Business Cycles and Equilibrium

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.

• Foreword vIntroduction xxiChapter 1: Banking and Interest Rates in a World Without Money: The Effects of Uncontrolled Banking 1Chapter 2: Active and Passive Monetary Policy in a Neoclassical Model 23Chapter 3: Rational Economic Behavior and the Balance of Payments 43Chapter 4: Uniqueness of the Price Level in Monetary Growth Models with Rational Expectations 65Chapter 5: Purchasing Power Parity in an Equilibrium Model 81Chapter 6: Ups and Downs in Human Capital and Business 85Chapter 7: How Passive Monetary Policy Might Work 91Chapter 8: What a Non-Monetarist Thinks 99Chapter 9: Global Monetarism in a World of National Currencies 107Chapter 10: The ABCs of Business Cycles 117Chapter 11: A Gold Standard with Double Feedback and Near Zero Reserves 129Chapter 12: The Trouble with Econometric Models 135Chapter 13: General Equilibrium and Business Cycles 153Chapter 14: Noise 169Index 191