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The Macroeconomic Debate: Models of the Closed and Open Economy



The Macroeconomic Debate: Models of the Closed and Open Economy

Brian Hillier

ISBN: 978-0-631-17758-6 January 1991 Wiley-Blackwell 312 Pages


This textbook enables readers to understand the current debate amongst macroeconomists by examining the major theoretical controversies that have raged in macroeconomics since the publication of Keynes's General Theory.


Part I: Keynes versus the Classics: Will Money-Wage Cuts Remove Unemployment?.

1. The Classical Model.

2. Keynes's General Theory.

Part II: Was Keynes's General Theory Simply a Special Case of the Classical Model?.

3. Special cases of the IS-LM Model and the Neoclassical Synthesis.

4. The Re-interpretation of Keynes.

Part III: Does Fiscal Policy Really Matter? The Crowding-out Debate:.

5. Wealth Effects and the Government Budget Identity.

Part IV: Inflation and Unemployment: Is there a Trade-off?.

6. Inflation and Unemployment.

Part V: Does Macroeconomic Policy Really Matter?.

7. The New Classical Macroeconomics: An Introduction.

8. The New Classical Macroeconomics: Some Responses.

Part VI: The Open Economy: The Consequences of Exchange Rate Regimes for Domestic Stabilization:.

9. The Open Economy: An Introduction.

10. The IS-LM Model of a Small Open Economy.

11. Stock-flow Equilibrium in the Open Economy.

12. Prices, Exchange Rates and Policy.



"Since so much macroeconomics will soon be only of the open variety, it is good that a student will have such a thorough exposure within a macroeconomics book that covers so much else as well. The style is lucid throughout and reader-friendly. An excellent book." Megnad Desai, London School of Economics and Political Science
  • This textbook focuses on a central (and often confusing) area - the key debates in macroeconomics
  • Reflects current teaching in covering both the open and closed economy
  • Reviews of the first edition praised lucidity, accessibility and avoidance of unnecessary mathematics.