Neil Wallace (born 1939) is an American economist and professor of economics at

Penn State University The Pennsylvania State University (Penn State or PSU) is a Public university, public Commonwealth System of Higher Education, state-related Land-grant university, land-grant research university with campuses and facilities throughout Pennsylvan ...

. He is considered one of the main proponents of

new classical macroeconomics New classical macroeconomics, sometimes simply called new classical economics, is a school of thought in macroeconomics that builds its analysis entirely on a neoclassical framework. Specifically, it emphasizes the importance of rigorous foundat ...

in the field of

economics Economics () is the social science that studies the production, distribution, and consumption of goods and services. Economics focuses on the behaviour and interactions of economic agents and how economies work. Microeconomics anal ...

Education

Wallace earned his BA in economics from

Columbia University Columbia University (also known as Columbia, and officially as Columbia University in the City of New York) is a private research university in New York City. Established in 1754 as King's College on the grounds of Trinity Church in Manhatt ...

in 1960 and his Ph.D in economics from the

University of Chicago The University of Chicago (UChicago, Chicago, U of C, or UChi) is a private research university in Chicago, Illinois. Its main campus is located in Chicago's Hyde Park neighborhood. The University of Chicago is consistently ranked among the b ...

in 1964, where he studied under

Nobel Prize The Nobel Prizes ( ; sv, Nobelpriset ; no, Nobelprisen ) are five separate prizes that, according to Alfred Nobel's will of 1895, are awarded to "those who, during the preceding year, have conferred the greatest benefit to humankind." Alfr ...

-winning economist

Milton Friedman Milton Friedman (; July 31, 1912 – November 16, 2006) was an American economist and statistician who received the 1976 Nobel Memorial Prize in Economic Sciences for his research on consumption analysis, monetary history and theory and the ...

Career

In 1969, Wallace was hired as a consultant to the

Federal Reserve Bank of Minneapolis Federal or foederal (archaic) may refer to: Politics General *Federal monarchy, a federation of monarchies *Federation, or ''Federal state'' (federal system), a type of government characterized by both a central (federal) government and states or ...

. He served as a professor at the

University of Minnesota The University of Minnesota, formally the University of Minnesota, Twin Cities, (UMN Twin Cities, the U of M, or Minnesota) is a public land-grant research university in the Twin Cities of Minneapolis and Saint Paul, Minnesota, United States. ...

from 1974 until 1994 and as a professor at the

University of Miami The University of Miami (UM, UMiami, Miami, U of M, and The U) is a private research university in Coral Gables, Florida. , the university enrolled 19,096 students in 12 colleges and schools across nearly 350 academic majors and programs, i ...

from 1994 until 1997. In 1997, he was hired as a professor at Penn State. In 1975, he and

Thomas J. Sargent Thomas John Sargent (born July 19, 1943) is an American economist and the W.R. Berkley Professor of Economics and Business at New York University. He specializes in the fields of macroeconomics, monetary economics, and time series econometric ...

proposed the

policy-ineffectiveness proposition The policy-ineffectiveness proposition (PIP) is a new classical theory proposed in 1975 by Thomas J. Sargent and Neil Wallace based upon the theory of rational expectations, which posits that monetary policy cannot systematically manage the level ...

, which refuted a basic assumption of

Keynesian economics Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output ...

. In 2012, he was elected Distinguished Fellow of the

American Economic Association The American Economic Association (AEA) is a learned society in the field of economics. It publishes several peer-reviewed journals acknowledged in business and academia. There are some 23,000 members. History and Constitution The AEA was esta ...

Selected publications

* Ricardo De O. Cavalcanti and Neil Wallace, 1999. "Inside and Outside Money as Alternative Media of Exchange," ''Journal of Money, Credit and Banking'', 31(3, Part 2), pp
443
��457. *

and Neil Wallace, "Rational Expectations and the Dynamics of Hyperinflation," ''International Economic Review'', 14(2), (Jun., 1973), pp
328–350
* _____ and _____, 1973. The Stability of Models of Money and Growth with Perfect Foresight," ''Econometrica'', 41(6), pp
1043
��1048. * * * _____ and _____, 1981. "Some Unpleasant Monetarist Arithmetic," Federal Reserve Bank of Minneapolis ''Quarterly Review'', 5(3), pp
1–17.
* Neil Wallace, 1980. The Overlapping Generations Model of Fiat Money," in ''Models of Monetary Economies'', Federal Reserve Bank of Minneapolis, pp
49–82Abstract
* _____, 2001. "Whither Monetary Economics?," ''International Economic Review'', 42(4), pp
p. 847
��869.

Notes

External links

Neil Wallace biography
at Penn State Department of Economics
Neil Wallace
at

Google Scholar Google Scholar is a freely accessible web search engine that indexes the full text or metadata of scholarly literature across an array of publishing formats and disciplines. Released in beta in November 2004, the Google Scholar index includes ...

1939 births Living people 20th-century American economists 21st-century American economists Monetary economists New classical economists Columbia University alumni University of Chicago alumni University of Minnesota faculty University of Miami faculty Pennsylvania State University faculty Fellows of the Econometric Society Fellows of the American Academy of Arts and Sciences Distinguished Fellows of the American Economic Association {{US-economist-stub