The main purpose of this paper is to understand the course of macroeconomic policy in Europe in the light of several theories which have shown that it was barely adapted to the different shocks that have hinted the European economy in the last two decades. As a result, the performance of the EU...

The article is a response to a polemical essay of J. Kay and his critique of macroeconomic modeling. The author shows that models are an indispensable instrument of economic analysis and that the only alternative would be the formulation and estimation of structural relationships between...

The article claims that modern economics is in the state of crisis, because the major macroeconomic theories are in fact based on the concept of rational expectations, and the main method of research is considered to be the model-building with models as "artificial worlds". Therefore it is...

Mitchell and Mosler (M&M) in their paper provide a critique of neoclassical remedies for unemployment and recommend a job guarantee scheme that they argue would lead to permanent full employment. The fundamental underpinning of their analysis is that unemployment is due to a lack of aggregate...

This paper examines the relationship between inflation and real income in Australia, Canada, Finland, New Zealand, Spain, Sweden and the UK which have adopted a "formal" policy of low or zero inflation target. Using cointegration analysis and a vector error correction model (VECM), it is found...