Macroeconomic Policy: Inflation, Wealth and the Exchange Rate (Routledge Library Editions: Macroeconomics) - Hardcover

Weale, Martin; Blake, Andrew; Christodoulakis, Nicos; Meade, James; Vines, David

Hardcover

ISBN 10: 1138940011 ISBN 13: 9781138940017

Publisher: Routledge, 2015

Synopsis

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 1 is a comparative analysis showing the effects of monetary and fiscal policy on the economy. Real-wage rigidity in the labour market is shown to have important consequences for the working of both types of policy, because it conditions the economy’s response to tax changes. Part 2 presents an econometric model which combines consistent stock-flow accounts with a full range of expectational effects. Part 3 presents an innovative technique for solving rational expectations models with the need for arbitary terminal conditions.

 

About this edition

• Publisher: Routledge
• Publication date: 2015
• ISBN 10: 1138940011
• ISBN 13: 9781138940017
• Binding: Hardcover
• Edition number: 1
• Number of pages: 396