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Lecture Notes in Macroeconomics

Lecture Notes in MacroeconomicsJohn C. DriscollBrown University and NBER1 December 21, 20031 Department of Economics, Brown University, Box B, Providence RI 02912. Phone(401) 863-1584, Fax (401) 863-1970, web:http:\\ \ Copyright John C. Driscoll, 1999, 2000, 2001. All rightsreserved. Do not reproduce without permission. Comments welcome. I especiallythank David Weil, on whose Notes substantial parts of the chapters on Money andPrices and Investment are based. Kyung Mook Lim and Wataru Miyanaga provideddetailed corrections to typographical errors. Several classes of Brown students haveprovided suggestions and corrections. All remaining errors are Money and Definitions .. Prices .. Money .. The History of Money .. The Demand for Money.

3.2.2 Monetary Policy and Time Inconsistency . . . . . . . . . 73 ... time series with average growth rate of ... † Macroeconomic Policy: Given an understanding of what causes economic fluctuations, here we consider what policy can and should do about them.

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