IDEAS home Printed from https://ideas.repec.org/p/vua/wpaper/1990-58.html
   My bibliography  Save this paper

New classical monetary business cycle theory

Author

Listed:
  • Zijp, R. van

    (Vrije Universiteit Amsterdam, Faculteit der Economische Wetenschappen en Econometrie (Free University Amsterdam, Faculty of Economics Sciences, Business Administration and Economitrics)

Abstract

No abstract is available for this item.

Suggested Citation

  • Zijp, R. van, 1990. "New classical monetary business cycle theory," Serie Research Memoranda 0058, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
  • Handle: RePEc:vua:wpaper:1990-58
    as

    Download full text from publisher

    File URL: http://degree.ubvu.vu.nl/repec/vua/wpaper/pdf/19900058.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Shiller, Robert J., 1978. "Rational expectations and the dynamic structure of macroeconomic models : A critical review," Journal of Monetary Economics, Elsevier, vol. 4(1), pages 1-44, January.
    2. Fausto Vicarelli, 1985. "Natural Laws and Economic Policy: Some Considerations on the Theoretical Foundations of the New Classical Macroeconomics," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 8(2), pages 298-314, December.
    3. Diamond, Peter & Fudenberg, Drew, 1989. "Rational Expectations Business Cycles in Search Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 97(3), pages 606-619, June.
    4. Minford, Patrick & Peel, David, 1981. "The Role of Monetary Stabilization Policy under Rational Expectations," The Manchester School of Economic & Social Studies, University of Manchester, vol. 49(1), pages 39-50, March.
    5. David K. H. Begg, 1980. "Rational Expectations and the Non-neutrality of Systematic Monetary Policy," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 47(2), pages 293-303.
    6. Dotsey, Michael & King, Robert G., 1983. "Monetary instruments and policy rules in a rational expectations environment," Journal of Monetary Economics, Elsevier, vol. 12(3), pages 357-382, September.
    7. Zarnowitz, Victor, 1985. "Recent Work on Business Cycles in Historical Perspective: A Review of Theories and Evidence," Journal of Economic Literature, American Economic Association, vol. 23(2), pages 523-580, June.
    8. Lawrence A. Boland, 1987. "On the Relevance of Neo-Walrasian Economic Theory: A Review," History of Political Economy, Duke University Press, vol. 19(4), pages 659-666, Winter.
    9. Lucas, Robert E, Jr, 1973. "Some International Evidence on Output-Inflation Tradeoffs," American Economic Review, American Economic Association, vol. 63(3), pages 326-334, June.
    10. repec:bla:econom:v:47:y:1980:i:187:p:285-98 is not listed on IDEAS
    11. Barro, Robert J, 1980. "Federal Deficit Policy and the Effects of Public Debt Shocks," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(4), pages 747-762, November.
    12. Blume, Lawrence E. & Easley, David, 1982. "Learning to be rational," Journal of Economic Theory, Elsevier, vol. 26(2), pages 340-351, April.
    13. J. Runde & C. Torr*, 1985. "Divergent Expectations and Rational Expectations," South African Journal of Economics, Economic Society of South Africa, vol. 53(3), pages 142-147, September.
    14. Thomas J. Sargent, 1973. "Rational Expectations, the Real Rate of Interest, and the Natural Rate of Unemployment," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 4(2), pages 429-480.
    15. Sanford J. Grossman, 1981. "An Introduction to the Theory of Rational Expectations Under Asymmetric Information," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 48(4), pages 541-559.
    16. Robert J. Barro & Mark Rush, 1980. "Unanticipated Money and Economic Activity," NBER Chapters, in: Rational Expectations and Economic Policy, pages 23-73, National Bureau of Economic Research, Inc.
    17. McCallum, B. T., 1978. "Dating, discounting, and the robustness of the Lucas-Sargent proposition," Journal of Monetary Economics, Elsevier, vol. 4(1), pages 121-129, January.
    18. King, Robert G., 1981. "Monetary information and monetary neutrality," Journal of Monetary Economics, Elsevier, vol. 7(2), pages 195-206.
    19. Cukierman, Alex & Wachtel, Paul, 1979. "Differential Inflationary Expectations and the Variability of the Rate of Inflation: Theory and Evidence," American Economic Review, American Economic Association, vol. 69(4), pages 595-609, September.
