Recent developments in macroeconomics, and economic policy in general, have produced a "new consensus" economy-wide model, in which the stock of money doesnot play any causal role. The stock of money operates a mere residual in the economic process. The absence of the stock of money in many...

Recent developments in macroeconomics, and economic policy in general, have produced a "new consensus" economy-wide model, in which the stock of money doesnot play any causal role. The stock of money operates a mere residual in the economic process. The absence of the stock of money in many...

The Bank of England's report on its approach to macroeconomic modeling reveals the underlying structure of their macroeconomic model used for policy purposes. A simplified representation of the Bank of England model is presented, which is less disaggregated than the original model and focuses on...