Academic Press The Friedman-Lucas Transition in Macroeconomics: A Structuralist Approach

Product Description The Friedman-Lucas Transition in Macroeconomics: A Structuralist Approach considers how and to what extent monetarist and new classical theories of the business-cycle can be regarded as approximately true descriptions of a cycle’s causal structure or whether they can be no more than useful predictive instruments. This book will be of interest to upper-division undergraduates, graduate students, researchers and professionals concerned with practical, theoretical and historical aspects of macroeconomics and business-cycle modeling. Review "Peter Galbács has spent almost a year reading and analyzing my work on economics, partly in Chicago where we talked frequently. He also spent time at Duke University, where my manuscripts are archived. Peter has thoroughly diagnosed my work and my relationship to a wide range of other writers. An interesting and unusual book indeed!" --Robert E. Lucas, Jr., The John Dewey Distinguished Service Professor Emeritus in Economics and the College, The University of Chicago "In this provocative work, Galbács presents the history of macroeconomics as featuring a profound transition from instrumentalism, in Friedman, to a form of realism, in Lucas. Unflinchingly, he confronts deep questions of how models represent the world. Employing the notion of ‘semirealism’, he offers a stirring account of macro-phenomena in terms of their causal foundations." --Anjan Chakravartty, Appignani Foundation Professor, University of Miami Review Investigates the drives and biases of post-war Chicago theories of large-scale macroeconomic fluctuations From the Back Cover The Friedman-Lucas Transition in Macroeconomics analyses whether modern theories of the business cycle can provide approximately true descriptions of a cycles causal structure, or whether they are useful instruments only capable of generating predictions with considerable empirical accuracy. This conflict underlies the debate between economic realism and instrumentalism. Realists make efforts to argue for the truth of models, while for instrumentalists models are only constructs for predictive purposes. The Friedman-Lucas Transition in Macroeconomics serves as the first step to a deeper understanding of the rivalry between theoretical approaches of the business cycle. About the Author Peter Galbács is professor of economics at the Institute of Economics and Methodology, Budapest Business School. His principal research interests cover the history and the methodology of modern business-cycle theories with a special emphasis on new classical macroeconomics and Robert E. Lucas’s oeuvre. Recently he has published a monograph on the theory of new classical macroeconomics in which he made efforts to find the adequate scope of highly formalized and isolative new classical macro-models in practical-operative economic policy contexts.