Macroeconomics for MBAs and Masters of Finance

Description

Using a rigorous and concise framework, this book teaches the foundations of modern macroeconomic theory and its methods. It is ideally suited for students taking a first graduate course in macroeconomics as part of an MBA, finance, or economics degree. The book explains recent advances of modern macroeconomic theory with respect to growth, business cycles, and asset pricing by focusing on aspects of firm and household behavior that are embedded in modern macroeconomic studies. Throughout the book data issues are discussed in detail: where to find the data, how to download it, and the correspondence of data with model predictions. The mathematical level assumes that students have taken a course in calculus. With its emphasis on dynamic inter-temporal macroeconomics and the use of data, the book provides students with a core toolkit that will equip them both for more advanced study and for professional careers as economists.

Morris A. Davis is Assistant Professor in the Department of Real Estate and Urban Land Economics at the University of Wisconsin-Madison School of Business. He also worked for the Federal Reserve Board in Washington, DC from 1998-2000 and 2002-6. He holds a PhD in Economics from the University of Pennsylvania.

'This is a gem of a book. It covers the many things we really know about macroeconomics, avoiding pointless coverage of ancient controversies. It uses just a little algebra and microeconomics to give surprising answers to important questions, and to solve all sorts of problems that confuse people with verbal analysis. In this way, it is a wonderful introduction to the tools and economic thinking of modern macroeconomics.' John H. Cochrane, University of Chicago 'This is one of the best introductions to modern macroeconomics available. By going through page by page with pen and paper at hand, a reader will naturally begin to understand how modern economics helps addressing substantive questions, from economic growth to business cycles and monetary policy.' Nobuhiro Kiyotaki, Princeton University 'In the concluding section of my Nobel lecture I lament the problem in macro that, 'in the past 20 years, the gap between research and textbooks has grown wider and wider'. Almost all interesting macroeconomic phenomena are dynamic, and that creates a need to be explicit about forward-looking people's decision problems. But, it's not straightforward to do dynamics on paper, and so most textbooks shy away from it. In the process, students are done a disservice. Morris Davis changes all of that. He has succeeded in introducing dynamics in a manageable way. At the same time, the book is fun to read. What's also interesting is his ability, from time to time, to connect with issues commonly discussed only in finance.' Finn E Kydland, University of California, Santa Barbara, Nobel Laureate 2004 'Morris Davis' book is a dramatic improvement on what is currently available for teaching aggregate economics to MBAs and advanced undergraduates. It contains important sections on asset prices and trade. This book will provide business students with the solid knowledge of macroeconomic fundamentals they will need to succeed in today's globalized economy.' Edward C Prescott, Arizona State University, Nobel Laureate 2004