Description
There is no shortage of books offering coherent expositions of Keynesian analysis and its post-Keynesian evolution. But despite the attention that has been devoted to the monetarist position in recent years, it is difficult to find a systematic exposition of its tenets that is designed to be accessible to the student and to compare its logic and its empirical foundations with those of the post-Keynesians.
Professor Glahe has undertaken the task of providing such a comparative ex- position in doing so he has not been content to deal with the issues on a superficial level. Rather, he takes the reader carefully through the foundations of the subject matter, building the theoretical models with painstaking care and then. wherever it appears appropriate. showing what the available factual evidence indicates about the abstract concepts. The result is a systematic and useful explanation of the standard macroeconomic materials and a discussion of the monetarist and post-Keynesian debate that seems unique in the logic and the clarity with which the positions are laid out.
Professor Glahe makes considerable use of sets of interrelated diagrams showing clearly the interdependence of the major sectors of the economy-the goods market, the labor market, the money market, and so forth. The device is not new, but recently it seems not to have been used as much as it should. For without it the student is likely to lose his overview of the fundamental role of simultaneity in macroeconomic mechanisms. When everything is bundled up neatly in a pair of IS-LM curves, matters work out correctly but the nature of the underlying mechanism is all too often obscure. This book not only revives the multisector diagram) and uses it effectively but carries it beyond the applications to which it has ordinarily been put.
ISBN:0155512641
