A Critical Essay on Modern Macroeconomic Theory
April 1998, Wiley-Blackwell
Following an explanation of microeconomic foundations, chapters introduce the basic elements for a better macro-model. The model is simple, but combined with the appropriate model of the labor market it can say useful things about the fluctuation of employment, the correlation between wages and employment, and the role for corrective monetary policy.
2. Perfectly Flexible Wages.
3. Imperfect Wage Flexibility.
4. Imperfect Competition.
5. The Labor Market.
Robert Solow is Institute Professor of Economics at the Massachusetts Institute of Technology. He received the Nobel Prize in economics in 1987 for his macroeconomic research linking technology and growth.
Frank Hahn is Professor Ordinario at the University of Sienna, Professor Emeritus of Cambridge University, and Fellow of Churchill College.
* Robert Solow received the Nobel Prize in economics in 1987 for his macroeconomic reasearch linking technology and growth.