In my mind there remain two very important monetary issues of concern to all macroeconomists.
Prior to that, one has to recall that macroeconomists thought that monetary theory could not be formulated under rational expectations.
One good friend, a distinguished macroeconomist, wrote to try to persuade me to give up sunspots on grounds of their unpopularity.
That distinction no longer can be found in the choice of tools, since microeconomists and macroeconomists use most of the same tools.
But they could not articulate their view of money and financial markets in the neoclassical language favored by the younger generation of macroeconomists.
Meanwhile, something is changing in the terms of the debate between international macroeconomists on the optimum currency regime for a country to adopt.
When discussing this problem with macroeconomists, we often have heard the conjecture that computing higher-order terms would require solving higher-order matrix polynomial problems.
Because of the simplicity of our techniques, our approach can be easily applied by macroeconomists to similar models.
