Since the rational expectations revolution in macroeconomics, the subject has changed massively, adopting the principles behind the revolution and building on them in a spectacular way. In this accessible and informative book, the authors guide the student through what has become the conceptual and mathematical maze of modern macroeconomics. It is intended primarily for the postgraduate student but will also be useful for upper level undergraduates. It explains the basics of each topic and provides a solid grounding for the student to tackle more complex and detailed material in the area.

The topics covered include:

an introduction to the traditional macro-classical macro/adaptive expectations
how to understand and solve standard macro models with rational expectations
implications of rational expectations for monetary and fiscal policy
the open economy
the new models of representative agents and real business cycles
the political economy of economic policy (the 'political business cycle') and independent central banks
the supply-side, unemployment and growth
empirical testing of the rational expectations hypothesis
the efficient markets hypothesis with empirical applications including bond and exchange markets
learning, time series-linear and nonlinear.

�ber die Autorin bzw. den Autor

Patrick Minford, Professor of Applied Economics, Cardiff Business School, Cardiff University and David Peel, Professor of Economics, Lancaster University Management School, University of Lancaster, UK

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