This two-volume set covers fiscal and monetary policy. It includes articles on the effects of lags on the feasibility of stabilization policy, time inconsistency, the motivation of monetary and fiscal authorities, the Lucas critique, Ricardian equivalence, and other areas.

CONTENTS ACKNOWLEDGEMENTS INTRODUCTION VOLUME 1 1. Milton Friedman (1953), ‘The Effects of a Full-Employment Policy on Economic Stability: A Formal Analysis’ 2. Arthur M. Okun (1972), ‘Fiscal-Monetary Activism: Some Analytical Issues’ 3. Robert E. Lucas, Jr. (1976), ‘Econometric Policy Evaluation: A Critique’ 4. Stanley Fischer (1980), ‘Dynamic Inconsistency, Cooperation and the Benevolent Dissembling Government’ 5. Robert J. Barro and David B. Gordon (1983), ‘A Positive Theory of Monetary Policy in a Natural Rate Model’ 6. David Alan Aschauer (1985), ‘Fiscal Policy and Aggregate Demand’ 7. John J. Seater (1993), ‘Ricardian Equivalence’ 8. Olivier J. Blanchard (1985), ‘Debt, Deficits, and Finite Horizons’ 9. James M. Poterba and Lawrence H. Summers (1987), ‘Finite Lifetimes and the Effects of Budget Deficits on national Saving’ 10. Franco Modigliani (1961), ‘Long-Run Implications of Alternative Fiscal Policies and the Burden of the National Debt’ 11. Alan S. Blinder and Robert M. Solow (1973), ‘Does Fiscal Policy Matter?’ 12. Thomas J. Sargent and Neil Wallace (1981), ‘Some Unpleasant Monetarist Arithmetic’ 13. Michael R. Darby (1984), ‘Some Pleasant Monetarist Arithmetic’ 14. Kevin D. Hoover and Steven M. Sheffrin (1992), ‘Causation, Spending, and Taxes: Sand in the Sandbox or Tax Collector for the Welfare State?’ 15. B. T. McCallum and J. K. Whitaker (1979), ‘The Effectiveness of Fiscal Feedback Rules and Automatic Stabilizers under Rational Expectations’ 16. Alan J. Auerbach, Jagadeesh Gokhale, and Lawrence J. Kotlikoff (1993), ‘Generational Accounts and Lifetime Tax Rates, 1900-1991’ VOLUME 2 1. Milton Friedman (1968), ‘The Role of Monetary Policy’ 2. Karl Brunner (1983), ‘The Pragmatic and Intellectual Tradition of Monetary Policy making and the International Monetary Order’ 3. Lawrence K. Roos (1986), ‘Inherent Conflicts of U. S. Monetary Policymaking’ 4. Robert L. Hillel (1990), ‘The Political Economy of Monetary Policy’ 5. Alex Cukierman and Allan H. Meltzer (1986), ‘A Theory of Ambiguity, Credibility, and Inflation under Discretion and Asymmetric Information’ 6. William Poole (1970), ‘Optimal Choice of Monetary Policy Instruments in a Simple Stochastic Macro Model’ 7. Benjamin M. Friedman (1977), ‘The Inefficiency of Short-Run Monetary Targets for Monetary Policy’ 8. Thomas Mayer (1990), ‘GNP targeting - what are the issues?’ 9. James Tobin (1983), ‘Monetary Policy: Rules, Targets, and Shocks’ 10. Jacob A. Frenkel, Morris Goldstein and Paul R. Masson (1989), ‘International Dimensions of Monetary Policy: Coordination versus Autonomy’ 11. Milton Friedman and Anna J. Schwartz (1986), ‘Has Government any Role in Money?’ 12. Charles Goodhart (1989), ‘The Conduct of Monetary Policy’