Chapter 1

The IS-LM Model

Derivation of the IS curve

medium • 1 min read

Derivation of the LM curve

medium • 2 min read

Equilibrium in the IS-LM model

medium • 3 min read

Fiscal and monetary policy multipliers

medium • 4 min read

Liquidity trap and policy effectiveness

medium • 5 min read

Chapter 2

Aggregate Demand and Aggregate Supply

Derivation of aggregate demand from IS-LM

medium • 1 min read

Short-run and long-run aggregate supply

medium • 2 min read

Equilibrium in the AD-AS model

medium • 3 min read

Supply shocks and stagflation

medium • 4 min read

The Phillips curve and the tradeoff between inflation and unemployment

medium • 5 min read

Chapter 3

Inflation, Unemployment, and Expectations

Adaptive and rational expectations

medium • 1 min read

The expectations-augmented Phillips curve

medium • 2 min read

The NAIRU and the natural rate of unemployment

medium • 3 min read

Costs of inflation and optimal inflation rate

medium • 4 min read

Sacrifice ratio and disinflation policies

medium • 5 min read

Chapter 4

Open Economy Macroeconomics

The Mundell-Fleming model with fixed exchange rates

medium • 1 min read

The Mundell-Fleming model with floating exchange rates

medium • 2 min read

Capital mobility and policy trilemma

medium • 3 min read

Interest rate differentials and exchange rate expectations

medium • 4 min read

Currency crises and speculative attacks

medium • 5 min read

Chapter 5

Macroeconomic Policy

Active versus passive policy

medium • 1 min read

Rules versus discretion in policy making

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Time inconsistency of optimal policy

medium • 3 min read

Central bank independence and inflation targeting

medium • 4 min read

Government debt and the Ricardian equivalence

medium • 5 min read