An introduction to economic dynamics created by Ronald Shone

Includes bibliographical references and index

Contents
List of tables and boxes
Preface
1 Introduction
2 Demand and supply dynamics
3 Simple Keynesian dynamics
4 Constructing trajectories in the phase plane
5 IS-LM dynamics
6 Inflation-unemployment dynamics
7 Dynamics of the firm
8 Saddles and rational expectations
9 Fiscal dynamics and the Maastricht Treaty
10 A little bit of chaos
Brief answers to selected exercises
Further reading
Index

An examples-driven treatment of introductory economic dynamics for students with a basic familiarity with spreadsheets. Shone approaches the subject with the belief that true understanding of a subject can only be achieved by students themselves setting out a problem and manipulating it experimentally. Although all economics students now have access to spreadsheets, they are often used for little more than graphing economic data. This book encourages students to go several stages further and set up and investigate simple dynamic models. The book presents the essentials of macro and micro economic dynamics, including: demand and supply dynamics, Keynesian dynamics, IS-LM, Inflation-unemployment, dynamics of the firm, rational expectations and saddle points, fiscal dynamics and the Maastricht Treaty and Chaos theory. The book contains 50 exercises. The support website contains an additional 100 questions for students and 100 for lecturers: www.cambridge.org/resources/economics.