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Macroeconomics
Macroeconomics is a branch of economics that deals
with the performance, structure, behavior, and decisionmaking of an economy as a whole—for example, using
interest rates, taxes, and government spending to regulate
an economy's growth and stability.[1] This includes
regional, national, and global economies.[2][3]
Macroeconomists study topics such as GDP (Gross
Domestic
Product),
unemployment
(including
unemployment rates), national income, price indices,
output, consumption, inflation, saving, investment, energy,
international trade, and international finance.
Macroeconomics and microeconomics are the two most
general fields in economics.[4] The United Nations
Sustainable Development Goal 17 has a target to enhance
global macroeconomic stability through policy coordination
and coherence as part of the 2030 Agenda.[5]
According to a 2018 assessment by economists Emi
Nakamura and Jón Steinsson, economic "evidence
regarding the consequences of different macroeconomic
policies is still highly imperfect and open to serious
criticism."[6]
(Production and national income)
Macroeconomics takes a big-picture view
of the entire economy, including
examining the roles of, and relationships
between, corporations, governments and
households, and the different types of
markets, such as the financial market
and the labour market. However, the use
of natural resources and the generation
of waste (like greenhouse gases) are
often excluded in its models.
Development
Origins
Macroeconomics descended from the once divided fields of business cycle theory and monetary
theory.[7] The quantity theory of money was particularly influential prior to World War II. It took
many forms, including the version based on the work of Irving Fisher:
In the typical view of the quantity theory, money velocity (V) and the quantity of goods produced
(Q) would be constant, so any increase in money supply (M) would lead to a direct increase in price
level (P). The quantity theory of money was a central part of the classical theory of the economy
that prevailed in the early twentieth century.
Austrian School
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Ludwig von Mises's work Theory of Money and Credit, published in 1912, was one of the first
books from the Austrian School to deal with macroeconomic topics.
Keynes and his followers
Macroeconomics, at least in its modern form,[8] began with the publication of General Theory of
Employment, Interest and Money[7][9] written by John Maynard Keynes. When the Great
Depression struck, classical economists had difficulty explaining how goods could go unsold and
workers could be left unemployed. In classical theory, prices and wages would drop until the
market cleared, and all goods and labor were sold. Keynes offered a new theory of economics that
explained why markets might not clear, which would evolve (later in the 20th century) into a group
of macroeconomic schools of thought known as Keynesian economics – also called Keynesianism
or Keynesian theory.
In Keynes' theory, the quantity theory broke down because people and businesses tend to hold on
to their cash in tough economic times – a phenomenon he described in terms of liquidity
preferences. Keynes also explained how the multiplier effect would magnify a small decrease in
consumption or investment and cause declines throughout the economy. Keynes also noted the
role uncertainty and animal spirits can play in the economy.[8]
The generation following Keynes combined the macroeconomics of the General Theory with
neoclassical microeconomics to create the neoclassical synthesis. By the 1950s, most economists
had accepted the synthesis view of the macroeconomy.[8] Economists like Paul Samuelson, Franco
Modigliani, James Tobin, and Robert Solow developed formal Keynesian models and contributed
formal theories of consumption, investment, and money demand that fleshed out the Keynesian
framework.[10]
Monetarism
Milton Friedman updated the quantity theory of money to include a role for money demand. He
argued that the role of money in the economy was sufficient to explain the Great Depression, and
that aggregate demand oriented explanations were not necessary. Friedman also argued that
monetary policy was more effective than fiscal policy; however, Friedman doubted the
government's ability to "fine-tune" the economy with monetary policy. He generally favored a
policy of steady growth in money supply instead of frequent intervention.[11]
Friedman also challenged the Phillips curve relationship between inflation and unemployment.
