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This paper traces the evolution of macroeconomic events and ideas from the late 1940s to the present day. After a brief introduction that highlights the unique features of the main macroeconomic variables as compared to their behavior before 1947, the paper turns to an analysis of four main...
Persistent link: https://www.econbiz.de/10012478686
expectations' (rather than 'new classical') reformulation. The new Theory of Economic Policy is also discussed and illustrated in …
Persistent link: https://www.econbiz.de/10012476303
This paper uses the Blanchard (1985) finite horizon model to study how taxes and government spending can be managed to stabilize aggregate demand. It is shown that tax policy cannot stabilize demand in less time than it stabilizes the public debt, but that, if government spending is the...
Persistent link: https://www.econbiz.de/10012476510
irreversible investment, drawing on the option literature, shows the value of waiting. In open economy macroeconomics this theory …
Persistent link: https://www.econbiz.de/10012476696
This paper provides a critique of the DSGE models that have come to dominate macroeconomics during the past quarter-century. It argues that at the heart of the failure were the wrong microfoundations, which failed to incorporate key aspects of economic behavior, e.g. incorporating insights from...
Persistent link: https://www.econbiz.de/10012453916
We show that even when the exchange rate cannot be devalued, a small set of conventional fiscal instruments can robustly replicate the real allocations attained under a nominal exchange rate devaluation in a dynamic New Keynesian open economy environment. We perform the analysis under...
Persistent link: https://www.econbiz.de/10012460995
policy changes that are precisely what macroeconomic theory of the last 30 years suggests. The three key developments that …
Persistent link: https://www.econbiz.de/10012466188
What can macroeconomic history offer macroeconomic theorists and macroeconometricians? Macroeconomic history offers more than longer time series or special `controlled experiments.' It suggests an historical definition of the economy, which has implications for macroeconometric methods. The...
Persistent link: https://www.econbiz.de/10012473969
Recently, research on the causes of the Great Depression has shifted from a heavy emphasis on events in the United States to a broader, more comparative approach that examines the interwar experiences of many countries simultaneously. In this lecture I survey the current state of our knowledge...
Persistent link: https://www.econbiz.de/10012474101
the new growth theory -- macroeconomists returned to the study of growth and development. The new growth theory is … typical new growth theory cross-country regressions with statistical significance and the expected signs. Second, evidence …
Persistent link: https://www.econbiz.de/10012475304