Essays in Macroeconomics of an Open Economy

1. Front Matter

   Pages N1-VII

   PDF

2. Introduction

   • Franz Gehrels

   Pages 1-4

3. The Growth Path

   • Franz Gehrels

   Pages 5-20

4. On Aggregate Stability Of Closed and Open Economies

   • Franz Gehrels

   Pages 21-44

5. Underutilized Resources

   • Franz Gehrels

   Pages 45-71

6. Risk Averse, Time Optimizing Behavior Of Households: Comparison With German Microcensus Data

   • Franz Gehrels

   Pages 72-96

7. Investment Behavior in an Open Economy

   • Franz Gehrels

   Pages 97-121

8. The Labor Market and Wage Determination

   • Franz Gehrels

   Pages 122-142

9. The Market For Financial Assets And Monetary Policy

   • Franz Gehrels

   Pages 143-155

10. Growth Once More: Income And Claims To Wealth

    • Franz Gehrels

    Pages 156-174

11. Back Matter

    Pages 175-186

    PDF

The large aggregates in the economy - consumption, investment, production of the domestic and the international sectors, international capital flows, financial accumulation and indebtedness - are analysed in this book as problems in time-optimisation for enterprises and households. The effects of fiscal and monetary policies along with exchange-rate variation are examined, and their simultaneous use for stabilizing demand are found to be necessary. All household decisions on consumptions, savings, and financial disposition are conditioned by uncertainty, and similarly for firms, who make more complex simultaneous decisions on production, real investment, financing, and market strategy. The marginal efficiency-of-investment function derived from these decisions is fundamentally different from the marginal productivity of capital in the neoclassical sense. An economy which grows through the accumulation of capital, increase in labor supply, and technological progress is the framework in which all of these variables move. This codetermines the allocation of factors between domestic and international production, and the development of foreign trade. The growth both of the public debt and of international investment are treated in depth.

• Growth
• Inflation
• Macroeconomics
• Makroökonomie
• Open Economy
• Volkswirtschaft
• Wachstum
• production

• Seminar für Internationale Wirtschaftsbeziehungen, Universität München, München 22, Germany

  Franz Gehrels

Policies and ethics