Macroeconomics for the 21st Century - Table of Contents

Note that the special introductory edition Modern Monetary Theory and Practice does not contain all the following chapters. It contains a subset of the total chapters and some sections are missing from relevant chapters listed below.

Part A: Introduction to Macroeconomics

Chapter 1: Introduction

  • 1.0 What is Economics? Two Views
    • A. Orthodox, Neoclassical Approach
    • B. Heterodox; Keynesian-Institutionalist-Marxist
    • C. Implications for research and policy
  • 1.1 What is macroeconomics?
  • 1.2 Macro and the public purpose

Chapter 2: Overview of the History of Economic Thought

  • 2.1 History of Neoclassical Theory
  • 2.2 History of Heterodox Thought
  • 2.3 Modern Schools of Thought

Chapter 3: National Income Accounting

  • 3.0 Measuring National Output
  • 3.1 Components of GDP
  • 3.2 GDP Versus GNP
  • 3.3 Measuring National Income
  • 3.4 Measuring National Inequality
  • 3.5 Prices and Inflation
  • 3.6 Measuring Inflation of Consumer and Producer Prices
  • 3.7 Using the NIPA Framework to Model the Macro Economy

Chapter 4: How to think and do macroeconomics

  • 4.1 Thinking in a macroeconomic way
  • 4.2 What should a macroeconomic theory be able to explain?

Chapter 5 Flow of Funds and Sectoral Accounting

  • 5.0 Basics of Stocks and Flows
    • i. Flows: income, consumption, investment, government spending and taxing, imports and exports, saving
    • ii. Stocks: wealth, financial and real, domestic and external, private and public
    • iii. Basics of sectoral accounting, relations to stock and flow concepts
  • 5.1 Integrating NIPA, Stocks, Flows and the Flow of Funds Accounts
  • 5.2 The Flow of Funds Matrix
  • 5.3 The Sectoral Balances View of the National Accounts
  • 5.4 A Graphical Framework for Understanding the Sectoral Balances
  • 5.5 The Flow of Funds and Modern Monetary Macroeconomics

Part B: Introduction to Modern Monetary Theory

Chapter 6: Introduction to Sovereign Currency

  • 6.1 Introducing money
  • 6.2 The National Currency (unit of account); denomination of stocks and flows
  • 6.3 Floating versus fixed exchange rate regimes
  • 6.4 IOUs denominated in national currency: government and nongovernment
  • 6.5 Use of the term "money" confusion and precision

Chapter 7: A Brief Overview of Economic History and the Rise of Capitalism

  • 7.1 Monetary Capitalism
  • 7.2 Tribal Society
  • 7.3 Slavery
  • 7.4 Feudalism
  • 7.5 Revolts and the transition to capitalism
  • 7.6 Capitalism
  • 7.7 Monetary Capitalism
  • 7.8 Global Capitalism
  • 7.9 Economic Systems of the Future?

Chapter 8: The Origins and Nature of Money

  • 8.1 The Barter Story
  • 8.2 Wergild and Tribal Society
  • 8.3 Wergild liabilities are transformed to debt to authority
  • 8.4 Standardisation of liabilities
  • 8.5 Credits, Debits, and Markets
  • 8.6 What about coins? Are they Debts, too?
  • 8.7 The nature of money
  • 8.8 Taxes drive the money of account
  • 8.9 Conclusion

Chapter 9: Introduction to Monetary and Fiscal Policy Operations

  • 9.1: The Central Bank
  • 9.2: The Treasury
  • 9.3: Coordination of Monetary and Fiscal Operations
  • 9.4: Sterilisation of Capital Flows
  • 9.5: Currency Sovereignty and Policy Independence

Chapter 10: Non-sovereign Currencies: Gold Standards, Fixed Exchange Rates and the Special Case of the European Monetary Union

  • 10.1: The Gold Standard, in Theory and Practice
  • 10.2: Fixed Exchange Rates and Policy Constraints
  • 10.3: Currency Boards
  • 10.4: The European Monetary Union

Part C: Introduction to Macroeconomic Models

Chapter 11: Introduction to Effective Demand: The D-Z Model

Section detail to come - mid-August 2013.

Chapter 12: The Real Expenditure Model

  • 12.1 Introduction
  • 12.2 Aggregate Supply
  • 12.3 Aggregate Demand
  • 12.4 Private Consumption Expenditure
  • 12.5 Introducing Private Investment
  • 12.6 Introducing Government Spending
  • 12.7 Introducing Net Exports
  • 12.8 Total Aggregate Expenditure
  • 12.9 Equilibrium National Income
  • 12.10 The Expenditure Multiplier

Chapter 13: Introduction to Aggregate Supply

  • 13.1 Some Introductory Concepts
  • 13.2 Keynes' Aggregate Supply Price (Z) Function
  • 13.3 Price Determination
  • 13.4 The General Aggregate Supply Function
  • 13.5 Some Properties of the General Aggregate Supply Function (AS)
  • 13.6 The Mark-up, the Real Wage, Conflict and Inflation
  • 13.7 Factors Affecting Aggregate Output per Hour

Chapter 14: Introduction to Labour Market Analysis

  • 14.1 Introduction
  • 14.2 Markets and Capitalism
  • 14.3 Measurement
  • 14.4 Flow Measures of Unemployment
  • 14.5 Duration Measures of Unemployment
  • 14.6 Duration of Unemployment
  • 14.7 Broad Measures of Labour Underutilisation
  • 14.8 Hysteresis

