AEA PAPERS AND PROCEEDINGS MAY 1984 begin learning about the macroeconomy and REFERENCES o stimulate the development of superior methods of theoretical and empirical analy- Bernanke, Ben, Monetary Effects of the sis. Over the last fifteen years we have gener Financial Crises in the Propagation of ated a significant array of findings about the the Great Depression, " American Economic macroeconomy, and there is the promise of Review, June 1983, 73, 257-76 nuch more to come. Often people down- Lilien, David, " Sectoral Shifts and cyclical grade this progress because of a focus on the Unemployment, "Journal of Political Econ- one area-namely the nonneutrality of mon- August 82.90.777-93 ey-in which the most problems have arisen. Kydland, Finn and Prescott, Edward,"Rules But overall we are in much better shape in rather than Discretion: The Inconsistency macroeconomics -in terms of what we of Optimal Plans, " Journal of Political know and of knowing what we don' t know Economy, June 1977, 85, 473-9 than we were fifteen years ago. Why, even Weiss, Laurence, "Rational Expectations the undergraduate textbooks in macroeco- Models in Macroeconomics, "unpublished nomics are getting better University of Chicago, 1983