UID:
almafu_9960117270402883
Format:
1 online resource (xx, 427 pages) :
,
digital, PDF file(s).
Edition:
First edition.
ISBN:
1-316-41798-0
,
1-316-41992-4
,
0-511-84361-5
Content:
This book retraces the history of macroeconomics from Keynes's General Theory to the present. Central to it is the contrast between a Keynesian era and a Lucasian - or dynamic stochastic general equilibrium (DSGE) - era, each ruled by distinct methodological standards. In the Keynesian era, the book studies the following theories: Keynesian macroeconomics, monetarism, disequilibrium macroeconomics (Patinkin, Leijongufvud and Clower), non-Walrasian equilibrium models, and first-generation new Keynesian models. Three stages are identified in the DSGE era: new classical macroeconomics (Lucas), RBC modelling, and second-generation new Keynesian modeling. The book also examines a few selected works aimed at presenting alternatives to Lucasian macroeconomics. While not eschewing analytical content, Michel De Vroey focuses on substantive assessments, and the models studied are presented in a pedagogical and vivid yet critical way.
Note:
Title from publisher's bibliographic system (viewed on 01 Jan 2016).
,
The Keynesian-Monetarist Debate -- Stability -- The short-run real effects on changes in money supply -- Rules versus discretion -- The Limitation of the Monetarist Challenge -- Friedman on the Relationship Between Theory and Ideology -- General observations -- Friedman -- The Fall of Monetarism -- 5 Phelps and Friedman: The Natural Rate of Unemployment -- Phelps -- The man and his work -- Phelps's model -- Friedman -- A theory of the natural rate of unemployment -- An assessment -- Confronting Friedman's and Phelps's Approaches -- Style and method -- Relation to Keynes -- Fame and influence -- 6 Leijonhufvud and Clower -- Leijonhufvud -- On Keynesian Economics and the Economics of Keynes -- An assessment -- Clower's ''Keynesian Counter-Revolution'' Article -- The man and his work -- Clower's 1965 model -- An assessment -- 7 Non-Walrasian Equilibrium Modeling -- The Barro-Grossman Model (1971) -- An assessment -- Dreze's 1975 Model -- Benassy -- Assessment -- Malinvaud -- From Disequilibrium to Non-Walrasian Equilibrium Theory -- Involuntary Unemployment? Market Non-Clearing? -- An Aborted Takeoff -- 8 Assessment -- The limits of my study -- Contrasts -- A conceptual mess -- What has Keynesian macroeconomics achieved? -- Concluding remarks -- Part II DSGE Macroeconomics -- 9 Lucas and the Emergence of DSGE Macroeconomics -- Terminology -- The Formation of Lucas's Theoretical Framework -- Lucas's pre-macroeconomist years -- Lucas and Rapping's 1969 paper, ''Real Wages, Employment, and Inflation'' -- ''Expectations and the Neutrality of Money'' (1972) -- ''An Equilibrium Model of the Business Cycle'' (1975) and ''Understanding Business Cycles'' (1977) -- Lucas's Appraisal of Keynes's Contribution to Economic Theory -- Lucas on Keynesian Macroeconomics -- The 'Lucas critique' -- Policy without theory.
,
The dismissal of the neoclassical synthesis viewpoint -- The end of the Keynesian consensus -- The Rational Expectations Revolution -- The turning point -- Implications of the rational expectations hypothesis -- Concluding Remarks -- 10 A Methodological Breach -- A Change in the Research Agenda -- Lucas on Method -- Standards -- Model economies as analogous systems -- A New Equilibrium Concept -- The traditional understanding of equilibrium: equilibrium as a state of rest -- Lucas's equilibrium conception -- Comparing Keynesian and New Classical Macroeconomics -- The starting point -- A general equilibrium approach? -- Money -- Microfoundations -- The driving factor, supply or demand? -- Real effects of monetary changes -- Empirical method -- Methodological priority -- Natural policy conclusions -- Intuitiveness of the approach taken and accessibility to the layman -- 11 Assessing Lucas -- Lucas on Keynes -- Intertemporal Substitution -- The Pros and Cons of Walrasian Macroeconomics -- Lucas's Ambiguities -- Wavering between monetarism and DSGE reasoning -- Replacing the neoclassical synthesis dichotomy with another one -- A Political Agenda? -- Concluding Remarks -- 12 Early Reactions to Lucas -- Sims's Criticism of the Lucas Critique -- Lucas and Keynesians: The First Skirmishes -- The Rational Expectations Hypothesis: From Resistance to a Reluctant Acceptance -- Trying to Salvage the Phillips Curve -- Okun's Search Perspective -- The Battle Over Market Clearing -- The Battle Over Involuntary Unemployment -- An Assessment -- 13 Reacting to Lucas: First-Generation New Keynesians -- Main Features -- Implicit Contract Models: The Azariadis Model -- Efficiency Wage Modeling: Shapiro and Stiglitz's Shirking Model -- Staggered Wage Setting Models: Fischer's Model -- Wage setting -- The supply function -- The demand function -- Market clearing.
