TABLE OF CONTENTS
Part I: A Brief Economic History of the Twentieth Century
Chapter 1: Introduction
Chapter 2: Economic Growth in the Twentieth Century
The Measure of Overall Production
The Causes of Economic Growth
The Productivity Problem and Its Effects
Chapter 3: The Business Cycle in the Twentieth Century
The Story of Twentieth Century Recessions
Measures of Unemployment
Types of Unemployment
Why Unemployment is a Social Problem
Chapter 4: Inflation in the Twentieth Century
Measures of Inflation
Types of Inflation
Why Inflation is a Social Problem
Part II: The Tools of Analysis
Chapter 5: Production Possibilities
Chapter 6: Demand and Supply
Chapter 7: Equilibrium
Changes in Equilibrium
Case: The Stock Market
Chapter 8: Foreign Exchange Markets
Chapter 9: Price Ceilings and Price Floors
Chapter 10: The Aggregate Demand – Aggregate Supply Model
Cases Illustrating Some of the Events of the Twentieth Century in
Terms of the Aggregate Demand – Aggregate Supply Model
Chapter 11: The Circular Flow Model
Part III: Background to the Modern Period 1900-1945
Chapter 12: 1900 to 1929
The Economic Record
The Classical Theory: Say’s Law
The Quantity Theory of Money
The Gold Standard
Chapter 13: The Great Depression 1929 - 1941
Description of the Period
Causes
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Part IV: The Keynesian Revolution 1945 – 1970
Chapter 14: Basic Keynesian Economics
Argument Against the Conclusions of the Classical Economists
Equilibrium Real GDP
Recessionary and Inflationary Gaps
Multipliers
Chapter 15: Explanations of Consumer Spending
Chapter 16: Explanations of Business Investment Spending
Chapter 17: Government Spending
Case: The Social Security System
Chapter 18: The Tax System
Chapter 19: Fiscal Policy
Case: The 1964 Tax Decrease
Effects of Budget Deficits
The National Debt
Chapter 20: The Bretton Woods System
Part V: The Rise of Monetarism and Supply-side Economics 1970 – 1990
Chapter 21: Main Events of the Period
The Economic Record of the Period
The Phillips Curve and Its Shifts
The End of the Bretton Woods System
The Oil Shocks
Wage and Price Controls
Chapter 22: Money
What Comprises the Money Supply
The Federal Reserve System
The Creation of Money and the Money Multiplier
The Tools of Monetary Policy
Chapter 23: The Basic Theory of Monetarism
The Demand for Money
The Determination of Interest Rates
The Transmission Mechanism
The Ineffectiveness of Fiscal Policy
The Job Search Model
Adaptive Expectations vs. Rational Expectations
The Constant Money Growth Rule
Chapter 24: Monetarism – Continued
How Monetarists Would Explain the Economic Events
The Differences Between Monetarist and Keynesian Economists
Monetarism Today
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Chapter 25: Fiscal Policy and the Rise of Supply-side Economics
The Basic Argument of Supply-side Economics
The Laffer Curve
The Reagan Tax Changes of 1981 and 1986
The Debate Over a Constitutional Amendment to Require a
Balanced Federal Budget
Chapter 26: International Economic Relations of 1970-1990
The Growth of International Trade
Arguments About the Benefits of International Trade
The Trade Deficits and Their Effects
The International Financial System After Bretton Woods
The Growth of Foreign Direct Investment
Part VI: The Most Recent Period 1990 – 2000
Chapter 27: The American Economy in the 1990s
The Economic Record
Fiscal Policies
Monetary Policy
International Economic Relations
The “New Macroeconomy”
The Economic Consequences of Terrorism
Chapter 28: The World Economy at the End of the 20th Century
Economic Integration
International Financial Crises
The Rich and the Poor Nations – Divergence or Convergence?
A Sustainable Economy