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LUBS5101M
Module Reading List

Macroeconomics, 2021/22, Semester 1
Karsten Kohler
k.kohler@leeds.ac.uk
Tutor information is taken from the Module Catalogue

LUBS5100M Reading List

Basic bibliography

There is no single textbook for this module but the following book cover many topics in one way or another:

1.  B. Snowdon and H.R. Vane (2005) Modern macroeconomics : its origins, development and current state 

2. J. Garín, R. Lester & E. Sims (2021) Intermediate Macroeconomics  

3. G. Fontana and M. Setterfield (eds. 2010), Macroeconomic theory and macroeconomic pedagogy  

4. W. Carlin & D. Soskice (2014) Macroeconomics: Institutions, Instability, and the Financial System  

5. W. Mitchell, R. Wray & M. Watts (2019) Macroeconomics  

6. M. Lavoie (2014) Post-Keynesian Economics. New Foundations.  

7. W. Godley and M. Lavoie (2007) Monetary Economics. An Integrated Approach to Credit, Money, Income, Production and Wealth 

 

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Readings by week

1 Classical Economics and the Keynesian critique

Introductory

B. Snowdon and H.R. Vane (2005) Modern macroeconomics : its origins, development and current state, chap. 2.1-2.11  

Advanced

Garín, R. Lester & E. Sims (2021) Intermediate Macroeconomics, chaps. 18-19 

Suggested further readings

E.R. Weintraub, General Equilibrium Analysis, especially chapters 1 and 2

B. Hillier, The Macroeconomic Debate, chapters 7 and 8

W. Carlin and D. Soskice, Macroeconomics and the Wage Bargain chapter 4

 

2. Old Keynesian and Post Keynesian Economics I

Introductory

B. Snowdon and H.R. Vane (2005) Modern macroeconomics: its origins, development and current state, chaps. 3.1-3.4, 3.7

Lavoie, M. (2006) Introduction to Post-Keynesian Economics. Chap. 1 

Advanced

Hicks, J.R. (1937) Mr. Keynes and the "Classics"; A Suggested Interpretation, Econometrica,Vol. 5, No. 2, pp. 147-159  

Lavoie, M. (2011) History and methods of post-Keynesian economics, in: Hein, E. and Stockhammer, E. (2011) A Modern Guide to Keynesian Macroeconomics and Economic Policies, Edward Elgar, pp. 1-33  

Suggested further reading

Lavoie, M. (2014) Post-Keynesian Economics. New Foundations. Chap. 1

Keynes, J.M. (1937) The General Theory of Employment,The Quarterly Journal of Economics,Vol. 51, No. 2, pp. 209-223

Arestis, P. (1996). ‘Post-Keynesian economics: Towards coherence’,Cambridge Journal of Economics, 20 (11), pp. 111-135.

Eichner, A., Kregel, J. (1975). An essay on Post-Keynesian theory: A new paradigm in economics, Journal of Economic Literature, 13 (4), pp. 1293-1320.

Fontana, G. and Gerrard, B. (2006) The future of Post Keynesian economics, BNL Quarterly Review, 59(236)., pp.49-80. Available online 

 

3. Monetarism I: Exogenous Money

Introductory

B. Snowdon and H.R. Vane (2005) Modern macroeconomics: its origins, development and current state, chaps. 4.1-4.2, 4.5 

Advanced

Friedman (1968) The Role of Monetary Policy, American Economic Review, 58, 1-17. 

Fiebinger, B. and Lavoie, M. (2021) Central bankers and the rationale for unconventional monetary policies: reasserting, renouncing or recasting
monetarism?, Cambridge Journal of Economics, 45, 37-59.

Suggested further reading

M. Friedman, The optimum quantity of money, chapter 1

Garín, R. Lester & E. Sims (2021) Intermediate Macroeconomics, chap. 21

 

4. Monetarism II: the Phillips Curve and the Natural Rate of Unemployment

Introductory

B. Snowdon and H.R. Vane (2005) Modern macroeconomics: its origins, development and current state, chaps. 3.6, 4.3 

Advanced

Friedman (1968) The Role of Monetary Policy, American Economic Review, 58, 1-17. 

Friedman, M., 1977. 'Inflation and unemployment', Journal of Political Economy, 85, 451-72.

Suggested further reading

Phillips, A.W. 1958. 'The Relation between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861-1957', Economica, 25(100), 283-299.

