Research Catalog

Title

Rethinking expectations : the way forward for macroeconomics / edited by Roman Frydman and Edmund S. Phelps.

Publication

Princeton : Princeton University Press, c2013.

Items in the Library & Off-site

Details

Additional Authors

• Frydman, Roman, 1948-
• Phelps, Edmund S.

Description

vi, 432 p. : ill.; 25 cm.

Summary

"This book originated from a 2010 conference marking the fortieth anniversary of the publication of the landmark "Phelps volume," Microeconomic Foundations of Employment and Inflation Theory, a book that is often credited with pioneering the currently dominant approach to macroeconomic analysis. However, in their provocative introductory essay, Roman Frydman and Edmund Phelps argue that the vast majority of macroeconomic and finance models developed over the last four decades derailed, rather than built on, the Phelps volume's "microfoundations" approach. Whereas the contributors to the 1970 volume recognized the fundamental importance of according market participants' expectations an autonomous role, contemporary models rely on the rational expectations hypothesis (REH), which rules out such a role by design. The financial crisis that began in 2007, preceded by a spectacular boom and bust in asset prices that REH models implied could never happen, has spurred a quest for fresh approaches to macroeconomic analysis. While the alternatives to REH presented in Rethinking Expectations differ from the approach taken in the original Phelps volume, they are notable for returning to its major theme: understanding aggregate outcomes requires according expectations an autonomous role. In the introductory essay, Frydman and Phelps interpret the various efforts to reconstruct the field--some of which promise to chart its direction for decades to come. The contributors include Philippe Aghion, Sheila Dow, George W. Evans, Roger E. A. Farmer, Roman Frydman, Michael D. Goldberg, Roger Guesnerie, Seppo Honkapohja, Katarina Juselius, Enisse Kharroubi, Blake LeBaron, Edmund S. Phelps, John B. Taylor, Michael Woodford, and Gylfi Zoega."--Publisher's website.

Subject

• Macroeconomics
• Rational expectations (Economic theory)

Bibliography (note)

• Includes bibliographical references and index.

Contents

Which way forward for macroeconomics and policy analysis? / Roman Frydman and Edmund S. Phelps -- Expectational coordination failures and market volatility / Roger Guesmerie -- Learning as a rational foundation for macroeconomics and finance / George W. Evans and Seppho Honkapohja -- Keynes on knowledge, expectations, and rationality / Sheila Dow -- The imperfect knowledge imperative in modern macroeconomics and finance theory / Roman Frydman and Michael D. Goldberg -- Heterogeneous gain learning and long swings in asset prices / Blake LeBaron -- Opening models of asset prices and risk to nonroutine change / Roman Frydman and Michael D. Goldberg -- Animal spirits, persistent unemployment, and the belief function / Roger E. A. Farmer -- Indeteminancies in wage and asset price expectations / Edmund S. Phelps -- The long swings of employment, investment, and asset prices / Gylfi Zoega -- Imperfect knowledge, asset price swings, and structural slumps / Katarina Juselius -- Stabilization policies and economic growth / Philippe Aghion and Enisse Kharoubi -- Swings and the rules-discretion balance / John B. Taylor -- Principled policymaking in an uncertain world / Michael Woodford.

Call Number

JBE 13-634

ISBN

• 9780691155234 (hardcover : alk. paper)
• 0691155232 (hardcover : alk. paper)

LCCN

• 2012030492
• 40021883704

OCLC

808007427

Title

Rethinking expectations : the way forward for macroeconomics / edited by Roman Frydman and Edmund S. Phelps.

Imprint

Princeton : Princeton University Press, c2013.

Bibliography

Includes bibliographical references and index.

Added Author

Frydman, Roman, 1948-

Phelps, Edmund S.

Other Standard Identifier

40021883704

Research Call Number

JBE 13-634