Macroeconomics

AS. See Aggregate supply (AS)

Asia. See also specific countries

financial crisis of 1997-1998 in,

360–361, 538

growth in East Asian tigers and,

251–252

Assets, dominated, 557

Atkeson, Andrew, 478n

Australia

Big Mac price and exchange rate in,

148t

collective bargaining in, 173t

government debt of, 468t, 469

inflation in, 145f

inflation targeting in, 458

legal tradition in, 234

population growth and income per

person in, 215f

population growth in, 217

Austria

collective bargaining in, 173t

government debt of, 468t

Automatic stabilizers, 448

Average propensity to consume, 496

Aztec civilization, 217

Balanced budgets, 65

optimal fiscal policy versus, 485–486

Balanced growth, 225–226

Balanced trade, 123

Balance sheet, 548

Ball, Laurence, 179n, 385n, 399n, 400n

Bangladesh, standard of living in, 191,

192t

Bank(s), central, 84. See also Federal

Reserve (Fed)

Bank capital, leverage and capital

requirements and, 555–556

Bank failures, money supply and,

553–554, 554t

Banking

bank failures and money supply in

1930s, 553–554, 554t

fractional-reserve, 549–550

100-percent-reserve, 548

Banking crises, 538–539

Barbados, investment rate in, 202f

Barro, Robert J., 71n, 227n, 463n, 482,

483

Barsky, Robert B., 31n, 97n

Barter, in POW camps, 82

Baum, L. Frank, 105

Baumol, William,  559n

Baumol-Tobin model, 559f, 559–562,

561f

Becker, Gary, 297–298

Behavioral economics, 519

Belarus, inflation and money growth in,

92f

Belgium

collective bargaining in, 173t

economic growth in, 229

government debt of, 468t

Benjamin, Daniel K., 71n

Bequests, reasons for leaving, 483

Bernanke, Ben S., 328n, 458

Bernartzi, Shlomo, 521n

Bernheim, B. Douglas, 480n, 483n

Big Mac prices, 147–149, 148t

Bilateral trade balances, 124

Black Death, factor prices and, 56

Blanchard, Olivier J., 185–186, 400n

Blinder, Alan S., 101n, 266, 268n, 403n

BLS. See Bureau of Labor Statistics (BLS)

Bolivia, hyperinflation in, 107–108

Bonds, 69

government, in United Kingdom, 70

indexed, 489–490

junk, 64

municipal, 64

Borrowing constraints, 481, 507–509,

508f, 509f

Boskin, Michael, 35

Brazil

Big Mac price and exchange rate in,

148t

inflation and nominal interest rate in,

96f

---

Brazil (continued)

population growth and income per

person in, 215f

standard of living in, 192t

Break-even investment, 212

Breit, William,  14n

Bretton Woods system, 349–350, 361

Britain. See England; United Kingdom

Brown, Charles, 171n

Brown, E. Cary, 328n

Brumberg, Richard, 509

Bryan, William Jennings, 104–105

Bubonic plague, factor prices and, 56

Buchanan, James, 487

Budget constraints, 500

intertemporal, 500–503, 502f

Budget deficits, 46, 65, 231. See also

Government debt

cyclically adjusted (full-employment),

476

intergenerational redistribution and,

486

monetary policy and, 486–487

problem of, 573–574

stabilization and, 486

tax smoothing and, 486

in United States, 4

Budgeting, capital, 473

Budget surpluses, 46, 65, 231

in United States, 4

Bulow, Jeremy I., 175n

Bureau of Economic Analysis, 18, 25,

26

Bureau of Labor Statistics (BLS), 32, 33

Current Population Survey and, 36,

39, 171–172

labor underutilization measures cal-

culated by, 180, 180t

unemployment rate and, 36, 39–40

Burundi

investment rate in, 202f, 203

population growth and income per

person in, 215f

Bush, George H. W., 4, 133

government debt under, 470

Bush, George W., 4, 133, 366, 458

depreciation under, 533

government debt under, 470

TARP and, 475

tax cut under, 296, 481–482

Business cycle

measuring government debt and,

475–476

political, 454

Business cycle(s). See also Depressions;

Economic fluctuations; Great

Depression; Real-business-cycle

theory; Recessions

GDP and, 258–259, 259f, 260f

leading economic indicators and,

263–264

unemployment and Okun’s law and,

260–263, 261f, 262f

Business Cycle Dating Committee,

258–259

Business fixed investment, 525, 526f,

526–529

banking crises and credit crunches

and, 538–539

cost of capital and, 528–530

determinants of, 530–532, 531f

efficient markets hypothesis and,

536–537

financing constraints and, 537–538

rental price of capital and, 527–528,

528f

stock market and Tobin’s q and,

533–536, 535f

taxes and, 532–533

Cagan, Phillip, 116n

Cagan model, 100, 116–118

Calvo, Guillermo, 383n

Cameroon, investment rate in, 202f

Campbell, John Y., 490n, 518n

Campillo, Marta, 459n

Canada

Big Mac price and exchange rate in,

148t

collective bargaining in, 173t

economic growth in, 238

government debt of, 468t

inflation in, 145f

inflation targeting in, 458

NAFTA and, 359

population growth and income per

person in, 215f

settlement of, 235

Canetti, Elie R. D., 268n

Capital, 47

bank, leverage and capital require-

ments and, 555–556

cost of. See Cost of capital

direction of flow of, 134–135

Golden Rule level of. See Golden

Rule level of capital

human, 232

increases in, economic growth and,

247–249

international flows of. See Interna -

tional flows of capital and goods

marginal product of, 53–54

mobility of, world interest rate and,

125–126

real rental price of, 54

rental price of, 527–528, 528f

steady-state level of, 195f –197f,

195–199, 199t

Capital accumulation, 192–203

growth in capital stock and steady

state and, 195f –197f, 195–197

numerical example of approach to

steady state and, 197–199, 199t

saving effects on growth and,

200–201, 201f

supply and demand for goods and,

192–195

Capital assets, measurement of govern-

ment debt and, 473

Capital budgeting, 473