    20. A. W. Phillips, 1958. "The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861–1957," Economica, London School of Economics and Political Science, vol. 25(100), pages 283-299, November.
    21. Grossman, Herschel I., 1983. "The natural-rate hypothesis, the rational-expectations hypothesis, and the remarkable survival of non-market-clearing assumptions," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 19(1), pages 225-245, January.
    22. Fellner, William, 1980. "The Valid Core of Rationality Hypotheses in the Theory of Expectations," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(4), pages 763-787, November.
    23. Barro, Robert J, 1980. "A Capital Market in an Equilibrium Business Cycle Model," Econometrica, Econometric Society, vol. 48(6), pages 1393-1417, September.
    24. Fischer, Stanley, 1979. "Anticipations and the Nonneutrality of Money," Journal of Political Economy, University of Chicago Press, vol. 87(2), pages 225-252, April.
    25. Lucas, Robert Jr., 1972. "Expectations and the neutrality of money," Journal of Economic Theory, Elsevier, vol. 4(2), pages 103-124, April.
    26. Ronald A. Heiner, 1985. "Rational Expectations When Agents Imperfectly Use Information," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 8(2), pages 201-207, December.
    27. Haltiwanger, John C & Waldman, Michael, 1989. "Rational Expectations in the Aggregate," Economic Inquiry, Western Economic Association International, vol. 27(4), pages 619-636, October.
    28. Tobin, James, 1977. "How Dead Is Keynes?," Economic Inquiry, Western Economic Association International, vol. 15(4), pages 459-468, October.
    29. Blinder, Alan S. & Fischer, Stanley, 1981. "Inventories, rational expectations, and the business cycle," Journal of Monetary Economics, Elsevier, vol. 8(3), pages 277-304.
    30. Frank Brechling, 1968. "The Trade-Off between Inflation and Unemployment," Journal of Political Economy, University of Chicago Press, vol. 76(4), pages 712-712.
    31. Finn Kydland & Edward C. Prescott, 1980. "A Competitive Theory of Fluctuations and the Feasibility and Desirability of Stabilization Policy," NBER Chapters, in: Rational Expectations and Economic Policy, pages 169-198, National Bureau of Economic Research, Inc.
    32. Gustavo Maia Gomes, 1982. "Irrationality of "Rational Expectations"," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 5(1), pages 51-65, October.
    33. Martin Feldstein & Alan Auerbach, 1976. "Inventory Behavior in Durable-Goods Manufacturing: The Target-Adjustment Model," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 7(2), pages 351-408.
    34. Lucas, Robert E, Jr, 1980. "Methods and Problems in Business Cycle Theory," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(4), pages 696-715, November.
    35. Hansen, Lars Peter & Sargent, Thomas J., 1980. "Formulating and estimating dynamic linear rational expectations models," Journal of Economic Dynamics and Control, Elsevier, vol. 2(1), pages 7-46, May.
    36. John M. Gowdy, 1985. "Rational Expectations and Predictability," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 8(2), pages 192-200, December.
    37. Jordan, James S. & Radner, Roy, 1982. "Rational expectations in microeconomic models: An overview," Journal of Economic Theory, Elsevier, vol. 26(2), pages 201-223, April.
    38. Blume, L. E. & Bray, M. M. & Easley, D., 1982. "Introduction to the stability of rational expectations equilibrium," Journal of Economic Theory, Elsevier, vol. 26(2), pages 313-317, April.
    39. Minford, Patrick, 1986. "Rational Expectations and Monetary Policy," Scottish Journal of Political Economy, Scottish Economic Society, vol. 33(4), pages 317-333, November.
    40. Tobin, James, 1980. "Are New Classical Models Plausible Enough to Guide Policy?," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(4), pages 788-799, November.
    41. Cukierman, Alex, 1979. "Rational expectations and the role of monetary policy : A generalization," Journal of Monetary Economics, Elsevier, vol. 5(2), pages 213-229, April.
