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McGraw-Hill

A Division of Tlie McGraw-Hill Companies ADVANCED MACROECONOMICS

Copyright © 1996 by The McGraw-Hill Companies, Inc. All rights reserved. Printed in the United States of America. Except as permitted under the United States Copyright Act of 1976, no part of this publication may be reproduced or distributed in any form or by any means, or stored in a data base or retrieval system, without the prior written permission of the publisher.

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7 8 9 0 DOC DOC 9 0 9 8 7 ISBN 0-07-053667-8

Library of Congress Cataloging-in-Publication Data

Romer, David.

Advanced macroeconomics / David Romer.

p. cm. - (McGraw-Hill advanced series in economics) Includes bibliographical references and index. ISBN 0-07-053667-8

1. Macroeconomics. I. Title. II. Series. HBI72.5.R66 1996

339-dc20 95-37228

ABOUT THE AUTHOR

David Romer is professor of economics at the University of California, Berkeley. He received his A.B. from Princeton University, where he was valedictorian, and his Ph.D. from M.I.T. He has been on the faculty at Princeton and has been a visiting faculty member at M.I.T. and Stanford. He is also a Research Associate of the National Bureau of Economic Research and serves on the editorial boards of several economics journals. His main research interests are monetary policy, the foundations of price stickiness, empirical evidence on economic growth, and asset-price volatility. He is married to Christina Romer, who is also an economist, and has two children, Katherine and Paul.