Macro Theory

1
Macro Theory

• How does the Macro economy impact on your
  business
• Intuitive Forecasting

2
The History of Macro-Inventions

• F. Quesnay
• Circular Flow
• Louise 15th
• Says Law late 1700s
• Quantity Theory David Ricardo
• MV PT
• Freely Adjusting Markets
• THIS IS CLASSICAL MACRO

3
Keynesian Analysis

• Y C I G (I-X)
• Multipliers
• Pump Priming

4
MODERN MACRO HISTORY

• 1960S Fine Tuning (Okun-Heller)
• Kennedy Tax Cut
• 1960s Modern Quantity Theory (Friedman)
• Rules vs. Discretion
• 1970s Supply side (Laffer)

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5
Policy

• Government has to solve problems
• Democrats tend to be Keynesians but possible to
  be a conservative Keynesian How?
• Republicans tend to be monetarists or supply-side
  types
• Dont Fight the Fed.
• The Bush Tax Cut!!!!

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