ABSTRACT
The results of macroeconomic policy are often unpredictable. One of the major reasons for this is the importance of confidence and expectations in economic affairs. Confidence, Credibility and Macroeconomic Policy explores this interaction between confidence and expectations, and the credibility of the government's financial policies. The volume is divided into three parts. * An overview of the inter-relationship between fiscal policy, credibility and inflation * Empirical research on the importance of public confidence and expectations to the success of fiscal and monetary policy. * The definition and functions of consumer confidence as it is measured today. Confidence, Credibility and Macroeconomic Policy will be an invaluable guide for all those interested in macroeconomic policy.
TABLE OF CONTENTS
chapter 2|17 pages
Bond-financed deficits, taxation and expectations: An experimental test of the Ricardian equivalence theorem
chapter 3|12 pages
Monetary credibility and national output: An experimental verification of the Lucas ‘islands’ explanation of business cycles
part |2 pages
Part II Confidence and credibility factors in historical perspective
chapter 4|31 pages
Public confidence and public finance during the American Civil War: Lessons from North and South
chapter 5|20 pages
Deficit finance, expectations and real money balances
chapter 6|27 pages
Does exchange rate pegging foster monetary credibility? The European Monetary System and the 1980s disinflation
part |2 pages
Part III Consumer confidence and macroeconomic stabilisation in the 1990s