Macroeconomics, which along with microeconomics forms one of the two most general fields of economics, deals with the entire economy—national, regional and global economy. As macroeconomics encompasses the performance, structure, behaviour, and decision making of the whole economy, it impinges on the lives of all the people in a country and the world in general. This comprehensive and well-organized text strives to dwell on the multidimensional aspects of macroeconomics in such a fashion that the concepts are explained with great precision and clarity.
The authors, Dr. Ambar Ghosh and Dr. Chandana Ghosh, with their expertise and their wealth of experience in teaching the subject, try to strike a balance in treatment of the subject. That is to say, the text is neither too heavily mathematical nor entirely bereft of mathematics—indeed, it gives the right mix of mathematics and theory.
The book discusses in detail Keynesian economics, which focuses on aggregate demand to explain levels of unemployment and the business cycle, as well as New Keynesian economics which is based on rational expectations and efficient markets. Under these two broad categories, the book covers such topics as national income accounting, aggregate demand and determination of GDP, and the IS-LM model. Besides, the text analyzes the Classical Theory dealing with aggregate supply, money market; the complete Keynesian model; and the consumption and investment functions. The book clearly explains and rejects new Classical and new Keynesian theories. The book concludes with a critique and rejection of modern theories of growth and the implications of growth for the economy.
Part I SUBSTANTIVE MACROECONOMICS
Chapter 1 Introduction
Chapter 2 National Income Accounting
Chapter 3 Aggregate Demand and Determination of GDP
Chapter 4 Financial Sector, Money Supply and Interest Rates
Chapter 5 IS-LM Model
Chapter 6 Classical Theory
Chapter 7 Complete Keynesian Model
Chapter 8 The Real Sector and the Financial Sector
Chapter 9 Consumption Function
Chapter 10 Investment Function: Keynesian Theory of Investment in Fixed Capital
Chapter 11 Demand for Money
Part II MACROECONOMICS GONE ASTRAY
Chapter 12 New Classical and New Keynesian Theories
Chapter 13 Modern Theories of Growth: A Critique