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Macroeconomics
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Macroeconomics (from the Greek prefix makro- meaning "large" and economics) is a branch of economics dealing with the performance, structure, behavior, and decision-making of an economy as a whole. This includes regional, national, and global economies.[1]
Macroeconomists study aggregated indicators such as GDP, unemployment rates, national income, price indices, and the interrelations among the different sectors of the economy to better understand how the whole economy functions.
Macroeconomists develop models that explain the relationship between such factors as national income, output, consumption, unemployment, inflation, savings, investment, international trade and international finance.
While macroeconomics is a broad field of study, there are two areas of research that are emblematic of the discipline: the attempt to understand the causes and consequences of short-run fluctuations in national income (the business cycle), and the attempt to understand the determinants of long-run economic growth (increases in national income). Macroeconomic models and their forecasts are used by governments to assist in the development and evaluation of economic policy.
Macroeconomics and microeconomics, a pair of terms coined by Ragnar Frisch, are the two most general fields in economics.[2] In contrast to macroeconomics, microeconomics is the branch of economics that studies the behavior of individuals and firms in making decisions and the interactions among these individuals and firms in narrowly-defined markets.
Contents
[hide]
1 Basic macroeconomic concepts
1.1 Output and income
1.2 Unemployment
1.3 Inflation and deflation
2 Macroeconomic models
2.1 Aggregate demand–aggregate supply
2.2 IS–LM
2.3 Growth models
3 Macroeconomic policy
3.1 Monetary policy
3.2 Fiscal policy
3.3 Comparison
4 Development
4.1 Origins
4.2 Austrian School
4.3 Keynes and his followers
4.4 Monetarism
4.5 New classical
4.6 New Keynesian response
5 See also
6 Notes
7 References
Basic macroeconomic concepts[edit]
Macroeconomics encompasses a variety of concepts and variables, but there are three central topics for macroeconomic research.[3] Macroeconomic theories usually relate the phenomena of output, unemployment, and inflation. Outside of macroeconomic theory, these topics are also important to all economic agents including workers, consumers, and producers.
Circulation in macroeconomics.
Output and income[edit]
National output is the total amount of everything a country produces in a given period of time. Everything that is produced and sold generates an equal amount of income. Therefore, output and income are usually considered equivalent and the two terms are often used interchangeably. Output can be measured as total income, or it can be viewed from the production side and measured as the total value of final goods and services or the sum of all value added in the economy.[4]
Macroeconomic output is usually measured by gross domestic product (GDP) or one of the other national accounts. Economists interested in long-run increases in output study economic growth. Advances in technology, accumulation of machinery and other capital, and better education and human capital are all factors that lead to increased economic output over time. However, output does not always increase consistently over time. Business cycles can cause short-term drops in output called recessions. Economists look for macroeconomic policies that prevent economies from slipping into recessions and that lead to faster long-term growth.
Unemployment[edit]
Main article: Unemployment
A chart using US data showing the relationship between economic growth and unemployment expressed by Okun's law. The relationship demonstrates cyclical unemployment. Economic growth leads to a lower unemployment rate.
The amount of unemployment in an economy is measured by the unemployment rate, i.e. the percentage of workers without jobs in the labor force. The unemployment rate in the labor force only includes workers actively looking for jobs. People who are retired, pursuing education, or discouraged from seeking work by a lack of job prospects are excluded.
Unemployment can be generally broken down into several types that are related to different causes.
Classical unemployment theory suggests that unemployment occurs when wages are too high for employers to be willing to hire more workers.[citation needed] Other more modern economic theories[which?] suggest that increased wages actually decrease unemployment by creating more consumer demand. According to these more recent theories, unemployment results from reduced demand for the goods and services produced through labor and suggest that only in markets where profit margins are very low, and in which the market will not bear a price increase of product or service, will higher wages result in unemployment.
Consistent with classical unemployment theory, frictional unemployment occurs when appropriate job vacancies exist for a worker, but the length of time needed to search for and find the job leads to a period of unemployment.[5]
Structural unemployment covers a variety of possible causes of unemployment including a mismatch between workers' skills and the skills required for open jobs.[6] Large amounts of structural unemployment can occur when an economy is transitioning industries and workers find their previous set of skills are no longer in demand. Structural unemployment is similar to frictional unemployment as both reflect the problem of matching workers with job vacancies, but structural unemployment also covers the time needed to acquire new skills in addition to the short term search process.[7]
While some types of unemployment may occur regardless of the condition of the economy, cyclical unemployment occurs when growth stagnates. Okun's law represents the empirical relationship between unemployment and economic growth.[8] The original version of Okun's law states that a 3% increase in output would lead to a 1% decrease in unemployment.[9]
Inflation and deflation[edit]
The ten-year moving averages of changes in price level and growth in money supply (using the measure of M2, the supply of hard currency and money held in most types of bank accounts) in the US from 1875 to 2011. Over the long run, the two series show a close relationship.
A general price increase across the entire economy is called inflation. When prices decrease, there is deflation. Economists measure these changes in prices with price indexes. Inflation can occur when an economy becomes overheated and grows too quickly. Similarly, a declining economy can lead to deflation.
Central bankers, who manage a country's money supply, try to avoid changes in price level by using monetary policy. Raising interest rates or reducing the supply of money in an economy will reduce inflation. Inflation can lead to increased uncertainty and other negative consequences. Deflation can lower economic output. Central bankers try to stabilize prices to protect economies from the negative consequences of price changes.