Chapter 15: Keynes and the Classics

  • 15.1 Categories of Unemployment
  • 15.2 Why Does Mass Unemployment Arise?
  • 15.3 What is Full Employment?
  • 15.4 Involuntary Unemployment
  • 15.5 The Classical Theory of Employment
  • 15.6 Unemployment in The Classical Labour Market
  • 15.7 What is The Equilibrium Output Level?
  • 15.8 The Loanable Funds Market - Classical Interest Rate Determination
  • 15.9 Classical Price Level Determination
  • 15.10 Summary of The Classical System
  • 15.11 Pre-Keynesian Criticisms of The Classical Denial of Involuntary Unemployment
  • 15.12 The Existence of Mass Unemployment as an Equilibrium Phenomenon
  • 15.13 Keynes Critique of Classical Employment Theory
  • 15.14 Understanding Labour Supply
  • 15.15 Keynes Rejection of Say's Law - The Possibility of General Overproduction
  • 15.16 The Macroeconomic Demand for Labour Curve
  • 15.17 The Determination of Employment and the Existence of Involuntary Unemployment
  • 15.18 A Classical Resurgence Thwarted

Chapter 16: IS-LM Analysis

  • 16.1 Introduction to concept of General Equilibrium
  • 16.2 The Money Market - Demand, Supply and Equilibrium
  • 16.3 Derivation of LM curve
  • 16.4 The Product Market - Equilibrium output
  • 16.5 Derivation of IS curve
  • 16.6 Policy Analysis in IS-LM Framework
  • 16.7 Limitations of IS-LM analysis

Chapter 17: Unemployment and Inflation

  • 17.1 What is Inflation?
  • 17.2 Inflation in Practice
  • 17.3 Early Historical Views About Inflation and Unemployment
  • 17.4 The Quantity Theory of Money
  • 17.5 The Phillips Curve
  • 17.6 The Accelerationist Hypothesis and the Expectations-Augmented Phillips Curve
  • 17.7 Hysteresis and The Phillips Curve Trade-Off
  • 17.8 Underemployment and The Phillips Curve
  • 17.9 Demand-Pull and Cost-Push Inflation
  • 17.10 The Conflict Theory of Inflation
  • 17.11 Incomes Policies
  • 17.12 Raw Material Price Rises

Chapter 18: Buffer Stocks and Price Stability

  • 18.1 Introduction
  • 18.2 Unemployment Buffer Stocks and Price Stability
  • 18.3 Measuring the Costs of Unemployment Buffer Stocks
  • 18.4 Employment Buffer Stocks and Price Stability

Part D: Macroeconomic Policy

Chapter 19: Fiscal Policy in Sovereign Nations

  • 19.1: Functional Finance versus Sound Finance
  • 19.2: Debate about Debt Sustainability
  • 19.3: Full Employment as a Policy Goal
  • 19.4: Fiscal Policy and Inflation

Chapter 20: Monetary Policy in Sovereign Nations

  • 20.1: Monetary Targets versus Interest Rate Targets
  • 20.2: Horizontalism
  • 20.3: Inflation Targets
  • 20.4: Central Bank Independence
  • 20.5: Regulation and Supervision of Financial Institutions

Chapter 21: Policy in an Open Economy: Exchange Rates, Balance of Payments, and Competitiveness

  • 21.1 Introduction
  • 21.2 The Balance of Payments - Essential Concepts
  • 21.3 Aggregate Demand and the External Sector - Revisited
  • 21.4 Trade in Goods and Services, Product Market Equilibrium and the Trade Balance

Chapter 22: Investment in a Capitalist Economy

  • 22.1 Investment in a Capitalist Monetary Economy
  • 22.2 The Accelerator Model of Investment
  • 22.3 The Flexible Accelerator Model
  • 22.4 Expectations and Interest Rate Impacts on Investment Demand
  • 22.5 Cyclical Asymmetries in Investment Spending
  • 22.6 Investment and Profits
  • 22.7 Kalecki's Simplified Model
  • 22.8 Kalecki's Generalised Model of Profits
  • 22.9 Business Cycles - Fluctuations in Economic Activity
  • 22.10 Introduction to Cash Flow Discounting and Present Value
  • 22.11 Investment and the Rate of Interest
  • 22.12 Keynes and the Marginal Efficiency of Investment

Chapter 23: Stabilising the Unstable Economy

  • 23.0: Business Cycles and Financial Instability
  • 23.1: Is Instability Endogenous or Due to Shocks?
  • 23.2: Financial Instability Hypothesis
  • 23.3: Sectoral Balances and Instability
  • 23.4: Longer-term Evolution of the Financial Structure
  • 23.5: Policy to Enhance Stability

Part E: Recent Controversies in Macroeconomic Theory and Policy

Chapter 24: Modern Schools of Thought

  • 24.1: New Classical
  • 24.2: Real Business Cycle
  • 24.3: New Keynesian
  • 24.4: New Monetary Consensus Macro (and DSGE Models)
  • 24.5: Heterodox: Post Keynesian, Institutionalist, Marxist, and MMT

Chapter 25: Recent Policy Debates

  • 25.1: Ageing, Social Security, and the Intergenerational Debate
  • 25.2: Twin Deficits and Sustainability Of Budget Deficits
  • 25.3: Fixed Versus Flexible Exchange Rates: Optimal Currency Areas, the Bancor, or Floating Rates?
  • 25.4: Economic Growth: Demand or Supply Constrained?
  • 25.5: Environmental Sustainability and Economic Growth

Chapter 26: Macroeconomics in the light of the Global Financial Crisis

  • 26.1: Why Didn't Mainstream Macroeconomists Foresee the GFC?
  • 26.2: Who DID See "It" Coming, and Why?
  • 26.3: Macroeconomics for the Future

Centre of Full Employment and Equity (CofFEE)
University of Newcastle
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Australia

© William Mitchell 2016

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