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A Critical Essay on Modern Macroeconomic Theory (Paperback)

Frank Hahn, Robert Solow

Edité par John Wiley and Sons Ltd, United Kingdom, 1998
ISBN 10: 0631209891 / ISBN 13: 9780631209898
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Titre : A Critical Essay on Modern Macroeconomic ...

Éditeur : John Wiley and Sons Ltd, United Kingdom

Date d'édition : 1998

Reliure : Paperback

Etat du livre : New

Edition : Revised ed..

Description :

Language: English . Brand New Book. In the early 1980s, rational expectations and new classical economics dominated macroeconomic theory. This essay evolved from the authors profound disagreement with that trend. It demonstrates not only how the new classical view got macroeconomics wrong, but also how to go about doing macroeconomics the right way.Hahn and Solow argue that what was originally offered as a normative model based on perfect foresight and universal perfect competition has been almost casually transformed into a model for interpreting real macroeconomic behavior. After explaining microeconomic foundations, the authors introduce a better macro model, one that can say useful things about the fluctuation of employment, the correlation between wages and employment, and the role for corrective monetary policy. N° de réf. du libraire AAH9780631209898

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Synopsis : Macroeconomics began as the study of large?scale economic pathologies such as prolonged depression, mass unemployment and persistent inflation. In the early 1980s rational expectations and new classical economics dominated macroeconomic theory, with the result that such pathologies can hardly be discussed within the vocabulary of the theory. This book evolved from the authors? profound disagreement with that trend. It demonstrates not only how the new classical view got macroeconomics wrong, but how to go about doing macroeconomics the right way. Following an explanation of microeconomic foundations, chapters introduce the basic elements for a better macro?model. The model is simple, but combined with the appropriate model of the labor market it can say useful things about the fluctuation of employment, the correlation between wages and employment, and the role for corrective monetary policy.

Critique: "Professors Hahn and Solow pick up the simple general equilibrium models of new classical macroeconomics and run with them. Of course, they head off in directions that are theirs alone. Critics of these models, and enthusiasts, will want to read this book and see how far they get."--Paul M. Romer, Professor of Economics, University of California at Berkeley

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