Changes in price level may be the result of several factors. The quantity theory of money holds that changes in price level are directly related to changes in the money supply. Most economists believe that this relationship explains long-run changes in the price level.[10] Short-run fluctuations may also be related to monetary factors, but changes in aggregate demand and aggregate supply can also influence price level. For example, a decrease in demand due to a recession can lead to lower price levels and deflation. A negative supply shock, such as an oil crisis, lowers aggregate supply and can cause inflation.
Macroeconomic models[edit]
Aggregate demand–aggregate supply[edit]
A traditional AS–AD diagram showing a shift in AD and the AS curve becoming inelastic beyond potential output.
The AD-AS model has become the standard textbook model for explaining the macroeconomy.[11] This model shows the price level and level of real output given the equilibrium in aggregate demand and aggregate supply. The aggregate demand curve's downward slope means that more output is demanded at lower price levels.[12] The downward slope is the result of three effects: the Pigou or real balance effect, which states that as real prices fall, real wealth increases, resulting in higher consumer demand of goods; the Keynes or interest rate effect, which states that as prices fall, the demand for money decreases, causing interest rates to decline and borrowing for investment and consumption to increase; and the net export effect, which states that as prices rise, domestic goods become comparatively more expensive to foreign consumers, leading to a decline in exports.[12]
In the conventional Keynesian use of the AS-AD model, the aggregate supply curve is horizontal at low levels of output and becomes inelastic near the point of potential output, which corresponds with full employment.[11] Since the economy cannot produce beyond the potential output, any AD expansion will lead to higher price levels instead of higher output.
The AD–AS diagram can model a variety of macroeconomic phenomena, including inflation. Changes in the non-price level factors or determinants cause changes in aggregate demand and shifts of the entire aggregate demand (AD) curve. When demand for goods exceeds supply there is an inflationary gap where demand-pull inflation occurs and the AD curve shifts upward to a higher price level. When the economy faces higher costs, cost-push inflation occurs and the AS curve shifts upward to higher price levels.[13] The AS–AD diagram is also widely used as a pedagogical tool to model the effects of various macroeconomic policies.[14]
IS–LM[edit]
In this example of an IS/LM chart, the IS curve moves to the right, causing higher interest rates (i) and expansion in the "real" economy (real GDP, or Y).
The IS–LM model represents all the combinations of interest rates and output that ensure the equilibrium in the goods and money markets.[15] The goods market is represented by the equilibrium in investment and saving (IS), and the money market is represented by the equilibrium between the money supply and liquidity preference.[16] The IS curve consists of the points where investment, given the interest rate, is equal to savings, given output.[17]
The IS curve is downward sloping because output and interest rate have an inverse relationship in the goods market: as output increases, more money is saved, which means interest rates must be lower to spur enough investment to match savings.[17] The LM curve is upward sloping because interest rate and output have a positive relationship in the money market: as output increases, the demand for money increases, resulting in a rise in interest rate.[18]
The IS/LM model is often used to demonstrate the effects of monetary and fiscal policy.[15] Textbooks frequently use the IS/LM model, but it does not feature the complexities of most modern macroeconomic models.[15] Nevertheless, these models still feature similar relationships to those in IS/LM.[15]
Growth models[edit]
The neoclassical growth model of Robert Solow has become a common textbook model for explaining economic growth in the long-run.[citation needed] The model begins with a production function where national output is the product of two inputs: capital and labor. The Solow model assumes that labor and capital are used at constant rates without the fluctuations in unemployment and capital utilization commonly seen in business cycles.[19]
An increase in output, or economic growth, can only occur because of an increase in the capital stock, a larger population, or technological advancements that lead to higher productivity (total factor productivity). An increase in the savings rate leads to a temporary increase as the economy creates more capital, which adds to output. However, eventually the depreciation rate will limit the expansion of capital: savings will be used up replacing depreciated capital, and no savings will remain to pay for an additional expansion in capital. Solow's model suggests that economic growth in terms of output per capita depends solely on technological advances that enhance productivity.[20]
In the 1980s and 1990s endogenous growth theory arose to challenge neoclassical growth theory. This group of models explains economic growth through other factors, such as increasing returns to scale for capital and learning-by-doing, that are endogenously determined instead of the exogenous technological improvement used to explain growth in Solow's model.[21]
Macroeconomic policy[edit]
Macroeconomic policy is usually implemented through two sets of tools: fiscal and monetary policy. Both forms of policy are used to stabilize the economy, which can mean boosting the economy to the level of GDP consistent with full employment.[22] Macroeconomic policy focuses on limiting the effects of the business cycle to achieve the economic goals of price stability, full employment, and growth. [23]
Monetary policy[edit]
Further information: Monetary policy
Central banks implement monetary policy by controlling the money supply through several mechanisms. Typically, central banks take action by issuing money to buy bonds (or other assets), which boosts the supply of money and lowers interest rates, or, in the case of contractionary monetary policy, banks sell bonds and take money out of circulation. Usually policy is not implemented by directly targeting the supply of money.
Central banks continuously shift the money supply to maintain a targeted fixed interest rate. Some of them allow the interest rate to fluctuate and focus on targeting inflation rates instead. Central banks generally try to achieve high output without letting loose monetary policy that create large amounts of inflation.
Conventional monetary policy can be ineffective in situations such as a liquidity trap. When interest rates and inflation are near zero, the central bank cannot loosen monetary policy through conventional means.
