Bill Mitchell — Analytical appendix for NIPA Chapter 3 – Part 2

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.

The first part of this section of the text:
Analytical appendix for NIPA Chapter 3

[CONTINUING FROM HERE]

Graphical depiction of macroeconomic models

Bill Mitchell – billy blog
Analytical appendix for NIPA Chapter 3 – Part 2
Bill Mitchell | Professor in Economics and Director of the Centre of Full Employment and Equity (CofFEE), at the Charles Darwin University, Northern Territory, Australia