Top positive review
the book is very comprehensive and has stretch elements which are useful. It does suffer from being too comprehensive with ...
on 29 January 2016
I bought this book in order to move on from the historically more dominant IS-LM analsis which dominated my time at University.
Overall, the book is very comprehensive and has stretch elements which are useful. It does suffer from being too comprehensive with several obscure proofs that can be skipped as unnecessary. Some of the more obscure bits would be better in Appendix sections so that the reader can get through the core quicker.
I particularly liked the New Keynesian Micro foundations section (it is a bit tricky), but I wanted to argue with at least some of its bolder assumptions. The sections on growth are good, but my, they are over notated! Much of the nitpicky growth proofs are not necessary either.
The text style is somewhat heavy going/clunky - it was not, to be honest, an easy read and is probably over verbose in places and is certainly over notated. To be honest I had to keep refreshing myself as to the definitions of certain symbols etc. as I read through sections, which is not good. Readability is my main criticism of this book.
As several other reviewers have noted, the authors do not challenge the New Keynesian synthesis, and that is sort of a drawback. It also has very little analysis on target setting and the dangers associated with targeting policy on an ill defined/determined metric such as Full Employment GDP. In reality, this is not a known term, and the various transition mechanisms discussed did not really get into that - it just assumed the policy maker had magically picked the right target amounts - which is never the case.
Well worth reading, but not as an introductory work - I would still do intermediate IS-LM as a first step, and then augment with this 3 equation approach.
NB a newer version is out and therefore more current in terms of discussion topics and examples - I would go for that if you have the choice!