Modern Macroeconomics.pdf

viModern macroeconomics2.17 Keynes’s legacy and the classical revival 85Interview with Robert Skidelsky 913 The orthodox Keynesian school 1013.1 Introduction 1013.2 The orthodox Keynesian school 1023.3 The IS–LM model for a closed economy 1023.4 Underemployment equilibrium in the Keynesian model 1143.5 The IS–LM model for an open economy 1233.6 The Phillips curve and orthodox Keynesian economics 1353.7 The central propositions of orthodox Keynesian economics 144Interview with James Tobin 1484 The orthodox monetarist school 1634.1 Introduction 1634.2 The quantity theory of money approach 1654.3 The expectations-augmented Phillips curve analysis 1744.4 The monetary approach to balance of payments theory andexchange rate determination 1874.5 The orthodox monetarist school and stabilization policy 192Interview with Milton Friedman 1985 The new classical school 2195.1 Introduction 2195.2 The influence of Robert E. Lucas Jr 2205.3 The structure of new classical models 2235.4 Equilibrium business cycle theory 2365.5 The policy implications of the new classical approach 2425.6 An assessment 267Interview with Robert E. Lucas Jr 2726 The real business cycle school 2946.1 Introduction: the demise of new classical macroeconomicsmark I 2946.2 The transition from monetary to real equilibrium businesscycle theory 2956.3 Real business cycle theory in historical perspective 2976.4 Cycles versus random walks 3006.5 Supply-side shocks 3036.6 Business cycles: main features and stylized facts 3046.7 Real business cycle theory 3076.8 The structure of a real business cycle model 309