PART I: The Theory of Unemployment; 1 What This Book Is About; 2 The Basic Model; 3 An Extension to Multiple Goods; 4 A Model with Investment and Saving; PART II: Using the Theory to Understand Data; 5 A New Way to Understand Business Cycle Facts; 6 The Great Depression: Telling the Keynesian Story in a New Way; 7 The Wartime Recovery: A Dynamic Model Where Fiscal Policy Matters; 8 The U.S. Economy from 1951 to 2000: Employment and GDP; PART III: The Theory of Prices; 9 Money and Uncertainty; 10 Money and Inflation Since 1951; 11 How to Fix the Economy; Notes; Bibliography; Index; A
Summary
Expectations, Employment and Prices brings Keynesian economics into the 21st century by providing a new paradigm that explains how high unemployment could potentially persist forever without a little help from the government. The book fills in logical gaps that were missing from Keynes' General Theory of Employment Interest and Money by reconciling some of its key ideas with modern economic theory. Central bankers throughout the world are talking now about developing a second instrument of monetary policy in addition to controlling the interest rate. This book directly addresses this issue and
