I am now using Friday’s blog space to provide draft versions of the Modern Monetary Theory textbook that I am writing with my colleague and friend Randy Wray. We expect to publish the text sometime in 2013. Our (very incomplete) textbook home page – Modern Monetary Theory and Practice – has draft chapters and contents etc in varying states of completion. Comments are always welcome. Note also that the text I post here is not intended to be a blog-style narrative but constitutes the drafting work I am doing – that is, the material posted will not represent the complete text. Further it will change as the drafting process evolves.
The Table of Contents for the first draft, which is nearly completed, currently lists Chapter 3 as National Income Accounting, with a section 3.7 Using the NIPA Framework to Model the Macro Economy. The status of this section might change but the content aims to present some analytical terminology that is used in the specification of macroeconomic models which the student encounters throughout the textbook.
The section (or subsection) will cover basic algebra, manipulation of equations, solving simple linear models, consideration of graphs, and some essential tools that help an applied macroeconomist assess data trends etc.
Today, I am adding to the material already developed which is currently available as Chapter 3 Draft, Section 3.8.
The snippets I develop here will be integrated into the draft for further assessment. The ambiguity of the numbering reflects the transient status of these sections.
In this section we present some analytical terminology that is used in the specification of macroeconomic models and which you will find throughout this book.
The level of mathematics that will be used throughout this book is no more sophisticated than the typical material that a student would encounter in the second-half of their secondary school studies. The most advanced analysis we employ is simultaneous equation techniques and some simple calculus. For the most part, the mathematics is confined to algebraic representations of the behavioural theories and/or accounting statements that we advance and some simple solution exercises to determine the unknown aggregates we are interested in.
The practical material accompanying the analytical text will also provide a step-by-step sequence to mastering the techniques required.Bill Mitchell – billy blog
We recognise that mathematical techniques are commonly used within the social sciences and that students will gain confidence in dealing with the standard conceptual and empirical literature in economics and more broadly if they develop some formal modelling skills in addition to the deep understanding that we hope to engender.
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at the Charles Darwin University, Northern Territory, Australia
2 comments:
Thank you Matt.
Can we see some posts which clarify the libor rate manipulation which was used by banks so they would win the casino derivative swaps so credit unions and municipalities would have to pay ?
If interest rates rose then the banks were supposed to pay to the credit unions and cities like Detroit.
If interest rates fell, then the credit unions and cities like Detroit were supposed to pay.
So the banks rigged the libor so that they would win.
Now Detroit has lost and pensions are taken away from police and firemen.
The banks also increased the margins on their customer's lines of credits because they knew they would be rigging the rates to go down so they could win on ALL FRONTS.
i.e. small business lines of credit and probably home equity lines of credit :
the lines of credit rates consist of wall street prime and a margin.
Since they rigged the main rate to go down, the margin had to be fudge factored so they increased this on their products.
Since the prime rate was rigged, then that means the Federal Reserve helped.
goog,
All of that to me is just more evidence of what a moron-fest is monetarism...
Raising and lowering interest rates all over the place thinking this will somehow HELP to foment stable prices.... this has manifestly been a complete failure...
So personally I would not say "the Fed helped" as in the context of some sort of 'conspiracy' but the Fed is monetarist occupied territory and these are the types of chaos results you are going to see if we let morons run the system... we non-morons should not be surprised when chaos like this erupts...
We've been able to shake the yoke of the metals but now we have to get the monetarist morons out of these institutions and replace them with people who know how our current system operates optimally...
rsp,
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