Macroeconomics

This textbook survey of the current state of macroeconomics looks at alternative approaches to the subject. The book divides into six parts. The first is introductory and gives a general background for a better understanding of the recent debates under discussion. It focuses on schools of thought which have been prominent in macroeconomics over the last two decades. The second part looks at the "rational expectations" controversy. The third section examines an issue which has been at the centre of macroeconomic debate since the early 1970s: economic fluctuations. This is followed by a section on wage determination and inflation. Next is a sample of problem-orientated macroeconomic work which also examines a few of the methodological questions such work has raised. The final part concludes by looking at issues in contemporary macroeconomics.Table of ContentPart I. Keynesian Macroeconomics: Foundations and Prospects: John Hicks: The unification of macroeconomics; Axel Leijonhufvud: Keynesian economics: Past confusions, future prospects; Joseph E. Stiglitz: Methodological issues and the New Keynesian economics; Joaquim Silvestre: Notes on the non-Walrasian approach to macroeconomics; Part II: The Rational Expectations Controversy: Edmund S. Phelps: Expectations in macroeconomics and the rational expectations debate; Albert Marcet & Thomas J. Sargent: The convergence of vector autoregressions to rational expectations equilibria; Part III: Economic Fluctuations: Endogenous v. Exogenous Explanations: Bennett T. McCallum: Real business cycle theories; Michael Woodford: Equilibrium models of endogenous fluctuations: An introduction; Richard M. Goodwin & Pier Mario Pacini: Nonlinear economic dynamics and chaos: An introduction; Richard H. Day & Tzong-Yau Lin: An adaptive, neoclassical model of growth fluctuations; Part IV. Wage Determination and Inflation: John B. Taylor: Synchronized wage determination and macroeconomic performance in seven large countries; Daniel Heymann: Notes on very high inflation and stabilization; Part V: Empirical Evidence and Induction: David F. Hendry: Assessing empirical evidence in macroeconometrics with an application to consumers' expenditure in France; Allessandro Vercelli: Causality and economic analysis: A survey; Siro Lombardini: A new approach to economic analysis: Computational economics; Part VI: Epilogue: David Laidler: Issues in contemporary macroeconomics.