Preface to Second Edition

1. Rational Expectations and the Reconstruction of Macroeconomics. Behavior Changes With The Rules of the Game. The Investment Decision. Are Government Deficits Inflationary?General Implications of the Examples. New Econometric Methods. Historical and Cross-country Analysis. Implications for Policymakers

2. Reaganomics and Credibility. Dynamic Games. An Economy As A Dynamic Game. Are Government Deficits Inflationary?Reaganomics and Credibility

3. The Ends of Four Big Inflations. The Gold Standard. Austria. Hungary. Poland. Germany. Czechoslovakia

4. Stopping Moderate Inflations: The Methods of Poincare and Thatcher. The "Poincare Miracle"The British Experience. Mrs. Thatcher's Plan. The Outcome of the Plan So Far. Overshooting the $M3 Target. The Government Deficit. North Sea Oil and the Pound Sterling. Second Thoughts. Poincare and Moreau. Methods of Thatcher and Reagan. Where to Play Chicken

5. Some Unpleasant Monetarist Arithmetic

6. Interpreting the Reagan Deficits. Government Budget Balance. Barro Tax Smoothing. Wallace's Game of Chicken. Hall's Model

Barro's Model

7. Speculations About the Speculation Against the Hong Kong Dollar

8. Three Essays in Persuasion. Back to Basics On Budgets. Confrontations Over Deficits. An Open Letter to the Brazilian Finance Minister.