Samuelson, P.A. and Solow, R.M. 1960. 'Analytical Aspects of Anti-Inflation Policy', The American Economic Review, 50(2), 177-194.

 

5. New Classical Economics

Introductory

B. Snowdon and H.R. Vane (2005) Modern macroeconomics: its origins, development and current state, chap. 5.1-5.6 

Advanced

J. Garín, R. Lester & E. Sims (2021) Intermediate Macroeconomics, chaps. 9, 11-13;18-19

Sargent, T. J. and Wallace, N. (1976) Rational expectations and the theory of economic policy, Journal of Monetary Economics, 2(2), pp. 169-183.

Suggested further reading

W. Carlin & D. Soskice (2014) Macroeconomics: Institutions, Instability, and the Financial System, chap. 4

Muth, J.F. (1961) Rational Expectations and the Theory of Price Movements, Econometrics, 29(3), pp.315-335. 

B. Snowdon and H.R. Vane (2005) Modern macroeconomics: its origins, development and current state, chaps. 6.1-6.18

Patrick Minford, Rational expectations macroeconomics : an introductory handbook, especially Chapters 1,2,3 and 6

C. L. F. Attfield, D. Demery and N. W. Duck, Rational expectations in macroeconomics : an introduction to theory and evidence Second edition especially chapters 1,2 and 9

R.E. Lucas (1972) Expectations and the neutrality of money, Journal of Economic Theory

T.J. Sargent and N. Wallace (1976) Rational expectation and the theory of economic policy, Journal of Monetary Economics

Kydland and E. Precott (1977) Rules rather than discretion: The inconsistency of optimal plans, Journal of Political Economy

Alesina and L.H. Summers (1993) Central Bank independence and macroeconomic performance: Some comparative evidence, Journal of Money Credit and Banking

Barro (1974) Are government bonds net wealth?, Journal of Political Economy

Barro (1976) Perceived wealth in bonds and social security and the Ricardian equivalence theorem: Reply to Feldstein and Buchanan, Journal of Political Economy

 

6. New Keynesian Economics

Introductory

B. Snowdon and H.R. Vane (2005) Modern macroeconomics: its origins, development and current state, chap. 7.1-7.5, 7.7, 7.9

W. Carlin & D. Soskice (2014) Macroeconomics: Institutions, Instability, and the Financial System, chaps. 1+2

Romer, D. (1993) The New Keynesian Synthesis, Journal of Economic Perspectives, 7(1), p.5-22

Advanced

Fischer (1977) “Long-term contracts, rational expectations, and the optimal money supply rule”, Journal of Political Economy 

Mankiw (1985) “Small menu costs and large business Cycles: A macroeconomic model of monopoly”, Quarterly Journal of Economics, 100(29; 529-538.

R. Layard, and S. Nickell (1986), ‘Unemployment in Britain’, Economica., vol. 53 (Supplement) 

Suggested further reading

Mankiw, N. G. and Romer, D. (1991) New Keynesian Economics, Volume 1: Imperfect Competition and Sticky Prices, MIT Press

Mankiw, N. G. and Romer, D. (1991) New Keynesian Economics, Volume 2: Coordination Failures and Real Rigidities, MIT Press

G. Akerloff and J. Yellen (eds.), Efficiency wage models of the labor market

C. Shapiro and J.E. Stiglitz (1984), ‘Equilibrium unemployment as a worker discipline device’, American Economic Review, vol. 74 (1984)

J. Stiglitz and A. Weiss, ‘Credit rationing with markets with imperfect information’, American Economic Review, vol. 71, pp. 393-410

J. Stiglitz, ‘Capital markets and economic fluctuations in capitalist economies’, European Economic Review, vol. 36, pp. 269-306

J. Stiglitz, and M. Weiss, ‘Asymmetric Information in Credit Markets and its Implications for Macro-Economics,’ Oxford economic papers. vol. 44, pp. 694-724.

