Skip to main content

LUBS1951
Module Reading List

Economic Theory and Applications, 2021/22, Semester 1, 2
Peter Hughes
p.t.hughes@leeds.ac.uk
Tutor information is taken from the Module Catalogue

Reading List Economic Theory and Applications

General Support and Additional texts for the module as a whole

Extension reading material is for students who are left puzzled by some topics covered in the online presentation and want to deepen, solidify and improve there understanding by reading relevant textbook chapters which present the topics in more detail. 

Andditional reading material is for students who want to broaden their knowledge of the topics covered in the online presentation and extension material.

Support

The main key textbook for this semester is: Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press. Paperback: £55. It is absolutely worth its price and a very useful source of background reading for all the topics covered in the eleven weeks in the macroeconomics section of this module.   

A second very useful general source is: The Core Team (Bowles, Samuel, Carlin, Wendy, Stevens, Margaret and others), 2017. The Economy – Economics for a Changing World, Oxford and New York: Oxford University Press. You do not need to buy this book it is available online for free here: https://www.core-econ.org/the-economy/  

Additional

This book provides an overview of nine schools of thought in macroeconomics from a Post Keynesian perspective: Snowdon, Brian and Vane, Howard, R., 2005. Modern Macroeconomics – It’s Origins, Development and Current State, Cheltenham, UK and Northampton, US: Edward Elgar.

This book provides an overview of seven schools of thought in macroeconomics from an Austrian perspective: Phelps, Edmund S., 1990. Seven Schools of Macroeconomic ThoughtOxford and New York: Oxford University Press. 

A short overview of Modern Schools of Economic Thought can also be found in: Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press, Chapter 29, pp. 469-486. 

An excellent American textbook taking a New-Keynesian perspective is: Krugman, Paul R. and Wells, Robin, 2009. MacroeconomicsNew York: Worth.

An excellent American textbook taking a Marxian perspective is: Sherman, Howard J. and Meeropol, Michael A., 2013. Principles of Macroeconomics - Activist vs. Austerity PoliciesLondon and New York: Routledge.  

Supportive Texts and Additional Readings per Week

I have organised the reading material week by week in this list. The first (and sometimes second) item are the starred core texts for each week. They are followed by additional texts relevant for the topics to be discussed in this week.

Week One – Introduction: Philosophical Foundations and Macroeconomics

Support

How to do macroeconomics and its goals: 

Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press. Chapter 1: Introduction, in particular: pp. 2-12, chapter 2: How to think an do macroeconomics, in particular pp. 18-32 and Chapter: 27: Overview of the History of Economic Thought, pp. 432-443.  

Additional

Pre-analytic vision in economics:

Heilbroner, Robert & Milberg, William, 1995. The Crisis of Vision in Modern Economic Thought, New York and London: W. W. Norton, pp. 165-185.   

Macroeconomics:

Komlos, John, 2019. Foundations of Real-World Economics - What Every Economics Student Needs to Know, London and New York: Routledge, Chapter 10: Whar is Macroeconomics, pp. 172-188.   

Negative and Positive Feedback Loops:

Text on positive feedback loop in economics: Kaldor, Nicholas, 1972. The Irrelevance of Equilibrium Economics, The Economic Journal, 82, (328), pp. 1237-1255.   

Text on positive feedback loop in economics: Arthur, W. Brian. 1996, Increasing returns and the new world of business, Harvard Business Review, 74 (4), p.100-109.   

Text on negative feedback loop in economics: Milton and Rose D. Friedman, 1979. Free to Choose, chapter 1, The Power of the Market, pp. 9-37, New York: Harcourt, Brace and Javonovich.  Available as an Online Course Reading in Minerva 

Negative and Positive Freedom:

Text on positive freedom in economics: Taylor, Charles,1985. What’s wrong with negative liberty, in: Charles Taylor (ed.): Philosophy and the Human Sciences: Philosophical Papers 2, Cambridge: Cambridge University Press, pp. 211-230.    

