Macroeconomic Policy (Paperback)

The theory of economic policy has recently taken a new course. In contrast to most earlier work, the new work treats the government as responding to incentives, not to orders.;The aim of this book is to present a survey of this recent development in the theory of economic policy. The book focuses on two traditional areas of macroeconomics, namely monetary policy - which is covered in Part 1 - and fiscal policy - which is covered in Part 2. Throughout, particular attention is given to the incentive constraints that the policymaker faces.;This book should be of use to graduate students and economists.