Содержание
- 2. "The study of economics does not seem to require any specialized gifts of an unusually high
- 3. Go ahead then! Do you have any doubts in your capabilities?
- 4. Lecture 1 Introduction to Macroeconomics The Subject Matter of Macroeconomics The History of Macroeconomics Key Macroeconomic
- 5. Macroeconomics is the branch of economics. Economics is a discipline which studies how scarce economic resources
- 6. In translation from Greek «micro» means «small», «macro» – «large»; аnd «ecоnоmics» – «housekeeping» For the
- 7. Macroeconomics and Microeconomics Macroeconomics analyzes the economy as a whole; studies aggregate economic behavior, i.e. the
- 8. Macroeconomics versus Microeconomics
- 9. Using Microeconomics in Macroeconomics Macroeconomics is based on microeconomics (has microeconomic foundations), because macroeconomic events are
- 10. Macroeconomics as a Special Discipline But … despite both disciplines use the same variables, macroeconomic variables
- 11. The founder of macroeconomics as a special part of economics was a prominent British economist, lord
- 12. The ХVIII century – beginning of the ХХ century – classical school in economic theory. David
- 13. Classical Economists: the Gallery
- 14. Economy consists of two separate sectors: the real sector and the money sector ⇒ real variables
- 15. The main economic problem is the scarcity of resources, which hence are fully used, and the
- 16. But up to the ХХ century macroeconomics didn’t exist as a separate discipline. Three events had
- 17. «Keynesian Revolution» In 1936 a prominent British economist, lord John Maynard Keynes published a book «General
- 18. The real sector and the money sector are related to each other ⇒ money affect real
- 19. The central point of Keynes’ theory: the market economy does not guarantee the economy’s stability, and,
- 20. Monetarism (Milton Friedman, Edmund Phelps ) - the market economy is a self-correcting system and is
- 21. Schools Alternative to Keynesian Approach: the Gallery Monetarism Real Business Cycle Theory Supply-side Economics New Classical
- 22. Development of Macroeconomics Macroeconomics as a science is permanently developing ⇒ changes concern both the sense
- 23. The diversity of approaches to the explanation of macroeconomic events and especially problems of macroeconomic policy
- 24. ? ? ? ? ? ? ? Why do incomes grow? Would our children live better
- 25. Questions Macroeconomists Try to Answer ? ? ? ? ? ? Why interest rates fluctuate? What
- 26. Overall output - long-run changes – economic growth - short run fluctuations – business cycle Unemployment
- 27. Why to Learn Macroeconomics? Macroeconomists are concerned with issues important: for economic health of every nation;
- 28. Macroeconomic theory reveals and explores the regularities of macroeconomic processes and events; aims to explain macroeconomic
- 29. Principles of Macroeconomic Analysis Macroeconomics is the social science and the controlled experiment is impossible. Besides,
- 30. Exogenous The value of endogenous variable depends and is determined by the value of exogenous variables.
- 31. Frequently, the endogenous variable is presented as depending upon only one exogenous variable, with the assumption
- 32. Types of Relationship between Variables An economic model specifies whether the dependent and independent variables are
- 33. Modeled behavior can be presented by a function, an equation, a table and/or a graph. Graphs
- 34. Importance of Using Graphs A graph is a way of: visual presentation of the relationship and
- 35. Types of Visual Data Presentation Pie Diagram Bar Diagram Time Series Graph Scatter Graph Consumption spending
- 36. Intuitive analysis assumes the study and the explanation of the mechanism of macroeconomic phenomena, the construction
- 37. where y – an endogenous (dependent) variable, which is plotted on one of the axes of
- 38. Algebraic and Graphical Analysis: Correlation signs «+» or «–» characterize the type of the relationship between
- 39. Positive and Normative Economics Positive Economic Theory is the objective or scientific attempt to describe and
- 40. This is the basic economic model. It describes the ubiquitous relationship between buyers (demanders of goods
- 41. B When there is the disequilibrium, and the price is equal either to P1 that is
- 42. Market clearing is an alignment process whereby decisions between suppliers and demanders reach an equilibrium. When
- 43. Prices: Flexible versus Sticky Economists typically assume that the market will go into an equilibrium of
- 44. Long-run and Short-run Analysis Long-run issues are analyzed under the assumption of flexible prices (market clearing).
- 45. Long-run Growth versus Business Cycle Aggregate Output Time (years) Economic Growth (potential output) Business Cycle (actual
- 46. Types of Economic Resources The amount of output that can be produced in the economy is
- 47. Time Intervals in Macroeconomics Olivier Blanchard in his textbook distinguishes three time periods: According to these
- 48. The main principle of macroeconomic analysis is aggregation. Aggregation means putting all the units together. Aggregation
- 49. Macroeconomic Agents Households the owners of economic resources (suppliers of factors of production); the earners of
- 50. Macroeconomic Agents Government the producer of public goods; the consumer of the part of aggregate output
- 51. Macroeconomic Agents Foreign sector interacts with the national economy through two channels: international trade exchange of
- 52. Equilibrium price (PE) Macroeconomic Markets Equilibrium quantity (QE) E Goods (or product) market Resource (or factor)
- 53. Model of Circular Flows We begin with the simple or private or two-sector model, consisting of
- 54. Simple (Private Sector) Diagram of Circular Flows Goods Market Households Firms Flow of money Flow of
- 55. Private Sector Model of Circular Flows Goods flow from firms to households through the goods (product)
- 56. Private Sector Diagram of Circular Flows with Financial Market Goods Market (Y) Households Firms Resource Market
- 57. a deposit in a bank, or a purchase of a security (an equity or a bond),
- 58. Expenditures are now divided into two parts: - consumption spending of households (C); - investment spending
- 59. Injection is something that increases the flow of spending and leads to the increase in output
- 60. The Role of the Government Adding government to our analysis, we get a three-sector model. The
- 61. Diagram of Circular Flows with Government (Mixed Closed Economy) Goods Market (Y) Households Firms Resource Market
- 62. The Three-Sector Model of the Economy Now the sum of aggregate expenditures consists of three elements:
- 63. Taxes represent the revenues of the government. Government purchases of goods and services and transfers are
- 64. Diagram of Circular Flows with Government and with Foreign Sector (open economy) Goods Market (Y) Households
- 65. The Role of the Foreign Sector Now aggregate product Y ≡ C + I + G
- 66. Net foreign investment = the purchase of foreign assets by domestic residents – the purchase of
- 67. In the open economy the expenditure-income identity is C + I + G + (Ex –
- 68. From the injections-leakages identity we can also get uses-of-private-saving identity: S ≡ I + (G +
- 69. Stock and Flow Variables A flow is an economic magnitude measured per a given period of
- 70. FLOW STOCK STOCK FLOW
- 71. P Y LRAS SRAS SRAS AD The Image of the Macroeconomic System External Factors Objectives Instruments
- 72. The Macroeconomic System It is a market economy which is influenced by external (exogenous) factors: natural
- 73. Macroeconomic Policy Economic Growth Policy Stabilization Policy is aimed to stimulate economic growth in the long
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