The new consensus from a traditional Keynesian and post-Keynesian perspective : a worthwhile foundation for research or just a waste of time?

Sebastian Dullien

This paper examines in how far the DSGE model which is often dubbed the New Keynesian Consensus is compatibel with a Post-Keynesian or traditional Keynesian understanding of the economy. It is argued that while at first sight DSGE models seem to include a lot of traditional Keynesian or even Post-Keynesian elements such as endogeneous money or the need for an active central bank, the mechanisms at work are completely incompatible with a traditional or Post-Keynesian understanding of the working of the macroeconomy.

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Year of publication:	2009
Authors:	Dullien, Sebastian
Publisher:	Düsseldorf : Hans-Böckler-Stiftung
Subject:	DSGE \| New Keynesian Consensus \| Monetary Policy \| Fiscal Policy \| endogenous money \| Geldpolitik \| Monetary policy \| Neoklassische Synthese \| Neoclassical synthesis \| Dynamisches Gleichgewicht \| Dynamic equilibrium \| Postkeynesianismus \| Post-Keynesian economics \| Finanzpolitik \| Fiscal policy \| Makroökonomik \| Macroeconomics \| Keynesianismus \| Keynesian economics \| Theorie \| Theory