Friedman and Edmund Phelps (who was not a monetarist) proposed an "augmented" version of
the Phillips curve that excluded the possibility of a stable, long-run tradeoff between inflation and
unemployment.[12] When the oil shocks of the 1970s created a high unemployment and high
inflation, Friedman and Phelps were vindicated. Monetarism was particularly influential in the
early 1980s. Monetarism fell out of favor when central banks found it difficult to target money
supply instead of interest rates as monetarists recommended. Monetarism also became politically
unpopular when the central banks created recessions in order to slow inflation.
New classical
New classical macroeconomics further challenged the Keynesian school. A central development in
new classical thought came when Robert Lucas introduced rational expectations to
macroeconomics. Prior to Lucas, economists had generally used adaptive expectations where
agents were assumed to look at the recent past to make expectations about the future. Under
rational expectations, agents are assumed to be more sophisticated. A consumer will not simply
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assume a 2% inflation rate just because that has been the average the past few years; they will look
at current monetary policy and economic conditions to make an informed forecast. When new
classical economists introduced rational expectations into their models, they showed that
monetary policy could only have a limited impact.
Lucas also made an influential critique of Keynesian empirical models. He argued that forecasting
models based on empirical relationships would keep producing the same predictions even as the
underlying model generating the data changed. He advocated models based on fundamental
economic theory that would, in principle, be structurally accurate as economies changed. Following
Lucas's critique, new classical economists, led by Edward C. Prescott and Finn E. Kydland, created
real business cycle (RB C) models of the macro economy.[13]
RB C models were created by combining fundamental equations from neo-classical
microeconomics. In order to generate macroeconomic fluctuations, RB C models explained
recessions and unemployment with changes in technology instead of changes in the markets for
goods or money. Critics of RB C models argue that money clearly plays an important role in the
economy, and the idea that technological regress can explain recent recessions is implausible.[13]
However, technological shocks are only the more prominent of a myriad of possible shocks to the
system that can be modeled. Despite questions about the theory behind RB C models, they have
clearly been influential in economic methodology.[14]
New Keynesian response
New Keynesian economists responded to the new classical school by adopting rational expectations
and focusing on developing micro-founded models that are immune to the Lucas critique. Stanley
Fischer and John B. Taylor produced early work in this area by showing that monetary policy could
be effective even in models with rational expectations when contracts locked in wages for workers.
Other new Keynesian economists, including Olivier Blanchard, Julio Rotemberg, Greg Mankiw,
David Romer, and Michael Woodford, expanded on this work and demonstrated other cases where
inflexible prices and wages led to monetary and fiscal policy having real effects.
Like classical models, new classical models had assumed that prices would be able to adjust
perfectly and monetary policy would only lead to price changes. New Keynesian models
investigated sources of sticky prices and wages due to imperfect competition,[15] which would not
adjust, allowing monetary policy to impact quantities instead of prices.
By the late 1990s, economists had reached a rough consensus. The nominal rigidity of new
Keynesian theory was combined with rational expectations and the RBC methodology to produce
dynamic stochastic general equilibrium (DSGE) models. The fusion of elements from different
schools of thought has been dubbed the new neoclassical synthesis. These models are now used by
many central banks and are a core part of contemporary macroeconomics.[16]
New Keynesian economics, which developed partly in response to new classical economics, strives
to provide microeconomic foundations to Keynesian economics by showing how imperfect markets
can justify demand management.
Macroeconomic models
Aggregate demand–aggregate supply
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The AD-AS model has become the standard textbook model for
explaining the macroeconomy.[17] This model shows the price
level and level of real output given the equilibrium in aggregate
demand and aggregate supply. The aggregate demand curve's
downward slope means that more output is demanded at lower
price levels.[18] The downward slope is the result of three
effects: the Pigou or real balance effect, which states that as real
prices fall, real wealth increases, resulting in higher consumer
demand of goods; the Keynes or interest rate effect, which
states that as prices fall, the demand for money decreases,
causing interest rates to decline and borrowing for investment
and consumption to increase; and the net export effect, which
states that as prices rise, domestic goods become comparatively
more expensive to foreign consumers, leading to a decline in
exports.[18]
A traditional AS–AD diagram
showing shift in AD and the AS
curve becoming inelastic beyond
potential output
In the conventional Keynesian use of the AS-AD model, the aggregate supply curve is horizontal at
low levels of output and becomes inelastic near the point of potential output, which corresponds
with full employment.[17] Since the economy cannot produce beyond the potential output, any AD
expansion will lead to higher price levels instead of higher output.
