Die derzeitige Rezession im verarbeitenden Gewerbe Deutschlands ist ganz überwiegend die Folge einer globalen Nachfrageschwäche und nicht Zeichen mangelnder Wettbewerbsfähigkeit. Dies wird durch aktuelle Umfrageergebnisse aus dem Konjunkturtest für das verarbeitende Gewerbe belegt: Während...

The paper puts forward a deterministic macrodynamic model of the business cycle that allows for sluggish price and quantity adjustments in response to disequilibrium on product and labour markets. Based on regular oscillations of two exogenous variables, 14 reaction coefficients are determined...

In Chapter 3 of the General Theory, Keynes sketches out what he calls the essence of the General Theory of Employment. He introduces the Keynesian expenditure-based model, his aggregate demand function and also his aggregate supply function, a concept which spawned much debate among...

One of the most neglected issues in modern economics concerns the consequences of technological change that is ubiquitous and endogenous. To address these we need to model technology as more than a scalar value in an aggregate production function, dealing with technological change in its messy...

Over the past two years, the IMF staff has been developing a new multicountry macroeconomic model called the Global Economy Model (GEM). This paper explains why such a model is needed, how GEM differs from its predecessor model, and how the new features of the model can improve the IMF’s...

In the mainstream economics, the postulate of rational expectations downgrades the relevance of macroeconomic policy and institutions. In a world of full information and rational expectations, aggregate demand is irrelevant in anything other than a strictly short-run context, and the only...

In this paper we advocate a way of approaching macroeconomic policy, which stands in contrast to the now discredited 'new consensus in macroeconomics' policy framework. The five pillars of our approach are: the need for budget deficits to support the level of aggregate demand; full consideration...

This paper examines the macroeconomic effects of competition. The Kaleckian view of these effects is considered along with the neoclassical, with special attention paid to the degree of monopoly and its effect on investment. Both the product and price competition of firms are examined, and the...