Advanced Macroeconomics - Beyond IS/LM (Paperback)

This text, which is intended for use at third year undergraduate and introductory graduate level, takes the student beyond the IS/LM model. Advanced Macroeconomics starts from the assumption that an economic variable is driven by past events, current happenings and what is believed might happen in the future - that is a dynamic understanding of economics - a theme that is emphasized throughout. Within this context, rational expectations, for which a thorough and accessible grounding in solution methods is given, are central to the text as well as other methods of forecasting. Some of Sargent's ideals are also reviewed.