the old terminology was macroeconomics. macroeconomic theory is concerned with macroeconomics. macroeconomic policy is concerned with macroeconomics. the term macroeconomics was invented by george stigler . economics was invented by jeremy moses . economics theory is based on economics of the microeconomy theory, which was invented by john maynard keynes . the history of macroeconomics is deeply intertwined with the history of macroeconomics.
current usage of the term macroeconomics in the english-speaking world has, however, gone through several stages. the first stage was the age of keynes. the second stage was the age of the new keynesians. the third stage was the age of the new classical and neo-keynesians.
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the theory of the hard regulations network (hr) approach in economics is an attempt to provide a comprehensive framework for analyzing the interactions of all regulations. for example, the network approach allows us to study and compare complex regulations over the same time period, such as: how the high deductibles in the affordable care act (aca) of 2010, which boosted the number of low-cost insurance plans, affected the number of insurance plans, and how government policies have affected the amounts of general government spending and taxes, which in turn, changed the economy’s capacity and the demand for labor. besides, the theory allows us to point out the effects of regulations on other regulations and to understand the evolving set of laws that constitute a particular regime. it makes it possible to analyze not only what happened, but also why it happened. the theory is still in its infancy, and it is important to analyze whether it has the potential to revolutionize our approach to policy. as an extension of the network approach to macroeconomics, the framework of macroeconomic policy theory , the theory of macroeconomic policy, was developed in the 1970s with great success. this theory provides a framework for assessing the effects of policy on the economy, and is the most widely used theoretical approach in the field of economic analysis. in the theory of macroeconomics, we have to understand not only why governments change their policies but also why and how these policies affect the economic condition of the country. it can be said that the theory of macroeconomic policy is the scientific basis for most of the economic policies. what is new in the theory of macroeconomic policy is the analysis of the possible effects of new regulations on the economy. the purpose of this article is to summarize the theory of macroeconomic policy as developed by marcello pasinetti and myself. theory of macroeconomic policy in terms of theory, the analysis of macroeconomics is based on the following assumptions: 1) the real interest rates that determine aggregate demand must be predetermined and bounded; 2) the price level is exogenous, with its level fixed over time; 3) there is an equilibrium wage-employment relationship; 4) the economy is closed, although it is subject to endogenous government spending policy and an inflation target. the theory of macroeconomics focuses on the dynamic equilibrium relationships between the economy and the state. the state is represented by government spending and the fiscal deficit. the economy’s output is defined by the production of domestic product, the gross domestic product. according to the theory of macroeconomics, the equilibrium relationship between the economy and the state can be expressed by the following seven conditions: * the level of aggregate demand (ad) is determined by the level of interest rates (ir). * the level of ad is determined by the supply of domestic product (d). * the level of interest rates (ir) is determined by the level of demand for loanable funds (dlf) at the money market. * the level of the dlf depends on the supply of money (dm) and debt. * the level of dm depends on the level of ad, the supply of money, the level of dlf at the money market, and the supply of time deposits.