The AD–AS diagram can model a variety of macroeconomic phenomena, including inflation.
Changes in the non-price level factors or determinants cause changes in aggregate demand and
shifts of the entire aggregate demand (AD) curve. When demand for goods exceeds supply, there is
an inflationary gap where demand-pull inflation occurs and the AD curve shifts upward to a higher
price level. When the economy faces higher costs, cost-push inflation occurs and the AS curve
shifts upward to higher price levels.[19] The AS–AD diagram is also widely used as an instructive
tool to model the effects of various macroeconomic policies.[20]
Macro economics also deals with study of GDP(gross domestic product)employment, inflation.
IS-LM
The IS–LM model gives the underpinnings of aggregate
demand (itself discussed above). It answers the question "At
any given price level, what is the quantity of goods demanded?".
This model shows what combination of interest rates and
output will ensure equilibrium in both the goods and money
markets.[21] The goods market is modeled as giving equality
between investment and public and private saving (IS), and the
money market is modeled as giving equilibrium between the
money supply and liquidity preference.[22]
The IS curve consists of the points (combinations of income and
interest rate) where investment, given the interest rate, is equal
to public and private saving, given output[23] The IS curve is
downward sloping because output and the interest rate have an
inverse relationship in the goods market: as output increases,
more income is saved, which means interest rates must be
lower to spur enough investment to match saving.[23]
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In this example of an IS/LM chart,
the IS curve moves to the right,
causing higher interest rates (i) and
expansion in the "real" economy
(real GDP, or Y).
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The LM curve is upward sloping because the interest rate and output have a positive relationship in
the money market: as income (identically equal to output) increases, the demand for money
increases, resulting in a rise in the interest rate in order to just offset the incipient rise in money
demand.[24]
The IS-LM model is often used to demonstrate the effects of monetary and fiscal policy.[21]
Textbooks frequently use the IS-LM model, but it does not feature the complexities of most
modern macroeconomic models.[21] Nevertheless, these models still feature similar relationships
to those in IS-LM.[21]
Growth models
The neoclassical growth model of Robert Solow has become a common textbook model for
explaining economic growth in the long-run.[25] The model begins with a production function
where national output is the product of two inputs: capital and labor. The Solow model assumes
that labor and capital are used at constant rates without the fluctuations in unemployment and
capital utilization commonly seen in business cycles.[26]
An increase in output, or economic growth, can only occur because of an increase in the capital
stock, a larger population, or technological advancements that lead to higher productivity (total
factor productivity). An increase in the savings rate leads to a temporary increase as the economy
creates more capital, which adds to output. However, eventually the depreciation rate will limit the
expansion of capital: savings will be used up replacing depreciated capital, and no savings will
remain to pay for an additional expansion in capital. Solow's model suggests that economic growth
in terms of output per capita depends solely on technological advances that enhance
productivity.[27]
In the 1980s and 1990s endogenous growth theory arose to challenge neoclassical growth theory.
This group of models explains economic growth through other factors, such as increasing returns
to scale for capital and learning-by-doing, that are endogenously determined instead of the
exogenous technological improvement used to explain growth in Solow's model.[28] The quantity
theory by Russian economist Vladimir Pokrovskii explains growth as a consequence of the
dynamics of three factors, among them capital service as one of independent production factors in
line with labour and capital.[29] Capital service as production factor was interpreted by Ayres and
Warr as useful work of production equipment, which makes it possible to reproduce historical rates
of economic growth with considerable precision [29].[30] [31] and without recourse to exogenous
and unexplained technological progress, thereby overcoming the major flaw of the Solow theory of
economic growth.
