Key principles of macroeconomics

.

Chapter 2 in Development Macroeconomics, 2020, pp 41-87 from Edward Elgar Publishing

Abstract: Taking one step back after the introduction of the development economics debates in Chapter 1, this chapter explains the main mechanisms of macroeconomics. There is a section for each of the respective issues of endogenous money, the monetary circuit, the economy of production including uncertainty and effective demand, and the profit rate. It is also shown that these issues are neglected by neoclassical theory despite their fundamental importance. The principles, based on both post-Keynesian and classical elements, are the cornerstones of the framework to which this book sticks. Their introduction is necessary to understand the essential macroeconomic dynamics. To demonstrate them, the chapter presents the basic version of the stock-flow consistent (SFC) model that will be used throughout the book. The model shows the various macroeconomic effects triggered by a simple change in the interest rate level.

Keywords: Development Studies; Economics and Finance (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://www.elgaronline.com/view/9781800371118.00007.xml (application/pdf)
Our link check indicates that this URL is bad, the error code is: 503 Service Temporarily Unavailable

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:elg:eechap:19972_2

Ordering information: This item can be ordered from
http://www.e-elgar.com

Access Statistics for this chapter

More chapters in Chapters from Edward Elgar Publishing
Bibliographic data for series maintained by Darrel McCalla ().