Text on negative freedom in economics: Milton and Rose D. Friedman (1979): Free to Choose, New York: Harcourt, Brace and Javonovich, Chapter 2, The Tyranny of Control, pp. 38-68.  OCR REQUESTED BY LIBRARY (HT 26/01/2021) 

Week Two – Circular Flow and GDP

Support

On GDP and CPI: Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press. Chapter 4:  The System of National Income and Product Accounts, pp. 50-65.  

The Core Team (2017): The Economy – Economics for a changing world, Printed Edition, unit 13 (in particular: 13.1 for circular flow model, 13.1, 13.4 and 13.7 for GDP and 13.8 for CPI), pp. 543-584. This book it is available online for free here: https://www.core-econ.org/the-economy/ 

Additional

A text on how Bill Philipps came up with the Philipps-Newlyn machine: Bollard, Allen (2016): A few hares to chase, Oxford: Oxford University Press, pp. 95-126.   

Mazzucato, Mariana (2018): The Value of Everything, London: Allen Lane, Penguin Books, ch. 3, pp. 75-100. Provides a good introduction to the history of the GDP and some critical points about it.  Available as an Online Course Reading in Minerva 

Rawworth, Kate (2017): Doughnut Economics, ch. 1, pp. 31-60. A critique of GDP from an environmentalist perspective.  Available as an Online Course Reading in Minerva 

Pilling, David (2018): The Growth Delusion, London: Bloomsbury. A book devoted to the critique of GDP.

Week Three – Money

Support

Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press. Chapter 9: Introduction to Sovereign Currency: The Government and it’s Money & 10: Money and Banking, pp. 134-161.  

Additional

Hart, Keith, 1986. Heads or Tails? Two Sides of the Coin, Man, New Series, 21(4), pp. 637-656.  an athropological perspective.  

Zelizer, Viviana, A., 1997. The Social Meaning of Money - Pin Money, Paychecks, Poor Relief, and Other Currencies, Princeton: Princeton University Press, chapter 1: The Marking of Money, pp.1-35.  a sociological perspective. Available as an Online Course Reading in Minerva 

A good interdisciplinary overview provides: van Staveren, Irene, 2015. Economics after the Crisis - An Introduction to Economics from a Pluralist and Global Perspective, London and New York: Routledge, Chapter 11: Money, pp. 277-305.   

Books on MMT:

Rochon, Louis-Philippe and Rossi, Sergio, 2016. An Introduction to Macroeconomics - A Heterodox Approach to Economic AnalysisCheltenham, UK and Northampton, US: Edward Elgar, Chapter 4, by Marc Lavoie and Mario Seccarccia: Money and Banking, pp. 97-115.   

Wray, Randall, 2012. Modern Money Theory - A Primer on Macroeconomics fo Sovereign Monetary Systems.Houndsmills, Basingstoke: Palgrave Macmillan. 

Ehnts, Dirk H., 2017. Modern Money Theory and European MacroeconomicsLondon and New York: Routledge.

Kelson, Stephanie, 2020. The Devicit Myth - Modern Money Theory abd How to Build a Better EconomyLondon: John Murray.

The Core Team (2017): The Economy – Economics for a changing world, Printed Edition, for a conventional view on money and banking: unit 10, pp. 407-453. This book it is available online for free here: https://www.core-econ.org/the-economy/ 

Week Four – Classical System

Support

There are two sources available for background reading for the Classical System. The foundation for the online content for this week comes from: Peterson, Wallace C. and Estenson, Paul S., 1998. Income, employment, and economic growth, latest 8th edition, New York : W.W. Norton. Chapter 3: The Classical System, pp. 73-99.   Available as an Online Course Reading in Minerva 

However, an alternative and equally good source for background reading is: Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press. Chapter 11: The Classical System, pp. 164-179.    

Additional

Schneider, Geoffrey, 2019. The Evolution of Economic Ideas and Systems - A Pluralist IntroductionLondon and New York: Routledge. Chapter 4: Adam Smith and the rise of capitalism: The era of laissez-faire, pp. 70-88.   

Snowdon, Brian and Vane, Howard, R., 2005. Modern Macroeconomics – It’s Origins, Development and Current StateCheltenham, UK and Northampton, US: Edward Elgar, chapter 2: Keynes v. the ‘old’ classical model, pp. 36-100.   