Humanity's economic system as a subsystem of the global environment
In the macroeconomic models in ecological economics, the economic system is a subsystem of the
environment. In this model, the circular flow of income diagram is replaced in ecological
economics by a more complex flow diagram reflecting the input of solar energy, which sustains
natural inputs and environmental services which are then used as units of production. Once
consumed, natural inputs pass out of the economy as pollution and waste. The potential of an
environment to provide services and materials is referred to as an "environment's source function",
and this function is depleted as resources are consumed or pollution contaminates the resources.
The "sink function" describes an environment's ability to absorb and render harmless waste and
pollution: when waste output exceeds the limit of the sink function, long-term damage occurs.[32]: 8
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Some persistent pollutants, such as some organic pollutants
and nuclear waste are absorbed very slowly or not at all;
ecological economists emphasize minimizing "cumulative
pollutants".[32]: 28 Pollutants affect human health and the
health of the ecosystem.
Basic macroeconomic concepts
Macroeconomics encompasses a variety of concepts and
variables, but there are three central topics for macroeconomic
research.[33] Macroeconomic theories usually relate the
phenomena of output, unemployment, and inflation. Outside of
macroeconomic theory, these topics are also important to all
economic agents including workers, consumers, and producers.
Natural resources flow through the
economy and end up as waste and
pollution.
Output and income
National output is the total amount of everything a country
produces in a given period of time. Everything that is produced
and sold generates an equal amount of income. The total output
of the economy is measured GDP per person. The output and
income are usually considered equivalent and the two terms are
often used interchangeably, output changes into income.
Output can be measured or it can be viewed from the
production side and measured as the total value of final goods
and services or the sum of all value added in the economy.[34]
Circulation in macroeconomics
Macroeconomic output is usually measured by gross domestic
product (GDP) or one of the other national accounts.
Economists interested in long-run increases in output, study economic growth. Advances in
technology, accumulation of machinery and other capital, and better education and human capital,
are all factors that lead to increase economic output over time. However, output does not always
increase consistently over time. Business cycles can cause short-term drops in output called
recessions. Economists look for macroeconomic policies that prevent economies from slipping into
recessions, and that lead to faster long-term growth.
Unemployment
The amount of unemployment in an economy is measured by the unemployment rate, i.e. the
percentage of workers without jobs in the labor force. The unemployment rate in the labor force
only includes workers actively looking for jobs. People who are retired, pursuing education, or
discouraged from seeking work by a lack of job prospects are excluded.
Unemployment can be generally broken down into several types that are related to different
causes.
Classical unemployment theory suggests that unemployment occurs when wages are too high
for employers to be willing to hire more workers.[35] Other more modern economic theories
suggest that increased wages actually decrease unemployment by creating more consumer
demand. According to these more recent theories, unemployment results from reduced
demand for the goods and services produced through labor and suggest that only in markets
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where profit margins are very low, and in which the market will
not bear a price increase of product or service, will higher
wages result in unemployment.
Consistent with classical unemployment theory, frictional
unemployment occurs when appropriate job vacancies exist for
a worker, but the length of time needed to search for and find
the job leads to a period of unemployment.[36]
Structural unemployment covers a variety of possible causes of
unemployment including a mismatch between workers' skills
A chart using US data showing the
and the skills required for open jobs.[37] Large amounts of
relationship between economic
structural unemployment commonly occur when an economy
growth and unemployment
shifts to focus on new industries and workers find their previous
expressed by Okun's law. The
set of skills are no longer in demand. Structural unemployment
is similar to frictional unemployment as both reflect the problem
relationship demonstrates cyclical
of matching workers with job vacancies, but structural
unemployment. Economic growth
unemployment also covers the time needed to acquire new
leads to a lower unemployment
skills in addition to the short-term search process.[38]
rate.
