December 2014
Beginner
352 pages
14h 24m
English
Content preview from The Economics Book
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IN CONTEXT
FOCUS
The macroeconomy
KEY THINKERS
John Muth (1930–2005)
Robert Lucas (1937–)
BEFORE
1939 British economist John Hicks analyzes the way that expectations of the future change.
1956 US economist Philip Cagan uses “adaptive expectations” to explain forecasts based on the past.
AFTER
1985 US economist Gregory Mankiw contributes to the emergence of the “New Keynesian” economics, which uses new models that incorporate people’s rational expectations of the future into their calculations.
The rise of government intervention and spending after World War II provided an important new way for economists to think about the whole economy. In particular they ...
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