    42. Sargent, Thomas J, 1978. "Estimation of Dynamic Labor Demand Schedules under Rational Expectations," Journal of Political Economy, University of Chicago Press, vol. 86(6), pages 1009-1044, December.
    43. repec:bla:econom:v:42:y:1975:i:165:p:1-19 is not listed on IDEAS
    44. Darby, Michael R, 1976. "Rational Expectations under Conditions of Costly Information," Journal of Finance, American Finance Association, vol. 31(3), pages 889-895, June.
    45. McCallum, Bennett T, 1980. "Rational Expectations and Macroeconomic Stabilization Policy: An Overview," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(4), pages 716-746, November.
    46. Sargent, Thomas J, 1976. "The Observational Equivalence of Natural and Unnatural Rate Theories of Macroeconomics," Journal of Political Economy, University of Chicago Press, vol. 84(3), pages 631-640, June.
    47. Burmeister, Edwin, 1980. "On Some Conceptual Issues in Rational Expectations Modeling," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(4), pages 800-816, November.
    48. Herschel I. Grossman, 1980. "Rational Expectations, Business Cycles, and Government Behavior," NBER Chapters, in: Rational Expectations and Economic Policy, pages 5-22, National Bureau of Economic Research, Inc.
    49. Axel Leijonhufvud, 1968. "Comment: Is There a Meaningful Trade-off between Inflation and Unemployment?," Journal of Political Economy, University of Chicago Press, vol. 76(4), pages 738-738.
    50. McCallum, B. T. & Whitaker, J. K., 1979. "The effectiveness of fiscal feedback rules and automatic stabilizers under rational expectations," Journal of Monetary Economics, Elsevier, vol. 5(2), pages 171-186, April.
    51. Wagner, Alfred, 1891. "Marshall's Principles of Economics," History of Economic Thought Articles, McMaster University Archive for the History of Economic Thought, vol. 5, pages 319-338.
    52. Frydman, Roman, 1982. "Towards an Understanding of Market Processes: Individual Expectations, Learning, and Convergence to Rational Expectations Equilibrium," American Economic Review, American Economic Association, vol. 72(4), pages 652-668, September.
    53. Haberler, Gottfried, 1980. "Critical Notes on Rational Expectations," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(4), pages 833-836, November.
    54. Peter J. Montiel, 1987. "Output and Unanticipated Money in the Dependent Economy Model," IMF Staff Papers, Palgrave Macmillan, vol. 34(2), pages 228-259, June.
    55. Okun, Arthur M, 1980. "Rational-Expectations-with-Misperceptions as a Theory of the Business Cycle," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(4), pages 817-825, November.
    56. Zijp, R. van, 1990. "Why Lucas is not a Hayekian," Serie Research Memoranda 0027, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    57. Kantor, Brian, 1979. "Rational Expectations and Economic Thought," Journal of Economic Literature, American Economic Association, vol. 17(4), pages 1422-1441, December.
    58. Edmund S. Phelps, 1968. "Money-Wage Dynamics and Labor-Market Equilibrium," Journal of Political Economy, University of Chicago Press, vol. 76(4), pages 678-678.
    59. Scheide, Joachim, 1986. "New classical and Austrian business cycle theory: Is there a difference?," Open Access Publications from Kiel Institute for the World Economy 1317, Kiel Institute for the World Economy (IfW Kiel).
    60. Barro, Robert J. & Hercowitz, Zvi, 1980. "Money stock revisions and unanticipated money growth," Journal of Monetary Economics, Elsevier, vol. 6(2), pages 257-267, April.
    61. Barro, Robert J., 1977. "Long-term contracting, sticky prices, and monetary policy," Journal of Monetary Economics, Elsevier, vol. 3(3), pages 305-316, July.
    62. Weintraub, E Roy, 1983. "On the Existence of a Competitive Equilibrium: 1930-1954," Journal of Economic Literature, American Economic Association, vol. 21(1), pages 1-39, March.
    63. Buiter, Willem H, 1980. "The Macroeconomics of Dr. Pangloss: A Critical Survey of the New Classical Macroeconomics," Economic Journal, Royal Economic Society, vol. 90(357), pages 34-50, March.
    64. Brunner, Karl & Meltzer, Allan H., 1976. "The Phillips curve," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 1(1), pages 1-18, January.
    65. repec:bla:econom:v:47:y:1980:i:185:p:1-17 is not listed on IDEAS
