Macroeconomic Policy Analysis
Open Economies with Quantity Constraints

This book introduces the concept of public sector rationing in asset markets and provides a non-Walrasian approach to macroeconomic policy analysis. The detailed treatment of credit rationing regimes makes this work particularly relevant to economies where the interest rate is regulated. Other topics covered include the disaggregation of the government into the treasury and the central bank, the specification behavior of households, firms, and the central bank as intertemporal optimizers. The book provides models that can be easily extended to take into account both institutional and economic structures of all economies and the particular needs of the policy analysts before empirical implementation.

List of tables; Preface; Acknowledgements; 1. Introduction; 2. Firms rationed in the credit market; 3. Household rationed in the credit market; 4. Households and firms rationed in the credit market; 5. Central-bank portfolio selection and stabilization policies; 6. Summary; Appendix. Monetary and fiscal policies with a flexible interest rate; Selected bibliography.