Macroeconomics and the Wage Bargain

• Introduction; Part I: Macroeconomics with Competitive Microfoundations: The classical model: market clearing and the quantity theory of money; Keynes' model; The neoclassical critique of Keynes and the Keynesian counterattack; The neoclassical revival: Friedman's model; The neoclassical revival: the new classical macroeconomics; Part II: The NAIRU Model: Macroeconomics under Imperfect Competition: The NAIRU model; Monetary growth rate rules and expectations hypotheses; Fiscal policy and the NAIRU model; Incomes policies and the NAIRU model; The NAIRU model and productivity growth; Part III: Macroeconomic Analysis in the Open Economy: Extending IS/LM to the open economy; Competitiveness and external balance; The NAIRU model in the open economy; Exchange rate policies: devaluation, import controls; Monetary, fiscal and incomes policies underfixed exchange rates; More realistic assumptions about pricing and competitiveness; The impact of a raw materials price shock; A contrasting model: the international monetarist model; Floating exchange rates with zero capital mobility; Floating exchange rates and perfect capital mobility: exchange rate expectations; Topics in open economy macroeconomics; Part IV: Microeconomic Foundations and the Problem of Hysteresis: Price setting in imperfectly competitive product markets; Wage setting in imperfectly competitive labour markets; The problem of hysteresis

`We ought to welcome this book. In The Netherlands it will be particularly suitable for doctoral students. After so many textbooks on this level assuming perfect competition, it is important to have this alternative. It presents a coherent view on macroeconomics, built on a clear-cut core.'De Economist