How Economies and Institutions Evolve from Island Villages to Modern Macroeconomies: Thinking about Macroeconomics and Society's Decisions

Outline and Chapters

Table of Contents

  • Chapter 0 - Preface

  • Chapter 1 - Introduction

    • The Island Setup

    • Fundamental Decisions​ of Who Does What and Who Gets What

    • Historical Solutions: monarchies, communism, and freedom

  • Chapter 2 - Allocating Resources and the Distribution of Income

    • The fundamental constraint is time​

    • Allocating our labor

    • Marginal Productivity, Wages, and Productivity

  • Chapter 3 - Economic Growth 1 - The Division and Specialization of Labor

  • Chapter 4 - Growing Pains 1: The Role of Transaction Costs

    • Transaction Costs - Coase, Williams, North and how to think our social institutions are shaped

    • Transaction Costs and a Minimal Umpire State

    • Transaction Costs and The Birth of Money

  • Chapter 6 - Markets, Prices and the Distribution of Income

  • Chapter 7 - Intertemporal Choices 1: Investment, Savings, and Basic Financial Markets

    • Savings and the Desire to Smooth Consumption​

    • Investment Decisions

    • The Fundamental Role of Financial Markets

  • Chapter 8 - Economic Growth 2 - The Solow Model and New Growth Theories

  • Chapter 9 - Growing Pains 2: Bigger Government

    • Transaction Costs, Government and Money

      • How much money should the government print? An Introduction to the Quantity of Money​

    • Banks and Government Money Management​​

    • Taxes, Budgets and Paying for Government

  • Chapter 10​ - Aggregate Shocks: Can All Our Islanders Smooth Consumption and Weather Storms at Once?

    • Savings, Investment and Aggregate Constraints

    • Aggregate Shocks and Government Efforts

      • Social Insurance and Automatic Fiscal Stabilizers

      • Fiscal Stimulus and Multipliers

      • Monetary Policy

    • In the Long Run We're All Dead and Money is Neutral​

      • Concepts of the natural rate of unemployment, potential GDP and money neutrality​

  • Chapter 11 - The Open Economy and Easing our Closed Economy Constraints​

    • Savings and Investment again​

    • Smoothing Aggregate (Domestic) Consumption and Weathering Aggregate Shocks​

Standard Macro Topics

Aggregate Demand - Aggregate Supply Analysis

Money Markets, Interest Rates and Monetary Policy