Copyright 1997 by the Society of Actuaries, Fourth printing, Printed in U.S.A.
Table of contents.
Preface I.
Chapter i—economic measurement.
National income and product accounts.
Basic definitions and concepts.
The formal accounts.
The savings/investment identity.
Nominal and real gdp.
Index number theory.
Index numbers and the measurement of gdp growth and inflation.
Other major price indexes.
Data sources.
Data presentation.
Balance of payments.
Business cycles.
Business cycle defined.
Cycle dating.
Cycle indicators.
Interest rates and exchange rates.
Interest rates and the yield curve.
Exchange rates.
Chapter ii—growth, productivity and long-run equilibrium.
Analyzing growth.
Productivity.
Productivity trends.
Sources of economic growth.
How to increase productivity growth.
Model of long-run equilibrium.
Output equilibrium.
Summary.
Distribution of output and interest rates.
Money & prices.
Summary.
Open economy equilibrium conditions.
Chapter iii—understanding short-run fluctuations.
Quantity adjustment paradigm.
The planned aggregate demand model.
Consumption.
Investment.
Foreign Sector.
Properties of the IS Curve.
Money Demand Function.
Money Market Equilibrium.
Properties of the LM Curve.
Equilibrium Adjustments.
IS Curve.
LM Curve.
Fiscal Policy.
Monetary Policy.
Special Cases.
Exchange Rates.
Monetary Policy in an Open Economy.
Fiscal Policy in an Open Economy.
Total Demand Curve.
Total Supply Curve.
Keynesian Supply Curve.
Long-run or Classical Supply Curve.
Some More Reasons Why Prices are Sticky.
A Policy Expansion: Step by Step.
Price Adjustment Function.
Phillips Curve.
Expectations of Inflation.
Augmented Price Adjustment Equation.
Summary.
New Classical Macroeconomics.
Monetary Growth.
Excess Demand.
Relative Price Shocks.
Wage Price Spiral.
Inflation Expectations.
Fractional Reserve Banking.
The Money Multiplier.
Open Market Operations.
Discount Rate.
Reserve Requirements.
Fiscal Policy Activism: s and s.
Policy Lags.
Measuring Fiscal Policy.
