An Introduction to Macroeconomic Theory

Abstract

The body of written material styled “macroeconomics” has expanded rapidly since 1960, inspired by technological breakthroughs, the ceaseless controversy between what essentially seem to be “conservative” and “liberal” points of view, and the obvious urgency of the problems of inflation, unemployment, and the rate of growth (in most countries). While the literature has grown — exploded really — there has been a tendency toward fragmentation and, regrettably, a tendency to forget all but the most recent and most striking results. There is, consequently, a continuing need to assess the state of the art in macroeconomics — both in its theory and in its policy — and in this spirit what is contained here is a synthesis across the major parts of the subject and a retroactive but selective survey going back some twenty or so years. What is hoped is that this will provide density to the mainstream of macro-material, insight into the current literature, and some hints as to where it all might be going.