The Macroeconomics of Self–Fulfilling Prophecies (The MIT Press) - Hardcover

Farmer, Roger E A

3.33

6 ratings by Goodreads

9780262061636: The Macroeconomics of Self–Fulfilling Prophecies (The MIT Press)

Hardcover

ISBN 10: 0262061635 ISBN 13: 9780262061636

Publisher: MIT Press, 1993

View all copies of this ISBN edition:

Graduate macroeconomics courses are becoming increasingly technical. Students must learn the tools of dynamic analysis and they must be able to apply these tools to the wide range of different models that constitute the body of macroeconomic theory. This text presents a unified treatment of these approaches by showing how all of the models are related to the microeconomic paradigm of general equilibrium theory. It particularly complements Blanchard and Fisher's "Lectures on Macroeconomics" by filling out the technical material omitted in that text. Farmer proposes that the general equilibrium model most appropriate as a basis for macroeconomics is very different from the microeconomic paradigm. In the context of macroeconomic models, he observes, it is often the case that the welfare theorems that capture the idea of "the invisible hand" will fail to hold. Farmer explains the consequences of this failure for the properties of dynamic economic models. Farmer argues throughout that the model of macroeconomics that is the best tool for understanding the facts is one in which the self-fulfilling expectations of individual agents can have important effects on economic activity. Several chapters present new research showing how the ideas presented in the first part of the book can be used to provide new insights into old problems.

"synopsis" may belong to another edition of this title.

Review:

" The idea that changes in the beliefs of economic agents may play an important role in business cycle fluctuations has made great strides during the last decade. Roger Farmer is a leader in this rapidly growing field of research and this book is important reading for anyone interested in modern macroeconomics." -- Sergio Rebelo, Tokai Bank Distinguished Professor of International Finance, Kellogg Graduate School of Management, Northwestern University

& quot; The idea that changes in the beliefs of economic agents may play an important role in business cycle fluctuations has made great strides during the last decade. Roger Farmer is a leader in this rapidly growing field of research and this book is important reading for anyone interested in modern macroeconomics.& quot; -- Sergio Rebelo, Tokai Bank Distinguished Professor of International Finance, Kellogg Graduate School of Management, Northwestern University

"The idea that changes in the beliefs of economic agents may play an important role in business cycle fluctuations has made great strides during the last decade. Roger Farmer is a leader in this rapidly growing field of research and this book is important reading for anyone interested in modern macroeconomics."--Sergio Rebelo, Tokai Bank Distinguished Professor of International Finance, Kellogg Graduate School of Management, Northwestern University

About the Author:

Roger Farmer is Assistant Professor of Economics at the University of Pennsylvania.

"About this title" may belong to another edition of this title.