A Critical Essay on Modern Macroeconomic Theory, vol 1
Frank Hahn and
Robert Solow
in MIT Press Books from The MIT Press
Abstract:
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.
Keywords: macroeconomic theory; employment; wages; monetary policy (search for similar items in EconPapers)
JEL-codes: E0 (search for similar items in EconPapers)
Date: 1997
Edition: 1
References: Add references at CitEc
Citations: View citations in EconPapers (54)
There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.
Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:mtp:titles:026258154x
Access Statistics for this book
More books in MIT Press Books from The MIT Press
Bibliographic data for series maintained by The MIT Press ().