A History of Macroeconomics from Keynes to Lucas and Beyond by Michel De Vroey

By Michel De Vroey

This publication retraces the historical past of macroeconomics from Keynes's basic thought to the current. crucial to it's the distinction among a Keynesian period and a Lucasian - or dynamic stochastic basic equilibrium (DSGE) - period, each one governed by way of distinctive methodological criteria. within the Keynesian period, the e-book reviews the subsequent theories: Keynesian macroeconomics, monetarism, disequilibrium macro (Patinkin, Leijongufvud, and Clower) non-Walrasian equilibrium versions, and first-generation new Keynesian versions. 3 phases are pointed out within the DSGE period: new classical macro (Lucas), RBC modelling, and second-generation new Keynesian modeling. The publication additionally examines a couple of chosen works aimed toward featuring choices to Lucasian macro. whereas now not eschewing analytical content material, Michel De Vroey specializes in important checks, and the types studied are awarded in a pedagogical and brilliant but severe means.

Show description

Read or Download A History of Macroeconomics from Keynes to Lucas and Beyond PDF

Best economic history books

U.S. Bank Deregulation in Historical Perspective

This publication exhibits how and why deregulation has remodeled the dimensions, constitution and geographic diversity people banks, the scope of banking prone, and the character of bank-customer relationships. Over contemporary many years the features that had made American banks diverse - the fragmented geographical constitution of the undefined, which limited the size of banks and their skill to compete with each other, and strict limits at the forms of services advertisement banks may perhaps supply - have nearly been eradicated.

Lessons from the Great Depression

Do occasions of the Nineteen Thirties hold a message for at the present time? classes from the nice melancholy offers an built-in view of the melancholy, protecting the adventure in Britain, France, Germany, and the us. It describes the reasons of the melancholy, why it used to be so frequent and lengthy, and what caused eventual restoration.

Planning Problems in the USSR: The Contribution of Mathematical Economics to their Solution 1960-1971 (Department of Applied Economics Monographs)

Wonderful fabric reproduction in an both nice dw. really and unusually well-preserved; tight, shiny, fresh and particularly sharp-cornered. ; 222 pages; Description: xx, 222 p. 24 cm. matters: Soviet Union--Economic policy--Mathematical versions. , sequence: collage of Cambridge. Dept. Of utilized Economics.

Railroads Triumphant: The Growth, Rejection, and Rebirth of a Vital American Force

In 1789, whilst the 1st Congress met in manhattan urban, the individuals traveled to the capital simply as Roman senators thousand years prior had journeyed to Rome, by way of horse, at a velocity of a few 5 miles an hour. certainly, if sea go back and forth had more advantageous dramatically because Caesar's time, overland commute used to be nonetheless so gradual, painful, and costly that the majority americans lived all yet rooted to the spot, with few humans settling greater than 100 miles from the sea (a mere percentage lived west of the Appalachians).

Additional resources for A History of Macroeconomics from Keynes to Lucas and Beyond

Example text

This equílibríum level does not tend to coincide with full employment except by mere chance, since there is no economic mechanism that ensures this coincidence. (Modigliani 1944: 66) Modigliani's model has two sources of inspiration, Hicks's 193 7 article and a r938 paper by Oskar Lange, "The Rate of lnterest and the Optimum 3 Nowadays, nobody dares to make this assumption, but at the time economists had no such qualms. This was, for example, the viewpoint defended by Leonrief (1946) and Tobin (1947).

His opinion was that, at the time, the rigidity assumption was more relevant than the flexibility assumption. Hence it would make no sense to have different assumptions for the two subsystems. 2 Hicks had little interest in demonstrating the existence of involuntary unemployment. Although he did not like the term, he took its cause, wage rigidity, as a fact of life, at least in sorne circumstances. The only difference between the Keynesian and the classical subsystems bears on the slope of the LM curve.

The so-called Keynesian cross or income-expenditure graph is the standard way of capturing the above reasoning. 3, where N is employment, N* the leve! of employment as determined by effective demand, and NFE full employment. A standard representation of Keynes's argumentation is as follows. o + I(r) In view of the importance of the nominal wage rigidity assumption, it is worth quoting the passage where Keynes justifies introducing it: "In this sumrnary we shall assume that the money~ wage and other factor costs are constant per unir of labor employed.

Download PDF sample

Rated 4.48 of 5 – based on 37 votes