In a competitive world of symmetric information
and costless enforcement, credit contracts
could be written conditional on borrower behavior.
Borrowers would then have access
to loans under any interest rate-collateral
combination that would yield lenders a zero
expected profit. However, as a large literature
has shown, information asymmetries
and enforcement costs make such conditional
contracting infeasible and restrict the set of
available contracts, eliminating as incentive incompatible
high interest rate, low collateral
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.
The two volumes here published contain but a small selection from the numerous writings of Acton on a
variety of topics, which are to be found scattered through many periodicals of the last half-century. The result
here displayed is therefore not complete. A further selection of nearly equal quantity might be made, and still
much that is valuable in Acton's work would remain buried. Here, for instance, we have extracted nothing
from the Chronicle; and Acton's gifts as a leader-writer remain without illustration. Yet they were remarkable.
Exposure to an allergen is essential for the development of allergic sensitization.
However, the quantity of allergen necessary for sensitization is not known and may
depend on the individual and the allergen itself. For sensitization to dust mites, there
does appear to be a dose–response relationship, with atopically predisposed individuals
exposed to more allergen being more likely to become sensitized (Platts-Mills et al., 2001).
The main contents of this chapter include all of the following: The equation of exchange, the quantity theory of money, classical economics, the monetarist school, supply-side economics, the rational expectations theory.