While some types of unemployment may occur regardless of
the condition of the economy, cyclical unemployment occurs
when growth stagnates. Okun's law represents the empirical relationship between
unemployment and economic growth.[39] The original version of Okun's law states that a 3%
increase in output would lead to a 1% decrease in unemployment.[40]
Inflation and deflation
A general price increase across the entire economy is called
inflation. When prices decrease, there is deflation. Economists
measure these changes in prices with price indexes. Inflation
can occur when an economy becomes overheated and grows too
quickly. Similarly, a declining economy can lead to deflation.
Central bankers, who manage a country's money supply, try to
avoid changes in price level by using monetary policy. Raising
interest rates or reducing the supply of money in an economy is
posited to reduce inflation. Inflation can lead to increased
uncertainty and other negative consequences. Deflation can
lower economic output. Central bankers try to stabilize prices to
protect economies from the negative consequences of price
changes.
Changes in the ten-year moving
averages of price level and growth
in money supply (using the
measure of M2, the supply of hard
currency and money held in most
types of bank accounts) in the US
from 1880 to 2016. Over the long
run, the two series show a close
relationship.
Changes in price level may be the result of several factors. The
quantity theory of money holds that changes in price level are
directly related to changes in the money supply. Most
economists believe that this relationship explains long-run
changes in the price level.[41] Short-run fluctuations may also be related to monetary factors, but
changes in aggregate demand and aggregate supply can also influence price level. For example, a
decrease in demand due to a recession can lead to lower price levels and deflation. A negative
supply shock, such as an oil crisis, lowers aggregate supply and can cause inflation.
Macroeconomic policy
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Macroeconomic policy is usually implemented through two sets of tools: fiscal and monetary
policy. Both forms of policy are used to stabilize the economy, which can mean boosting the
economy to the level of GDP consistent with full employment.[42] Macroeconomic policy focuses on
limiting the effects of the business cycle to achieve the economic goals of price stability, full
employment, and growth.[43]
According to a 2018 assessment by economists Emi Nakamura and Jón Steinsson, economic
"evidence regarding the consequences of different macroeconomic policies is still highly imperfect
and open to serious criticism."[6] Nakamura and Steinsson write that macroeconomics struggles
with long-term predictions, which is a result of the high complexity of the systems it studies.[6]
Monetary policy
Central banks implement monetary policy by controlling the money supply through several
mechanisms. Typically, central banks take action by issuing money to buy bonds (or other assets),
which boosts the supply of money and lowers interest rates, or, in the case of contractionary
monetary policy, banks sell bonds and take money out of circulation. Usually policy is not
implemented by directly targeting the supply of money.
Central banks continuously shift the money supply to maintain a targeted fixed interest rate. Some
of them allow the interest rate to fluctuate and focus on targeting inflation rates instead. Central
banks generally try to achieve high output without letting loose monetary policy that create large
amounts of inflation.
Conventional monetary policy can be ineffective in situations such as a liquidity trap. When
interest rates and inflation are near zero, the central bank cannot loosen monetary policy through
conventional means.
Central banks can use unconventional
monetary policy such as quantitative easing
to help increase output. Instead of buying
government bonds, central banks can
implement quantitative easing by buying not
only government bonds, but also other assets
such as corporate bonds, stocks, and other
securities. This allows lower interest rates for
a broader class of assets beyond government
bonds. In another example of unconventional
monetary policy, the United States Federal
Reserve recently made an attempt at such a
policy with Operation Twist. Unable to lower
current interest rates, the Federal Reserve
lowered long-term interest rates by buying
long-term bonds and selling short-term
bonds to create a flat yield curve.
An example of intervention strategy under different
conditions
'The difference between Macroeconomics and Microeconomics'
In addition, economists consider two areas. Macroeconomics in the broad sense is interested in the
operation of the economy as a whole. It investigates topics like employment, GDP, and inflation—
material for news articles and discussions of national policy. Small-scale microeconomics is
interested in the interactions between supply and demand in particular marketplaces for
commodities and services.
