TITLE : MACROECONOMICS AND MONETARY THEORY.*

 
PART I MACROECONOMICS
 
1. Introductign: Macroeconomics and Monetary Theory 1
2. The Keynesian income-expenditure model 5
3. Applications of the Keynesian model to economic policy 15
4. The consumption function 23
5. Investment, business cycles and growth 37
 
PART II THE DEMAND FOR MONEY
 
6. Major issues in monetary economics 55
7. Classical quantity theory 59
8. Keynesian monetary theory: fundamentals of the portfolio approach
63
9. Integration of the transactions demand for cash and portfolio
   approackes to the demand for money 75
10. Liquidity preference and risk aversion 81
11. The term structure of interest rates 86
12. Financial intermediaries 93
13. Friedman's restatement of the Quantity theory 94
 
PART III INTEGRATION OF MONETARY AND VALUE THEORY
 
14. The real balance effect 99
Appendix: An aside on counting variables and equations in
systems of simultaneous equations (from Carl F. Christ's lectures at
Chicago, 1959) 105
 
15. The real balance effect: further development. 108
 
PART IV EMPIRICAL WORK IN MONETARY ECONOMICS
 
16. The demand for money: estimation of structural equations 121
17. Keynesian theory versus the Quantity theory: reduced form
                                                 estimation 129
 
PART V SOME MAJOR POLICY ISSUES
 
18. Theory of the supply of money 135
Appendix: Stylised 'liquidity ratio' model of the determination of the
British money supply 145
 
19. The theory of inflation
Appendix: The Phillips curve and price expectations (based on
J. Tobin in Inflation: its causes and consequences, New York
University, 1968, pp, 48-54) 162
 
20. Money in growth models 164
 
21. International monetary theory 176
 
APPENDIX
 
Aggregate Demand and Supply relationships in a simple Keynesian model
by Marcus H. Miller 185
 
Reading list 198
 
Review problems 211