The New Macroeconomics
Imperfect Markets and Policy Effectiveness

Brings together leading researchers from the USA and Europe to examine the literature on the new macroeconomics.

Huw David Dixon (Author), Neil Rankin (Author)

9780521479479, Cambridge University Press

Paperback, published 19 October 1995

404 pages, 54 b/w illus. 8 tables
22.9 x 15.2 x 2.3 cm, 0.59 kg

This book focuses on the rapidly growing research field of imperfect competition, asymmetric information, and other market imperfections in a macroeconomic context. It brings together leading researchers from the USA and Europe to examine the implications for macroeconomic policy of market imperfections in output, labour and financial markets. All the contributions are original, and include several general surveys and expository chapters which synthesize the large literature, along with some state-of-the-art research at the frontier of the discipline. This is the first volume to focus exclusively on this literature. It should be a valuable resource for graduate students and researchers in macroeconomics.

Introduction Huw Dixon and Neil Rankin
Part I. Overviews and Perspectives: 1. Classical and Keynesian features in macroeconomic models with imperfect competition Jean-Pascal Bénassy
2. Imperfect competition and macroeconomics: a survey Huw Dixon and Neil Rankin
3. Notes on imperfect competition and new Keynesian economics Richard Startz
Part II. Goods Market Imperfections: 4. Optimal labour contracts and imperfect competition: a framework for analysis Russell Cooper
5. Market power, coordination failures and endogenous fluctuations Claude d'Aspremont, Rodolphe Dos Santos Ferreira, and Louis-André Gérard-Varet
6. Macroeconomic externalities Andrew John
Part III. Labour Market Imperfections: 7. Demand uncertainty and unemployment in a monopoly union model Omar Licandro
8. Efficiency wages as a persistence mechanism Gilles Saint-Paul
9. Efficiency, enforceability and acyclical wages Christian Schultz
10. Business fluctuations, worker moral hazard and optimal environment policy Jon Strand
Part IV. Financial Market Imperfections: 11. The stock market and equilibrium recessions Jeff Frank
12. Asymmetric information, investment finance and real business cycles Brian Hillier and Tim Worrall
Part V. Nominal Rigidities and Bounded Rationality: 13. Hedging, multiple equilibria and nominal contracts Daron Acemoglu
14. Information acquisition and nominal price adjustment Torben M. Andersen and Morten Hviid
15. Expectation calculation, hyperinflation and currency collapse George W. Evans and Garey Ramey
16. Menu costs and aggregate price dynamics Alan Sutherland
Bibliography.

Subject Areas: Macroeconomics [KCB]