An example of intervention strategy under different conditions
Central banks can use unconventional monetary policy such as quantitative easing to help increase output. Instead of buying government bonds, central banks can implement quantitative easing by buying not only government bonds, but also other assets such as corporate bonds, stocks, and other securities. This allows lower interest rates for a broader class of assets beyond government bonds. In another example of unconventional monetary policy, the United States Federal Reserve recently made an attempt at such a policy with Operation Twist. Unable to lower current interest rates, the Federal Reserve lowered long-term interest rates by buying long-term bonds and selling short-term bonds to create a flat yield curve.
Fiscal policy[edit]
Further information: Fiscal policy
Fiscal policy is the use of government's revenue and expenditure as instruments to influence the economy. Examples of such tools are expenditure, taxes, debt.
For example, if the economy is producing less than potential output, government spending can be used to employ idle resources and boost output. Government spending does not have to make up for the entire output gap. There is a multiplier effect that boosts the impact of government spending. For instance, when the government pays for a bridge, the project not only adds the value of the bridge to output, but also allows the bridge workers to increase their consumption and investment, which helps to close the output gap.
The effects of fiscal policy can be limited by crowding out. When the government takes on spending projects, it limits the amount of resources available for the private sector to use. Crowding out occurs when government spending simply replaces private sector output instead of adding additional output to the economy. Crowding out also occurs when government spending raises interest rates, which limits investment. Defenders of fiscal stimulus argue that crowding out is not a concern when the economy is depressed, plenty of resources are left idle, and interest rates are low.[24][citation needed]
Fiscal policy can be implemented through automatic stabilizers. Automatic stabilizers do not suffer from the policy lags of discretionary fiscal policy. Automatic stabilizers use conventional fiscal mechanisms but take effect as soon as the economy takes a downturn: spending on unemployment benefits automatically increases when unemployment rises and, in a progressive income tax system, the effective tax rate automatically falls when incomes decline.
Comparison[edit]
Economists usually favor monetary over fiscal policy because it has two major advantages. First, monetary policy is generally implemented by independent central banks instead of the political institutions that control fiscal policy. Independent central banks are less likely to make decisions based on political motives.[22] Second, monetary policy suffers shorter inside lags and outside lags than fiscal policy. Central banks can quickly make and implement decisions while discretionary fiscal policy may take time to pass and even longer to carry out.[22]
Development[edit]
Main article: History of macroeconomic thought
Origins[edit]
Macroeconomics descended from the once divided fields of business cycle theory and monetary theory.[25] The quantity theory of money was particularly influential prior to World War II. It took many forms, including the version based on the work of Irving Fisher:
M ⋅ V = P ⋅ Q {\displaystyle M\cdot V=P\cdot Q}
In the typical view of the quantity theory, money velocity (V) and the quantity of goods produced (Q) would be constant, so any increase in money supply (M) would lead to a direct increase in price level (P). The quantity theory of money was a central part of the classical theory of the economy that prevailed in the early twentieth century.
Austrian School[edit]
Ludwig Von Mises's work Theory of Money and Credit, published in 1912, was one of the first books from the Austrian School to deal with macroeconomic topics.
Keynes and his followers[edit]
Macroeconomics, at least in its modern form,[26] began with the publication of John Maynard Keynes's General Theory of Employment, Interest and Money.[25][27] When the Great Depression struck, classical economists had difficulty explaining how goods could go unsold and workers could be left unemployed. In classical theory, prices and wages would drop until the market cleared, and all goods and labor were sold. Keynes offered a new theory of economics that explained why markets might not clear, which would evolve (later in the 20th century) into a group of macroeconomic schools of thought known as Keynesian economics – also called Keynesianism or Keynesian theory.
In Keynes's theory, the quantity theory broke down because people and businesses tend to hold on to their cash in tough economic times – a phenomenon he described in terms of liquidity preferences. Keynes also explained how the multiplier effect would magnify a small decrease in consumption or investment and cause declines throughout the economy. Keynes also noted the role uncertainty and animal spirits can play in the economy.[26]
The generation following Keynes combined the macroeconomics of the General Theory with neoclassical microeconomics to create the neoclassical synthesis. By the 1950s, most economists had accepted the synthesis view of the macroeconomy.[26] Economists like Paul Samuelson, Franco Modigliani, James Tobin, and Robert Solow developed formal Keynesian models and contributed formal theories of consumption, investment, and money demand that fleshed out the Keynesian framework.[28]
Monetarism[edit]
Milton Friedman updated the quantity theory of money to include a role for money demand. He argued that the role of money in the economy was sufficient to explain the Great Depression, and that aggregate demand oriented explanations were not necessary. Friedman also argued that monetary policy was more effective than fiscal policy; however, Friedman doubted the government's ability to "fine-tune" the economy with monetary policy. He generally favored a policy of steady growth in money supply instead of frequent intervention.[29]
Friedman also challenged the Phillips curve relationship between inflation and unemployment. Friedman and Edmund Phelps (who was not a monetarist) proposed an "augmented" version of the Phillips curve that excluded the possibility of a stable, long-run tradeoff between inflation and unemployment.[30][citation needed] When the oil shocks of the 1970s created a high unemployment and high inflation, Friedman and Phelps were vindicated. Monetarism was particularly influential in the early 1980s. Monetarism fell out of favor when central banks found it difficult to target money supply instead of interest rates as monetarists recommended. Monetarism also became politically unpopular when the central banks created recessions in order to slow inflation.
