The New Macroeconomics

This book reconstructs and restates macroeconomics in an attempt to set the foundations for a new analytical framework and a consensus model in macroeconomics. It begins with a critical analysis of the main macroeconomic theories and demonstrates their invalidity, thus establishing the necessity for a new macroeconomics. Then, it proceeds with the construction and analysis of a new macroeconomic system which is founded on new postulates and amounts to a full-scale reconstruction of conventional production, distribution, supply, investment and interest rate theory. The New Macroeconomic System is shown to be superior to conventional macroeconomic theories in terms of its theoretical foundations, its ability to explain economic behavior and the process of self-adjustment, and its ability to deal with the basic facts of experience, notably economic growth, inflation, involuntary unemployment and the business cycle.