New Classical Macroeconomics

Kevin D. Hoover is Assistant Professor of Economics at the University of california, Davis. He was Heyworth Prize Research Fellow at Nuffield College, Oxford (1981-4), and has been a researcher and Visiting Economist at the Federal Reserve Bank of San Francisco.

"An excellent volume, which deserves to be read by anyone seriously interested in explaining the operation of the macroeconomy." Times Higher Education Supplement "I enjoyed Kevin Hoover's book very much. It is critical writing of the very highest order - a rarity in macroeconomics. The breadth of coverage is also very impressive. In particular, i thought Hoover's treatment of my work is fair and accurate, even when it hurt. I will be a better writer and scholar in the future with the prospect of this kind of criticism in mind." Robert E. Lucas, Jr, Professor of Economics, University of Chicago "This book represents an excellent account of a most important development in modern macroeconomics. It is a splendid achievement, well argued, well written, rigorous, and yet easily accessible." M. J. Artis, Professor of Economics, University of Manchester "The book is very well written, it covers the literature comprehensively and expresses complex arguments with authority and at a brisk pace." Nigel W. Duck, Department of Economics, University of Bristol

• List of Figures ixPreface xPart I Introduction 11 The Varieties of Macroeconomics 3Part II The Labour Market and Business Cycles 212 Clearing Labour Markets 233 Market-clearing Models of the Business Cycle 38Part III Monetary Theory and Policy 634 The Limits of Monetary Policy: Macroeconomic Models 655 The New Monetary Economics 876 Formal Models of Monetary Economies 1117 The Limits of Policy: Micromodels 138Part IV Econometric Issues 1658 Econometrics and the Analysis of Policy 167Part V The New Classical Methodology 2119 Two Types of Monetarism? 21310 An Austrian Revival? 231Notes 258References 284Index 301