Political Economy in Macroeconomics. By Allan Drazen. Princeton, NJ: Princeton University Press, 2000. Pp. xiv, 775. $55.00, £ 35.00.

Abstract

This is a colossal volume—it is at once a compendium, a survey, a critical evaluation, and a clear exposition of a burgeoning field. It is a study of macroeconomic policy-making in the presence of heterogeneity across actors. Allan Drazen argues that the sine qua non of politics is the conflict of interests; and the core of political economy is that policies are the outcome of the interaction of competing individuals and groups whose concern is their own welfare and not necessarily that of any other individuals or the society as a whole.