This book is motivated by the disagreement among Monetarist, Keynesian, and New Classical economists about the short-term determinants of output, unemployment, and inflation. It exposes the reader to a synthesis modeling approach which allows the derivation of the opposing theories as special...

This book has two aims. The first is to investigate the causes of the bad performance of many exchange rate models. It is concluded that probably the models' bad performance is due to the use of semi-reduced form relations in almost all studies on exchange rate determination and to an...