Table of Contents

Nonstochastic Macroeconomics: Introduction. The "Classical" Model. The Keynesian Model. Tobins Dynamic Aggregative Model. Miscellaneous Topics. Dynamic Analysis of a Keynesian Model. The Investment Schedule. Introduction to Stochastic Macroeconomics: Behavior Under Uncertainty. Implicit Labor Contracts and Sticky Wages. Difference Equations and Lag Operators. Linear Least Squares Projections (Regressions). Linear Stochastic Difference Equations. The Consumption Function. Government Debt and Taxes. Investment Under Uncertainty. Dynamic Optimal Taxation. The Phillips Curve. Optimal Monetary Policy. Aspects of the New Classical Macroeconomics. Appendix: Formulas from Trigonometry. Exercises. References. Author Index. Subject Index.