    66. Lucas, Robert E, Jr, 1975. "An Equilibrium Model of the Business Cycle," Journal of Political Economy, University of Chicago Press, vol. 83(6), pages 1113-1144, December.
    67. Olivier Jean Blanchard, 1980. "The Monetary Mechanism in the Light of Rational Expectations," NBER Chapters, in: Rational Expectations and Economic Policy, pages 75-116, National Bureau of Economic Research, Inc.
    68. Friedman, Benjamin M., 1979. "Optimal expectations and the extreme information assumptions of `rational expectations' macromodels," Journal of Monetary Economics, Elsevier, vol. 5(1), pages 23-41, January.
    69. Fischer, Stanley, 1988. "Recent Developments in Macroeconomics," Economic Journal, Royal Economic Society, vol. 98(391), pages 294-339, June.
    70. Jan Snippe, 1986. "Varieties of Rational Expectations: Their Differences and Relations," Journal of Post Keynesian Economics, Taylor & Francis Journals, vol. 8(3), pages 427-437, March.
    71. Begg, David Knox Houston, 1982. "Rational Expectations, Wage Rigidity and Involuntary Unemployment: A Particular Theory," Oxford Economic Papers, Oxford University Press, vol. 34(1), pages 23-47, March.
    72. Franco Modigliani, 1977. "The monetarist controversy; or, should we forsake stabilization policies?," Economic Review, Federal Reserve Bank of San Francisco, issue Spr suppl, pages 27-46.
    73. Stanley Fischer, 1980. "On Activist Monetary Policy with Rational Expectations," NBER Chapters, in: Rational Expectations and Economic Policy, pages 211-247, National Bureau of Economic Research, Inc.
    74. Sargent, Thomas J & Wallace, Neil, 1975. ""Rational" Expectations, the Optimal Monetary Instrument, and the Optimal Money Supply Rule," Journal of Political Economy, University of Chicago Press, vol. 83(2), pages 241-254, April.
    75. Tversky, Amos & Kahneman, Daniel, 1986. "Rational Choice and the Framing of Decisions," The Journal of Business, University of Chicago Press, vol. 59(4), pages 251-278, October.
    76. Klausinger, Hansjoerg, 1990. "Equilibrium Methodology as Seen from a Hayekian Perspective," Journal of the History of Economic Thought, Cambridge University Press, vol. 12(1), pages 61-75, April.
    77. Lucas, Robert Jr. & Prescott, Edward C., 1974. "Equilibrium search and unemployment," Journal of Economic Theory, Elsevier, vol. 7(2), pages 188-209, February.
    78. Howitt, Peter W, 1981. "Activist Monetary Policy under Rational Expectations," Journal of Political Economy, University of Chicago Press, vol. 89(2), pages 249-269, April.
    79. Mishkin, Frederic S., 1983. "The remarkable survival of non-market-clearing assumptions : A comment," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 19(1), pages 247-251, January.
    80. Rodney Maddock, 1984. "Rational Expectations Macrotheory: a Lakatosian Case Study in Program Adjustment," History of Political Economy, Duke University Press, vol. 16(2), pages 291-309, Summer.
    81. Barro, Robert J., 1976. "Rational expectations and the role of monetary policy," Journal of Monetary Economics, Elsevier, vol. 2(1), pages 1-32, January.
    82. Hoover, Kevin D, 1984. "Two Types of Monetarism," Journal of Economic Literature, American Economic Association, vol. 22(1), pages 58-76, March.
    83. repec:bla:econom:v:47:y:1980:i:187:p:305-07 is not listed on IDEAS
    84. Lucas, Robert E., 1977. "Understanding business cycles," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 5(1), pages 7-29, January.
    85. repec:bla:econom:v:46:y:1979:i:181:p:1-10 is not listed on IDEAS
    86. Kydland, Finn E & Prescott, Edward C, 1977. "Rules Rather Than Discretion: The Inconsistency of Optimal Plans," Journal of Political Economy, University of Chicago Press, vol. 85(3), pages 473-491, June.
    87. Snower, Dennis J, 1984. "Rational Expectations, Nonlinearities, and the Effectiveness of Monetary Policy," Oxford Economic Papers, Oxford University Press, vol. 36(2), pages 177-199, June.
    88. Fischer, Stanley, 1977. "Long-Term Contracts, Rational Expectations, and the Optimal Money Supply Rule," Journal of Political Economy, University of Chicago Press, vol. 85(1), pages 191-205, February.
    89. Lucas, Robert E, Jr & Rapping, Leonard A, 1969. "Real Wages, Employment, and Inflation," Journal of Political Economy, University of Chicago Press, vol. 77(5), pages 721-754, Sept./Oct.
