The modern view of macroeconomics : some critical reflections
| dc.contributor.author | Palacio Vera, Alfonso | |
| dc.date.accessioned | 2023-06-21T01:44:48Z | |
| dc.date.available | 2023-06-21T01:44:48Z | |
| dc.date.issued | 2002 | |
| dc.description | Códogos JEL: A22, E10, E50, E60 | |
| dc.description.abstract | Romer has proposed an alternative macroeconomic framework, i.e., the IS-MP-IA model. Its proponents claim that it constitutes a ‘modern’ view of macroeconomics. We show that the new framework is closely attached to the neoclassical synthesis and, in addition, fails to take account of: (i) the recent empirical evidence on the short-run output-inflation trade-off, (ii) the recent work and evidence on the interdependence of aggregate demand and supply, (iii) the limits of monetary policy and (iv) the consequences for demand-management policy of (i), (ii) and (iii). Once all these aspects are incorporated, we have that short-run stabilization policy is non-neutral in the long run, loanable funds theory becomes irrelevant and aggregate demand becomes the crucial exogenous variable in the short run and, perhaps, also in the long run. | |
| dc.description.department | Decanato | |
| dc.description.faculty | Fac. de Ciencias Económicas y Empresariales | |
| dc.description.refereed | TRUE | |
| dc.description.status | pub | |
| dc.eprint.id | https://eprints.ucm.es/id/eprint/6796 | |
| dc.identifier.doi | b19919463 | |
| dc.identifier.issn | 2255-5471 | |
| dc.identifier.relatedurl | http://www.ucm.es/centros/webs/fccee/ | |
| dc.identifier.relatedurl | https://economicasyempresariales.ucm.es/working-papers-ccee | |
| dc.identifier.uri | https://hdl.handle.net/20.500.14352/64471 | |
| dc.issue.number | 17 | |
| dc.language.iso | eng | |
| dc.page.total | 36 | |
| dc.publication.place | Madrid | |
| dc.publisher | Facultad de Ciencias Económicas y Empresariales. Decanato | |
| dc.relation.ispartofseries | Documentos de Trabajo de la Facultad de Ciencias Económicas y Empresariales | |
| dc.rights | Atribución-NoComercial-CompartirIgual 3.0 España | |
| dc.rights.accessRights | open access | |
| dc.rights.uri | https://creativecommons.org/licenses/by-nc-sa/3.0/es/ | |
| dc.subject.keyword | Neutrality of money | |
| dc.subject.keyword | NAIRU | |
| dc.subject.keyword | Natural rate of interest | |
| dc.subject.keyword | Aggregate demand. | |
| dc.subject.ucm | Macroeconomía | |
| dc.subject.unesco | 5307.14 Teoría Macroeconómica | |
| dc.title | The modern view of macroeconomics : some critical reflections | |
| dc.type | technical report | |
| dc.volume.number | 2002 | |
| dcterms.references | Aberg, R. (2001): “Equilibrium unemployment, search behaviour and unemployment persistency”, Cambridge Journal of Economics, 25(2), pp. 131-47. Allsopp, C. and D. Vines (2000); “The Assessment: Macroeconomic Policy”, Oxford Review of Economic Policy, 16(4), pp. 1-32. Allyn Young (1928); “Increasing Returns and Economic Progress”, Economic Journal, 38(152), December, pp. 527-42. Ball, L. (1999): “Aggregate Demand and Long-Run Unemployment”, Brookings Papers on Economic Activity, 2, pp. 189-236. Bank of England (1999); “The transmission mechanism of monetary policy”, Bank of England Quarterly Bulletin, 39 (2), May, pp.1–12. Bernanke, B.S. and F.S. Mishkin (1997); “Inflation Targeting: A New Framework for Monetary Policy?”, Journal of Economic Perspectives, 11(2), Spring, pp. 97-116. Bernanke, B.S., T. Laubach, F.S. Mishkin and A.S. Posen (1999); Inflation Targeting: Lessons from the International Experience, Princeton: Princeton University Press. Blanchard, O.J. and L. H. Summers (1987): “Hysteresis in Unemployment”, European Economic Review, 31, pp. 288-295. Blanchard, O.J. and L.H. Summers (1988); “Beyond the Natural Rate Hypothesis”, American Economic Review, Papers and Proceedings, 78(2), May, pp. 182-87. Blinder, A. (1988); “The Fall and Rise of Keynesian Economics”, Economic Record, 64(187), December, pp. 278-94. Clarida, R., J. Galí, and M. Gertler (1999); “The science of monetary policy: a New Keynesian perspective”, Journal