Macroeconomics: theory and policy

Table of content

Part I Introduction

1 Introduction to Macroeconomics

2 Circular Flow Model of the Economy

3 National Income Accounting

Part II Product Market Analysis: Theory of National Income Determination

4 The Classical Theory of Output and Employment

5 Keynesian Theory of Income Determination: Simple Economy Model

6 Change in Aggregate Demand and Investment Multiplier

7 Theory of Income Determination in Closed Economy Model: A Model with Government Sector

8 Income Determination in Open Economy: the Four-Sector Model

Part III Theories of Consumption and Investment

9 Theories of Aggregate Consumption

10 Theory of Investment and Capital Accumulation

Part IV Money Market Analysis

11 Money: Definition, Functions and Importance

12 The Supply of Money

13 The Classical Theory of Money Demand and Interest Determination

14 The Keynesian Theory of Money Demand and Interest

15 The Post-Keynesian Theories of Money Demand

Part V Integration of Product and Money Markets: The IS-LM Model

16 The IS-LM Model: The Simple Economy Model

17 The IS-LM Model with Government Sector: The Three-Sector Model

18 IS-LM Model with Foreign Sector

19 Synthesis of Classical and Keynesian Approach to General Economic Equilibrium

20 Post-Keynesian Macroeconomics Part VI Economic Growth and Business Cycles

21 Theories of Economic Growth

22 Business Cycle Theories and Global Recession

Part VII Dynamics of Inflation and Unemployment

23 Inflation: Meaning, Measure and Effects

24 Theories of Inflation and Control Measures

25 Inflation and Unemployment

Part VIII International Aspects of Macroeconomics

26 Foreign Exchange Rate

27 Balance of Payments: Meaning and Assessment

28 Balance of Payments Disequilibrium and Adjustments

Part IX Macroeconomic policies: Monetary and Fiscal Policies

29 Macroeconomic Policies: Meaning, Objectives and Formulation

30 Monetary Policy

31 Fiscal Policy

32 Demonetisation and Implementation of Goods and Services Tax (GST)

It gives us immense pleasure to present the fifth edition of Macroeconomics. This edition meets the curriculum requirements to broaden each student's perspective and provides macroeconomic analysis its greatest breadth. It continues to offer a comprehensive explanation of various theories formulated at different stages of the growth of macroeconomics—classical, Keynesian and post-Keynesian. A succinct methodology is applied throughout to present the subject matter of macroeconomics.