Week Five – Keynesian System

Support

There are two sources available for background reading for the Classical System. The foundation for the online content for this week comes from: Peterson, Wallace C. and Estenson, Paul S., 1998. Income, employment, and economic growth, latest 8th edition, New York : W.W. Norton. Chapter 4: The Keynesian System, pp. 100-129.   Available as an Online Course Reading in Minerva 

However, an alternative and equally good source for background reading is: Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press. Chapter 15: The Aggregate Expenditure Model, pp. 216-238.    

Additional

Schneider, Geoffrey, 2019. The Evolution of Economic Ideas and Systems - A Pluralist IntroductionLondon and New York: Routledge. Chapter 7. pp. 132-158.

Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press. Chapters 12: Mr. Keynes and the 'Classics', 13: The Theory of Effective Demand & 14: The Macroeconomic Demand for Labour, pp. 180-215.  

Skidelsky, Robert, 2010. Keynes - A Very Short IntroductionOxford and New York: Oxford University Press.  

Hayes, Mark G. 2020. John Maynard Keynes, London: Polity Press, chapter 1: Why Study Keynes, pp. 1-11 and chapter 3: The General Theory of Employment, Interest and Money, pp. 35-56.   

Skidelsky, Robert, 2000. John Maynard Keynes, London: Macmillan. 

Rochon, Louis-Philippe and Rossi, Sergio, 2016. An Introduction to Macroeconomics - A Heterodox Approach to Economic AnalysisCheltenham, UK and Northampton, US: Edward Elgar, Chapter7, by Jesper Jespersen: Aggregate Demand, pp. 151-170.

Week Six – Fiscal Policy

Support

Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press. Chapter 20: Introduction to Monetary and Fiscal Policy Operations, pp. 314-331, chapter 21.2 Functional Finance versus Sound Finance, pp. 333-336, Chapter 22: Fiscal Space and Fiscal Sustainability, pp. 349-359 and Chapter 25: The Role of Investment in Profit Generation, pp. 394-418.  

Additional

Karamessini, Maria and Rubery, Jill, 2014. Women and Austerity - The Economic Crisis and the Future for Gender Equality, London and New York: Routledge. Chapter 7, by Rubery, Jill and Anthony Rafferty, Gender, Recession and Austerity in the UK, pp. 123-143.     

The Core Team (2017): The Economy – Economics for a changing world, Printed Edition, unit 14, pp. 585-637. This book it is available online for free here: https://www.core-econ.org/the-economy/ 

Rochon, Louis-Philippe and Rossi, Sergio, 2016. An Introduction to Macroeconomics - A Heterodox Approach to Economic AnalysisCheltenham, UK and Northampton, US: Edward Elgar, Chapter 9, by Malcolm Sawyer: The Role of Fiscal Policy, pp. 193-210.   

Komlos, John, 2019. Foundations of Real-World Economics - What Every Economics Student Needs to Know, London and New York: Routledge, Chapter 12: Macroeconomics Part III, pp. 205-218. 

Week Seven – Monetary Policy

Support

Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press. Chapter 20: Introduction to Monetary and Fiscal Policy Operations, pp. 314-331, Chapter 23: Monetary Policy in Sovereign Nations, pp. 360-373.  

Additional

The Core Team (2017): The Economy – Economics for a changing world, Printed Edition, unit 15.8-15.11, pp. 673-687. This book it is available online for free here: https://www.core-econ.org/the-economy/ 

Week Eight – Unemployment and Inflation

Support

Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press. Chapter 5: Labour Market Concepts and Measurements, pp. 66-82, Chapter 12: Mr. Keynes and the 'Classics', pp. 180-188 and Chapter 17: Unemployment and Inflation (for conflict and quantity of money theories of inflation), pp. 254-267, Chapter 18: The Phillips Curve and Beyond, pp. 268-289 and Chapter 21.3: Fiscal Policy Debates: Crowding Out and (Hyper) Inflation, pp. 336-348.  

