Books Written

Rewarding Work
Edmund S. Phelps
Harvard University Press

Rewarding Work CoverSince the 1970s a gulf has opened between the pay of low-paid workers and the pay of the middle class. No longer able to earn a decent wage in respectable work, many have left the labor force, and the job attachment of those remaining has weakened. For Edmund Phelps, this is a failure of political economy whose widespread effects are undermining the free-enterprise system. His solution is a graduated schedule of tax subsidies to enterprises for every low-wage worker they employ. As firms hire more of these workers, the labor market would tighten, driving up their pay levels as well as their employment.

Knowledge, Information and Expectations in

Modern Macroeconomics
Ed. Aghion, Frydman, Stiglitz, Woodford
Princeton University Press

Macroeconomics would not be what it is today without Edmund Phelps. This book assembles the field's leading figures to highlight the continuing influence of his ideas from the past four decades. Addressing the most important current debates in macroeconomic theory, it focuses on the rates at which new technologies arise and information about markets is dispersed, information imperfections, and the heterogeneity of beliefs as determinants of an economy's performance. The contributions, which represent a breadth of contemporary theoretical approaches, cover topics including the real effects of monetary disturbances, difficulties in expectations formation, structural factors in unemployment, and sources of technical progress. Based on an October 2001 conference honoring Phelps, this incomparable volume provides the most comprehensive and authoritative account in years of the present state of macroeconomics while also pointing to its future.

The fifteen chapters are by the editors and by Daron Acemoglu, Jess Benhabib, Guillermo A. Calvo, Oya Celasun, Michael D. Goldberg, Bruce Greenwald, James J. Heckman, Bart Hobijn, Peter Howitt, Hehui Jin, Charles I. Jones, Michael Kumhof, Mordecai Kurz, David Laibson, Lars Ljungqvist, N. Gregory Mankiw, Dale T. Mortensen, Maurizio Motolese, Stephen Nickell, Luca Nunziata, Wolfgang Ochel, Christopher A. Pissarides, Glenda Quintini, Ricardo Reis, Andrea Repetto, Thomas J. Sargent, Jeremy Tobacman, and Gianluca Violante. Commenting are Olivier J. Blanchard, Jean-Paul Fitoussi, Mark Gertler, Robert E. Hall, Robert E. Lucas, Jr., David H. Papell, Robert A. Pollak, Robert M. Solow, Nancy L. Stokey, and Lars E. O. Svensson. Also included are reflections by Phelps, a preface by Paul A. Samuelson, and the editors' introduction.

Structual Slumps
Edmund S. Phelps
Harvard University Press

Structual Slumps CoverEdmund Phelps's [book] likely to shake the establishment. For while much of what the Columbia University economist (now working at the Russell Sage Foundation) has to say about the 'natural' rate of unemployment has been alluded to before, his ambitious explanation of long-term joblessness may serve as a license for intervention in an area where fatalism has long been fashionable.
--Peter Passell (New York Times )

As a result [of this book], academic thinking on unemployment (which will be followed in due course by popular thinking on unemployment) may be about to undergo its third decisive shift this century...Structural Slumps is addressed to professional economists. They will regard it as one of the most important books of this decade. But brave non-specialists, provided they have a grounding in the subject and are not deterred by the necessary mathematics, can learn a great deal. With luck they will include some of Keynes's practical men 'who are usually the slaves of some defunct economist'. Few economists write as lucidly as Mr Phelps; among those toiling at the theoretical frontier of the subject, he is peerless in this respect. And he is unusual in another way...he writes with a sense of purpose. Mr Phelps's theory, he lets you know, matters not for its elegance or technical ingenuity--though it has both--but for the new light it sheds on a problem that urgently demands a solution. (The Economist )

Edmund Phelps's book is a substantial contribution to the analysis of swings in unemployment from one cycle to the next...[It offers] a wealth of insights into the nature of unemployment.
--Mervyn King (Financial Times )

[This] project is one of startling ambition, and the book deserves to be widely read and discussed...[Phelps] amply demonstrates how much turns upon a correct understanding of the macroeconomic consequences of market structure. One can only hope that this first bold effort will stimulate others to follow the trail blazed here.
--Michael Woodford (Journal of Economic Literature )

Seven Schools of Macroeconomic Thought:
The Arne Ryde Memorial Lectures (Ryde Lectures)
Edmund S. Phelps
Oxford University Press

Seven Schools of Macroeconomic Thought CoverThis book comprises the text of the first series of Ryde lectures, established by Lund University in Sweden. It offers a broad survey of various macroeconomic topics which feature prominently in research as well as theoretical and policy debate. An authoritative, comprehensive summary and original critique of modern macroeconomic approaches, the book reviews one school of economic thought in each chapter: Keynesian; monetarist; New Classical school; New Keynesian school; supply side macroeconomics; "non-monetary" models of macroeconomics; and real business cycle theory and the "structuralist school."

'Readers already familiar with the macro-economics landscape will find this volume illuminating and worthwhile' Times Higher Education Supplement

`In most cases it is stimulating, if not instructive, to see well-known theories discussed from another perspective and in this respect the present book is no exception.' Journal of Institutional and Theoretical Economics

Political Economy

Edmund S. Phelps
W.W. Norton & Company

Political Economy Cover