,
Disturbances -- Menu-Cost and Near-Rationality Models -- An Assessment -- Carlin And Soskice's Wage Bargaining-Augmented IS-LM Model -- The wage bargaining model -- Contrasting the NAIRU and Friedman's natural rate of unemployment -- Involuntary unemployment -- 14 Reacting to Lucas: Alternative Research Lines -- Diamond's Search Externality Program -- The coconut model -- Diamond and Lucas -- Howitt -- Roberts's Coordination Failures Model -- Hart's Model of Imperfect Competition -- First stage: firms' optimal decisions -- Second stage: unions' optimal decisions in a partial equilibrium context -- Third stage: unions' optimal decisions in a general equilibrium context -- Fourth stage: making income endogenous -- Concluding Remarks -- 15 Real Business Cycle Modeling: Kydland and Prescott's Contribution -- The Passing of the Baton to Kydland and Prescott -- Kydland and Prescott's 1982 Model -- Anchoring RBC Modeling in the Solow Model -- The Early Reception of Solow's Growth-Accounting Exercise -- The RBC Baseline Model -- Preferences -- Technology -- Resource constraints -- The Story Behind the Model: A Colossal'As If' -- Prescott on the Contrast Between Keynesian and Real Business Cycle Macroeconomics -- The system of equations versus the general equilibrium approach -- Econometric testing versus calibration -- The Underlying Methodological Standpoint: There Exists an Established Theory -- Stabilizing the Lucasian Revolution -- 16 Real Business Cycle Modeling: Critical Reactions and Further Developments -- Early Critical Reactions -- Summers (1986) -- McCallum (1989) -- Mankiw (1989) -- The Hansen-Rogerson Indivisible Labor Model -- Household Production: Benhabib, Rogerson, And Wrights's Model -- Government Spending Shocks -- Danthine and Donaldson's Shirking Model -- Later Criticisms: A Limited Empirical Success.
,
Later Criticisms: Questioning Technological Shocks as the Cause of Business Fluctuations -- A Methodological Breakthrough -- 17 Real Business Cycle Modeling: My Assessment -- The Discrepancy Between the Model and Its Explanandum -- Should RBC Modeling be Dismissed? -- The Limitations of RBC Modeling -- 18 Second-Generation New Keynesian Modeling -- A New Framework: Monopolistic Competition with Sticky Prices -- Monopolistic competition -- Calvo pricing -- Sims on Money Non-Neutrality -- Bringing Money and Monetary Policy Back to the Forefront -- The Taylor rule -- Enriching the Monetary Policy Rule with Microfoundations -- The Baseline Second-Generation New Keynesian Model -- Monetary Policy Shocks -- New Keynesian Models with Multiple Distortions -- A Synthesis Between New Keynesian and RBC Modeling -- A Lack of Resistance Towards the Monopolistic Competition Framework -- Cracks in the Consensus -- My Assessment -- The limits of monopolistic competition -- No longer a mono-causal explanation of business fluctuations -- Revolutionary purity -- The story behind the model -- Progress? -- Readiness for policy? -- Concluding Remarks -- Part III A Broader Perspective -- 19 The History of Macroeconomics through the Lens of the Marshall-Walras Divide -- The Marshall-Walras Divide -- General purpose -- Addressing complexity -- Microfoundations -- Equilibrium -- Trade technology and the representation of the economy -- Is one of these two approaches superior? -- The History of Macroeconomics Against the Marshall-Walras Divide -- Keynes's General Theory -- Hicks's IS-LM model -- Disequilibrium à la Clower-Leijonhufvud -- Disequilibrium à la Patinkin, non-Walrasian equilibrium models -- Lucas -- First-generation new Keynesian and alternative models -- RBC modeling -- Second-generation new Keynesian models -- Concluding Remarks.
,
20 Standing up to DSGE Macroeconomics.
,
English
Additional Edition:
ISBN 1-107-58494-9
Additional Edition:
ISBN 0-521-89843-9
Language:
English
Bookmarklink
