Macroeconomics

macroeconomicmacroeconomistmacroeconomic policymacro-economicmacroeconomic theorymacroeconomymacromacroeconomic analysismacroeconomic policiesmacroeconomists
Macroeconomics (from the Greek prefix makro- meaning "large" + economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole.wikipedia
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Economics

economiceconomisteconomic theory
Macroeconomics (from the Greek prefix makro- meaning "large" + economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole.
Macroeconomics analyzes the entire economy (meaning aggregated production, consumption, saving, and investment) and issues affecting it, including unemployment of resources (labour, capital, and land), inflation, economic growth, and the public policies that address these issues (monetary, fiscal, and other policies).

Economic growth

growthGDP growthgrowth rate
While macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income).
This and other observations have lead some economists to view GDP growth as the most important part of the field of Macroeconomics:

Business cycle

economic boomboomboom and bust
While macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income). Macroeconomics descended from the once divided fields of business cycle theory and monetary theory.
Some say interest in the different typologies of cycles has waned since the development of modern macroeconomics, which gives little support to the idea of regular periodic cycles.

Investment (macroeconomics)

investmentphysical investmentinvestment spending
They also develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, saving, investment, energy, international trade, and international finance.
In macroeconomics, investment is the amount of goods purchased or accumulated per unit time which are not consumed at the present time.

Microeconomics

microeconomicmicroeconomic theoryprice theory
Macroeconomics and microeconomics, a pair of terms coined by Ragnar Frisch, are the two most general fields in economics.
Microeconomics stands in contrast to macroeconomics, which involves "the sum total of economic activity, dealing with the issues of growth, inflation, and unemployment and with national policies relating to these issues".

International finance

global marketsfinanceglobal economy
They also develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, saving, investment, energy, international trade, and international finance.
International finance (also referred to as international monetary economics or international macroeconomics) is the branch of financial economics broadly concerned with monetary and macroeconomic interrelations between two or more countries.

Monetary economics

monetary theorymonetary economymonetary
Macroeconomics descended from the once divided fields of business cycle theory and monetary theory.
The discipline has historically prefigured, and remains integrally linked to, macroeconomics.

Ragnar Frisch

Ragnar Anton Kittil Frisch
Macroeconomics and microeconomics, a pair of terms coined by Ragnar Frisch, are the two most general fields in economics.
He is known for being one of the founders of the discipline of econometrics, and for coining the widely used term pair macroeconomics/microeconomics in 1933.

John Maynard Keynes

KeynesMaynard KeynesJ. M. Keynes
Macroeconomics, at least in its modern form, began with the publication of John Maynard Keynes's General Theory of Employment, Interest and Money.
John Maynard Keynes, 1st Baron Keynes (5 June 1883 – 21 April 1946), was a British economist, whose ideas fundamentally changed the theory and practice of macroeconomics and the economic policies of governments.

The General Theory of Employment, Interest and Money

General TheoryGeneral Theory of Employment, Interest and MoneyThe General Theory
Macroeconomics, at least in its modern form, began with the publication of John Maynard Keynes's General Theory of Employment, Interest and Money.
It created a profound shift in economic thought, giving macroeconomics a central place in economic theory and contributing much of its terminology – the "Keynesian Revolution".

Liquidity preference

demand for moneyliquidity preference theory
In Keynes's theory, the quantity theory broke down because people and businesses tend to hold on to their cash in tough economic times – a phenomenon he described in terms of liquidity preferences.
In macroeconomic theory, liquidity preference is the demand for money, considered as liquidity.

Output (economics)

outputeconomic outputoutputs
They also develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, saving, investment, energy, international trade, and international finance.
The concept of national output is essential in the field of macroeconomics.

Energy economics

energyenergy costsEnergy balance
They also develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, saving, investment, energy, international trade, and international finance.

Austrian School

Austrian School of EconomicsAustrian economicsAustrian
Ludwig Von Mises's work Theory of Money and Credit, published in 1912, was one of the first books from the Austrian School to deal with macroeconomic topics.
Since the mid-20th century, mainstream economists have been critical of the modern day Austrian School and consider its rejection of mathematical modelling, econometrics and macroeconomic analysis to be outside mainstream economics, or "heterodox".

Unemployment

unemployedunemployment ratejob creation
They also develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, saving, investment, energy, international trade, and international finance. Macroeconomists study aggregated indicators such as GDP, unemployment rates, national income, price indices, and the interrelations among the different sectors of the economy to better understand how the whole economy functions.
The unemployment rate is included in a number of major economic indexes including the United States' Conference Board's Index of Leading Indicators a macroeconomic measure of the state of the economy.

