One of the most important developments in macroeconomics during the last decade has been the introduction of the rational expectations approach. Before the introduction of this method, economists relied on a variety of ad hoc mechanisms which often led to errors in their predictions. Studies in International Macroeconomics explains the ways in which the rational expectations method deals with uncertainty. It presents stochastic models and applies them to curent issues such as exchange rate determination, the effects of the rise and fall in oil prices, and the impact of wage indexing on the economy.

Book Information
ISBN 9780275920876
Author Jagdeep S. Bhandari
Format Hardback
Page Count 279
Imprint Praeger Publishers Inc
Publisher ABC-CLIO