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In this book, Jean-Pascal Benassy attempts to integrate into a single unified framework dynamic macroeconomic models reflecting such diverse lines of thought as general equilibrium theory, imperfect competition, Keynesian theory, and rational expectations. He begins with a simple microeconomic synthesis of imperfect competition and nonclearing markets in general equilibrium under rational expectations. He then applies this framework to a large number of dynamic macroeconomic models, covering such topics as persistent unemployment, endogenous growth, and optimal fiscal-monetary policies. The macroeconomic methodology he uses is similar in spirit to that of the popular real business cycles theory, but the scope is much wider. All of the models are solved "by hand," making the underlying economic mechanisms particularly clear.
- Sales Rank: #1886826 in eBooks
- Published on: 2003-01-03
- Released on: 2002-12-01
- Format: Kindle eBook
Review
"Reading this book is a liberating experience. By some sleight of hand, the idea of a micro-based macroeconomics has been identified with price-mediated market clearing under perfect competition. Bénassy demonstrates by example that macroeconomics can be based on imperfect competition, non-clearing markets, and quantity signals. As a consequence, activist monetary and fiscal policies are shown to be both effective and useful." Robert M. Solow, Institute Professor of Economics, Emeritus, Massachusetts Institute of Technology, and Nobel Laureate in Economics (1987)
About the Author
Jean-Pascal Bénassy is Director of Research at CNRS (National Center for Scientific Research), Paris, and a Research Fellow at CEPREMAP (Center for Economic Research and Applications). He is the author of The Macroeconomics of Imperfect Competition and Nonclearing Markets: A Dynamic General Equilibrium Approach (MIT Press, 2002).
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