Modern Western Macroeconomics Development Research

Modern western macroeconomics is the macroeconomics after the decline of Neo-classic Synthesis School. It pays much attention to the micro-basis. The paradigm that the macro-problems are studied from the strict micro-basis is its important trait. The Ramsey Model, built in 1920s, not only studied the macro-problems from the micro-basis, but also is the most important model in modern western macroeconomics.The paradigm of modern western macroeconomics is different from the paradigm of Classic macroeconomics and Keynesian macroeconomics, that the macro-problems are detached from the micro-basis. The trace of the development of the modern western macroeconomics can be watched by the change of the paradigm. The first attempts to change the traditional paradigm to the modern paradigm were done by Rational Expectation School and Non-equilibrium macroeconomics. The modern paradigm was built by the New-classic macroeconomics and the paradigm of Ramsey Model became the normal modern paradigm. In the same time, Keynesian macroeconomics was revived in the modern paradigm and a lot of micro-theories were published to support the rigidity of the price and the wage, which provided a good micro-basis for New-Keynesian macroeconomics. The New Growth theory , appearing in the end of the 1980s, called up a new fashion to study the economic growth and it is the revival of the Growth theory in the modern paradigm. The macro-theories of consumption, investment and unemployment were also developed in the modern paradigm and strengthened the search for micro-basis.The dispute between the Monetary School and the Keyne^ian macroeconomics, the dispute between Rational Expectation School and Neo-classic synethesis and the dispute between New-Classic macroeconomics and New-Keynesian macroeconomics were the main three disputes in the development of modern western macroeconomics. Though modern western macroeconomics is still not united and disputes still exist, a lot of common senses have been reached.From today' s views, there has been evident tendency for the development of modern western macroeconomics and in the future, there will be a new synthesis. However, there are still some problems in modern western macroeconomics, which perplexed us and should be corrected.