J. Stiglitz, and B. Greenwald, Towards a new paradigm in monetary economics, Cambridge: Cambridge University Press.

O. J. Blanchard, and S. Fischer, Lectures on macroeconomics, Cambridge, Mass., USA and London: The MIT Press, chaps. 8-9

R. Solow, ‘Alternative approaches to macroeconomic theory: a partial view’, Canadian Journal of Economics, vol. 12 (1979)

R. Layard, S. Nickell, and R. Jackman, Unemployment: Macroeconomic Performance and the Labour Market, Oxford: Oxford University Press

M. Sawyer, ‘The NAIRU, aggregate demand and investment’, Metroeconomica, vol. 53, no.1, pp.66-94

P. Arestis and M. Sawyer, ‘Aggregate demand, conflict and capacity in the inflationary process’, Cambridge journal of economics., vol. 29, no. 6, pp. 959-974

Mathias Vernengo, ‘Money and inflation’ in A handbook of alternative monetary economics, edited by Philip Arestis and Malcolm Sawyer, Cheltenham: Edward Elgar

BALL, L. 1999. Aggregate Demand and Long-Run Unemployment. Brookings papers on economic activity., 1999, 189-251.

NICKELL, S., NUNZIATA, L. & OCHEL, W. 2005. Unemployment in the OECD Since the 1960s. What Do We Know? Economic journal., 115, 1-27.

BASSANINI, A. & DUVAL, R. 2009. Unemployment, institutions, and reform complementarities: re-assessing the aggregate evidence for OECD countries. Oxford review of economic policy., 25, 40-59.

Stockhammer, E. (2008). ‘Is the NAIRU theory a monetarist, New Keynesian, Post Keynesian or a Marxist theory?’, Metroeconomica, 59 (3), pp. 479-510.

 

7. New Neoclassical Synthesis

Introductory

B. Snowdon and H.R. Vane (2005) Modern macroeconomics: its origins, development and current state, chap. 7.8, 7.12-7.14

Carlin, W. and Soskice, D. (2010) Teaching Intermediate Macroeconomics using the 3-Equation Model, in: G. Fontana and M. Setterfield (eds), Macroeconomic theory and macroeconomic pedagogy  

W. Carlin & D. Soskice (2014) Macroeconomics: Institutions, Instability, and the Financial System, chap. 3

J. Garín, R. Lester & E. Sims (2021) Intermediate Macroeconomics, chaps. 24-28

Gali, J. (2018) The State of New Keynesian Economics: A Partial Assessment, Journal of Economic Perspectives, 32(3)

Advanced

Clarida, R., Gali, J., and Gertler, M. (1999) The Science of Monetary Policy: A New Keynesian Perspective, Journal of Economic Literature, 37, 1661-1701

Arestis, P. (2010) The New Consensus in Macroeconomics: A Critical Appraisal, in: G. Fontana and M. Setterfield (eds.), Macroeconomic theory and macroeconomic pedagogy 

Suggested further reading

Galí, J. Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework and Its Applications (2nd ed), Princeton University Press

M. Woodford, Interest and prices : foundations of a theory of monetary policy, Princeton: Princeton University Press Chapters and 3.

P. Arestis, ‘What is the New Consensus in Macroeconomics? ’ in P. Arestis (ed) Is there a new consensus in macroeconomics? Basingstoke: Palgrave-Macmillan

M. Sawyer, ‘The foundations of monetary policy in the new consensus framework: a partial critique’ in P. Arestis (ed) Is there a new consensus in macroeconomics? Basingstoke: Palgrave-Macmillan

G.A. Calvo, ‘Staggered Prices in a Utility Maximising Framework’, Journal of monetary economics., 12, pp.383-398.

 Clarida, J. Galì and M. Gertler (2000) Monetary Policy Rules and Macroeconomic Stability: Evidence and Some Theory, Quarterly Journal of Economics, 115, 147-180

 

8. Post-Keynesian Economics II: Endogenous Money

Introductory

McLeay, M., Radia, A., and Ryland, T. (2014) ‘Money Creation in the Modern Economy’, Bank of England Quarterly Bulletin 2014Q1, 14-27.  

