Introduction to Dynamic Macroeconomic Theory

George McCandless is an economist at the Central Bank of Argentina.

• Preface PART ONE: REAL ECONOMIES 1. Describing the Enviroment Time The Population Total Resources Feasible Consumption Allocations Efficient Consumption Allocations Preferences Pareto Optimality Reprise 2. Competitive Equilibrium Private Ownership Competitive Intragenerational Trade Consumption Decisions An Example Savings Function Competitive Equilibrium An Example of a Competitive Equilibrium Reprise 3. Introducing a Government Taxes Government Borrowing Ricardian Equivalence Rolling Over Government Debt Equivalence between Equilibria with Bonds and Tax-Transfer Schemes Reprise Appendix: Proof of Ricardian Equivalence 4. Bequests Generation 0 Cares about Generation 1 Diversity within Generations All Generation Care about Their Children Reprise 5. Long-Term Government Bonds k-Period Bonds Temporary Equilibrium Perfect Foresight Term Structure of Interest Rates Reprise 6. Infinitely Lived Assets Temporary Equilibrium with Land An Example A Price Function Perfect Foresight Competitive Equilibria Three Example Economies The Price of Land and the Crop International Capital Movements Reprise 7. Equilibrium Fluctuations Real Cycles Multiple Nonstationary Equilibria Equilibria with the Crop Reprise 8. A Storage Technology Feasible Allocations Competitive Equilibrium Finding a Competitive Equilibrium Reprise 9. The Neoclassical Growth Model The Physical Environment and the Feasible Allocations Equilibrium Outputs, Inputs, and Factor Rentals at Each Date The Individual Choice Decision under Perfect Foresight A Definition of Equilibrium Equilibrium Paths when n=1 and g=0 Equilibrium Paths when n>1 and g=0 Equilibrium Paths when n=1 and g>0 Differential Savings Rates Reprise PART TWO: MONETARY ECONOMIES 10. Money and Inflation Equilibria with fixed Money Supply Fiat Money and Other Assets Inflation Money Creation and Inflation Seignorage Nonoptimality of Seignorage Reprise 11. Multiple Currencies and Exchange Rates Independence with Laissez-Faire Floating Rates Seignorage in a Multiple Money World Portfolio Autarky Regimes Reprise 12. Legal Restrictions and Monetary Policy Comsumption Choice under Credit Controls Equilibrium Conditions under Credit Controls Monetary Policy The Government Individual Choice with Requirements and No Government Bonds Equilibrium with Reserve Requirements and No Government Bonds A Two-Group Example of a Binding Equilibrium Large Denomination Bonds Stationary Equilibrium with Large Denomination Bonds Reprise References Index