This new edition has been extensively revised. It contains a new chapter on optimal monetary and fiscal policy, and the coverage of growth theory has been expanded substantially. The range of growth models considered has been extended, with particular attention devoted to transitional dynamics and nonscale growth. The book includes cuttin-edge research and unpublished data, including much of the author's own work.
1. Introduction and Overview
I TRADTIONAL MACRODYNAMICS
2. A Dynamic Portfolio Balance Macroeconomic Model
II RATIONAL EXPECTATIONS
3. Rational Expectations: Some Basic Issues
4. Rational Expectations and Policy Neutrality
5. Nonuniqueness Issues in Rational Expectations Models
6. Macroeconomic Stabilization Policy under Rational Expectations
7. Rational Expectations and Saddlepoint Bahavior
III INTERTEMPORAL OPTIMIZATION
8. The Representative Agent Model
9. Equilibrium in a Decentralized Economy with Distortionary
Taxes and Inflation
10. A Dynamic Analysis of Taxes
,etc.