New classical macroeconomics

New classical economicsnew classicalnew classical school
New classical macroeconomics further challenged the Keynesian school.
New classical macroeconomics, sometimes simply called new classical economics, is a school of thought in macroeconomics that builds its analysis entirely on a neoclassical framework.

Neoclassical synthesis

neo-Classical approachneo-classical synthesisrecent authors
The generation following Keynes combined the macroeconomics of the General Theory with neoclassical microeconomics to create the neoclassical synthesis.
The neoclassical synthesis, or the neoclassical–Keynesian synthesis, was a post-World War II academic movement in economics that worked towards absorbing the macroeconomic thought of John Maynard Keynes into neoclassical economics.

New Keynesian economics

New KeynesianNew Keynesian macroeconomicsNew Keynesians
New Keynesian economists responded to the new classical school by adopting rational expectations and focusing on developing micro-founded models that are immune to the Lucas critique.
New Keynesian economics is a school of contemporary macroeconomics that strives to provide microeconomic foundations for Keynesian economics.

Edward C. Prescott

Edward PrescottPrescottEd Prescott
Following Lucas's critique, new classical economists, led by Edward C. Prescott and Finn E. Kydland, created real business cycle (RB C) models of the macro economy.
He received the Nobel Memorial Prize in Economics in 2004, sharing the award with Finn E. Kydland, "for their contributions to dynamic macroeconomics: the time consistency of economic policy and the driving forces behind business cycles".

Keynesian economics

KeynesianKeynesianismKeynesian theory
Keynes offered a new theory of economics that explained why markets might not clear, which would evolve (later in the 20th century) into a group of macroeconomic schools of thought known as Keynesian economics – also called Keynesianism or Keynesian theory. Other new Keynesian economists, including Olivier Blanchard, Julio Rotemberg, Greg Mankiw, David Romer, and Michael Woodford, expanded on this work and demonstrated other cases where inflexible prices and wages led to monetary and fiscal policy having real effects.
Keynesian economics (sometimes Keynesianism, named for the economist John Maynard Keynes) are various macroeconomic theories about how in the short run – and especially during recessions – economic output is strongly influenced by aggregate demand (total spending in the economy).

Edmund Phelps

Edmund S. PhelpsPhelpsPhelps Volume
Friedman and Edmund Phelps (who was not a monetarist) proposed an "augmented" version of the Phillips curve that excluded the possibility of a stable, long-run tradeoff between inflation and unemployment.
However, feeling he could not pursue macroeconomics at RAND (which focused on defense work), Phelps decided to return to the academic world.

Greg Mankiw

N. Gregory MankiwGregory MankiwMankiw, N. Gregory
Other new Keynesian economists, including Olivier Blanchard, Julio Rotemberg, Greg Mankiw, David Romer, and Michael Woodford, expanded on this work and demonstrated other cases where inflexible prices and wages led to monetary and fiscal policy having real effects.
Nicholas Gregory Mankiw (born February 3, 1958) is an American macroeconomist who is currently the Robert M. Beren Professor of Economics at Harvard University.

Michael Dean Woodford

Michael WoodfordWoodford
Other new Keynesian economists, including Olivier Blanchard, Julio Rotemberg, Greg Mankiw, David Romer, and Michael Woodford, expanded on this work and demonstrated other cases where inflexible prices and wages led to monetary and fiscal policy having real effects.
Michael Dean Woodford (born 1955) is an American macroeconomist and monetary theorist who currently teaches at Columbia University.

Robert Solow

Robert M. SolowSolowR. M. Solow
Economists like Paul Samuelson, Franco Modigliani, James Tobin, and Robert Solow developed formal Keynesian models and contributed formal theories of consumption, investment, and money demand that fleshed out the Keynesian framework.
Solow's interest gradually changed to macroeconomics.

Dynamic stochastic general equilibrium

DSGEgeneral equilibriumderived by aggregating microeconomic models
The nominal rigidity of new Keynesian theory was combined with rational expectations and the RBC methodology to produce dynamic stochastic general equilibrium (DSGE) models.
Dynamic stochastic general equilibrium modeling (abbreviated as DSGE, or DGE, or sometimes SDGE) is a method in macroeconomics that attempts to explain economic phenomena, such as economic growth and business cycles, and the effects of economic policy, through econometric models based on applied general equilibrium theory and microeconomic principles.