To Open: From "general Theory" To "the New Open Macroeconomics"

The topics about the evolution of modern macroeconomics are always challenging, but exciting, however. As one of its quick-emerging branches, the New Open Economy Macroeconomics (the NOEM), due to its significance in both theoretical and empirical aspects, without doubt, deserves more of the attention and energy. Along historical clue, the thesis consists of five chapters as followings.In Ch.1, we identify the very logic in the controversial and subtle evolving process of modern macroeconomic theory, which originates from the "Keynesian Revolution"; since then, the New Classical Synthesis, the Monetary School, the "Lucas’Critique", the New Classical Macroeconomics (the NCM), the New Keynesian Macroeconomics (the NKM) and the DSGE modeling, etc., all of them represent be viewed as the milestones in the history of economics.Ch.2makes some compact descriptions of the1st generation of open macroeconomic models, mainly the " IS-LM-BP " analysis, the Mundell-Fleming model and the Dornbusch’ one respectively.Ch.3presents one part of our main content, focusing on the2nd generation of macroeconomic models, i.e. the NOEM models. Here, we list out Obstfeld&Rogoff (1995,1996), Cosetti&Pesenti (2001,2005), and their integration, a typical NOEM model (i.e. the OR-CP model); and some important contributions in the growing literature.As the another part of our main content, Ch.4, in the context of open economy, discusses the problems concerned with "Dynamic (In)consistency" and "Rules vs. Discretion", such as domestic monetary policy game and international monetary coordination, etc. Adopted from Tadelis (1999,2002), a "reputation market"model has been applied here.Last but not the least, Ch.5scratches rougly three promising topics in the field concerned; i.e.(1) microeconomicfoundation of the NOEM;(2) the works on the new theory of international/country portfolio management; and (3) Pavlova&Rigobon’s adventures proposal and works on the New International Macrofinance.