Macroeconomic Policy

Part 1

This analysis of macroeconomic policy, originally published in 1989, argues that key government objectives, such as reduced inflation, decreased unemployment and an adequate level of national saving can be achieved only by employing both monetary and fiscal policies, in conjunction with supply-side policies expressly designed to improve the workings of the labour market.

Part 2

Part 2 presents an econometric model which combines consistent stock-flow accounts with a full range of expectational effects.

Part 3

Part 3 presents an innovative technique for solving rational expectations models with the need for arbitary terminal conditions.