Open University D216 (Changing Economies)

Compulsory Reading:
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From "Economics and Changing Economies", M. Mackintosh, V. Brown,
     N. Costello, G. Dawson, G. Thompson, and A. Trigg (eds),
     The Open University/International Thompson Business Press, 1996:
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BOOK 1: THE MARKET SYSTEM
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Part 1  Economic issues and economic models
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Chapter 1: Economic Issues, by Maureen Mackintosh
     1 Introduction
     2 Winners and losers: growth and decline
     3 The workings of markets: order and disorder
     4 Economics and institutions
     5 Conclusion

Chapter 2: Economic modelling, by Grahame F. Thompson
     1 Introduction
     2 The notion of an economic model
     3 The circular flow model
     4 The model as a whole
     5 Extensions to the circular flow model
     6 Aggregate expenditure
     7 Issues and problems in measuring national income
     8 Change and growth
     9 Conclusion

Part 2 Economic agency
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Chapter 3: People and households as economic agents, by Jane Wheelock
     1 Introduction
     2 The personal sector of the economy: income, expenditure and
       savings
     3 The consumption function
     4 Household demand for particular commodities
     5 The economic agents: people or households?

Chapter 4: Organizations as economic agents, by Neil Costello
     1 Introduction
     2 Firms: a background
     3 Firms and finance
     4 Production, costs and profits
     5 Organizational structures, cultures and goals
     6 Conclusion

Part 3 Competition and market power
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Chapter 5: Strategic competition, by Vivienne Brown
     1 Introduction: fierce competition and 'dirty tricks'
     2 Oligopoly and market structure
     3 Oligopoly and interdependence
     4 Competition, collusion and co-operation
     5 Models of the profit-maximising oligopolist
     6 Conclusion: strategic interdependence

Chapter 6: Monopoly power, by Andrew B. Trigg
     1 Introduction
     2 Measuring the extent of monopoly power
     3 The origins of monopoly power
     4 Static theories of monopoly
     6 Conclusion

Part 4: Evaluating competition
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Chapter 7: The perfect competitive market, by Catherine Price
     1 Introduction
     2 Competitive markets
     3 The firm in perfect competition
     4 The perfectly competitive industry
     5 Market demand, supply and equilibrium
     6 Assessment of perfect competition
     7 Conclusion

Chapter 8: Competition policies and industrial policies, by George Yarrow
     1 Introduction
     2 Market power and its problems
     3 Policy approaches to issues of monopoly and competition
     4 Market dominance
     5 Collusion
     6 Vertical supply arrangements
     7 Mergers
     8 Privatization and regulation
     9 Sectoral policies
    10 Conclusions

Part 5 Data and economic models
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Chapter 9: Data analysis and economic modelling, by Wendy Olsen
     1 Introduction
     2 Creating economic data
     3 Exploring economic data
     4 Modelling economic relationships
     5 Conclusion

Part 6 Money and government
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Chapter 10: Government and the economy, by Maureen Mackintosh
     1 Introduction: the economics of governing
     2 Governing the commons
     3 Market failures and public responses
     4 The public or the private state?
     5 Taxes and markets
     6 Conclusion: modelling government

Chapter 11: Money in market economies, by Graham Dawson
     1 Introduction: money in the economy
     2 Monetary exchange
     3 Financial innovation
     4 The demand for money
     5 The supply of money
     6 International monetary disorder
     7 Conclusion

Part 7 International markets
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Chapter 12: Firms, competitiveness and the global economy,
                                         by Paul Auerbach
     1 Introduction
     2 Economic globalization
     3 The emergence of the giant firm
     5 Competition and competitiveness
     6 Conclusion

Chapter 13: International trade, by Anthony J. Venables
     1 Introduction
     2 Comparative advantage and the gains from trade
     3 Sources of comparative advantage
     4 Trade policy
     5 Trade and market structure
     6 Conclusion

Part 8 Economic integration and transformation
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Chapter 14: European integration and economic growth, by L. Alan Winters
     1 Introduction
     2 The European Communities and economic integration
     3 Non-tariff barriers and the SEM
     4 Integration and economic growth
     5 Technical progress
     6 Conclusion

