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The study develops a standard representative-agents’ New Keynesian model for macroeconomic analysis in a developing African economy. Using Bayesian estimation techniques and Ghanaian dataset, the core objective of the paper is to determine the best suited monetary policy rule for Ghana. After...
Persistent link: https://www.econbiz.de/10014092518
This chapter aims to provide a hands-on approach to New Keynesian models and their uses for macroeconomic policy analysis. It starts by reviewing the origins of the New Keynesian approach, the key model ingredients and representative models. Building blocks of current-generation dynamic...
Persistent link: https://www.econbiz.de/10014025269
In his "The World’s smallest macroeconomic model” (Krugman(1999)), Paul Krugman argued that under the assumption of price rigidity, a shortage of money supply leads to underemployment or recession, so increasing money supply can eliminate underemployment and restore full employment. But, how...
Persistent link: https://www.econbiz.de/10014343779
main strands: i) feminist growth theory and gender dimensions of macrolevel policies, ii) macro-modelling and theoretical …
Persistent link: https://www.econbiz.de/10014467619
In the face of the dramatic economic events of recent months and the inability of academics and policymakers to prevent them, the New Consensus Macroeconomics (NCM) model has been the subject of several criticisms. This paper considers one of the main criticisms lodged against the NCM model,...
Persistent link: https://www.econbiz.de/10014207635
This article integrates monetary policy into a very simple dynamic supermultiplier model with an accommodating supply side. Results show that monetary policy guided by a conventional Taylor rule may stabilize an economy around the steady-state path of demand-led growth following temporary demand...
Persistent link: https://www.econbiz.de/10014529506
In this paper we present a theory of the financing of investment in a modern capitalist economy, following the approach … hypothesisʺ that relegates money and finance to the sidelines. Minsky vehemently denied the relevance of such a theory, at least … used to finance positions in assets is of critical importance, both for theory and for real-world outcomes. In the first …
Persistent link: https://www.econbiz.de/10003773512
In this paper we investigate the closed-economy Keynes-Wicksell-Goodwin model of Chiarella and Flaschel (2000) for the case of two interacting open economies. We introduce these coupled two-country KWG dynamics on the extensive form level by means of a subdivision into nine modules describing...
Persistent link: https://www.econbiz.de/10012734630
The present article is an attempt to reconstruct a macro-dynamic theory of the monetary economy on the basis of the … theory of monopolistically competitive firms formulated as a micro-foundation for the decentralized price mechanism. It shows …
Persistent link: https://www.econbiz.de/10012899318
equilibrium theory underlying standard models should be regarded as a 'church', this paper stresses two points. First, animal …
Persistent link: https://www.econbiz.de/10013175039