    90. Cagan, Phillip, 1980. "Reflections on Rational Expectations," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 12(4), pages 826-832, November.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zijp, R. van, 1990. "Why Lucas is not a Hayekian," Serie Research Memoranda 0027, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    2. John B. Taylor, 1983. "Rational Expectations Models in Macroeconomics," NBER Working Papers 1224, National Bureau of Economic Research, Inc.
    3. Zijp, R. van & Visser, H., 1992. "Mathematical formalization and the analysis of Cantillon effects," Serie Research Memoranda 0002, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    4. Akhand Akhtar Hossain, 2009. "Central Banking and Monetary Policy in the Asia-Pacific," Books, Edward Elgar Publishing, number 12777.
    5. Bennett T. McCallum, 1982. "Macroeconomics after a decade of rational expectations : some critical issues," Economic Review, Federal Reserve Bank of Richmond, vol. 68(Nov), pages 3-12.
    6. W D A Bryant, 2009. "General Equilibrium:Theory and Evidence," World Scientific Books, World Scientific Publishing Co. Pte. Ltd., number 6875, December.
    7. Zijp, R. van, 1991. "The rise of new classical economics," Serie Research Memoranda 0077, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
    8. Paul Oslington, 2012. "General Equilibrium: Theory and Evidence," The Economic Record, The Economic Society of Australia, vol. 88(282), pages 446-448, September.
    9. Silva Lopes, Artur, 1994. "A "hipótese das expectativas racionais": teoria e realidade (uma visita guiada à literatura até 1992) [The "rational expectations hypothesis": theory and reality (a guided tour ," MPRA Paper 9699, University Library of Munich, Germany, revised 23 Jul 2008.
    10. Michael Dotsey & Robert G. King, 1988. "Rational expectations business cycle models: a survey," Economic Review, Federal Reserve Bank of Richmond, vol. 74(Mar), pages 3-15.
    11. Gauger, Jean Ann, 1984. "Three essays on the neutrality of anticipated money growth," ISU General Staff Papers 198401010800008758, Iowa State University, Department of Economics.
    12. John B. Taylor, 1982. "The role of expectations in the choice of monetary policy," Proceedings - Economic Policy Symposium - Jackson Hole, Federal Reserve Bank of Kansas City, pages 47-95.
    13. Romain Plassard, 2019. "From Disequilibrium to Equilibrium Macroeconomics: Barro and Grossman's Trade-off between Rigor and Realism," GREDEG Working Papers 2019-17, Groupe de REcherche en Droit, Economie, Gestion (GREDEG CNRS), Université Côte d'Azur, France.
    14. Snowdon, Brian & Vane, Howard R., 1996. "The development of modern macroeconomics: Reflections in the light of Johnson's analysis after twenty-five years," Journal of Macroeconomics, Elsevier, vol. 18(3), pages 381-401.
    15. Leijonhufvud, Axel, 1983. "What would Keynes have thought of rational expectations?," Discussion Papers, Series I 177, University of Konstanz, Department of Economics.
    16. Mulder, C.B., 1986. "Testing Korteweg's rational expectations model for a small open economy," Research Memorandum FEW 222, Tilburg University, School of Economics and Management.
    17. Barro, Robert J., 1981. "Intertemporal substitution and the business cycle," Carnegie-Rochester Conference Series on Public Policy, Elsevier, vol. 14(1), pages 237-268, January.
    18. Antoine d'Autume, 1986. "Les anticipations rationnelles dans l'analyse macro-économique," Revue Économique, Programme National Persée, vol. 37(2), pages 243-284.
    19. Duo Qin, 2010. "Modelling of the Inflation-Unemployment Tradeoff from the Perspective of the History of Econometrics," Working Papers 661, Queen Mary University of London, School of Economics and Finance.
    20. Aurélien Goutsmedt, 2017. "Stagflation and the crossroad in macroeconomics: the struggle between structural and New Classical macroeconometrics," Post-Print halshs-01625188, HAL.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vua:wpaper:1990-58. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: R. Dam (email available below). General contact details of provider: https://edirc.repec.org/data/fewvunl.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.