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The Past, Present, and Future of Macroeconomic Forecasting

Diebold, Francis X. - 2010

with economic theory and hence rises andquot; falls with theory, receded following the decline of Keynesian theory. In … recent years powerful new dynamic stochastic general equilibrium theory has been developed macroeconomic forecasting is …

Persistent link: https://www.econbiz.de/10012763631

Liquidity Trap and Excessive Leverage

Korinek, Anton - 2014

We investigate the role of macroprudential policies in mitigating liquidity traps driven by deleveraging, using a simple Keynesian model. When constrained agents engage in deleveraging, the interest rate needs to fall to induce unconstrained agents to pick up the decline in aggregate demand....

Persistent link: https://www.econbiz.de/10013056769

An Aggregate Demand - Aggregate Supply Analysis of Japanese Monetary Policy, 1973-1990

West, Kenneth D. - 2021

An aggregate demand - aggregate supply framework is used to analyze the effects of Japanese monetary policy, 1973:1-1990:8. It is found that money supply shocks contribute relatively little to output variability over the sample as a whole. Nor do these shocks seem to be particularly marked...

Persistent link: https://www.econbiz.de/10013311642

The Reincarnation of Keynesian Economics

Mankiw, N. Gregory - 2021

This paper discusses the reemergence of Keynesian economics during the past decade. It highlights the substantial differences between new Keynesian economics and the convictions of early Keynesians. In particular, it points out that new Keynesians have adopted many views that were once...

Persistent link: https://www.econbiz.de/10013247272

Inventories in the Keynesian Macro Model

Blinder, Alan S. - 2021

An otherwise conventional Keynesian macro model is modified to include inventories of final goods by (1) drawing a distinction between production and final sales, and (2) allowing for a negative effect of the level of inventories on production. Two models are presented: one in which the labor...

Persistent link: https://www.econbiz.de/10013235314

The Development of Keynesian Macroeconomics

McCallum, Bennett T. - 2007

business-cycle model of J.M. Keynes's General Theory featured analytical ingredients that were present in earlier writings and … characteristic of Keynesian theory, namely, a postulated stickiness of nominal prices that enables aggregate demand to play a greater …

Persistent link: https://www.econbiz.de/10012777328

New-Keynesian Economics : An As-Ad View

Benigno, Pierpaolo - 2010

A simple New-Keynesian model is set out with AS-AD graphical analysis. The model is consistent with modern central banking, which targets shortterm nominal interest rates instead of money supply aggregates. This simple framework enables us to analyze the economic impact of productivity or markup...

Persistent link: https://www.econbiz.de/10012757664

An Exploration of Optimal Stabilization Policy

Mankiw, Nicholas Gregory - 2011

This paper examines the optimal response of monetary and fiscal policy to a decline in aggregate demand. The theoretical framework is a two-period general equilibrium model in which prices are sticky in the short run and flexible in the long run. Policy is evaluated by how well it raises the...

Persistent link: https://www.econbiz.de/10013124860

The General Theory of Employment, Interest, and Money after 75 Years : The Importance of Being in the Right Place at the Right Time

Luzzetti, Matthew N. - 2011

This paper studies why the General Theory had so much impact on the economics profession through the 1960s, why that … impact began to wane in the 1970s, and why many economic policymakers cling to many of the tenets of the General Theory. We … qualitatively to patterns discussed in the General Theory, that econometric developments in the area of simultaneous equations made …

Persistent link: https://www.econbiz.de/10013131957

Uncertainty and Sentiment-Driven Equilibria

Benhabib, Jess - 2013

We construct a model to capture the Keynesian idea that production and employment decisions are based on expectations of aggregate demand driven by sentiments, and that realized demand follows from the production and employment decisions of firms. We cast the Keynesian idea into a simple model...

Persistent link: https://www.econbiz.de/10013078372