Chapter 15: The market system, by Grahame F. Thompson
     1 Introduction
     2 Forms of the market system
     3 Interests and influences in the market system
     4 The importance of institutions and history
     5 Economic reform in Eastern Europe and the former Soviet Union
     6 Price liberalization and marketization
     7 Privatization and the construction of property rights
     8 Reform of the financial system
     9 Conclusion
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BOOK 2: MACROECONOMICS AND ECONOMIC POLICY
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Part 9 Changing economies and economic theory
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Chapter 16: Economics and economic policy, by Vivienne Brown
     1 Introduction
     2 The Keynesian revolution
     3 The resurgence of economic liberalism
     4 Issues for the 1990s and beyond
     5 Conclusion

Part 10 Macroeconomic modelling
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Chapter 17: Aggregate demand and stabilization policy, by Vivienne Brown
     1 Aggregate demand and economic policy
     2 Aggregate expenditure and fluctuations in economic activity
     3 Aggregate demand
     4 Stabilization policies
     5 Fiscal stance and budget deficits
     8 Conclusion

Chapter 18: Aggregate supply and suppply-side intervention,
                                                      by Mary Gregory
     1 Introduction
     2 A New Keynesian approach: wage bargaining and price setting
     3 The competitive approach: market clearing in competitive markets
     4 Combining aggregate supply with aggregate demand
     5 Macroeconomic analysis and policies: a comparison of approaches

Part 11 Macroeconomic policy and performance
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Chapter 19: Economic policy in an open economy, by Andrew Stevenson
     1 Introduction
     2 The foreign exchange market, exchange rates and trade flows
     3 Exchange rates and the capital account
     4 Monetary policy and fiscal policy in an open economy
     5 Fixed exchange rate rates versus flexible exchange rates
     6 The ERM
     7 Conclusion

Chapter 20: Macroeconomic policies in historical perspective,
                                                        by Nick Crafts
     1 Introduction: macroeconomic performance and problems
     2 Case studies of stabilization failure
     3 Comparisons of growth and productivity performance
     4 Further exploration of comparative growth and productivity
     5 Stabilization and growth in historical perspective

Part 12 Labour in the economy
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Chapter 21: The labour market, by Francis Green
     1 Introduction
     2 The perfectly competitive labour market
     3 Imperfectly competitive labour markets
     4 Instability and unemployment
     5 Training interventions and institutions
     6 Conclusion

Part 13 Distribution and intervention
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Chapter 22: Values and distribution, by David Bailey and
                                        Shaun Hargreaves Heap
     1 Introduction
     2 The incidence and causes of poverty
     3 The distribution of earnings in the UK
     4 Who cares about inequality?
     5 Measuring inequality
     6 Are individual income levels all that count?
     7 Conclusion

Chapter 23: Redistribution, by Maureen Mackintosh
     1 Introduction
     2 Redistribution: public and private means
     3 The tax/benefit system
     4 The economics of cash redistribution
     5 Health care and redistribution
     6 Assets and institutions: problems of wealth redistribution

Part 14 Macroeconomics and economic change
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Chapter 24: Unemployment and inflation, by Graham Dawson
     1 Introduction
     2 The costs of unemployment versus the costs of inflation
     3 Inflation, unemployment and expectations
     4 Inflation and expectations
     5 Inflation, disinflation and conflict
     6 Unemployment
     7 Conclusion

Chapter 25: Economic fluctuations and technological change,
                                                      by Andrew B. Trigg
     1 Introduction
     2 Cycles and aggregate demand
     3 Investment and aggregate demand
     4 Money and aggregate demand
     5 Innovations and technology
     6 Conclusion

Part 15 Data and economic forecasting
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Chapter 26: Data analysis and forecasting, by Andrew B. Trigg
     1 Introduction
     2 Regression and correlation
     3 Time series data
     4 Forecasting
     5 Simulation
     6 Conclusion
     Appendix

Part 16 Economic policy and the longer term
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Chapter 27: Sustainable development, by Giles Atkinson
     1 Introduction
     2 Sustainable development
     3 An economic framework for environmental policy
     4 The need for international co-operation
     5 Conclusion

Chapter 28: Economic interdependence and policy coordination,
                                                       by Graham Dawson
     1 Introduction
     2 Central bank independence
     3 The search for an international monetary system
     4 Macroeconomics, methodology and postmodernism
     5 Conclusion
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