Contents -- Preface -- 1 Who is who in macroeconomics? -- 1 Short questions -- 2 The Cobb-Douglas production function -- 3 The AS-AD model -- 4 Consumption tax -- 5 Tax incidence -- 6 The Keynesian cross model -- 7 The import leakage -- 8 The liquidity trap -- 9 The IS-LM-AS model with inflation -- 2 Dynamics in aggregate demand and supply -- 1 Short questions -- 2 The Keynesian cross model (continued) -- 3 The IS-LM model with capital accumulation -- 4 Stability of the IS-LM model -- 5 The Blinder-Solow model -- 6 Ricardian equivalence in the Blinder-Solow model -- 7 The Blinder-Solow model with capital accumulation -- 8 Adaptive expectations in a monetarist model -- 9 More on adaptive expectations -- 10 Optimization and computation -- 11 The multiplier-accelerator model -- 3 Rational expectations and economic policy -- 1 Short questions -- 2 Stabilization of demand shocks -- 3 Overlapping wage contracts and the REH -- 4 A variation on the Muth model -- 5 Expectational difference equations -- 6 The Cagan model -- 7 Fiscal policy under rational expectations -- 8 The labour market -- 9 Liquidity trap -- 10 PIP meets the Pigou effect -- 11 PIP and the output gap -- 12 Contemporaneous information -- 13 Sticky prices -- 14 Automatic stabilizer -- 4 Anticipation effects and economic policy -- 1 Short questions -- 2 The IS-LM model with sticky prices -- 3 Leaning against the wind -- 4 The term structure of interest rates -- 5 Fiscal policy with fixed nominal wages and perfect foresight -- 5 The government budget deficit -- 1 Short questions -- 2 Tax smoothing -- 3 The two-period model with tax smoothing -- 4 Ricardian equivalence -- 5 Ricardian equivalence in the two-period model -- 6 A closer look at the labour market -- 1 Short questions -- 2 Two-sector model with a skill-biased productivity shock -- 3 Progressive taxation -- 4 Indivisible labour.

5 Efficiency wages -- 7 Trade unions and the labour market -- 1 Short questions -- 2 Small talk -- 3 The Blanchard-Summers model -- 4 Variable unemployment benefits -- 5 The two-sector labour market model -- 8 Search in the labour market -- 1 Short questions -- 2 Search unemployment -- 3 A CES matching function -- 4 Downward real wage rigidity -- 5 Dynamics of unemployment and vacancies -- 9 Macroeconomic policy, credibility, and politics -- 1 Short questions -- 2 Capital taxation and income inequality -- 3 Choice of policy instrument -- 4 Rules versus discretion -- 5 Political business cycles -- 10 The open economy -- 1 Short questions -- 2 The Mundell-Fleming model -- 3 The Dornbusch model -- 4 The Buiter-Miller model -- 5 Dynamics of foreign reserves -- 6 Price flexibility in the Mundell-Fleming model -- 11 Money -- 1 Short questions -- 2 Optimal money growth -- 3 Monetary superneutrality -- 4 Cash-in-advance constraint in continuous time -- 5 Cash-in-advance with labour supply -- 12 New Keynesian economics -- 1 Short questions -- 2 Cost function for a Dixit-Stiglitz technology -- 3 The multiplier when taxes are distortionary -- 4 Consumers in the New Keynesian model -- 5 Producers in the New Keynesian model -- 6 Monetary policy in the New Keynesian model -- 13 Exogenous economic growth -- 1 Short questions -- 2 The Harrod-Domar model -- 3 The production function -- 4 The wage-rental ratio -- 5 The Solow-Swan model -- 6 The Pasinetti model -- 7 The Solow-Swan model with population growth -- 8 Some mathematics -- 9 Optimal investment -- 10 Welfare of future generations -- 11 The savings function -- 12 The savings ratio in the Ramsey model -- 13 Technological change -- 14 Constant marginal utility -- 15 Intertemporal substitution -- 14 Endogenous economic growth -- 1 Short questions -- 2 Endogenous growth.

3 Minimum consumption and endogenous growth -- 4 Asymptotic endogenous growth -- 5 External effect and endogenous growth -- 6 Asymptotic capital fundamentalist model -- 15 Real business cycles -- 1 Short questions -- 2 Small open economy model -- 3 The non-market sector -- 4 A general RBC model -- 5 Government spending shocks in the unit-elastic model -- 6 No wealth effect in labour supply -- 16 Overlapping generations in continuous time -- 1 Short questions -- 2 The Buiter model -- 3 Endogenous growth -- 4 The Blanchard - Yaari model without insurance -- 5 Technological change -- 6 Mandatory retirement -- 7 Public infrastructure -- 17 Overlapping generations in discrete time -- 1 Short questions -- 2 Capital fundamentalism in an OLG model -- 3 Welfare effects of debt -- 4 Lifetime uncertainty in a two-period model -- 5 Pensions in the Diamond-Samuelson model -- 6 Consumption taxation and redistribution -- Bibliography.