A New Interpretation of Macroeconomics: New Normative Macroeconomics

If one carefully looks at the recent evaluations in macroeconomic policy then he or she will find a very distinguishable method which John Taylor has called it "New Normative Macroeconomics". The purpose of this paper is to introduce and analyse this new method. The method uses different ideas from most schools of economic thought but can not be regarded as a special school as such. Models and concepts used in the main framework of the so-called new normative macroeconomics in recent years considered to be one of the most active and incentive creating which could not be seen before 1970s even in the economics Dictionaries. For example problems such as 1) policy models; 2) policy rules; 3) policy trade-off which can be regarded as the important ingredients of new normative macroeconomics will be emphasised in the present paper.