Leading world scholars analyze a range of specific departures from general equilibrium theory which have significant implications for the macroeconomic analysis of both developed and developing economies. Jacques Drèze considers uncertainty and incomplete markets and Nobel Laureate Robert Solow relates growth theory to the macroeconomic framework. Other issues examined are the implications for macro-policy of new research, including Joseph Stiglitz's warning on the misplaced zeal for financial market liberalization which partly engendered the East Asian and Russian crises.

STEPHEN G. CECCHETTI Ohio State University, Columbus, Ohio
RICARDO CABALLERO Massachusetts Institute of Technology, Cambridge, Massachusetts
VITTORIO CORBO Universidad Catholica de Chile, Santiago
DAVID DE LA CROIX Université Catholique de Louvain, Belgium
JEAN-PIERRE DANTHINE Université de Lausanne, Switzerland
JOHN B. DONALDSON Columbia University, New York
WILLIAM EASTERLY The World Bank, Washington DC
RICHARD FREEMAN Harvard University, Cambridge, Massachusetts
BRUCE GREENWALD Columbia University, New York
ERICA L. GROSHEN Bank for International Settlements, Basle, Switzerland
MOHAMMED HAMMOUR DELTA-ENS, Paris, France
SEPPO HONKAPOHJA University of Helsinki, Finland
ROUMEEN ISLAM The World Bank, Washington DC
FRANCIS KRAMARZ Centre de Recherche en Economie et Statistique, INSEE, Paris
ADRAIN PAGAN Australian National University, Canberra, Australia
DANNY QUAH London School of Economics and Political Science, UK
CARLOS RODRIGUES CEMA University, Buenos Aires, Argentina
ROBERT H. SOLOW Massachusetts Institute of Technology, Cambridge
JOSEPH E. STIGLITZ Stanford University, USA
JOHN TAYLOR Stanford University, Stanford CA, USA

The International Economic Association Acknowledgements List of Contributors List of Abbreviations and Acronyms Introduction: Advances and Challenges in Macroeconomics; D.Drèze PART I: THE GENERAL FRAMEWORK From Neoclassical Growth Theory to New Classical Macroeconomics; R.H.Solow On the Macroeconomics of Uncertainty and Incomplete Markets (Presidential Address); J.Drèze Macroeconomic Frictions: What Have We Learnt from the Real Business Cycle Research Programme?; J-P.Danthine & J.B.Donaldson PART II: MONEY AND FINANCE How the Rational Expectations Revolution has Changed Macroeconomic Policy Research; J.Taylor Monetary Policy in an Imperfect Information World; B.Greenwald Understanding Inflation: Implications for Monetary Policy; S.G.Cecchetti & E.L.Groshen PART III: WAGES AND EMPLOYMENT Single-peaked versus Diversified Capitalism: The Relation between Economic Institutions and Outcomes; R.Freeman Institutions, Restructuring and Macroeconomic Performance; R.Caballero & M.Hammour Rigid Wages: What Have We Learnt from Microeconomic Studies?; F.Kramarz PART IV: ECONOMETRICS The Getting of Macroeconomic Wisdom; A.Pagan PART V: DYNAMICS Learning Dynamics: Complete and Incomplete Learning; S.Honkapohja Standard-of-Living Aspirations and Economic Cycles; D.de la Croix PART VI: DEVELOPMENT Development Policies Beyond Export-led Growth; V.Corbo Macroeconomic Policies: Can We Transfer Lessons Across LDCs?; C.Rodrigues Cross-country Growth Comparison: Theory to Empirics; D.Quah Volatility and Macroeconomic Paradigms for Rich and Poor Countries (Michael Bruno Memorial Lecture); W.Easterly, R.Islam & J.E.Stiglitz Index