Comparative Economics

7. COMPARATIVE MACROECONOMICS

This chapter is devoted to the macroeconomic system of the economy, a subject whose relevance to comparative economics has largely remained unexplored in the literature. Only the broad differences between the fiscal and monetary systems of market and centrally planned economies have received any degree of attention. Here we avoid placing primary emphasis on the dichotomous comparison of these macro-systems but seek to identify significant system variants within the broad range of institutions represented in centrally planned and market economies. We also stress the common elements among all systems, due to the aggregate macroeconomic identities that they must satisfy. The penultimate section of the chapter is given ...