Macroeconomics and Natural Resources


Edition: 1

Copyright: 2021

Pages: 286

Details: Electronic Delivery EBOOK | 180 days |


Macroeconomics and Natural Resources provides an introduction to contemporary macroeconomics accessible and attractive for students from different levels, countries, and field of studies thanks, on the one hand, to its didactic approach, graphical richness and flexible mix of technical, colloquial and metaphoric language, and, on the other hand, to its global perspective and strong policy orientation.

Macroeconomic concepts can look in general very abstract and  the book use of real examples from  several countries makes learning them easier.  On the other hand, the emphasis of the book on examples from economies with abundant natural resources attends to shed light on some unique characteristics of these economies not considered in the standard macroeconomic textbooks, helping to illustrate in a very clear way how random shocks drive countries’ macroeconomic dynamics in general.



Chapter 1: How to measure macroeconomic variables?

  1. Basic concepts
    1. Nominal variables versus real variables
    2. Flows versus stocks
    3. Variables in different currencies
  2. The Gross Domestic Product (GDP)
    1. Measurement and composition
    2. The demand approach
    3. The income approach
  3. Private, public and external savings
  4. The balance of payments
    1. The current account
    2. The financial account
    3. The international investment position
  5. Unemployment and inflation
    1. Unemployment
    2. Inflation
  6. The macroeconomics of countries endowed with natural resources
  7. Chapter summary
  8. Key concepts
  9. Recommended readings

Chapter 2:  Microeconomic foundations

  1. Decisions of households, firms, and governments
  2. General Equilibrium
  3. Chapter summary
  4. Key concepts
  5. Recommended readings


Chapter 3:  Basic behavioral macroeconomic relationships

  1. Good markets
  2. Financial markets
  3. The foreign sector
  4. Macroeconomic policies
  5. Chapter summary
  6. Key concepts
  7. Recommended readings


Chapter 4:  Business Cycles

  1. Cycle and trend
  2. Source of Business Cycles
  3. Study cases:  Norway, Canada, Venezuela, Ecuador
  4. Chapter summary
  5. Key concepts
  6. Recommended readings
  7. Annex
    1. Cycle-T rend filters
    2. Structural vector autoregressive models


Chapter 5. Economic Growth

  1. How does growth compare between resource rich countries and the rest of the world?
    1. Box: Differences in GDP measurements
  2. Which are the sources of growth?
    1. Growth accounting
    2. Capital, population and growth in Resource Rich economies.
  3. What determines factor accumulation in an economy?
    1. Investment and growth
    2. Capital, its composition and the efficiency of its allocation
    3. Box: The difference in capital accumulation between Asia and Latin America
    4. Population growth and human capital
    5. Box: Wat is the “demographic bonus”
    6. Box: The quality of human capital
    7. Factor accumulation and long-term growth: Convergence
    8. Box: Can capital be estimated?
  4. The production function beyond production factors
    1. Technology
    2. Other factors affecting growth
    3. Box: What is economic complexity? Does it matter?
    4. Natural resources and growth
    5. Box: The resource “drag”
  5. Beyond convergence: alternative approaches to growth
  6. Growth or development?
  7. Chapter summary
  8. Key concepts
  9. Recommended readings


Chapter 6: Are natural resources bad for the economy?

  1. Dependency Theory and Resource Curse
  2. The new literature on natural resources and development
    1. The evidence
    2. Box: The challenge of estimating the effect of resources of growth
    3. Box: The US a resource rich economy
    4. From general statements to microeconomic evidence
    5. Box: Is there a “Dutch Disease”? Should we care
  3. Commodity prices, volatility and the economic cycle
    1. Box 6.4 Are local governments more responsible than national governments?
  4. Policy challenges
    1. Institutions for the sector
    2. Box: International standards and institutions in the extractive sector
    3. Macroeconomic policy
    4. Governance
    5. Box: What is “resource fueled authoritarianism”? Is there evidence that it exists?
  5. Chapter summary
  6. Key concepts
  7. Recommended readings


Chapter 7: Labor markets, unemployment and natural resources

  1. Some basic concepts
  2. How the labor market works?
  3. Characteristics of unemployment
    1. Which groups are the most affected?
    2. Long-term unemployment
    3. Costs of unemployment
  4. Imperfections in the labor market and regulation
  5. Demand and supply of labor: a basic model
  6. Alternative models
    1. Segmented markets
    2. Informality and labor markets
  7. Chapter summary
  8. Key concepts
  9. Recommended readings


Chapter 8: Aggregate Private Spending (Consumption and Investment)  

  1. Consumption
    1. Consumption and utility
    2. Current consumption versus future consumption
    3. The role of the real interest rate
    4. Credit Restrictions and Uncertainty
  2. Investment
    1. Stock of capital and production
    2. Physical capital and consumption, savings and investment decisions of families
    3. Relationship between consumption and investment at the aggregate level
  3. Chapter summary
  4. Key concepts
  5. Recommended readings
  6. Annex


Chapter 9: Challenges of fiscal policy

  1. What does the government do?
    1. Where is government spending money?
    2. Box: Government? Public Sector? What are the different levels of the Public Sector
    3. The scope of government action: public goods.
    4. Spending financing: the role of taxes.
    5. Box: Taxing income or taxing consumption? The debate on taxation.
  2. Government accounts and their impact on households
    1. The impact of spending
    2. The impact of taxes
  3. Is it better to finance yourself with debt?
    1. Box: The debt crisis: did commodity prices play a role?
  4. Do resource rich societies pay for public services?
    1. Box: Resource GDP and total GDP
  5. Chapter summary
  6. Key concepts
  7. Recommended readings


Chapter 10: Monetary Economy (Money, Financial System and the Central Bank)

