Macroeconomic Dynamics [Paperback]

This presentation of advanced macroeconomics emphasizes the dynamic behaviour of the economy.Views macroeconomic theory and policy as applications of capital theory. Discusses the techniques of dynamic analysis and offers a novel framework for macroeconomic analysis that captures the chief characteristics of advanced economies.Views macroeconomic theory and policy as applications of capital theory. Discusses the techniques of dynamic analysis and offers a novel framework for macroeconomic analysis that captures the chief characteristics of advanced economies.This presentation of advanced macroeconomics emphasizes the dynamic behaviour of the economy. Developed capitalist economies are characterized by large stocks of durable goods and the intertemporal nature of economic decisions that these involve. Such intertemporal decisions based on expectations about an uncertain future are the main sources of mistakes and consequent economic fluctuations. In this book, therefore, macroeconomic theory and policy are viewed as applications of capital theory. Professor Nagatani traces the early contributions to this viewpoint and critically surveys the modern literature. To aid the reader, a lucid exposition of dynamic optimization is provided before the theory is developed analytically. The framework employed has novel aspects and captures the chief characteristics of advanced economies. The analysis is used to draw out broad policy conclusions. This book is suitable for advanced students, for whom examples are provided at the end of chapters. However, the perspective offers much to interest specialists also.Preface; 1. A historical review; 2. Dynamic optimization; 3. Hicksian temporary equilibrium and comparative dynamics; 4. Rational-expectations models; 5. Equilibrium theories of Keynesian unemployment; 6. Savings and investment in Keynesian temporary equilibrium; 7. Markets for stocks in Keynesian temporary equilibrium; 8. Capital markets and money; 9. Stabilization policiel“„