Sawyer, M. (2010) Teaching Macroeconomics When the Endogeneity of Money is Taken Seriously, in: G. Fontana and M. Setterfield (eds.), Macroeconomic theory and macroeconomic pedagogy

Advanced

Lavoie, M. (2014) Post-Keynesian Economics. New Foundations. Chap. 4.1-4.4

Fontana, G. and Setterfield, M. (2010) A Simple (and Teachable) Macroeconomic Model with Endogenous Money, in: G. Fontana and M. Setterfield (eds.), Macroeconomic theory and macroeconomic pedagogy  

P. Arestis and M. Sawyer ‘The nature and role of monetary policy when money is endogenous’, Cambridge journal of economics. vol. 30, no. 6, pp.847-60 

Suggested further reading

N. Kaldor, and J. Trevithick, ‘A Keynesian perspective on money’, Lloyds Bank Review., no. 139 (reprinted in M. Sawyer (ed. ) Post Keynesian Economics)

B. Moore, Horizontalist and Verticalists, Cambridge: Cambridge University Press (for a shorter summary of this see B. Moore, ‘The endogeneity of credit money’, Review of political economy., vol. 1, pp. 65-93)

Kaldor (1970) The New Monetarism, Lloyd's Bank Review

Tobin (1970) Money and income: Post Hoc Ergo Propter Hoc?, Quarterly Journal of economics, 84.

 

9. Stock-Flow Consistent Models

Introductory

GODLEY, W. & LAVOIE, M. 2007. Monetary Economics. An Integrated Approach to Credit, Money, Income, Production and Wealth, chaps 1, 2,

Lavoie, M. (2014) Post-Keynesian Economics. New Foundations. Chap. 4.6

Advanced

GODLEY, W. & LAVOIE, M. 2007. Monetary Economics. An Integrated Approach to Credit, Money, Income, Production and Wealth, chap 4

Suggested further reading

Lavoie, M. and Godley, W. (2001-2002) Kaleckian models of growth in a coherent stock-flow monetary framework: a Kaldorian view, Journal of Post Keynesian Economics, 24(2), 277-311.

Caverzasi, E. and Godin, A. (2015) Post-Keynesian stock-flow-consistent modelling: a survey, Cambridge Journal of Economics, 39(1), 157-187.

M. Nikiforos and G. Zezza (2017). Stock-Flow Consistent macroeconomic Models: A Survey. Journal of Economic Surveys, 31 (5), 1204-1239.

Dos Santos C. and Zezza, G. (2008) A simplified, 'benchmark', stock-flow consistent Post-Keynesian growth model, Metroeconomica, 59(3), 441-478.

C.H. Dos Santos (2006). Keynesian Theorising During Hard Times: Stock-Flow Consistent Models as an Unexplored ‘Frontier’ of Keynesian Macroeconomics. Cambridge Journal of Economics, 30 (4), 541-565. •

Taylor, L. (2008) A foxy hedgehog: Wynne Godley and macroeconomic modelling, Cambridge Journal of Economics, 32, 639-663.

Caiani, A., Godin, A. Caverzasi, E., Gallegati, M., Kinsella, S., and Stiglitz, J.E. (2016) Agent based-stock flow consistent macroeconomics: Towards a benchmark model, Journal of Economic Dynamics & Control, 69, 375-408.

 

10. Ecological Macroeconomics

Introductory

Rezai, A., Taylor, L., and Mechler, R. (2013) Ecological macroeconomics: An application to climate change, Ecological Economics, 85, 69-76.  

Fontana, G. and Sawyer, M. (2016) Towards post-Keynesian ecological macroeconomics, Ecological Economics, 121, 186-195.

Advanced

Hardt, L. and O’Neill, D.W. (2017) Ecological Macroeconomic Models: Assessing Current Developments, Ecological Economics, 134, 198-211.

Dafermos, Y., Nikolaidi, M., and Galanis, G. (2017). A Stock-Flow-Fund Ecological Macroeconomic Model. Ecological Economics, 131, 191-207.

Suggested further reading

Bovari, E., Giraud, G., Mc Isaac, F. (2018). ‘Coping with collapse: A stock-flow consistent monetary macrodynamics of global warming’, Ecological Economics, 147, pp. 383-398. 

Dafermos, Y., Nikolaidi, M., and Galanis, G. (2018) Climate Change, Financial Stability and Monetary Policy. Ecological Economics, 152, 219-234.

Kronenberg, T. (2010) Finding common ground between ecological economics and post-Keynesian economics, Ecological Economics, 69, 1488-1494

Hein, E. and Jimenez, V. (2021) The macroeconomic implications of zero growth: a post-Keynesian approach, IPE Berlin Working Paper #169

Rezai, A., Taylor, L., Foley, D. (2018). ‘Economic growth, income distribution, and climate change’, Ecological Economics, 146, pp. 164-172.

This list was last updated on 02/12/2021