Studies in Macroeconomic Theory

Studies in Macroeconomic Theory, Volume 1: Employment and Inflation is a collection of scholarly papers that accounts the development of a microeconomic theory of wage and price decisions and commitments.

The book presents some features of the modern inflationary process and makes sense of some still accepted elements in the postclassical macroeconomics of Keynes and Phillips. The papers in this volume are grouped into seven sections. Part I describes disequilibrium models of employment. Part II gives closer scrutiny to the idea of the "natural" rate of unemployment. Part III studies the welfare economics of inflation in an equilibrium context. The fourth part deals with inflation planning. The papers in Part V discuss hypotheses about the causes of the rise in the rate of inflation in two historical episodes: the American inflation between 1955 - 1957 and 1972 - 1974. Part VI addresses some questions in the theory of economic stabilization by monetary and fiscal policy. The final section of this volume attempts to apply to matters of stochastic social choice, stabilization policy being one instance of such a choice, the conception of justice advanced by Rawls.

The compendium will be of value to economists and economic policy makers.

Preface

Introduction: Developments in Non-Walrasian Theory

I. Disequilibrium Models of Employment

1. Money-Wage Dynamics and Labor-Market Equilibrium (Original Version)

2. Short-Run Employment and Real Wage in Competitive Markets

3. The Emerging Microeconomics in Employment and Inflation Theory

II. Macroequilibrium Employment

4. The 'Natural Rate' Controversy and Economic Theory

5. Money, Wealth, and Labor Supply

III. Welfare Analysis of Anticipated Inflation: Liquidity and Saving

6. Anticipated Inflation and Economic Welfare

7. Inflation in the Theory of Public Finance

8. Money, Taxation, Inflation and Real Interest

IV. Inflation Planning

9. Phillips Curves, Inflation Expectations, and Optimal Employment Over Time

10. Inflation Planning Reconsidered

11. Disinflation without Recession: Adaptive Guideposts and Monetary Policy

V. Identifying Disturbances of the Price Level

12. A Test of the Cost Inflation Hypothesis: 1955-1957

13. Stopover Monetarism: Supply and Demand Factors in the 1972-74 Inflation

VI. Stabilization Theory

14. Stabilizing Powers of Monetary Policy Under Rational Expectations

15. Indexation Issues

16. Commodity-Supply Shock and Full-Employment Monetary Policy

17. Transnational Effects of Fiscal Shocks in a Two-Country Model of Dynamic Equilibrium

VII. Toward Just Criteria in Stabilization Policy

18. Social Policy and Uncertain Careers: Beyond Rawls's Paradigm Case