New Consensus Macroeconomics: A Critical Appraisal
AbstractThis paper is concerned with the New Consensus Macroeconomics (NCM) in the case of an open economy. It outlines and explains briefly the main elements of and way of thinking about the macroeconomy from the standpoint of both its theoretical and its policy dimensions. There are a few problems with this particular theoretical framework. We focus here on two important aspects closely related to NCM: the absence of banks and monetary aggregates from this theoretical framework, and the way the notion of the “equilibrium real rate of interest” is utilized by the same framework. The analysis is critical of NCM from a Keynesian perspective.
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Bibliographic InfoPaper provided by Levy Economics Institute in its series Economics Working Paper Archive with number wp_564.
Date of creation: May 2009
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Web page: http://www.levyinstitute.org
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-06-17 (All new papers)
- NEP-CBA-2009-06-17 (Central Banking)
- NEP-HPE-2009-06-17 (History & Philosophy of Economics)
- NEP-MAC-2009-06-17 (Macroeconomics)
- NEP-PKE-2009-06-17 (Post Keynesian Economics)
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Blog mentionsAs found by EconAcademics.org, the blog aggregator for Economics research:
- Will the U.S. recover lost output and jobs?
by Gennaro Zezza in Multiplier Effect on 2011-01-12 12:00:00
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- José Francisco Bellod Redondo, 2013. "La NAIRU y la pseudociencia neoliberal," Revista de Economía Crítica, Asociación de Economía Crítica, vol. 16, pages 18-43.
- Emiliano Brancaccio & Giuseppe Fontana, 2013. "'Solvency rule' versus 'Taylor rule': an alternative interpretation of the relation between monetary policy and the economic crisis," Cambridge Journal of Economics, Oxford University Press, vol. 37(1), pages 17-33.
- Philip Arestis, 2013. "Inflation Targeting: A Critical Approach," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(68), pages 7-21, June.
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