New classical[edit]
New classical macroeconomics further challenged the Keynesian school. A central development in new classical thought came when Robert Lucas introduced rational expectations to macroeconomics. Prior to Lucas, economists had generally used adaptive expectations where agents were assumed to look at the recent past to make expectations about the future. Under rational expectations, agents are assumed to be more sophisticated. A consumer will not simply assume a 2% inflation rate just because that has been the average the past few years; she will look at current monetary policy and economic conditions to make an informed forecast. When new classical economists introduced rational expectations into their models, they showed that monetary policy could only have a limited impact.
Lucas also made an influential critique of Keynesian empirical models. He argued that forecasting models based on empirical relationships would keep producing the same predictions even as the underlying model generating the data changed. He advocated models based on fundamental economic theory that would, in principle, be structurally accurate as economies changed. Following Lucas's critique, new classical economists, led by Edward C. Prescott and Finn E. Kydland, created real business cycle (RBC) models of the macroeconomy.[31]
RBC models were created by combining fundamental equations from neo-classical microeconomics. In order to generate macroeconomic fluctuations, RBC models explained recessions and unemployment with changes in technology instead of changes in the markets for goods or money. Critics of RBC models argue that money clearly plays an important role in the economy, and the idea that technological regress can explain recent recessions is implausible.[31] However, technological shocks are only the more prominent of a myriad of possible shocks to the system that can be modeled. Despite questions about the theory behind RBC models, they have clearly been influential in economic methodology.[citation needed]
New Keynesian response[edit]
New Keynesian economists responded to the new classical school by adopting rational expectations and focusing on developing micro-founded models that are immune to the Lucas critique. Stanley Fischer and John B. Taylor produced early work in this area by showing that monetary policy could be effective even in models with rational expectations when contracts locked in wages for workers. Other new Keynesian economists, including Olivier Blanchard, Julio Rotemberg, Greg Mankiw, David Romer, and Michael Woodford, expanded on this work and demonstrated other cases where inflexible prices and wages led to monetary and fiscal policy having real effects.
Like classical models, new classical models had assumed that prices would be able to adjust perfectly and monetary policy would only lead to price changes. New Keynesian models investigated sources of sticky prices and wages due to imperfect competition,[32] which would not adjust, allowing monetary policy to impact quantities instead of prices.
By the late 1990s economists had reached a rough consensus. The nominal rigidity of new Keynesian theory was combined with rational expectations and the RBC methodology to produce dynamic stochastic general equilibrium (DSGE) models. The fusion of elements from different schools of thought has been dubbed the new neoclassical synthesis. These models are now used by many central banks and are a core part of contemporary macroeconomics.[33]
New Keynesian economics, which developed partly in response to new classical economics, strives to provide microeconomic foundations to Keynesian economics by showing how imperfect markets can justify demand management.
See also[edit]
Business and economics portal
Dynamic stochastic general equilibrium
Economic development
Notes[edit]
Jump up ^ O'Sullivan, Arthur; Sheffrin, Steven M. (2003), Economics: Principles in Action, Upper Saddle River, New Jersey 07458: Pearson Prentice Hall, p. 57, ISBN 0-13-063085-3
Jump up ^ Blaug, Mark (1985), Economic theory in retrospect, Cambridge, UK: Cambridge University Press, ISBN 0-521-31644-8
Jump up ^ Blanchard (2011), 32.
Jump up ^ Blanchard (2011), 22.
Jump up ^ Dwivedi, 443.
Jump up ^ Freeman (2008). http://www.dictionaryofeconomics.com/article?id=pde2008_S000311.
Jump up ^ Dwivedi, 444–45.
Jump up ^ Dwivedi, 445–46.
Jump up ^ Neely, Christopher J. "Okun's Law: Output and Unemployment. Economic Synopses. Number 4. 2010. http://research.stlouisfed.org/publications/es/10/ES1004.pdf.
Jump up ^ Mankiw 2014, p. 634.
^ Jump up to: a b Healey 2002, p. 12.
^ Jump up to: a b Healey 2002, p. 13.
Jump up ^ Healey 2002, p. 14.
Jump up ^ Colander 1995, p. 173.
^ Jump up to: a b c d Durlauf & Hester 2008.
Jump up ^ Peston 2002, pp. 386–87.
^ Jump up to: a b Peston 2002, p. 387.
Jump up ^ Peston 2002, pp. 387–88.
Jump up ^ Solow 2002, pp. 518–19.
Jump up ^ Solow 2002, p. 519.
Jump up ^ Blaug 2002, pp. 202–03.
^ Jump up to: a b c Mayer, 495.
Jump up ^ "AP Macroeconomics Review".
Jump up ^ Ye, Fred Y. (2017-10-13). Scientific Metrics: Towards Analytical and Quantitative Sciences. Springer. ISBN 9789811059360.
^ Jump up to: a b Dimand (2008).
^ Jump up to: a b c Blanchard (2011), 580.
Jump up ^ Snowdon, Brian; Vane, Howard R. (2005). Modern Macroeconomics – Its origins, development and current state. Edward Elgar. ISBN 1 84542 208 2.
Jump up ^ Blanchard (2011), 581.
Jump up ^ Blanchard (2011), 582–83.
Jump up ^ "Phillips Curve: The Concise Encyclopedia of Economics | Library of Economics and Liberty". www.econlib.org. Retrieved 2018-01-23.
^ Jump up to: a b Blanchard (2011), 587.
Jump up ^ The role of imperfect competition in new Keynesian economics, Chapter 4 of Surfing Economics by Huw Dixon
Jump up ^ Blanchard (2011), 590.
