Macroeconomics [antikvár]

PREFACE The fifth edition is the most ambitious working over of Macroeconomics since the book was first published. Every new edition offers the opportunity to add material, round out arguments, and update information and case studies. But occasionally it is essential to make a complete evaluation of progress in the field, rethink issues, and restate arguments in the light of new findings and new ways of thinking. When the first edition came out, in 1978, today's New Keynesians had barely finished their first degrees, rational expectations was only starting to flourish, and the real business cycle approach had not even seen the light of day. Today it is impossible to write seriously in macroeconomics without integrating the challenges, the findings, and the perspective of those approaches. The present edition accomplishes this task. Beyond the general recognition of these important developments in macroeconomics, we have in particular expanded material on such topics as credit rationing, efficiency wages, the Lucas supply curve, and credibility and time consistency. Interestingly, we have been able to incorporate the emphasis given by the new approaches without abandoning the structure and, indeed, much of the argument of earlier editions. The Lucas supply curve, for example, is developed as an aggregate supply curve that fits easily into the introductory material on aggregate supply and demand, but jaelds the extra insight of distinguishing between anticipated and unanticipated monetary changes. THREE MAJOR AREAS OF CHANGE We have very substantially rewritten material in three areas. First, the money market is today dominated by the fact that most money pays interest. That changes much of the argument in traditional treatments of money demand and raises the interesting