Intermediate Macroeconomics

Author: Zhang Xukun, Editor-in-Chief
Publisher:
Publish Date: 2006-09-01
Features: This book is a macroeconomics textbook for intermediate-level learners. There is no unified standard for classifying macroeconomics textbooks into primary, intermediate, and advanced levels. Generally, primary textbooks primarily use charts, geometric diagrams, and text to explain basic macroeconomic principles, with less emphasis on mathematical methods. Starting from intermediate textbooks, mathematical methods begin to dominate. The difficulty of mathematical methods varies depending on the specific problems. In macroeconomics, the mathematical methods used in static and comparative static equilibrium analysis under deterministic conditions are relatively simple, requiring only basic knowledge of mathematical analysis and linear algebra. If further consideration is given to static and comparative static equilibrium analysis under stochastic conditions, preliminary knowledge of probability and statistics is also needed. Dynamic analysis, however, requires more advanced mathematical methods, requiring a deeper understanding of mathematical analysis. For example, stability analysis of equilibrium requires knowledge of differential equations, dynamic optimization analysis requires functional analysis, and time series analysis requires a more profound understanding of probability and statistics. Therefore, I tend to place static and comparative static equilibrium analysis, which requires relatively simpler mathematical methods, in the intermediate macroeconomics textbook, while placing dynamic analysis, which requires more advanced mathematical methods, in the advanced textbook.
In terms of specific content, the short-run national income determination theory under closed conditions in macroeconomics often employs basic knowledge of mathematical analysis and linear algebra, while long-term analysis typically requires a deeper understanding of mathematics. Therefore, this Intermediate Macroeconomics focuses primarily on short-run analysis under closed conditions. The first thirteen chapters mainly cover the theory of short-run national income determination, including static and comparative static equilibrium analysis under deterministic and stochastic conditions. This is particularly true for the comparative static equilibrium analysis of the effects of government macroeconomic policies, as well as stability analysis of equilibrium. The last two chapters briefly introduce equilibrium analysis under open conditions, as well as long-term income growth and fluctuation analysis. These serve as a foundation for studying advanced macroeconomics.
Using mathematical methods to derive, prove, and express the basic principles of a discipline is one of the fundamental characteristics of contemporary scientific development. Despite continuous skepticism, dissatisfaction, or even indignation expressed by some toward the mathematicalization of various sciences (including economics), the history of science over the past century shows that mathematicalization is an irresistible trend. John Maynard Keynes, the founder of macroeconomics, once expressed dissatisfaction with the mathematicalization trend in economics in his classic work The General Theory of Employment, Interest and Money. However, this did not prevent macroeconomics from developing into a discipline with increasingly pronounced mathematical characteristics after his death. The Pythagorean school in ancient Greece once stated that the world was created by the gods using a mathematical language, and the task of philosophers was to discover and understand such a language. Today, one of the tasks of economists is to use a numerical language to understand and explain economic phenomena.