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Unit roots in macroeconomic time series: a post Keynesian interpretation

  • Gilberto A. Libanio


The theme of unit roots in macroeconomic time series has received a great amount of theoretical and applied research in the last two decades. This paper focuses on the implications of the existence of unit roots for macroeconomic theorizing. It is argued that the presence of unit roots in GNP time series provide support to the general perspective adopted by Keynes and post Keynesians on output and employment fluctuations, on the non-neutrality of money in the long run, and on some economic policy issues.

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Paper provided by Cedeplar, Universidade Federal de Minas Gerais in its series Textos para Discussão Cedeplar-UFMG with number td233.

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Length: 18 pages
Date of creation: Jun 2004
Date of revision:
Handle: RePEc:cdp:texdis:td233
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  8. Cribari-Neto, Francisco, 1996. "On time series econometrics," The Quarterly Review of Economics and Finance, Elsevier, vol. 36(Supplemen), pages 37-60.
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