Introduction to Advanced Macroeconomics - A Synthesis of New Keynesianism and Neoclassical Economics (Second Edition): A Synthesis of New Keynesianism and Neoclassical Economics (Second Edition)

Author: William M. Scassellati
Publisher:
Publish Date: 2006-03-01
Features: This book is a rare and valuable macroeconomic theory monograph that bridges intermediate textbooks and advanced tutorials. It comprehensively discusses the analytical methods of modern macroeconomic theory and the debates among different schools of thought. The book focuses on recent macroeconomic theoretical research, emphasizing both the rigor of neoclassical analysis and the analysis of market failures, which are central to New Keynesianism and essentially inherit Keynesian traditions. In-depth explanations are provided for many arguments, such as how rational expectations and credibility affect stabilization policies, and how microfoundations can respond to Lucas criticism. In the new edition, the author has increased the weight of several topics, including the Keynesian corridor, finite horizons, multiple equilibria, self-fulfilling prophecies, efficiency wage models, strategic complementarities, real business cycle models, and tax substitution models under representative agent frameworks and overlapping generations frameworks. The book's focus is on short-term stabilization issues, and the author also introduces (both new and old) growth theories. The book uses only basic mathematical knowledge throughout, helping readers understand the practical research methods of macroeconomics. In addition to explaining analytical methods, the author also describes their inherent logic from an intuitive level and clarifies the historical evolution of these topics. To enhance readers' interest, the book explains analytical methods and debates using everyday questions. For example, it elucidates the implications of deflation, lagged effects, the sustainability of deficit financing, tax reform, and various monetary policies (with nominal income as a target, fixed or floating exchange rates). The book comprehensively elaborates on the theoretical systems of neoclassical economics and New Keynesianism. Readers can understand how the two schools of thought build their respective theoretical systems step by step from basic models. Exercises are a particularly popular feature of the book. This edition has been revised. Through practicing these exercises, readers can deepen their understanding and mastery of various macroeconomic topics.