We use generalized method of moments to estimate a rational expectations aggregate demand-aggregate supply macroeconomic model for five European economies. Our aim is to examine whether supply or demand shocks have predominated in the major European economies during the post-war era and whether...

Frontmatter -- Contents -- Tables -- Figures -- Preface -- Abbreviations -- 1 Introduction -- 2 The MC Model -- 3 Interest Rate Effects -- 4 Testing the NAIRU Model -- 5 U.S. Wealth Effects -- 6 Testing for a New Economy in the 1990s -- 7 A "Modern" View of Macroeconomics -- 8 Estimated European...