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Series

Macroeconomics I Studied

16 posts

  1. #1

    Goods Market and the Short-Term Model

    Finally diving into real macro — breaking down GDP composition, inventory vs. fixed investment, and the consumption function from Blanchard Chapter 3.

    · 10 min read
  2. #2

    Financial Markets

    We dig into the financial market — breaking down money demand, interest rates, and why splitting it from the goods market makes sense before we smash it all back into AD.

    · 8 min read
  3. #3

    IS Curve and LM Curve

    Finally deriving the IS and LM curves for real — dropping the constant-investment assumption and sketching out equilibrium in both the goods and financial markets!

    · 9 min read
  4. #4

    Medium-Term Analysis: Labor Market

    We're done with the short-term goods and financial markets — now we crack open the medium term, which means the labor market and figuring out how wages actually get determined.

    · 7 min read
  5. #5

    Wage Setting and Price Setting

    Picking up where we left off, we graph wage setting and price setting curves to nail down the natural unemployment rate — and yeah, it basically all comes down to markup.

    · 4 min read
  6. #6

    Deriving the Aggregate Demand and Aggregate Supply Curves

    Mashing together the short-run goods/financial markets and the medium-run labor market to derive the AD and AS curves — and spoiler: it still can't explain inflation lol.

    · 9 min read
  7. #7

    Aggregate Supply–Aggregate Demand Analysis

    A deep dive into AS-AD analysis — tracing exactly what happens to equilibrium when M drops, G rises, or firms jack up their markup, step by step.

    · 5 min read
  8. #8

    The Phillips Curve: Unemployment and Inflation

    Diving into the Phillips curve — why the unemployment-inflation trade-off was such a big deal, how we derive it from scratch, and why it totally fell apart in the 70s.

    · 8 min read
  9. #9

    Okun's Law

    We finally tackle Okun's Law — the bridge between economic growth and unemployment that sets us up to fix the inflation gap in our AD-AS model.

    · 8 min read
  10. #10

    Stylized Facts of Economic Growth

    We're finally zooming out to the long run — why do some countries keep winning? Enter Solow's aggregate production function Y = F(K, N), and the real fun begins.

    · 5 min read
  11. #11

    The Relationship Between Savings Rate and Output

    We dig into how the savings rate connects to capital per person — and why that matters for output, with a quick detour through flow vs. stock.

    · 7 min read
  12. #12

    The Cobb-Douglas Production Function

    We finally pin down that vague f(K/N) with the Cobb-Douglas production function and crank through the math to get a concrete steady-state output formula.

    · 2 min read
  13. #13

    Solow Residual: A Macroeconomic Approach to Technological Progress

    We finally stop pinning labor productivity A at 1, bundle it with N into 'effective labor' AN, and roll into the Solow residual framework for thinking about tech progress.

    · 7 min read
  14. #14

    The Real Interest Rate

    Breaking down why expectations run the whole economy, then working through how nominal and real interest rates actually connect — spoiler: bread prices are doing a lot of work.

    · 4 min read
  15. #15

    Short-Run and Medium-Run Analysis with the Real Interest Rate

    We patch up the IS-LM model to use r instead of i, then show why the medium-run always lands at Wicksell's natural real interest rate r(n).

    · 3 min read
  16. #16

    Expected Present Discounted Value

    So what's a future stream of payments actually worth right now? We walk through present value, discount factors, and interest rates — the stuff you kinda already know.

    · 3 min read