Additional

The Core Team (2017): The Economy – Economics for a changing world, Printed Edition, for inflation: unit 13.8, pp. 579-583 and unit 15 (in particular 15.1-15.7, pp. 639-687 and for unemployment: unit 9.2, pp. 364-366 and in general unit 9, pp. 359-405. This book it is available online for free here: https://www.core-econ.org/the-economy/ 

Rochon, Louis-Philippe and Rossi, Sergio, 2016. An Introduction to Macroeconomics - A Heterodox Approach to Economic AnalysisCheltenham, UK and Northampton, US: Edward Elgar, Chapter 8, by Alvaro Cencini and Sergio Rossi: Inflation and Unemployment, pp. 172-191.

Komlos, John, 2019. Foundations of Real-World Economics - What Every Economics Student Needs to Know, London and New York: Routledge, Chapter 11: Macroeconomics Part II, pp. 189-204.

You can read more about the “rational expectations” argument here:

John F. Muth,1961. Rational Expectations and the Theory of Price Movements. Reprinted in: Hoover, K. D. ed. 1992. The new classical macroeconomics. Volume 1. International Library of Critical Writings in Economics, vol. 19. Aldershot, UK: Elgar, pp. 3–23.  Available online 

Thomas J. Sargent, 1987. "Rational expectations". In: Eatwell, J., Milgate, M. and Newman, P. eds. 1987.The New Palgrave: A Dictionary of Economics. London: Macmillan Press, v. 4, pp. 76–79.  Available as an Online Course Reading in Minerva 

The typical Post Keynesian view of the firm operating in an oligopoly market structure with a price leader/setter and a hand full of price followers can be found in books by: Alfred Eichner and John Kenneth Galbraith.

Galbraith, J. K. 1974. The New Industrial State. Princeton and Oxford: Princeton University Press. 

Eichner, A. S. 1976. The megacorp and oligopoly: micro foundations and macro dynamics. Cambridge UK and New York: Cambridge University Press.

Week Nine – Balance of Payments and Exchange Rates

Support

Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press, or exchangerates: Chapter 9.3, pp. 140-142, Chapter 24: Policy in an Open Economy: Exchange Rates, Balance of Payments and Competitiveness, pp. 374-391 and Chapters 31.4 & 31.5, in Contemporary Debates, pp. 507-520.  

Rochon, Louis-Philippe and Rossi, Sergio, 2016. An Introduction to Macroeconomics - A Heterodox Approach to Economic AnalysisCheltenham, UK and Northampton, US: Edward Elgar, Chapter 14, by Sergio Rossi: European monetary union, pp. 300-315.

Additional

The Core Team (2017): The Economy – Economics for a changing world, Printed Edition, for balance of payments: unit 18.2, pp. 803-808. This book it is available online for free here: https://www.core-econ.org/the-economy/ 

Week Ten – Sectoral Flows

Support

Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press. Chapter 6: Sectoral Accounting and Flow of Funds, pp. 83-103 and Chapter 31.3: The Twin Deficit Hypothesis, pp. 503-507.   

Additional

Rochon, Louis-Philippe and Rossi, Sergio, 2016. An Introduction to Macroeconomics - A Heterodox Approach to Economic Analysis, Cheltenham, UK and Northampton, US: Edward Elgar, Chapter 16, by Robert Guttmann: Imbalance and Crises, in particular: External imbalances and adjustments, pp. 349-354.   

Kindleberger, Charles, P., 1987. International Capital Movements: based on the Marshall Lectures given at the University of Cambridge 1985, Cambridge: Cambridge University Press, Chapter 1: The Balance of Payments, pp.1-12.  Available as an Online Course Reading in Minerva 

Week Eleven – Wrap Up

Additional

Mitchell, William, Wray, Randall L. and Watts, Martin, 2019. Macroeconomics, London: Macmillan International and Red Globe Press, Chapter 32: Macroeconomics in the Light of the Global Financial Crisis, pp. 535-550 and Chapter 33: Macroeconomics for the Future, pp. 551-561.  

If you wonder how about economic inequality? Take a look at: Bowles, Samuel, Edwards, Richard and Roosevelt, Frank, 2005. Understanding Capitalism - Competition, Command, and ChangeOxford and New York: Oxford University Press, Chapter 14: The Mosaic of Inequality, pp. 343-374.  Available as an Online Course Reading in Minerva 

This list was last updated on 11/02/2021