Macroeconomic models incorporating multiple equilibriums are gaining popularity and seem to have a strong intuitive appeal. This paper explains the notion of coordination failure in macroeconomics and introduces the papers in this conference volume. It also addresses sunspot equilibrium theory...

The author argues that demand management was abandoned in the 1970s because, as presently understood, it proved incapable of controlling the world-wide acceleration of inflation that began in the 1960s, that led to the abandonment of the Bretton Woods system of fixed exchange rates in 1973, and...

I examine a model with an indeterminate equilibrium in which business cycles are driven by sunspot shocks. I focus on the possibility that the sunspot shocks reflect consumer confidence. I compute an implied series of sunspot shocks using the intertemporal Euler equation and interpret them as...

This article contends that the "new" classical counter-revolution that began in the 1970s has been a false path for macroeconomics. Keynesian economics nicely explained the 1970s stagflation that followed the world oil price hike with a shift up of the supply curve in its AD/AS diagram. Lucas...

In this paper I compare Friedman's expectations-augmented Phillips Curve model with Lucas' model on expectations and the neutrality of money and claim that they are underpinned by two different equilibrium concepts. Friedman's model is based on the stationary equilibrium conception, typical of...

Kaldor's neo-Pasinetti theorem is examined in an economy where the rate of profit adjusts to higher effective demand through increases in the rate of capacity utilization rather than through increases in the margin of profit. A Tobinian investment function, where investment responds to the...

In this column, Deirdre McCloskey argues that the practice of letters of recommendation is insane. The only correct procedure for assessing scholarship in hiring or promotion is for the responsible body to read the candidate's work and discuss its intellectual quality with immediate colleagues,...

Where did Fitzgerald get the idea of having Clay's Economics reside in Nick Carraway's library?