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- Dynamic Macroeconomics
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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. 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. 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.
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