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, The 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
- Horacio A. Aguirre, 2011. "On the “Science” of Monetary Policy: Methodological Notes," Ensayos Económicos, Central Bank of Argentina, Economic Research Department, vol. 1(64), pages 83-115, October -.
- Lancastle, Neil, 2012.
"Circuit theory extended: The role of speculation in crises,"
Economics - The Open-Access, Open-Assessment E-Journal,
Kiel Institute for the World Economy, vol. 6(34), pages =1-27.
- Lancastle, Neil, 2012. "Circuit theory extended: The role of speculation in crises," Economics Discussion Papers 2012-30, Kiel Institute for the World Economy.
- Philip Arestis & Malcolm Sawyer, 2010. "What Monetary Policy after the Crisis?," Review of Political Economy, Taylor and Francis Journals, vol. 22(4), pages 499-515.
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