of Economic Literature, 37 (4), pp. 1661–707. Chick, V. (1983); Macroeconomics After Keynes, Cambridge (MA): The MIT Press. Cross, R. (ed.) (1995); The Natural Rate of Unemployment, Cambridge, UK: Cambridge University Press. Davidson, P. (1972); Money and the Real World, London: Macmillan. Davidson, P. (1978); “Why money matters: lessons from a half-century of monetary theory”, Journal of Post Keynesian Economics, 1(1), pp. 46-70. Davidson, P. (1984); “Reviving Keynes´s Revolution”, Journal of Post Keynesian Economics, 6(4), Summer, pp. 561-75. De Long, J.B. (1999); “Should We Fear Deflation?”, Brookings Papers on Economic Activity, 1, pp. 225-52. Eisner, R. (1997); “A new view of the NAIRU”, in P. Davidson and J. A. Kregel (eds.) Improving the Global Economy. Keynesianism and the Growth in Output and Employment, Cheltenham (UK): Edward Elgar. European Central Bank (2001); The Monetary Policy of the ECB, Internet document, http:\\www.ecb.de/pub/pdf/monetarypolicy2001.pdf Fair, R.C. (1997a); “Testing the NAIRU Model for 27 Countries”, Cowles Foundation, April. Fair, R.C. (1997b); “Estimated inflation costs had European unemployment been reduced in the 1980s by macro policies”, Cowles Foundation, December. Fair, R.C. (2000); “Testing the NAIRU model for the United States”, Review of Economics and Statistics, 82(1), pp. 64-71. Fair, R.C. (2001a); “Is there empirical support for the ‘modern’ view of macroeconomics?”, Cowles Foundation Discussion Paper, No.1300, April. Fair, R.C. (2001b); “Actual Federal Reserve Policy Behavior and Interest Rate Rules”, Federal Reserve Bank of New York Economic Policy Review, 7(1), pp. 61-72. Fazzari, S.M., P. Ferri and E. Greenberg (1998); “Aggregate demand and firm behavior: a new perspective on Keynesian microfoundations”, Journal of Post Keynesian Economics, 20(4), pp. 495-526. Fontana, G. and Palacio-Vera, A. (2002); “Monetary policy rules: what are we learning?”, Journal of Post Keynesian Economics, 24(4), pp. 547-568. Galbraith, J. (1997); “Time to Ditch the NAIRU”, Journal of Economic Perspectives, 11(1), pp. 93-108. Goodfriend, M. (1991); “Interest rates and the conduct of monetary policy”, Carnegie–Rochester Conference Series on Public Policy, 34 (1), pp. 7–30. Gordon, R. (1997); “The Time-Varying NAIRU and its Implications for Economic Policy”, Journal of Economic Perspectives, 11(1), Winter, pp. 11-32. Judd, J.P. and G.D. Rudebusch (1998); “Taylor´s Rule and the Fed: 1970-1997”, Federal Reserve Bank of San Francisco Economic Review, 3(361), pp. 3-16. Kaldor, N. (1972); “The Irrelevance of Equilibrium Economics”, Economic Journal, 82(328), December, pp. 1237-55. Kalecki, M. (1944); “Professor Pigou on the ‘Classical Stationary State’ – A Comment”, Economic Journal, Vol. 54, April, pp. 131-32. Keynes, J.M. (1936); The General Theory of Employment, Interest and Money, London: Macmillan. Keynes, J.M. (1937); “The General Theory of Employment”, Quarterly Journal of Economics, February, pp. 209-23. Laxton, D, D. Rose and D. Tambakis (1999): “The U.S. Phillips curve: The case for asymmetry”, Journal of Economic Dynamics and Control, 23, pp. 1459-85. Layard, R., S. Nickell, and R. Jackman (1991); Unemployment: Macroeconomic Performance and the Labour Market, Oxford: Oxford University Press. Lavoie, M. (1996); “Monetary Policy in an Economy with Endogenous Credit Money”, in G. Deleplace and E.J. Nell (eds.), Money in Motion: The Post Keynesian and Circulation Approaches, pp. 532-545, London: Macmillan. León-Ledesma, M.A. and A.P. Thirlwall (2002); “The endogeneity of the natural rate of growth”, Cambridge Journal of Economics, 26, July, pp. 441-59. Moore, B.J. (1988); Horizontalists and Verticalists: The Macroeconomics of Credit Money. New York: Cambridge University Press. Orphanides, A. and D.W.Wilcox (1996); “The Opportunistic Approach to Disinflation”, Board of Governors of the Federal Reserve System, May. Orphanides, A., D.H. Small, V. Wieland and D.W. Wilcox (1997); “A Quantitative Exploration of the Opportunistic Approach to Disinflation”, Board of Governors of the Federal Reserve