A Probe into the Unification of Micro-Macro-Economics: Arrow-Debreu-Mundell-Fleming Model as a Standard Model

  • Fred Y. YeEmail author
Part of the Understanding Complex Systems book series (UCS)


For unifying micro-economics and macro-economics, It is proposed that demand-supply relation, marginal effect and multiplier model construct three keys.



This chapter is a revision of the original version published at Euro-Asian Journal of Economics and Finance, 2015, 3(1): 1–8.


  1. Abel, A.B.: Consumption and Investment (2000); Friedman, B.M., Hahn, F.H.: Handbook of Monetary Economics, vol. 2, Part 6. Elsevier, Amsterdam (2000)Google Scholar
  2. Arrow, K.J., Debreu, G.: Existence of an equilibrium for a competitive economy. Econometrica 22(3), 265–290 (1954)CrossRefGoogle Scholar
  3. Dornbusch, R.: Exchange rate expectations and monetary policy. J. Int. Econ. 6(3), 231–244 (1976)CrossRefGoogle Scholar
  4. Fischer, S.: Long-term contracts, rational expectations, and the optimal money supply rule. J. Polit. Econ. 85(1), 191–205 (1977)CrossRefGoogle Scholar
  5. Fleming, J.M.: Domestic financial policies under fixed and floating exchange rates. In: IMF Staff Papers, vol. 9, pp. 369–379 (1962); Cooper, R.N.: International Finance. Penguin Books, New York (1969)Google Scholar
  6. Forni, M., Lippi, M.: Aggregation and the Microfoundations of Dynamic Macro-ecomics. Oxford University Press, Oxford (1997)Google Scholar
  7. Friedman, B.M., Hahn, F.H.: Handbook of Monetary Economics, vol. 1–2. Elsevier, Amsterdam (2000)Google Scholar
  8. Horwitz, S.: Microfoundations and Macro-economics: An Austrian Perspective. Routledge, London (2000)CrossRefGoogle Scholar
  9. Jones, R.W., Kenen, P.B.: Handbook of International Economics. Elsevier, Amsterdam (1985)Google Scholar
  10. Lengwiler, Y.: Microfoundations of Financial Economics: An Introduction to General Equilibrium Asset Pricing. Princeton University Press, Princeton (2004)Google Scholar
  11. Lucas, R.E.: Expectations and the neutrality of money. J. Econ. Theory 4, 103–124 (1972)CrossRefGoogle Scholar
  12. Lucas, R.E.: Some international evidence on output-inflation tradeoffs. Am. Econ. Rev. 63, 526–534 (1973)Google Scholar
  13. Mishkin, F.S.: The Economics of Money, Banking, and Financial Markets, 7th edn. Addison-Wesley, Boston (2004)Google Scholar
  14. Mundell, R.A.: Capital mobility and stabilization policy under fixed and flexible exchange rates. Can. J. Econ. Polit. Sci. 29(4), 475–485 (1963)CrossRefGoogle Scholar
  15. Mundell, R.A.: International Economics. Macmillan, New York (1968)Google Scholar
  16. Samuelson, P.A., Nordhaus, W.D.: Economics, 18th edn. McGraw-Hill Co., Columbus (2005)Google Scholar
  17. Taylor, J.: Staggered price setting in a macro model. Am. Econ. Rev. 69, 108–113 (1979)Google Scholar
  18. Ueda, K.: Banks as coordinators of economic growth and stability: microfoundation for macro-economy with externality. J. Econ. Theory 148, 322–352 (2013)CrossRefGoogle Scholar
  19. Weintraub, E.R.: The microfoundations of macro-economics: a critical survey. J. Econ. Lit. 15(1), 1–23 (1977)Google Scholar
  20. Weintraub, E.R.: Microfoundations: The Compatibility of Micro-economics and Macro-economics. Cambridge University Press, Cambridge (1979)CrossRefGoogle Scholar

Copyright information

© Springer Nature Singapore Pte Ltd. and Science Press 2017

Authors and Affiliations

  1. 1.Nanjing UniversityNanjingChina

Personalised recommendations