Foundations of Modern Macroeconomics

Description

Using nothing more than undergraduate mathematical skills this book takes the reader from basic IS-LM style macro models to the state of the art literature on Dynamic Stochastic General Equilibrium. Dealing with all major topics it summarizes important approaches and provides a coherent angle on macroeconomic thought.

• Fully updated and substantially revised to reflect current thinking in macroeconomics
• Brand new chapters covering highly topical subjects such as dynamic programming, competitive risk sharing equilibria and the New Keynesian DSGE approach
• Broad coverage bridging the gap between undergraduate economics and the state of the art literature
• Features informative boxed case studies and worked example models to enable self-study

New to this edition

• Fully updated and substantially revised to reflect current thinking in macroeconomics
• Brand new chapters covering highly topical subjects such as dynamic programming, competitive risk sharing equilibria and the New Keynesian DSGE approach
• Significantly expanded sections on theories of economic growth, exogenous growth and rational expectations and economic policy

About the Author(s)

Ben J. Heijdra, Professor of Macroeconomics, University of Groningen, The Netherlands

Ben J. Heijdra received his education in the Netherlands and in Canada. Before joining the Faculty of Economics and Business of the University of Groningen in the Spring of 1998 he held academic positions at various universities in Australia and the Netherlands. His research focuses on policy-relevant (theoretical) macroeconomics. Topics include ageing and macroeconomic performance, annuitization and the macro-economy, and environmental macroeconomics. Heijdra is a Senior Researcher of Netspar, a network dedicated to the study of ageing and pension issues, and a Fellow of CESifo (Munich). He has been on the editorial board of De Economist since January 2005.

Table of Contents

Intermediate macroeconomics
1:Review of the AD-AS model
2:The open economy
3:Dynamics in aggregate demand and supply
4:Perfect foresight and economic policy
5:Rational expectations and economic policy
6:The government budget deficit
7:A closer look at the labour market
8:Search in the labour market
9:Dynamic inconsistency in public and private decision making
Towards advanced macroeconomics
10:Money
11:New Keynesian economics
12:Exogenous economic growth - Solow-Swan
13:Exogenous economic growth - Ramsey-Cass-Koopmans
14:Endogenous economic growth
15:Overlapping generations in continuous time
16:Overlapping generations in discrete time
Stochastic general equilibrium macroeconomics
17:Decision making in a stochastic environment
18:Dynamic schochastic general equilibrium - New classical models
19:Dynamic schochastic general equilibrium - New Keynesian models
Mathematical appendix

Reviews

"Review from previous edition This book will be an extremely valuable addition to the reading list for core graduate macroeconomics courses. It provides a fair and balanced account of the different schools of macroeconomic thought and the current state of the discipline. A large number of topics are treated; the sections which cover technical material are particularly praiseworthy. The authors convey a sense of enthusiasm about the subject and show that macroeconomics can, indeed, be exciting" - Professor John Fender, University of Birmingham

"This is a good addition to the textbook market. The coverage of topics is comprehensive and it takes students from an intermediate to graduate level with commendable ease" - Shaun Hargreaves Heap, University of East Anglia

"A remarkably clear and coherent presentation of nearly all the analytical and conceptual tools one needs to be a good macroeconomist, from the short run to the long run, from simple to more complex models, from the closed to the open economy. An impressive tour de force." - Olivier Blanchard, Robert Solow Professor of Economics, Emeritus, MIT; Fred Bergsten Senior Fellow, Peterson Institute for International Economics

"This wonderful book provides a balanced and accessible account of modern macroeconomic theory. Both neoclassical and New Keynesian theories are presented in a consistent framework. Graduate students as well as advanced undergraduate students will find it an invaluable source of information." - Dirk Krueger, Professor, Department of Economics, University of Pennsylvania

"This textbook fills a much needed gap between standard intermediate macro textbooks and the more advanced ones used in Ph.D training. It takes the student by the hand to lift them out of IS-LM and introduce them gently to the tools used in todays macroeconomic research." - Professor David de la Croix, Professor of Economics, Université catholique de Louvain