisfaction. These principles led to a set of simple,
quantitative relationships between fiscal policy and economic activity generally, the basic
logic of which could be (and was) explained to the general public and which could be applied
to yield improvements in economic performance benefitting everyone.