References[edit]
Library resources about
Macroeconomics
Resources in your library
Blanchard, Olivier (2000). Macroeconomics. Prentice Hall. ISBN 0-13-013306-X.
Blanchard, Olivier (2011). Macroeconomics Updated (5th ed.). Englewood Cliffs: Prentice Hall. ISBN 978-0-13-215986-9.
Blaug, Mark (1986), Great Economists before Keynes, Brighton: Wheatsheaf.
Blaug, Mark (2002). "Endogenous growth theory". In Snowdon, Brian; Vane, Howard. An Encyclopedia of Macroeconomics. Northampton, Massachusetts: Edward Elgar Publishing. ISBN 978-1-84542-180-9.
Boettke, Peter (2001). Calculation and Coordination: Essays on Socialism and Transitional Political Economy. Routledge. ISBN 0-415-77109-9.
Bouman, John: Principles of Macroeconomics – free fully comprehensive Principles of Microeconomics and Macroeconomics texts. Columbia, Maryland, 2011
Dimand, Robert W. (2008). Durlauf, Steven N.; Blume, Lawrence E., eds. "Macroeconomics, origins and history of". The New Palgrave Dictionary of Economics. Palgrave Macmillan. doi:10.1057/9780230226203.1009.
Durlauf, Steven N.; Hester, Donald D. (2008). "IS–LM". In Durlauf, Steven N.; Blume, Lawrence E. The New Palgrave Dictionary of Economics (2nd ed.). Palgrave Macmillan. doi:10.1057/9780230226203.0855. Retrieved 5 June 2012.
Dwivedi, D.N. (2001). Macroeconomics: theory and policy. New Delhi: Tata McGraw-Hill. ISBN 978-0-07-058841-7.
Friedman, Milton (1953). Essays in Positive Economics. London: University of Chicago Press. ISBN 0-226-26403-3.
Haberler, Gottfried (1937). Prosperity and depression. League of Nations.
Leijonhufvud, Axel The Wicksell Connection: Variation on a Theme. UCLA. November, 1979.
Healey, Nigel M. (2002). "AD-AS model". In Snowdon, Brian; Vane, Howard. An Encyclopedia of Macroeconomics. Northampton, Massachusetts: Edward Elgar Publishing. pp. 11–18. ISBN 978-1-84542-180-9.
Heijdra, Ben J.; van der Ploeg, Frederick (2002). Foundations of Modern Macroeconomics. Oxford University Press. ISBN 0-19-877617-9.
Mankiw, N. Gregory (2014). Principles of Economics. Cengage Learning. ISBN 978-1-305-15604-3.
Mises, Ludwig Von (1912). Theory of Money and Credit. Yale University Press.
Mayer, Thomas (2002). "Monetary policy: role of". In Snowdon, Brian; Vane, Howard R. An Encyclopedia of Macroeconomics. Northampton, Massachusetts: Edward Elgar Publishing. pp. 495–99. ISBN 978-1-84542-180-9.
Mishkin, Frederic S. (2004). The Economics of Money, Banking, and Financial Markets. Boston: Addison-Wesley. p. 517.
Peston, Maurice (2002). "IS-LM model: closed economy". In Snowdon, Brian; Vane, Howard R. An Encyclopedia of Macroeconomics. Edward Elgar.
Reed, Jacob (2016). AP Economics Review, Macroeconomics.
Solow, Robert (2002). "Neoclassical growth model". In Snowdon, Brian; Vane, Howard. An Encyclopedia of Macroeconomics. Northampton, Massachusetts: Edward Elgar Publishing. ISBN 978-1-84542-180-9.
Snowdon, Brian, and Howard R. Vane, ed. (2002). An Encyclopedia of Macroeconomics, Description & scroll to Contents-preview links.
Snowdon, Brian; Vane, Howard R. (2005). Modern Macroeconomics: Its Origins, Development And Current State. Edward Elgar Publishing. ISBN 1-84376-394-X.
Gärtner, Manfred (2006). Macroeconomics. Pearson Education Limited. ISBN 978-0-273-70460-7.
Warsh, David (2006). Knowledge and the Wealth of Nations. Norton. ISBN 978-0-393-05996-0.
Levi, Maurice (2014). The Macroeconomic Environment of Business (Core Concepts and Curious Connections). New Jersey: World Scientific Publishing. ISBN 978-981-4304-34-4.
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text:
Things Goin' On
From Wikipedia, the free encyclopedia
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This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (September 2017) (Learn how and when to remove this template message)
"Things Goin' On"
Song by Lynyrd Skynyrd
from the album
(pronounced 'lĕh-'nérd 'skin-'nérd)
Released
August 13, 1973
Recorded
Studio One, Doraville, Georgia, April 30, 1973
Genre
Southern rock
Length
4:57
Label
MCA Records
Songwriter(s)
Ronnie Van Zant
Gary Rossington
Producer(s)
Al Kooper

(pronounced 'lĕh-'nérd 'skin-'nérd) track listing
"Simple Man"
(4) "Things Goin' On"
(5) "Mississippi Kid"
(6)
Things Goin' On was written in 1973 by Ronnie Van Zant and Gary Rossington, the lead vocalist and guitarist from Lynyrd Skynyrd. It appeared on the band's first album (pronounced 'lĕh-'nérd 'skin-'nérd) and expressed concerns about social and environmental issues, with especial criticism of politicians' role in such issues. The song was distinct from other contemporary protest-songs in that it utilized the sound of Muscle Shoals, Alabama blues licks made popular by both Eric Clapton and Duane Allman's honky tonk melodies, though this was in keeping with Lynyrd Skynyrd's country-rock image.
