Description
Book SynopsisRational Expectations Macroeconomics is the second edition of
Rational Expectations and the New Macroeconomics by Patrick Minford and David Peel. Under the sole authorship of Profesor Minford, this new dition represents a practical introduction to the principles and applications of rational expectations (RE) methods in macroeconomics for third year undergraduates and postgraduates.
The author sets out to provide a basic working knowledge of the Rational Expectations Hypothesis (REH) by demonstrating in full various methods for solving RE models. The book then deals with policies and issues frequently encountered when applying these models including: stabilization policy, fiscal policy, the political economy of democracy and the Phillips curve. Finally, the author turns to methods of testing the REH. By the end of the book, students should be in a position to apply RE models to whatever economy they are concerned with. Professor Minford has updated the text extens
Table of Contents
Introductory ideas; solving rational expectations models; partial information and signal extraction; stabilization policy; problems in choosing optimal policies; budget deficits and their financing; the political economy of democracy; the macroeconomics of an open economy; representative agent models in cashless economies; money in representative agent models; testing the rational expectations hypothesis; interpreting the evidence - the problem of observational equivalence; direct tests of rational expectations.