System, June. Orphanides, A. and V. Wieland (2000); “Inflation zone targeting”, European Economic Review, 44, pp. 1351-87. Palley, T.I. (2002); “Endogenous money: what it is and why it matters”, Metroeconomica, 53(2), pp. 152-80. Patinkin, D. (1948); “Price flexibility and full employment”, American Economic Review, 38, pp. 543-64. Reprinted in F.A. Lutz and L.W. Mints (eds.) Readings in Monetary Theory, Ch.13, pp. 252-83, London: George Allen and Unwin Ltd. Patinkin, D. (1965); Money, Interest, and Prices, 2nd edition, New York: Harper and Row. Pigou, A.C. (1943); “The Classical Stationary State”, Economic Journal, Vol. 53, December, pp. 343-51. Romer, D. (1999); “Short-Run Fluctuations”, Working Paper, August, University of California, Berkeley. Romer, D. (2000); “Keynesian Macroeconomics without the LM Curve”, Journal of Economics Perspectives, 14(2), Spring, pp. 149-69. Rowthorn, R. (1999); “Unemployment, wage bargaining and capital-labour substitution”, Cambridge Journal of Economics, 23(4), pp. 413-26. Sawyer, M.C. (2001); “The NAIRU: a critical appraisal”, in P. Arestis and M.C. Sawyer (eds.) Money, Finance and Capitalist Development, pp. 220-54, Cheltenham, UK: Edward Elgar. Sawyer, M.C. (2002); “The NAIRU, Aggregate Demand and Investment”, Metroeconomica, 53(1), pp. 66-94. Setterfield, M.A., D.V. Gordon and L. Osberg (1992): “Searching for a Will o´the Wisp: An empirical study of the NAIRU in Canada”, European Economic Review, 36, pp. 119-36. Setterfield, M. (ed.) (2002); The Economics of Demand-led Growth, Cheltenham, UK: Edward Elgar. Shackle, G.L.S. (1946); “Interest Rates and the Pace of Investment”, Economic Journal, 56 (221), March, pp. 1-17. Solow, R.M. (1997); “Is There a Core of Usable Macroeconomics We Should All Believe In?”, American Economic Review, Papers and Proceedings, May, pp. 230-32. Solow, R.M. and J.B. Taylor (1998); Inflation, Unemployment, and Monetary Policy, Cambridge, MA: The MIT Press. Staiger, D., J.H. Stock, and M.W. Watson (1997); “The NAIRU, Unemployment and Monetary Policy”, Journal of Economic Perspectives, 11(1), Winter, pp. 33-49. Stiglitz, J.E. (1988); “Money, Credit, and Business Fluctuations”, Economic Record, 64 (187), December, pp. 307-22. Svensson, L.E.O. (1999); “Inflation targeting as a monetary policy rule”, Journal of Monetary Economics, 43, pp. 607-54. Taylor, J.B. (1993); “Discretion Versus Policy Rules in Practice”, Carnegie-Rochester Conference Series on Public Policy, 39, pp. 195-214. Taylor, J.B. (1994): “The Inflation/Output Variability Trade-off Revisited”, in J.G. Fuhrer (ed.) Goals, Guidelines, and Constraints Facing Monetary Policymakers, Federal Reserve Bank of Boston, Conference Series No.38, pp. 21-38. Taylor, J.B. (1997); “A Core of Practical Macroeconomics”, American Economic Review, Papers and Proceedings, 87(2), May, pp. 233-35. Taylor, J.B. (1999a); “The Robustness and Efficiency of Monetary Policy Rules as Guidelines for Interest Rate Setting by the European Central Bank”, Journal of Monetary Economics, 43(3), pp. 655-79. Taylor, J.B. (1999b); “A historical analysis of monetary policy rules” in J.B. Taylor (ed.) Monetary Policy Rules, pp. 319–41, Chicago: University of Chicago Press. Taylor, J.B. (2000); “Teaching Modern Macroeconomics at the Principles Level”, American Economic Review, Papers and Proceedings, 90(2), May, pp. 90-94. Tobin, J. (1955); “A Dynamic Aggregative Model”, Journal of Political Economy, Vol. 63, April, pp. 103-15. Tobin, J. (1975); “Keynesian Models of Recession and Depression”, American Economic Review, Papers and Proceedings, 65(2), May, pp. 195-202. Tobin, J. (1993); “Price Flexibility and Output Stability: An Old Keynesian View”, Journal of Economic Perspectives, 7(1), Winter, pp. 45-65. Wicksell, K. (1936; 1965); Interest and Prices, translated by R.F. Kahn, New York: Augustus M. Kelly. | |
| dspace.entity.type | Publication | |
| relation.isAuthorOfPublication | 29e8c1fa-89b0-4038-aa4a-31ac7b81e68d | |
| relation.isAuthorOfPublication.latestForDiscovery | 29e8c1fa-89b0-4038-aa4a-31ac7b81e68d |
Download
Original bundle
1 - 1 of 1
