Call Boomerang Books 1300 36 33 32

sign up for Boomerang Books BulletinGet Latest Book News + FREE Shipping. Subscribe to the Boomerang Books Bulletin eNewsletter right now!

Description - Lectures on Behavioral Macroeconomics by Paul de Grauwe

In mainstream economics, and particularly in New Keynesian macroeconomics, the booms and busts that characterize capitalism arise because of large external shocks. The combination of these shocks and the slow adjustments of wages and prices by rational agents leads to cyclical movements. In this book, Paul De Grauwe argues for a different macroeconomics model--one that works with an internal explanation of the business cycle and factors in agents' limited cognitive abilities. By creating a behavioral model that is not dependent on the prevailing concept of rationality, De Grauwe is better able to explain the fluctuations of economic activity that are an endemic feature of market economies. This new approach illustrates a richer macroeconomic dynamic that provides for a better understanding of fluctuations in output and inflation. De Grauwe shows that the behavioral model is driven by self-fulfilling waves of optimism and pessimism, or animal spirits. Booms and busts in economic activity are therefore natural outcomes of a behavioral model. The author uses this to analyze central issues in monetary policies, such as output stabilization, before extending his investigation into asset markets and more sophisticated forecasting rules. He also examines how well the theoretical predictions of the behavioral model perform when confronted with empirical data. * Develops a behavioral macroeconomic model that assumes agents have limited cognitive abilities * Shows how booms and busts are characteristic of market economies * Explores the larger role of the central bank in the behavioral model * Examines the destabilizing aspects of asset markets

Buy Lectures on Behavioral Macroeconomics by Paul de Grauwe from Australia's Online Independent Bookstore, Boomerang Books.

Book Details

ISBN: 9780691147390
ISBN-10: 0691147396
Format: Hardback
(235mm x 152mm x mm)
Pages: 152
Imprint: Princeton University Press
Publisher: Princeton University Press
Publish Date: 14-Oct-2012
Country of Publication: United States

Book Reviews - Lectures on Behavioral Macroeconomics by Paul de Grauwe

» Have you read this book? We'd like to know what you think about it - write a review about Lectures on Behavioral Macroeconomics book by Paul de Grauwe and you'll earn 50c in Boomerang Bucks loyalty dollars (you must be a Boomerang Books Account Holder - it's free to sign up and there are great benefits!)

Write Review

Author Biography - Paul de Grauwe

Paul De Grauwe is professor of international economics at the London School of Economics and Political Science. He is the author or coauthor of several books, including "The Exchange Rate in a Behavioral Finance Framework" (Princeton) and "Economics of Monetary Union".