Composition[edit]
The first verse, which expressed concern about life in the ghetto is repeated at the end of the song, thereby placing emphasis on this particular issue. It also contains the line that gives the song its title:[1]
Well, have you ever lived down in the ghetto
Have you ever felt that cold wind blow
Well, if you don't know what I mean
Won't you stand up and scream
Cause there's things goin' on that you don't know
The first line of the song is particularly pertinent in that it asks the listener whether he has ever lived down in the ghetto; support for segregation was still widespread in the southern United States at the time and Lynyrd Skynyrd risked alienating a large number of potential fans before the group became an established act.
The thinly veiled criticism of politicians' responsibility mentioned earlier in the song becomes more evident towards the end of the final verse:
I don't think they really care
I think they just sit up there ...
References[edit]
Jump up ^ "Things Goin' On - Lyrics". Lyrics Freak. Retrieved November 26, 2015.
[hide]
v
t
e
Lynyrd Skynyrd
Gary Rossington
Rickey Medlocke
Johnny Van Zant
Michael Cartellone
Mark Matejka
Peter Keys

Ronnie Van Zant
Allen Collins
Bob Burns
Larry Junstrom
Greg T. Walker
Leon Wilkeson
Billy Powell
Ed King
Artimus Pyle
Steve Gaines
Randall Hall
Kurt Custer
Mike Estes
Owen Hale
Hughie Thomasson
Jeff McAllister
Kenny Aronoff
Ean Evans
Robert Kearns
Johnny Colt
Studio albums
(Pronounced 'Lĕh-'nérd 'Skin-'nérd)
Second Helping
Nuthin' Fancy
Gimme Back My Bullets
Street Survivors
Lynyrd Skynyrd 1991
The Last Rebel
Endangered Species
Twenty
Edge of Forever
Christmas Time Again
Vicious Cycle
God & Guns
Last of a Dyin' Breed
Live albums
One More from the Road
Southern by the Grace of God
Southern Knights
Lyve from Steel Town
Lynyrd Skynyrd Lyve: The Vicious Cycle Tour
Authorized Bootleg Lynyrd Skynyrd Live / Cardiff Capitol Theater - Cardiff, Wales Nov. 04 1975
Authorized Bootleg Live In Winterland, San Francisco, CA, March 07, 1976
Live from Freedom Hall
Compilations
Skynyrd's First and... Last
Gold & Platinum
Best of the Rest
Legend
Skynyrd's Innyrds
Lynyrd Skynyrd (Box Set)
A Retrospective
What's Your Name
Old Time Greats
Extended Versions: The Encore Collection
The Essential Lynyrd Skynyrd
Skynyrd's First: The Complete Muscle Shoals Album
20th Century Masters: The Best of Lynyrd Skynyrd
Solo Flytes
All Time Greatest Hits
Collectybles
Then and Now
Lynyrd Skynyrd: The Collection
Thyrty
Greatest Hits
Then and Now Volume Two
Greatest Hits
Icon
Video
Lynyrd Skynyrd Tribute Tour
Freebird... The Movie
Lyve From Steel Town
Lynyrd Skynyrd Lyve: The Vicious Cycle Tour
Lynyrd Skynyrd: Live from Austin, TX
Live from Freedom Hall
Songs
"Tuesday's Gone"
"Gimme Three Steps"
"Simple Man"
"Things Goin' On"
"Free Bird"
"Mr. Banker"
"Don't Ask Me No Questions"
"Sweet Home Alabama'
"Saturday Night Special"
"Double Trouble"
"All I Can Do Is Write About It"
"What's Your Name"
"That Smell"
"You Got That Right"
"Red White & Blue"
Tours
Pronounced 'Lĕh-'nérd 'Skin-'nérd Tour
Second Helping Tour
Nuthin' Fancy Tour
Gimme Back My Bullets Tour
One More From The Road Tour
Street Survivors Tour
Lynyrd Skynyrd Tribute Tour
Lynyrd Skynyrd 1991 Tour
The Last Rebel Tour
Lynyrd Skynyrd Twenty Tour
Edge of Forever Tour
Vicious Cycle Tour
Rebels and Bandoleros Tour
Spin-off bands
Rossington Collins Band
The Rossington Band
Allen Collins Band
Artimus Pyle Band
Van Zant
Related articles
Discography
Band Members
Skynyrd Frynds
1977 Convair CV-240 crash
Ronnie Van Zant Memorial Park
Leonard Skinner
"All Summer Long"
Retrieved from "https://en.wikipedia.org/w/index.php?title=Things_Goin%27_On&oldid=800318206"
Categories:
1973 songs
Lynyrd Skynyrd songs
Protest songs
Song recordings produced by Al Kooper
Songs written by Ronnie Van Zant
Songs written by Gary Rossington
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A Heart Is a House for Love
From Wikipedia, the free encyclopedia
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This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (July 2008) (Learn how and when to remove this template message)
"A Heart is a House for Love"
Single by The Dells
from the album The Five Heartbeats Original Motion Picture Soundtrack
Released
1991
Genre
R&B, pop, and soul music
Length
6:12 (album version)
4:12 (single version)
Label
Virgin Records
Songwriter(s)
Tristin Sigerson, Davitt Sigerson, and Bob Thiele
The Dells singles chronology
"Thought of You Just a Little Too Much"
(1988) "A Heart is a House for Love"
(1991) "Come and Get It"
(1992)
"Thought of You Just a Little Too Much"
(1988) "A Heart is a House for Love"
(1991) "Come and Get It"
(1992)
"A Heart Is a House for Love" (title often confused with "A Heart Is A House Of Love") is a 1991 hit soul and R&B song composed by Tristin Sigerson, Davitt Sigerson, and Bob Thiele and recorded by The Dells. It was originally featured in the movie and soundtrack album The Five Heartbeats (which is loosely based on the real lives of male soul groups such as The Dells). The song originally only climbed to number 94 on the R&B/Hip Hop section of the Billboard American charts, but peaked at number thirteen after the release of the movie. It was The Dells' most successful hit of the 1990s. It was also their last hit single to reach the top 20 of any Billboard Chart.[1]
Contents
[hide]
1 History
2 Music video
3 Credits
4 Charts
5 References
6 External links
7 See also
History[edit]
