https://gdpark.blog/series/macroeconomics-i-studied/Recent content in Macroeconomics I Studied on gdpark.blogHugoenSun, 17 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-01-goods-market-and-the-short-term-model/Sun, 10 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-01-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.https://gdpark.blog/posts/macroeconomics-02-financial-markets/Sun, 10 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-02-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.https://gdpark.blog/posts/macroeconomics-03-is-curve-and-lm-curve/Mon, 11 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-03-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!https://gdpark.blog/posts/macroeconomics-04-medium-term-analysis-labor-market/Mon, 11 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-04-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.https://gdpark.blog/posts/macroeconomics-05-wage-setting-and-price-setting/Tue, 12 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-05-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.https://gdpark.blog/posts/macroeconomics-06-deriving-the-aggregate-demand-and-aggregate-supply-curves/Tue, 12 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-06-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.https://gdpark.blog/posts/macroeconomics-07-aggregate-supply-aggregate-demand-analysis/Wed, 13 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-07-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.https://gdpark.blog/posts/macroeconomics-08-the-phillips-curve-unemployment-and-inflation/Wed, 13 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-08-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.https://gdpark.blog/posts/macroeconomics-09-okun-s-law/Thu, 14 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-09-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.https://gdpark.blog/posts/macroeconomics-10-stylized-facts-of-economic-growth/Thu, 14 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-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.https://gdpark.blog/posts/macroeconomics-11-the-relationship-between-savings-rate-and-output/Fri, 15 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-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.https://gdpark.blog/posts/macroeconomics-12-the-cobb-douglas-production-function/Fri, 15 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-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.https://gdpark.blog/posts/macroeconomics-13-solow-residual-a-macroeconomic-approach-to-technological-pro/Sat, 16 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-13-solow-residual-a-macroeconomic-approach-to-technological-pro/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.https://gdpark.blog/posts/macroeconomics-14-the-real-interest-rate/Sat, 16 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-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.https://gdpark.blog/posts/macroeconomics-15-short-run-and-medium-run-analysis-with-the-real-interest-rat/Sun, 17 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-15-short-run-and-medium-run-analysis-with-the-real-interest-rat/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).https://gdpark.blog/posts/macroeconomics-16-expected-present-discounted-value/Sun, 17 Jan 2016 00:00:00 +0000https://gdpark.blog/posts/macroeconomics-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.