Book contents
- Frontmatter
- Contents
- Figures
- Preface and Acknowledgments
- 1 Introduction: The State of Macroeconomics
- 2 The Lucas Critique and Representative Agents
- 3 Household Consumption and Saving
- 4 Saving in a Corporate Economy
- 5 Phillips Curves and the Natural Rate of Unemployment
- 6 Fairness, Money Illusion, and Path Dependency
- 7 Earnings Inequality, Power Bias, and Mismatch
- 8 Macroeconomic Adjustment and Keynes’s Instability Argument
- 9 Growth and Cycles
- 10 Endogenous Growth Cycles with or without Price Flexibility
- 11 Secular Stagnation and Functional Finance
- 12 Concluding Comments: Evidence-Based Macroeconomics and Economic Theory
- References
- Author Index
- Subject Index
1 - Introduction: The State of Macroeconomics
Published online by Cambridge University Press: 10 November 2023
Book contents
- Frontmatter
- Contents
- Figures
- Preface and Acknowledgments
- 1 Introduction: The State of Macroeconomics
- 2 The Lucas Critique and Representative Agents
- 3 Household Consumption and Saving
- 4 Saving in a Corporate Economy
- 5 Phillips Curves and the Natural Rate of Unemployment
- 6 Fairness, Money Illusion, and Path Dependency
- 7 Earnings Inequality, Power Bias, and Mismatch
- 8 Macroeconomic Adjustment and Keynes’s Instability Argument
- 9 Growth and Cycles
- 10 Endogenous Growth Cycles with or without Price Flexibility
- 11 Secular Stagnation and Functional Finance
- 12 Concluding Comments: Evidence-Based Macroeconomics and Economic Theory
- References
- Author Index
- Subject Index
Summary
This chapter offers an introductory discussion of the state of macroeconomics. It presents a brief outline of the historical background to traditional Keynesian macroeconomics and its replacement by the current orthodoxy based on microeconomic foundations and intertemporal optimization, with DSGE models at the center. This scholastically motivated paradigm has been a costly detour. A promising alternative structuralist and behavioral approach can draw on behavioral economics as well as rich traditions that have been marginalized within the profession.
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- Information
- Structuralist and Behavioral Macroeconomics , pp. 1 - 15Publisher: Cambridge University PressPrint publication year: 2023