  1. Demand for money
    1. Quantitative theory of money
    2. Model of existence of money
  2. Purchase time model
    1. The nominal budget constraint
    2. The optimal demand for money
    3. The money multiplier and money supply
  3. Macroeconomic policy and inflation
    1. Seigniorage and inflationary tax
  4. The “new norm” of Monetary Policy
  5. Chapter summary
  6. Key concepts
  7. Recommended readings


Chapter 11: Relations with the rest of the world

  1. Exchange rate regimes and the real exchange rate
    1. Fixed exchange rate
    2. Flexible exchange rate
    3. Real exchange rate
  2. Balance of payments crisis
    1. Krugman's balance of payments crisis model
  3. The external sector in the real economy
  4. Understanding the global outlook and the policy reaction to assess potential business shocks
  5. Chapter summary
  6. Key concepts
  7. Recommended readings
  8. Annex
    1. Small and open monetary Economy. Intertemporal budget constraint


Chapter 12: The political economy of macroeconomic policy

  1. Instruments and objectives
  2. Macroeconomic policy and institutions
  3. Uncertainty and expectations 
  4. Politics and macroeconomic policy
  5. Rules versus discretion
  6. Structural reforms and stabilization
  7. Chapter summary
  8. Key concepts
  9. Recommended readings


Chapter 13: Climate challenges for resource-dependent economies

Chapter 14: Global macroeconomics coordination and the effects of globalization



Osmel Manzano is Regional Economic Advisor for the Country Department for the Andean Countries.  He is responsible for the economic work and macroeconomic monitoring of the IADB in the Andean region. He has been working on the development challenges in the region, with emphasis on natural resources, energy, growth and productivity. He is the authored different publications on these subjects. Previously he was the Regional Economic Advisor for the Country Department for Belize, Central America, Haiti, Mexico, Panama and Dominican Republic.

In addition, he is Adjunct Professor at the Walsh School of Foreign Service in Georgetown University.  Before joining the IADB, he was Assistant Director, and Coordinator of the Research Program at the Andean Development Corporation (CAF). He was also Visiting Adjunct Professor at George Washington University and Adjunct Professor at Universidad Catolica Andres Bello, the McCourt School of Public Policy in Georgetown University and IESA Business School (in Venezuela) and has been invited to teach at different Latin American universities. He was a Visiting Fellow at the Mossavar-Rahmani Center for Business and Government of the John F. Kennedy School of Government (Harvard University). He holds a Ph.D. Degree in Economics from the Massachusetts Institute of Technology.


Rodolfo Méndez Marcano is principal economist at BBVA Research (Madrid) since 2006, where he dedicates to macroeconomic and climate-change risk analysis and to develop and improve macroeconometric models for macrofinancial forecasting and analysis.  His other research interests are the macroeconomics of oil exporting economies and the application to empirical macroeconomics of machine learning techniques. He has been consultant for governments and multilateral institutions (World Bank, UNDP, CEPAL, CAF, IADB) and has taught graduate and undergraduate macroeconomics in Venezuelan and Spanish universities. He has a PhD in Statistics by Universidad Simón Bolívar (Caracas), an MSc in Economics by Universitat Pompeu Fabra (Barcelona) and, underway, an MSc in Data Science by Universitat Oberta de Catalunya (Barcelona).


José is currently Adjunct Professor at the Sauder School of Business at University of British Columbia. He is a Senior Consultant working on modeling and indicators with the Resources and Markets Branch, Economy Division at UN Environment. José is also a Senior Consultant at DevTech Systems, Inc., where he has vast experience developing macroeconomic fiscal frameworks (currently working on Puerto Rico’s Fiscal Plan and Saudi Arabia’s Fiscal Rule). José was a senior researcher for the UNDP’s Human Development Report. He has extensive research experience in the fields of international trade and open macroeconomics. Prior to joining the UN, he was Deputy Director of Research and Coordinator of country economists for CAF Latin America Development Bank. He has also served as Chief Economist of the Venezuelan-American Chamber of Commerce and Industry, and as consultant for the Venezuelan Ministry of Finance, the Venezuelan Central Bank and international organizations, such as the World Bank. He also was professor at the Universidad Central de Venezuela in the field of macroeconomics. José holds a PhD in Economics from the University of Maryland.


Germán Ríos is Adjunct Professor and Chair of the Observatory on Latin American Politics and Economics at IE University and Senior Partner at Atrevia. Previously he was Corporate Director of Strategic Affairs at CAF development bank of Latin America. He has taught macroeconomics, fiscal policy, cost-benefit analysis, economic development, Latin America economics and microeconomics in several universities in Venezuela, the United Kingdom, Spain and the United States. During the academic year 2010-2011 he was the Andres Bello Fellow at the Latin American Centre of the University of Oxford. He served as Director of Public Investment at the Ministry of Planning of Venezuela, and as a Country Analyst for Brazil, Chile, Uruguay and Paraguay at the World Bank. Mr. Ríos has worked as a consultant for the Inter-American Development Bank and the United Nations Economic Commission for Latin America. He received a Bachelor of Arts in Economics from Universidad Central de Venezuela, a Master of Arts in Economics from Johns Hopkins University, a Master of Business Administration from the Instituto de Estudios Superiores de Administración (IESA), and a Master of Philosophy in Economics from George Washington University. Mr. Ríos was part of the Venezuelan research team in the project “Understanding Reforms” sponsored by the Global Development Network, published by Palgrave, and is co-author of the textbook “Macroeconomics and Oil”, published by Pearson/Prentice Hall, among other publications.

Related ISBN's: 9781792459139




ISBN 9781792459139

Details Electronic Delivery EBOOK 180 days