Macroeconomic Theory (Foundations of Modern Economics Series)

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9780135433232: Macroeconomic Theory (Foundations of Modern Economics Series)

This text provides a cogent analysis of macroeconomic thought as a historical process, stressing the development of modern macroeconomic theory throughout. Both static and dynamic models are clearly developed and many modern economic models are used. The text first presents a simple, classical market clearing model, imposes enough restrictions on this model to derive a static Keynesian version, and then adds expectations to simple dynamic Keynesian models to arrive at a rational expectations new-classical model. The first half of the book uses one basic graphical model to develop each theory. Money and monetary institutions are then added to the basic model, and monetary issues are considered. The rest of the book covers government policy tools that might be viable in a world with rational expectations.

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McCandless, George T.
Published by Prentice Hall College Div (1991)
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