Titlebook: Introduction to Macro-Economics: A Workbook; J. Harvey,M. Johnson Book 1973 J. Harvey and Janet Johnson 1973 economics.macroeconomics

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Balance of Payments Adjustment by Expenditure Switching,In the previous two chapters we have seen that, where the exchange rate is fixed, balance of payments equilibrium can be achieved through variations in the economy’s level of income. Such variations, however, may be undesirable because they conflict with a full employment policy.

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Introduction, This book concentrates on the macro-economic problems of employment and growth, problems concerning the . economy, as opposed to the micro-economic problem of allocation, which concerns particular parts of the economy.

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,The ‘Classical’ theory of Full Employment,ose . was published in 1776) down to A. C. Pigou (a Cambridge economist who died in 1959) who believed that market forces, operating through the competitive price system, could be relied upon to eliminate unemployment.

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The Supply of Money,ined, and to what extent the monetary authorities can control this volume. The activities of the commercial banks, by granting credit and increasing liquidity, affect AD and thus the level of activity.

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The Balance of Payments,income by simply adjusting demand for internally-produced goods and services. International economic repercussions of such a policy have been ignored. Chapters 16–18 relax the assumption of a closed economy and should be treated as a block.

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