The song was originally featured in the 1991 feature film The Five Heartbeats, which follows the lives of the fictional singing group of the same name. In the scene the song is featured in, the group is about to perform in a Battle of the Bands when the announcer, a cousin of another musician in the competition, tells them backstage that a new house rule demands they use a piano player hired by the owners of the building. The members of the group have not practiced with the piano player, and quickly realize this will harm their performance. The announcer then goads the audience into booing and throwing objects at the Heartbeats as they perform. Duck, tired of his music being altered, throws the piano player off the stage and plays in his own style. The crowd soon applauds as The Heartbeats perform together and the group wins the contest.[2]
The movie version and the single version are different. In the film only the first verse and some of the chorus are sung before Duck interrupts the house piano player; the characters then continue to perform a cappella followed by improvised vocals accompanied by a beat created by the audience. The single features no a cappella vocals and follows a more traditional and contemporary style. There are three verses in the single leading to the outro (which includes the chorus sung with instrumentals). The instruments of the single version include heavy percussion and a light guitar melody.
Music video[edit]
The dance steps performed by the Pips influenced the choreography of the film and the music video for "A Heart Is a House For Love.
The music video features the members of The Dells, who recorded both the single featured in the music video and the version featured in the movie. In the music video the group is seen in a music video recording their song, interrupted by flashbacks including clips from the movie and album covers from both the Dells and the fictional group The Five Heartbeats. One of the flashbacks shows the lead singer singing and cleaning with a woman and then spontaneously stripping off his clothes as she does the same. Although black and white clips are shown of the fictional Five Heartbeats, none of the choreography is featured. Instead the audience witnesses an aged appearance of the Dells who stand still while singing the song and attempt to imitate the clapping and snapping portrayed in the movie.
Credits[edit]
Composed by Tristin and Davitt Sigerson, and Bob Thiele
Lead Vocals by Marvin Junior
Background Vocals by Chuck Barksdale, Verne Allison, Michael McGill, and Johnny Carter
Produced by George Duke
Charts[edit]
Chart (1991)
Peak
position
U.S. Billboard Hot R&B Singles 13
References[edit]
Jump up ^ [1][dead link]
Jump up ^ "The Rocklopedia Fakebandica - T. Mike Childs - Google Boeken". Books.google.com. Retrieved 2012-02-20.
External links[edit]
The Five Heartbeats on IMDb
See also[edit]
The Dells
The Five Heartbeats
Retrieved from "https://en.wikipedia.org/w/index.php?title=A_Heart_Is_a_House_for_Love&oldid=795361312"
Categories:
1991 singles
Soul songs
Rhythm and blues ballads
Songs written for films
1991 songs
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Land use
From Wikipedia, the free encyclopedia
Jump to: navigation, search
Not to be confused with zoning.
Habitat fragmented by numerous roads near the Indiana Dunes National Lakeshore
Land use involves the management and modification of natural environment or wilderness into built environment such as settlements and semi-natural habitats such as arable fields, pastures, and managed woods. It also has been defined as "the total of arrangements, activities, and inputs that people undertake in a certain land cover type."[1]
Contents
[hide]
1 Regulation
1.1 United States
2 Environment
3 Urban growth boundaries
4 See also
5 References
6 Further reading
7 External links
Regulation[edit]
A land use map of Europe—major non-natural land uses include arable farmland (yellow) and pasture (light green).
Land Use practices vary considerably across the world. The United Nations' Food and Agriculture Organization Water Development Division explains that "Land use concerns the products and/or benefits obtained from use of the land as well as the land management actions (activities) carried out by humans to produce those products and benefits."[2] As of the early 1990s, about 13% of the Earth was considered arable land, with 26% in pasture, 32% forests and woodland, and 1.5% urban areas.
As Albert Guttenberg (1959) wrote many years ago, "'Land use' is a key term in the language of city planning."[3] Commonly, political jurisdictions will undertake land-use planning and regulate the use of land in an attempt to avoid land-use conflicts. Land use plans are implemented through land division and use ordinances and regulations, such as zoning regulations. Management consulting firms and non-governmental organizations will frequently seek to influence these regulations before they are codified.
United States[edit]
In colonial America, few regulations existed to control the use of land, due to the seemingly endless amounts of it. As society shifted from rural to urban, public land regulation became important, especially to city governments trying to control industry, commerce, and housing within their boundaries. The first zoning ordinance was passed in New York City in 1916,[4][5] and, by the 1930s, most states had adopted zoning laws.[6] In the 1970s, concerns about the environment and historic preservation led to further regulation.
