Business Cycles and Equilibrium

Throughout his career Fisher Black has described a view of business fluctuations based on the idea that a well-developed economy will be continually in equilibrium. In the essays that constitute this book he explores this idea thoroughly and reaches some surprising conclusions.

Provocative and clearly written, Business Cycles and Equilibrium will be of value to students of macroeconomics as well as those of finance and the international economy.

Foreword v

Introduction xxi

Chapter 1: Banking and Interest Rates in a World Without Money: The Effects of Uncontrolled Banking 1

Chapter 2: Active and Passive Monetary Policy in a Neoclassical Model 23

Chapter 3: Rational Economic Behavior and the Balance of Payments 43

Chapter 4: Uniqueness of the Price Level in Monetary Growth Models with Rational Expectations 65

Chapter 5: Purchasing Power Parity in an Equilibrium Model 81

Chapter 6: Ups and Downs in Human Capital and Business 85

Chapter 7: How Passive Monetary Policy Might Work 91

Chapter 8: What a Non-Monetarist Thinks 99

Chapter 9: Global Monetarism in a World of National Currencies 107

Chapter 10: The ABCs of Business Cycles 117

Chapter 11: A Gold Standard with Double Feedback and Near Zero Reserves 129

Chapter 12: The Trouble with Econometric Models 135

Chapter 13: General Equilibrium and Business Cycles 153

Chapter 14: Noise 169

Index 191

Ken Black is currently professor of decision sciences in the School of Business at the University of Houston-Clear Lake. born in Cambridge, Massachusetts, and raised in Missouri, he earned a bachelor's degree in mathematics from Graceland University, a master's degree in math education from the University of Texas at El Paso, a Ph.D. in business administration in management science, and a Ph.D. in educational research from the University of North Texas.
Since joining the faculty of UHCL in 1979, Professor Black has taught all levels of statistics courses, forecasting, management science, market research, and production/operations management. In 2005, he was awarded the President's Distinguished teaching Award for the university. He has published over 20 journal articles and 20 professional papers, as well as two textbooks: Business Statistics: An Introductory Course and Business Statistics for contemporary Decision Making. black has consulted for many different companies, including Aetna, the city of Houston, NYLCare, AT&T, Johnson Space center, Southwest Information Resources, Connect Corporation, and Eagle Engineering.

Throughout his career Fisher Black has described a view of business fluctuations based on the idea that a well-developed economy will be continually in equilibrium. In the essays that constitute this book he explores this idea thoroughly and reaches some surprising conclusions.

Provocative and clearly written, Business Cycles and Equilibrium will be of value to students of macroeconomics as well as those of finance and the international economy.