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Axel Leijonhufvud's On Keynesian Economics and the Economics of Keynes (1968) was a seminal contribution to the … literature on what came to be known as the micro-foundations of macro-economics, but its Marshallian approach, which involved … insights about why the relevance of now-orthodox economics might be limited to helping us understand the economy's performance …
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of this idea in what Keynes called "classical" economics can be traced back at least as far as John Stuart Mill, though … disappeared from macroeconomics, under the influence of New-classical economics. …
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Macroeconomists have largely converged on method, model design, reduced-form shocks, and principles of policy advice. Our main disagreements today are about implementing the methodology. Some think New Keynesian models are ready to be used for quarter-to-quarter quantitative policy advice; we do...
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This paper compares different methods for estimating forward-looking output and inflation Euler equations and shows that weak identification can be an issue in conventional GMM estimation. The authors propose a GMM procedure that imposes the dynamic constraints implied by the forward-looking...
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function of wages as a component of aggregate demand as well as a cost item as opposed to the mainstream economics, which …
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The paper investigates the relation between effective demand, income distribution and unemployment empirically. Its aim is to evaluate Keynesian, Kaldorian and neoclassical hypotheses about the determination of labor market variables. To do so, a vector autoregression model consisting of capital...
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