A History of Macroeconomics from Keynes to Lucas and Beyond [Hardcover]

This book retraces the history of macroeconomics from Keynes's General Theory to the present.This book retraces the history of macroeconomics from Keynes's General Theory to the present, especially the contrast between a Keynesian era and a Lucasian  or dynamic stochastic general equilibrium (DSGE)  era. It also examines a few selected works aimed at presenting alternatives to Lucasian macro.This book retraces the history of macroeconomics from Keynes's General Theory to the present, especially the contrast between a Keynesian era and a Lucasian  or dynamic stochastic general equilibrium (DSGE)  era. It also examines a few selected works aimed at presenting alternatives to Lucasian macro.This book retraces the history of macroeconomics from Keynes's General Theory to the present. Central to it is the contrast between a Keynesian era and a Lucasian  or dynamic stochastic general equilibrium (DSGE)  era, each ruled by distinct methodological standards. In the Keynesian era, the book studies the following theories: Keynesian macroeconomics, monetarism, disequilibrium macro (Patinkin, Leijongufvud, and Clower) non-Walrasian equilibrium models, and first-generation new Keynesian models. Three stages are identified in the DSGE era: new classical macro (Lucas), RBC modelling, and second-generation new Keynesian modeling. The book also examines a few selected works aimed at presenting alternatives to Lucasian macro. While not eschewing analytical content, Michel De Vroey focuses on substantive assessments, and the models studied are presented in a pedagogical and vivid yet critical way.Introduction; Part I. Keynes and Keynesian Macroeconomics: 1. Keynes's General Theory; 2. Keynesian macroeconomics; 3. The neoclassical synthesis program: Klein and Patinkin; 4. Monetarism; 5. Phelps and Friedman: the natural rate of unemployment; 6. Leijonhufvud and Clower; 7. Non-Walrasian equilibrium models; 8. Assessment; Part II. DSGE Macroeconomics: 9. Lucas and the emergence of Dl£I