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The Past, Present, and Future of Macroeconomic Forecasting
Diebold, Francis X. - 2010
with economic theory and hence rises andquot; falls with theory, receded following the decline of Keynesian theory. In … recent years powerful new dynamic stochastic general equilibrium theory has been developed macroeconomic forecasting is …
Persistent link: https://www.econbiz.de/10012763631
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Liquidity Trap and Excessive Leverage
Korinek, Anton - 2014
We investigate the role of macroprudential policies in mitigating liquidity traps driven by deleveraging, using a simple Keynesian model. When constrained agents engage in deleveraging, the interest rate needs to fall to induce unconstrained agents to pick up the decline in aggregate demand....
Persistent link: https://www.econbiz.de/10013056769
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Inventories in the Keynesian Macro Model
Blinder, Alan S. - 2021
An otherwise conventional Keynesian macro model is modified to include inventories of final goods by (1) drawing a distinction between production and final sales, and (2) allowing for a negative effect of the level of inventories on production. Two models are presented: one in which the labor...
Persistent link: https://www.econbiz.de/10013235314
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The Development of Keynesian Macroeconomics
McCallum, Bennett T. - 2007
business-cycle model of J.M. Keynes's General Theory featured analytical ingredients that were present in earlier writings and … characteristic of Keynesian theory, namely, a postulated stickiness of nominal prices that enables aggregate demand to play a greater …
Persistent link: https://www.econbiz.de/10012777328
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The General Theory of Employment, Interest, and Money after 75 Years : The Importance of Being in the Right Place at the Right Time
Luzzetti, Matthew N. - 2011
This paper studies why the General Theory had so much impact on the economics profession through the 1960s, why that … impact began to wane in the 1970s, and why many economic policymakers cling to many of the tenets of the General Theory. We … qualitatively to patterns discussed in the General Theory, that econometric developments in the area of simultaneous equations made …
Persistent link: https://www.econbiz.de/10013131957
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Does Fiscal Policy Matter? Blinder and Solow Revisited
Farmer, Roger E. A. - 2010
This paper uses the old-Keynesian representative agent model developed in Farmer (2010b) to answer two questions: 1) do increased government purchases crowd out private consumption? 2) do increased government purchases reduce unemployment? Farmer compared permanent tax financed expenditure paths...
Persistent link: https://www.econbiz.de/10013134828
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Animal Spirits, Persistent Unemployment and the Belief Function
Farmer, Roger E. A. - 2010
This paper presents a theory of the monetary transmission mechanism in a monetary version of Farmer's (2009) model in …
Persistent link: https://www.econbiz.de/10013136024
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An Exploration of Optimal Stabilization Policy
Mankiw, N. Gregory - 2011
This paper examines the optimal response of monetary and fiscal policy to a decline in aggregate demand. The theoretical framework is a two-period general equilibrium model in which prices are sticky in the short run and flexible in the long run. Policy is evaluated by how well it raises the...
Persistent link: https://www.econbiz.de/10013124860
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Reply to "Generalizing the Taylor Principle : A Comment"
Davig, Troy - 2013
Farmer, Waggoner, and Zha (2009) show that a new Keynesian model with a regime-switching monetary policy rule can support multiple solutions that depend only on the fundamental shocks in the model. Their note appears to find solutions in regions of the parameter space where there should be no...
Persistent link: https://www.econbiz.de/10013095978
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Testing for Keynesian Labor Demand
Bils, Mark - 2012
According to the textbook Keynesian model, short-run demand for labor is sensitive to the demand for goods. In this view, sellers deviate from setting the marginal product of labor proportional to the real wage, instead enduring or choosing lower price markups when demand for goods is high. We...
Persistent link: https://www.econbiz.de/10013105004