Intro -- Contents -- List of Tables -- List of Figures -- Preface -- Abbreviations -- 1. Introduction -- 2. The MC Model -- 3. Interest Rate Effects -- 4. Testing the NAIRU Model -- 5. U.S. Wealth Effects -- 6. Testing for a New Economy in the 1990s -- 7. A "Modern" View of Macroeconomics -- 8....

Frontmatter -- Contents -- Tables -- Figures -- Preface -- Abbreviations -- 1 Introduction -- 2 The MC Model -- 3 Interest Rate Effects -- 4 Testing the NAIRU Model -- 5 U.S. Wealth Effects -- 6 Testing for a New Economy in the 1990s -- 7 A "Modern" View of Macroeconomics -- 8 Estimated European...

In a simple macro-finance term structure (MFTS) model with macroeconomic variables as risk factors, it matters little whether an econometrician has a strong prior on a particular macroeconomic model. I show in a Monte Carlo experiment that econometricians with drastically different priors will...