Title: Essays in Macroeconomics of an Open Economy Volume: Author(s): Prof. Dr. Franz Gehrels (auth.) Series: Lecture Notes in Economics and Mathematical Systems 362 Periodical: Publisher: Springer Berlin Heidelberg City: Year: 1991 Edition: Language: English Pages: VII, 183 pp. 12 figs. 7 tabs. ISBN: 978-3-540-54074-8, 978-3-642-95659-1 ID: 1059756 Time added: 2013-12-12 06:00:00 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.

Table of contents : Content: Front Matter....Pages N1-VII Introduction....Pages 1-4 The Growth Path....Pages 5-20 On Aggregate Stability Of Closed and Open Economies....Pages 21-44 Underutilized Resources....Pages 45-71 Risk Averse, Time Optimizing Behavior Of Households: Comparison With German Microcensus Data....Pages 72-96 Investment Behavior in an Open Economy....Pages 97-121 The Labor Market and Wage Determination....Pages 122-142 The Market For Financial Assets And Monetary Policy....Pages 143-155 Growth Once More: Income And Claims To Wealth....Pages 156-174 Back Matter....Pages 175-186