The New Classical Macroeconomics gives an accessible, rigorous, critical account of the central doctrines of the new classical economics, without unnecessarily difficult mathematics. It focuses on four central issues: the foundation of monetary theory; monetary and fiscal policy; labour supply and business cycles; and the attack on econometric models. In addition, the relationship of the new classical economics to monetarism and the Austrian school, with both of which it is often confused, it explored.
Kevin D. Hoover is Assistant Professor of Economics at the University of california, Davis. He was Heyworth Prize Research Fellow at Nuffield College, Oxford (1981-4), and has been a researcher and Visiting Economist at the Federal Reserve Bank of San Francisco.
Part 1 Introduction: the varieties of maroeconomics. Part 2 The labour market and business cycles: clearing labour markets; market-clearing models of the business cycle. Part 3 Monetary theory and policy: the limits of monetary policy - macroeconomic models; the new monetary economics; formal models of monetary economies; the limits of policy - micromodels. Part 4 Econometric issues: econometrics and the analysis of policy. Part 5 The new classical methodology: two types of monetarism?; an Austrian revival.