Advanced Macroeconomics Beyond IS/LM

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. Other themes are discussed, such as New Keynesian ideas, and there is a review of the economics of uncertainity with several examples. The interface between economics and political decision making is exploredd; can economists pretend to so-called "scientific" detachment from normative issues To assist the reader each chapter contains questions throughout and suggested essay topics at the end.