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The focus of macroeconomics is often on a country and how its markets interact to produce largescale phenomena that economists refer to as aggregate variables. A single market is the focus of
analysis in the field of microeconomics, such as whether changes in supply or demand are to blame
for price increases in the oil and automotive sectors. Macroeconomics frequently examines the role
that the government plays in promoting general economic growth or managing inflation, for
instance. Because trade, investment, and capital movements connect home markets to markets
abroad, macroeconomics frequently touches on the global scale. However, microeconomics can
also involve other countries. Single markets are sometimes not limited to a single nation; the world
market for oil is a prime example.
From introductory classes in "principles of economics" through doctoral studies, the macro/micro
divide is institutionalized in the field of economics. Most economists identify as either macro- or
micro-economists. Several new scholarly publications have just been launched by the American
Economic Association. The first is microeconomics. Another is named Macroeconomics, which is
apart from each other.
While Consumer demand theory, production theory (also known as the theory of the firm), and
related topics such as the nature of market competition, economic welfare, and the role of
imperfect information in economic outcomes are divided into microeconomics, which examines
the behavior of individual consumers and firms. At its most abstract level, general equilibrium,
which deals with multiple markets at once, is also a subset of microeconomics. Microeconomic
analysis makes up the majority of economic analysis. It is rich with principles that are applicable in
the real world and addresses topics like the impact of minimum wages, taxes, price supports, or
monopolies on certain markets. The field of commerce, industrial organization and market
structure, labor economics, public finance, and welfare economics are all areas in which it is used.
Microeconomic analysis sheds light on such varied endeavors as firm creation.
It is harder to understand macroeconomics. It describes the connections between large aggregates
that are difficult to comprehend, such the amount of national income, savings, and prices in
general. The study of long-term national economic growth, the analysis of short-term deviations
from equilibrium, and the creation of policies to stabilize the national economy—that is, to reduce
volatility in growth and prices—are the traditional divisions of this area. These measures can be
taken by the government through taxation and expenditure or by the central bank through
monetary policy.
Fiscal policy
Fiscal policy is the use of government's revenue and expenditure as instruments to influence the
economy. Examples of such tools are expenditure, taxes, debt.
For example, if the economy is producing less than potential output, government spending can be
used to employ idle resources and boost output. Government spending does not have to make up
for the entire output gap. There is a multiplier effect that boosts the impact of government
spending. For instance, when the government pays for a bridge, the project not only adds the value
of the bridge to output, but also allows the bridge workers to increase their consumption and
investment, which helps to close the output gap.
The effects of fiscal policy can be limited by crowding out. When the government takes on spending
projects, it limits the amount of resources available for the private sector to use. Crowding out
occurs when government spending simply replaces private sector output instead of adding
additional output to the economy. Crowding out also occurs when government spending raises
interest rates, which limits investment. Defenders of fiscal stimulus argue that crowding out is not
a concern when the economy is depressed, plenty of resources are left idle, and interest rates are
low.[44][45]
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Fiscal policy can be implemented through automatic stabilizers. Automatic stabilizers do not suffer
from the policy lags of discretionary fiscal policy. Automatic stabilizers use conventional fiscal
mechanisms but take effect as soon as the economy takes a downturn: spending on unemployment
benefits automatically increases when unemployment rises and, in a progressive income tax
system, the effective tax rate automatically falls when incomes decline.
