This book offers a comprehensive introduction to modern macroeconomic theory, bridging foundational concepts with contemporary applications. It begins by exploring the core macroeconomic model featuring rational agents and competitive markets—the cornerstone for analyzing business cycles, economic growth, and asset pricing. From there, it transitions to more complex frameworks, including models that incorporate market imperfections and strategic interactions, crucial for understanding liquidity challenges and financial crises. Designed as a primer, this text explains the theoretical foundations of modern macroeconomics in an accessible way, without relying on advanced recursive techniques.
Macroeconomic Theory and History.- Basic Macroeconomic Model.- Exogenous
and Endogenous Fluctuations.- Exogenous and Endogenous Growth.- Asset Prices
and Bubbles.- Credit Cycle.- Cash Payment and Inflation.- Complete and
Incomplete Markets.- Liquidity Constraints.- Endogenously Incomplete
Markets.- Bank Runs and Liquidity Crises.- Money and Job Search.- Dynamic
Programming.- Conclusion.
Leo Ferraris holds a PhD in Economics from the London School of Economics. He held academic positions at the University of Madrid, Carlos III, and the University of Rome, Tor Vergata. Currently, he is a Professor of Economics at the University of Milan-Bicocca (Italy), in the Department of Economics, Management, and Statistics. His research focuses on macroeconomic theory, with a particular emphasis on monetary theory. His work has been published in leading journals, including the Journal of Economic Theory, International Economic Review, and Journal of Money, Credit, and Banking.
