This book provides essential insights into national income accounting, balance of payments, foreign exchange markets, money supply and demand, and monetary policy principles.
Econometrician Edward E. Ghartey begins the book by covering national income accounting and balance of payments. Chapters take readers through the foreign-exchange market and rational expectations, covering functions of money, monetary aggregates, and the determinants of money supply and demand. The text delves into the microeconomic foundations of money demand in developing countries, including an applied study using real data. It addresses the limitations of traditional IS-LM models and introduces a new aggregate demand curve using the Taylor principle. The book further explores the Phillips curve, and Okun s law to derive aggregate supply curve; and the effects of monetary policy in open economies.
Readers will gain a thorough understanding of complex economic concepts and models, including the development of new theoretical frameworks. The book provides practical examples and data analysis, making it a valuable resource for students and professionals seeking to deepen their knowledge of macroeconomics and monetary policy. It also includes discussions on exchange rate regimes, monetary policy interventions, and the role of central banks, offering insights into both theoretical and applied aspects of economics.
Chapter 1: The System of National Income Account (SNIA).- Chapter 2: The Balance of Payments Account- Chapter 3: The Foreign Exchange Market.- Chapter 4: Rational Expectation and Efficient Foreign Exchange Market.- Chapter 5: Money, Money Supply and Money Demand.- Chapter 6: Microeconomic Foundation of Demand for Money in Open Economy.- Chapter 7: Applied Demand for Money Study in Developing Countries.- Chapter 8: The IS Curve and MP Curve, and Aggregate Demand Curve.- Chapter 9: The Aggregate Supply Curve.- Chapter 10: Effects of Easy Money in an Open Economy.- Chapter 11: External Imbalance Models.- Chapter 12: Exchange Rate Regimes, Interventions and the Money Supply.-Chapter 13: The Open Economy Trilemma and Exchange Rate Regimes.
Edward E. Ghartey is Professor Emeritus at The University of West Indies, Mona. His research is focused on macroeconomic issues, including economic policy, exchange rates, inflation, fiscal deficit, and stabilization problems in developing countries.
