A General Approach to Macroeconomic Policy

This book complements earlier studies by the present author by extending the analysis of macroeconomic policy from the need to deal with two problems (inflation and unemployment) to include also either the state of the current account of the balance of payments, or a broader objective that includes the level of investement as well as the state of the balance of payments. It draws upon the results of a number of macroeconometric models to throw light on the relative effects of a number of different macroeconomic policy instruments on each of these objectives; and suggests a framework that is broader than is usually adopted, in which to consider macroeconomic policy decisions to deal with these various objectives simultaneously.