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Macroeconomics After Two Decades of Rational Expectations

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  • Bennett T. McCallum

Abstract

This expository paper describes major developments during the second decade of rational-expectations macroeconomics, roughly 1982-1991. Topics attracting the most attention from researchers differed from those of 1972-1981, with considerable emphasis being devoted to technical mailers. Here the discussion focuses on four prominent areas: real business cycle analysis, growth theory and its empirical application, issues involving unit roots in macroeconomic time series, and sticky-price models of aggregate supply. The paper concludes by arguing that the current state of knowledge in macroeconomics is not as bad as is often suggested.

Suggested Citation

  • Bennett T. McCallum, 1993. "Macroeconomics After Two Decades of Rational Expectations," NBER Working Papers 4367, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:4367
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    References listed on IDEAS

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    20. repec:nbr:nberre:0126 is not listed on IDEAS
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    Cited by:

    1. Bennett T. McCallum, 1996. "Neoclassical vs. endogenous growth analysis: an overview," Economic Quarterly, Federal Reserve Bank of Richmond, issue Fall, pages 41-71.
    2. Juan Sebastían Vélez Velásquez, 2008. "Efecto rebano: Una aproximación para contrastar la hipótesis de expectativas racionales," Revista Sociedad y Economía, Universidad del Valle, CIDSE, October.

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    More about this item

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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