The Financial Markets are Dynamic Business is“Proactive But Regulators are \Reactive\ not “Proactive The System of Regulation and Enforcement can never be completely Flexible and Dynamic Importance of Fiduciary Responsibility
7.1 Fiscal policies and effects 7.2 Monetary policies and effects 7.3 Policy mix 7.4 Economic fluctuation and eliminating the fluctuations with economic policies 7.5 Macroeconomic policy practice
Main Idea Nominal Rigidity nominal price rigidity nominal wage rigidity Real Rigidity Real price rigidity Real wage rigidity Unemployment, Economic Cycle and Policy Suggestion
Introduction to New Classical Theories R.lucas Supply Function Rational Expectations and R.lucas Criterion Policy Implications Comparisons between New Classical and Keynesian Theories