Rational Expectations Macroeconomics is the second edition
of Rational Expectations and the New Macroeconomics by
Patrick Minford and David Peel. Under the sole authorship of
Profesor Minford, this new dition represents a practical
introduction to the principles and applications of rational
expectations (RE) methods in macroeconomics for third year
undergraduates and postgraduates.

The author sets out to provide a basic working knowledge of the
Rational Expectations Hypothesis (REH) by demonstrating in full
various methods for solving RE models. The book then deals with
policies and issues frequently encountered when applying these
models including: stabilization policy, fiscal policy, the
political economy of democracy and the Phillips curve. Finally, the
author turns to methods of testing the REH. By the end of the book,
students should be in a position to apply RE models to whatever
economy they are concerned with. Professor Minford has updated the
text extensively and included new chapters on representatitve agent
models (increasingly used in a applied forecasting and policy
analysis) and modelling the open economy.

In the decade since the first edition of this classic text was
written, the economics profession's respect for the REH has only
increased. The author's introductory and concluding chapters place
the REH research programme in its historical context, assess the
current state of the debate and look ahead to future research in
this important subject.