3.3. New Keynesian models
Combine page 33 of Azariadis with Sargent’s Dynamic Macro Theory and Ljungqvist & Sargent’s Recursive Macroeconomic Theory for a complete intertemporal toolkit.
4.5/5
: Nobel laureate Robert E. Lucas Jr. praised the book as a "marvelous introduction" that is "literate, rigorous, up-to-date, and comprehensive" on theoretical issues.
Azariadis generalized the concept of "sunspot equilibria," showing how market volatility can emerge from rational expectations alone. Purchasing and Accessing the Text
