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What Do We Know About Macroeconomics That Fisher And Wicksell Did Not?

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Author Info
Olivier Blanchard

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Abstract

This essay argues that the history of macroeconomics during the twentieth century can be divided into three epochs. Pre-1940: a period of exploration, during which all the right ingredients were developed. But also a period where confusion reigned, because of the lack of an integrated framework. From 1940 to 1980: a period during which an integrated framework was developed-from the IS-LM to dynamic general equilibrium models. But a construction with an Achilles' heel, too casual a treatment of imperfections, leading to a crisis in the late 1970s. Since 1980: a new period of exploration, focused on the role of imperfections in macroeconomics. Exploration often feels like confusion. But behind it is one of the most productive periods of research in macroeconomics. © 2000 the President and Fellows of Harvard College and the Massachusetts Institute of Technology

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Article provided by MIT Press in its journal The Quarterly Journal of Economics.

Volume (Year): 115 (2000)
Issue (Month): 4 (November)
Pages: 1375-1409
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Handle: RePEc:tpr:qjecon:v:115:y:2000:i:4:p:1375-1409

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  1. Simon Johnson & Andrei Shleifer, 2004. "Privatization and Corporate Governance," NBER Chapters, in: Governance, Regulation, and Privatization in the Asia-Pacific Region, NBER East Asia Seminar on Economics, Volume 12, pages 13-34 National Bureau of Economic Research, Inc. [Downloadable!]
  2. Ansgar Belke & Rainer Fehn, 2001. "Institutions and Structural Unemployment: Do Capital-Market Imperfections Matter?," Vienna Economics Papers 0106, University of Vienna, Department of Economics. [Downloadable!]
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  3. Palma, Nuno, 2007. "History of Economics or a Selected History of Economics?," MPRA Paper 5111, University Library of Munich, Germany. [Downloadable!]
  4. Michel De Vroey, 2002. "The history of economic thought: the French way," European Journal of the History of Economic Thought, Taylor and Francis Journals, vol. 9(4), pages 672-687, December. [Downloadable!] (restricted)
  5. Luca Colombo & Gerd Weinrich, 2006. "The Role of Expectations in a Macroeconomic Model with Inventories," Computing in Economics and Finance 2006 65, Society for Computational Economics. [Downloadable!]
  6. Jacqueline Dwyer & Kenneth Leong, 2000. "Nominal Wage Rigidity in Australia," RBA Research Discussion Papers rdp2000-08, Reserve Bank of Australia. [Downloadable!]
  7. Pu Chen & Joachim Frohn, 2006. "On the specification and estimation of large scale simultaneous structural macroeconometric models," AStA Advances in Statistical Analysis, Springer, vol. 90(1), pages 9-25, March. [Downloadable!] (restricted)
  8. Bernal, Humberrto, 2007. "A Short Review Of Macroeconomics Development," MPRA Paper 6883, University Library of Munich, Germany. [Downloadable!]
  9. José Félix Cataño, 2005. "La ilusión del análisis integral: comentarios críticos a “La dicotomía micro-macro no es pertinente” de Jorge Iván González," Revista de Economía Institucional, Universidad Externado de Colombia - Facultad de Economía, vol. 7(13), pages 293-310, July-Dece. [Downloadable!]
  10. Gaël Giraud & Céline Rochon, 2008. "Natural rate of unemployment and efficiency: A dynamic analysis with flexible prices and increasing returns," OFRC Working Papers Series 2008fe02, Oxford Financial Research Centre. [Downloadable!]
  11. Amitava K. Dutt & Peter Skott, 2005. "Keynesian Theory and the AD-AS Framework: A Reconsideration," Working Papers 2005-11, University of Massachusetts Amherst, Department of Economics. [Downloadable!]
  12. Warwick J. McKibbin & David Vines, 2003. "Changes in Equity Risk Perceptions: Global Consequences and Policy Responses," Departmental Working Papers 2003-15, Australian National University, Economics RSPAS. [Downloadable!]
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  14. Gerd Weinrich & Luca Colombo, 2005. "Money, Inventories and Underemployment in Deflationary Recessions," Computing in Economics and Finance 2005 156, Society for Computational Economics. [Downloadable!]
  15. Brian Snowdon, 2007. "The New Classical Counter-Revolution: False Path or Illuminating Complement?," Eastern Economic Journal, Eastern Economic Association, vol. 33(4), pages 541-562, Fall. [Downloadable!]
  16. E. Weintraub, 2005. "2004 hes presidential address: autobiographical memory and the historiography of economics," Journal of the History of Economic Thought, Taylor and Francis Journals, vol. 27(1), pages 1-11, March. [Downloadable!] (restricted)
  17. Michel, DE VROEY, 2004. "The History of Macroeconomics Viewed Against the Background of the Marshall-Walras Divide," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2004017, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
  18. Robert A Buckle & Kunhong Kim & Heather Kirkham & Nathan McLellan & Jared Sharma, 2002. "A structural VAR model of the New Zealand business cycle," Treasury Working Paper Series 02/26, New Zealand Treasury. [Downloadable!]
  19. Roger Backhouse & Mauro Boianovsky, 2005. "Disequilibrium Macroeconomics: An Episode In The Transformation Of Modern Macroeconomics," Anais do XXXIII Encontro Nacional de Economia [Proceedings of the 33th Brazilian Economics Meeting] 012, ANPEC - Associação Nacional dos Centros de Pósgraduação em Economia [Brazilian Association of Graduate Programs in Economics]. [Downloadable!]
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This page was last updated on 2009-11-16.

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