Rethinking Expectations (eBook)

The Way Forward for Macroeconomics

Roman Frydman, Edmund S. Phelps (Herausgeber)

eBook Download: PDF

2013
440 Seiten
Princeton University Press (Verlag)
978-1-4008-4645-0 (ISBN)

Infos

This book originated from a 2010 conference marking the fortieth anniversary of the publication of the landmark "e;Phelps volume,"e; Microeconomic Foundations of Employment and Inflation Theory, a book that is often credited with pioneering the currently dominant approach to macroeconomic analysis. However, in their provocative introductory essay, Roman Frydman and Edmund Phelps argue that the vast majority of macroeconomic and finance models developed over the last four decades derailed, rather than built on, the Phelps volume's "e;microfoundations"e; approach. Whereas the contributors to the 1970 volume recognized the fundamental importance of according market participants' expectations an autonomous role, contemporary models rely on the rational expectations hypothesis (REH), which rules out such a role by design. The financial crisis that began in 2007, preceded by a spectacular boom and bust in asset prices that REH models implied could never happen, has spurred a quest for fresh approaches to macroeconomic analysis. While the alternatives to REH presented in Rethinking Expectations differ from the approach taken in the original Phelps volume, they are notable for returning to its major theme: understanding aggregate outcomes requires according expectations an autonomous role. In the introductory essay, Frydman and Phelps interpret the various efforts to reconstruct the field--some of which promise to chart its direction for decades to come. The contributors include Philippe Aghion, Sheila Dow, George W. Evans, Roger E. A. Farmer, Roman Frydman, Michael D. Goldberg, Roger Guesnerie, Seppo Honkapohja, Katarina Juselius, Enisse Kharroubi, Blake LeBaron, Edmund S. Phelps, John B. Taylor, Michael Woodford, and Gylfi Zoega.

Autor

Roman Frydman is professor of economics at New York University and the coauthor (with Michael D. Goldberg) of Beyond Mechanical Markets and Imperfect Knowledge Economics. Edmund S. Phelps, the winner of the 2006 Nobel Prize in Economics, is director of Columbia University's Center on Capitalism and Society. His many books include Structural Slumps and Seven Schools of Macroeconomic Thought.

Produkt-Details

• Erscheint lt. Verlag: 23.1.2013
• Zusatzinfo: 48 line illus. 18 tables.
• Verlagsort: Princeton
• Sprache: englisch
• Themenwelt: Wirtschaft ► Allgemeines / Lexika
• Themenwelt: Wirtschaft ► Betriebswirtschaft / Management ► Finanzierung
• Themenwelt: Betriebswirtschaft / Management ► Spezielle Betriebswirtschaftslehre ► Bankbetriebslehre
• Themenwelt: Wirtschaft ► Volkswirtschaftslehre ► Makroökonomie
• Schlagworte: Adaptive Expectations • Agents • aggregate outcomes • Aggregation problem • Animal Spirits • asset price expectations • asset prices • asset price swings • automatic stabilizer • Behavioral Economics • behavioral finance models • belief function • Big Mac PPP • Bounded Rationality • Calculation • Cash Conversion Cycle • Central Bank • Central Banks • Cobweb model • cointegrated vector autoregressive model • Comparative Advantage • Coordination failure (economics) • countercyclicality • Credit spread (options) • Currency Markets • Customer • customer market economy • Deadweight loss • Discretion • discretionary policy • Economic Analysis • Economic bubble • Economic equilibrium • Economic Growth • Economic planning • economic policymaking • Economics • Economic Theory • economist • economy • Edmund S. Phelps • Efficiency Wage • efficient-market hypothesis • Employment • Exchange Rate • expectational coordination • Expectation Formation • Expectations • Expected Shortfall • Expected utility hypothesis • Externality • Farmer monetary model • Finance • Finance Theory • Financial Crises • Financial Crisis • Financial Instruments • Financial Markets • Fiscal Policy • Forecast Error • Forecasting • forecasting behavior • Forecasts • Global game • global imbalances • Granger Causality • Grossman-Stiglitz Paradox • heterogeneous gain learning • Imperfect Knowledge • Imperfect Knowledge Economics • Implementation Lag • indexation • Individual behavior • Individuality • Inflation • Inflation Targeting • Informational efficiency • Information asymmetry • institutional investor • Interest Rate • Intertemporal budget constraint • Investment • IS–LM model • John Maynard Keynes • Kalman Filter • Keynesian Economics • Knowledge • learning • Learning Algorithms • Liquidity constraint • liquidity trap • Long run and short run • Long-Term Interest Rates • Loss Aversion • macroeconometric models • Macroeconomic Analysis • Macroeconomic Models • Macroeconomic Performance • Macroeconomics • Macroeconomic Theory • Marginal product • Market Clearing • Market Failure • market liquidity • Market Participant • Mental Accounting • Microfoundations • monetary policy • Natural rate of unemployment • New Keynesian Economics • new keynesian Phillips curve • Noise trader • Nominal interest rate • nonroutine change • Output Gap • Pareto Efficiency • Phelps microfoundations volume • Phillips Curve • Policy • policy commitments • Policy-ineffectiveness proposition • policymakers • policy rules • Predetermined variables • Prediction • Preferences • principled policymaking • Prospect Theory • Rational Expectations • rational expectations equilibrium • Rational Expectations Hypothesis • Rationality • Rational pricing • Real Business Cycles • Real business-cycle theory • Real Exchange Rates • Real interest rate • real-time learning • Real versus nominal value (economics) • real wages • Recession • Ricardian Equivalence • Risk • Risk Aversion • Risk Premium • Rules • Search Theory • shadow price • Share Price • Share prices • Sociality • Speculation • stabilization policies • stabilization policy • structuralist models • structural slumps • Supply (economics) • Taylor Rule • The general theory of employment, interest and money • The Road to Serfdom • Trading Strategy • Uncertainty • Unemployment • Unemployment rate • Utility • Valuation (finance) • Wages • Wealth • Welfare cost of business cycles • Zero lower bound
• ISBN-10: 1-4008-4645-5 / 1400846455
• ISBN-13: 978-1-4008-4645-0 / 9781400846450