Today, federal, state, and local governments regulate growth and development through statutory law. The majority of controls on land, however, stem from the actions of private developers and individuals. Three typical situations bringing such private entities into the court system are: suits brought by one neighbor against another; suits brought by a public official against a neighboring landowner on behalf of the public; and suits involving individuals who share ownership of a particular parcel of land. In these situations, judicial decisions and enforcement of private land-use arrangements can reinforce public regulation, and achieve forms and levels of control that regulatory zoning cannot.
Two major federal laws have been passed in the last half century that limit the use of land significantly. These are the National Historic Preservation Act of 1966 (today embodied in 16 U.S.C. 461 et seq.) and the National Environmental Policy Act of 1969 (42 U.S.C. 4321 et seq.).
Environment[edit]
Land use and land management practices have a major impact on natural resources including water, soil, nutrients, plants and animals.[7] Land use information can be used to develop solutions for natural resource management issues such as salinity and water quality. For instance, water bodies in a region that has been deforested or having erosion will have different water quality than those in areas that are forested. Forest gardening, a plant-based food production system, is believed to be the oldest form of land use in the world.[8]
The major effect of land use on land cover since 1750 has been deforestation of temperate regions.[dead link][9] More recent significant effects of land use include urban sprawl, soil erosion, soil degradation, salinization, and desertification.[10] Land-use change, together with use of fossil fuels, are the major anthropogenic sources of carbon dioxide, a dominant greenhouse gas.[11]
According to a report by the United Nations' Food and Agriculture Organisation, land degradation has been exacerbated where there has been an absence of any land use planning, or of its orderly execution, or the existence of financial or legal incentives that have led to the wrong land use decisions, or one-sided central planning leading to over-utilization of the land resources - for instance for immediate production at all costs. As a consequence the result has often been misery for large segments of the local population and destruction of valuable ecosystems. Such narrow approaches should be replaced by a technique for the planning and management of land resources that is integrated and holistic and where land users are central. This will ensure the long-term quality of the land for human use, the prevention or resolution of social conflicts related to land use, and the conservation of ecosystems of high biodiversity value.
The citadel of Kastellet, Copenhagen that has been converted into a park, showing multiple examples of suburban land use
Urban growth boundaries[edit]
The urban growth boundary is one form of land-use regulation. For example, Portland, Oregon is required to have an urban growth boundary which contains at least 20,000 acres (81 km2) of vacant land. Additionally, Oregon restricts the development of farmland. The regulations are controversial, but an economic analysis concluded that farmland appreciated similarly to the other land.[12]
See also[edit]
Agriculture and Agronomy portal
Sustainable development portal
Agricultural district
Building setback
Cultural landscape
Easement
Journal of Land Use and Environmental Law
Journal of Transport and Land Use
Land Allocation Decision Support System
Land Use Evolution and Impact Assessment Model
Land-use forecasting
Land use, land-use change and forestry
Land Utilisation Survey of Britain
List of types of formally designated forests
Natural landscape
Traffic
Variance (land use)
UrbanSim
Urban studies
References[edit]
Jump up ^ IPCC Special Report on Land Use, Land-Use Change And Forestry, 2.2.1.1 Land Use
Jump up ^ FAO Land and Water Division retrieved 14 September 2010
Jump up ^ JAPA 25:3
Jump up ^ Village of Euclid, Ohio v. Ambler Realty Co.
Jump up ^ Nolon, John R., Local Land Use Control in New York: An Aging Citadel Under Siege (July/Aug. 1992). New York State Bar Journal, p. 38, July–August 1992.
Jump up ^ Zoning
Jump up ^ Ameztegui, Aitor; Coll, Lluis; Brotons, Lluis; Ninot, JM (2016). "Land-use legacies rather than climate change are driving the recent upward shift of the mountain tree line in the Pyrenees." (PDF). Global Ecology and Biogeography. doi:10.1111/geb.12407.
Jump up ^ Robert Hart (1996). Forest Gardening. p. 124. Forest gardening, in the sense of finding uses for and attempting to control the growth of wild plants, is undoubtedly the oldest form of land use in the world.
Jump up ^ [dead link]Intergovernmental Panel on Climate Change
Jump up ^ UN Land Degradation and Land Use/Cover Data Sources ret. 26 June 2007
Jump up ^ UN Report on Climate Change retrieved 25 June 2007 from Web archive [1]
Jump up ^ Jaeker WG, Plantinga AJ (2007). How have Land-use regulations Affected Property Values in Oregon? OSU Extension.
Further reading[edit]
Guttenberg, Albert Z. 1959. "A Multiple Land Use Classification System", Journal of the American Planning Association, 25:3, 143–150
External links[edit]
Land-use and land-cover change defined at Encyclopedia of Earth
Land Use Law News Alert
Land Use Law by Prof. Daniel R. Mandelker (Washington University in St. Louis School of Law)
Land Use Accountability Project The Center for Public Integrity
Schindler's Land Use Page (Michigan State University Extension Land Use Team)
Land Policy Institute at Michigan State University
Powell, W. Gabe. 2009. Identifying Land Use/Land Cover (LULC) Using National Agriculture Imagery Program (NAIP) Data as a Hydrologic Model Input for Local Flood Plain Management. Applied Research Project. Texas State University–San Marcos. http://ecommons.txstate.edu/arp/296/
Journal of Transport and Land Use
Land Use, Cornell University Law School
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