Comparison
Economists usually favor monetary over fiscal policy because it has two major advantages. First,
monetary policy is generally implemented by independent central banks instead of the political
institutions that control fiscal policy. Independent central banks are less likely to make decisions
based on political motives.[42] Second, monetary policy suffers shorter inside lags and outside lags
than fiscal policy. Additionally, central banks are able to make quick decisions with rapid
implementation. Whereas fiscal policy will most likely move slowly through government
bureaucracy and take longer to fully implement into the economy.[42]
See also
Business and
economics portal
Business cycle accounting
Dynamic stochastic general equilibrium
Economic development
Growth accounting
Notes
1. Samuelson, Robert (2020), "Goodbye, readers, and good luck — you'll need it" (https://www.wa
shingtonpost.com/opinions/2020/09/13/robert-samuelson-goodbye-column/?arc404=true), The
Washington Post This article was an opinion piece expressing despondency in the field shortly
before his retirement, but it's still a good summary.
2. O'Sullivan, Arthur; Sheffrin, Steven M. (2003), Economics: Principles in Action, Upper Saddle
River, New Jersey 07458: Pearson Prentice Hall, p. 57, ISBN 978-0-13-063085-8
3. Steve Williamson, Notes on Macroeconomic Theory (http://www.econ.yale.edu/smith/econ510
a/notes99.pdf), 1999
4. Blaug, Mark (1985), Economic theory in retrospect, Cambridge: Cambridge University Press,
ISBN 978-0-521-31644-6
5. "Goal 17 | Department of Economic and Social Affairs" (https://sdgs.un.org/goals/goal17).
sdgs.un.org. Retrieved 2020-09-26.
6. Nakamura, Emi; Steinsson, Jón (2018). "Identification in Macroeconomics" (https://doi.org/10.1
257%2Fjep.32.3.59). Journal of Economic Perspectives. 32 (3): 59–86. doi:10.1257/jep.32.3.59
(https://doi.org/10.1257%2Fjep.32.3.59). ISSN 0895-3309 (https://www.worldcat.org/issn/08953309). S2CID 44180952 (https://api.semanticscholar.org/CorpusID:44180952).
7. Dimand (2008).
8. Blanchard (2011), 580.
9. Snowdon, Brian; Vane, Howard R. (2005). Modern Macroeconomics – Its origins, development
and current state. Edward Elgar. ISBN 1-84542-208-2.
10. Blanchard (2011), 581.
11. Blanchard (2011), 582–83.
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12. "Phillips Curve: The Concise Encyclopedia of Economics | Library of Economics and Liberty" (h
ttp://www.econlib.org/library/Enc/PhillipsCurve.html). www.econlib.org. Retrieved 2018-01-23.
13. Blanchard (2011), 587.
14. Kariappa Bheemaiah, The Blockchain Alternative: Rethinking Macroeconomic Policy and
Economic Theory (Dordrecht NL: Apress/Springer Nature, 2017), 169-70. ISBN 1484226747,
9781484226742
15. The role of imperfect competition in new Keynesian economics (http://huwdixon.org/SurfingEco
nomics/chapter4.pdf), Chapter 4 of Surfing Economics (http://huwdixon.org/SurfingEconomics/i
ndex.html) by Huw Dixon
16. Blanchard (2011), 590.
17. Healey 2002, p. 12.
18. Healey 2002, p. 13.
19. Healey 2002, p. 14.
20. Colander 1995, p. 173.
21. Durlauf & Hester 2008.
22. Peston 2002, pp. 386–87.
23. Peston 2002, p. 387.
24. Peston 2002, pp. 387–88.
25. Banton, Caroline. "The Neoclassical Growth Theory Explained" (https://www.investopedia.com/
terms/n/neoclassical-growth-theory.asp). Investopedia. Retrieved 2020-09-21.
26. Solow 2002, pp. 518–19.
27. Solow 2002, p. 519.
28. Blaug 2002, pp. 202–03.
29. Pokrovski, V.N. (2003). Energy in the theory of production. Energy 28, 769-788.
30. Pokrovski, V.N. (2007) Productive energy in the US economy, Energy 32 (5) 816-822.
31. Pokrovskii, Vladimir (2021). "Social resources in the theory of economic growth" (https://theco
mplexsystems.com/). The Complex Systems (3): 32–43.
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