Instability, Fluctuations, and Growth in Monetary Economies
469 pp., 6 x 9 in,
- Published: June 25, 1997
Dynamic Macroeconomics is an attempt to revitalize the traditions of nonmarket clearing approaches to macroeconomics. Using sophisticated tools from dynamic analysis, the authors introduce a consistent, integrated framework for disequilibrium macroeconomic dynamics and explore its relationship to the competing—and currently dominant—equilibrium dynamics. The book is organized into five parts. Part I covers background models of market-clearing and nonmarket-clearing approaches. Part II introduces short-run monetary models of macroeconomic fluctuations that build on the dynamic interaction of product, labor, and financial markets. Part III explores monetary instability in variants with capital accumulation and growth. Part IV explores supply and demand side Keynesian business cycles and monetary-type growth models. Part V considers the role of the financial sector as a source of instability and fluctuations.
Dynamic Macroeconomics places the important stream of disequilibrium macrodynamics in the context of the currently more influential stream of equilibrium dynamics. Most importantly, it provides students and researchers with the application of continuous time nonlinear dynamic methods to a host of relevant, important, and interesting macrodynamic models. I think it will be a very useful reference for classes as well as macro theorists who want to find out about advances in disequilibrium macro and want to see 'how to do it.'
Richard H. Day, Professor of Economics, University of Southern California
Dynamic Macroeconomics develops models of growth in which goods, labor, and asset markets interact, mainly to explore the possibility of cyclical growth, by drawing on ideas from alternative schools of macroeconomic theory. This book has many strengths. It is well written, and provides a good blend of verbal reasoning, algebraic modeling and simulation work. It contains the results of solid, painstaking research, is on fundamental issues in macroeconomic theory, and should be of interest to a range of advanced students and scholars.
Amitava Krishna Dutt, Professor and Chair, Department of Economics, University of Notre Dame
Dynamic Macroeconomics will be of interest to economists interested in theoretical and applied macroeconomic issues. In particular, those seeking anintegrated, consistent approach to the Keynesian non-market clearing disequilibrium approach to macroeconomic dynamics and its relationship to the currently dominant equilibrium paradigm. As the book contains a well developed critical analysis of some important elements of this paradigm, particularly in relation to the role of rational expectations, it will be controversial and probably encourage debate about the direction of macrodynamic modelling. Such a debate can only be good for the advancement of macroeconomic theory.
Carl Chiarella, Professor, School of Finance and Economics, University of Technology
Macrodynamics is a venerable and important tradition, which fifty or sixtyyears ago engaged the best minds of the economics profession: among them Frisch, Tinbergan, Harrod, Hicks, Samuelson, Goodwin. Recently it has beenin danger of being swallowed up by rational expectations, moving equilibrium, and dynamic optimization. We can be grateful to the authorsof this book for keeping alive the older tradition, while modernizing it inthe light of recent developments in techniques of dynamic modeling.
James Tobin, Sterling Professor of Economics Emeritus, Yale University