An Introduction to Economic Dynamics

PREFACE

This book aims to introduce economic dynamics to the undergraduate students of economics. Undergraduate economics education remains largely focused on elucidating static equilibrium models. The ensuing comparative static analysis inhibits students from asking how an equilibrium is reached from an initial out-of-equilibrium position and limits their understanding of the dynamics that underlie such analysis. In turn, static models and methods have become a standard mode of thinking about real economic problems and the associated analytical tools and techniques are used for exploring economic reality, i.e. data, in the wider policy analysis. This self-reinforcing dynamic has locked-in much of the undergraduate economic teaching in the static ...