🏛️ Volume II: Macroeconomic Theory & Policy

Macroeconomics analyzes the aggregate behavior of national economies—national output ($GDP$), employment, general price level inflation, interest rates, exchange rates, and long-run economic growth.

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🏛️ Volume Architecture

Volume II: Macroeconomics
 ├── 1. National Income Accounting & GDP Dynamics (Identities, Deflators, CPI)
 ├── 2. Classical vs. Keynesian Systems (Say's Law, Multipliers, Paradox of Thrift)
 ├── 3. The IS-LM Framework & Goods-Money Balance (Crowding Out, Liquidity Traps)
 ├── 4. AD-AS Dynamics & The Phillips Curve (Expectations, NAIRU, Supply Shocks)
 ├── 5. Central Banking, Monetary & Fiscal Policy (Taylor Rule, QE, Debt Dynamics)
 ├── 6. Long-Run Economic Growth Models (Solow-Swan, Golden Rule, Endogenous Growth)
 ├── 7. Inflation, Unemployment & Business Cycles (Okun's Law, Real Business Cycles)
 └── 8. Open-Economy Macroeconomics & Mundell-Fleming (Trilemma, UIP, Currency Pegs)

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🧭 Chapters in this Volume

1. National Income Accounting & GDP

Expenditure, Income, and Output approaches to GDP, circular flow of income, real vs. nominal variables, chain-weighted deflators, and gross national product ($GNP$).

2. Classical vs. Keynesian Systems

Say's Law and classical price flexibility vs. Keynesian wage rigidity, the 45-degree Keynesian cross, autonomous expenditure multipliers, and the paradox of thrift.

3. The IS-LM Framework & Goods-Money Balance

Simultaneous equilibrium in goods and financial asset markets, fiscal and monetary transmission channels, crowding-out calculus, and liquidity traps.

4. AD-AS Dynamics & The Phillips Curve

Short-run and long-run aggregate supply curves, adverse supply shocks, stagflation, expectations-augmented Phillips curve (Friedman-Phelps), and NAIRU.

5. Central Banking, Monetary & Fiscal Policy

Central bank balance sheet operations, the Taylor Rule for interest rate targeting, quantitative easing ($QE$), Ricardian Equivalence, and sovereign debt sustainability.

6. Long-Run Economic Growth Models

Solow-Swan neoclassical growth theory, steady-state capital per worker, Golden Rule consumption, conditional convergence, and Romer/Lucas endogenous growth models.

7. Inflation, Unemployment & Business Cycles

Quantity Theory of Money ($MV=PY$), demand-pull vs. cost-push inflation, Okun's Law, frictional/structural/cyclical unemployment, and Real Business Cycle ($RBC$) shocks.

8. Open-Economy Macro & Mundell-Fleming

The Mundell-Fleming model under fixed vs. floating exchange rates, perfect capital mobility, uncovered interest parity ($UIP$), and the monetary policy trilemma (impossible trinity).

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