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The Financial Crisis: What have macroeconomists learnt?


  • Jagjit S. Chadha



I outline a simple roadmap for work in micro-founded models. Rather than abandoning the route to further micro-foundations and returning to ad hoc economics, the techniques we have used over the past two decades to develop micro-founded business cycle models will allow us to develop models with meaningful financial frictions and thus address once again the question of monetary and fiscal policies with active rather than passive financial sectors. Macroeconomics and finance are likely to remain bound together.

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  • Jagjit S. Chadha, 2010. "The Financial Crisis: What have macroeconomists learnt?," Studies in Economics 1012, School of Economics, University of Kent.
  • Handle: RePEc:ukc:ukcedp:1012

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    36. repec:cup:apsrev:v:91:y:1997:i:03:p:531-551_21 is not listed on IDEAS
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    Future of Macroeconomics; DSGE Models; Crisis;

    JEL classification:

    • E42 - Macroeconomics and Monetary Economics - - Money and Interest Rates - - - Monetary Sytsems; Standards; Regimes; Government and the Monetary System
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies

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