Macroeconomics for a Modern Economy

MacroeconoMics for a Modern econoMy

The modern economy began to supplant the traditional economy in several nations in the latter half of the 19th century – and many more in the latter half of the 20th. a system where self-employment and self-finance was typical gave way to a system of companies having various business freedoms and enabling institutions. This was the “great transformation” on which historians and sociologists as ...

Misesian Insights for Modern Macroeconomics

New Open Economy Macroeconomics

Starting in the early 1990s, the New Open Economy Macroeconomics refers to a vast body of literature embracing a new theoretical framework for policy analysis in open economy, with the goal of overcoming the limitations of the Mundell-Fleming model, while preserving the empirical wisdom and policy friendliness of traditional analysis. Building general equilibrium models with imperfect competiti...

Intermediate Macroeconomics: Equilibrium in a Production Economy

In the previous section we studied equilibrium in a particularly simple world – an endowment economy. This was useful for getting intuition about what determined the real interest rate, but lacked realism. In this section we endogenize supply. The concept of equilibrium is identical to before, but the set up is more interesting. Now we have firms that produce output using capital and labor, and...

Essays in Open Economy Macroeconomics

This thesis addresses three issues in international macroeconomics. Chapter 2 provides an empirical investigation of both the shortand long-term determinants of current accounts for eight largest emerging Asian economies. The analysis is carried out within a cointegrated VAR framework. In this chapter, I show that current account behaviours in emerging Asian economies are heterogeneous. Initial...