Market Imperfections and Macroeconomic Dynamics

Market Imperfections and Macroeconomic Dynamics is based upon a collection of papers originally presented at the 5th Theory and Methods in Macroeconomics (T2M) meeting in Paris, France, 2002. The contributions in this volume focus on a central theme: the aggregate dynamic consequences of market imperfections. Such effects are of great interest to researchers in macroeconomics as these imperfections play a primary role in the persistence of aggregate output, the characteristics of the business cycles and the interactions of agents over time. Incorporating up-to-date techniques and methods, these contributions exemplify the remarkable progress made by macroeconomists in tackling these issues.The primary market for Market Imperfections and Macroeconomic Dynamics is academic researchers in economics and graduate students specializing in macroeconomics. Divisions of economic studies in public administration and in financial organizations will also find this book beneficial.

Part I: Globalization, Competition and Macroeconomic Performances. 1. Is Perfection Optimal? Employment and Product Market Competition; B. Amable, D. Gatti. 2. Human Capital, Local Labor Markets and Regional Integration; L. Rioux, T. Verdier. 3. A Long-Term Model for the World Economy; Ingenue Team. Part II: Money, Inflation and Macrodynamics. 4. Inflation and Productivity Differentials in EMU; P. De Grauwe, F. Skudelny. 5. Open Market Shocks in a Business Cycle Model with Financial Intermediation; B. Heer, A. Schabert. 6. Optimal Monetary Policy with Sticky Prices; M. Gail. Part III: Indeterminacy and Irreversibility. 7. Real Indeterminacy in a Cash-In-Advance Economy; S. Auray, F. Collard, P. Fève. 8. Borrowing Constraint and Indeterminacy; J.-P. Barinci, A. Chéron. 9. Irreversible Investment Under Uncertainty; A. Pommeret.