While this model is relatively simple, it is a staple of macroeconomic theory
(Romer, 2006, chapter 2) and has been used in recent research to study trends in interest rates (Council of Economic Advisors, 2015; Rachel and Smith, 2015).
Standard macroeconomic theory
suggests the inequality constraints of [a.
Existing macroeconomic theory
inadequately explains the impact of discretionary fiscal policy on national income because it underemphasizes the implications and significance of saving-investment imbalances and net foreign borrowing.
This additional explanation has two ideas that can be of help in understanding how rational expectations are applied to macroeconomic theory
I also have some doubts about implicit exchange rate targeting from a theoretical point of view but I know that at the same time, the standard macroeconomic theory
is evolving under the pressure of events but nevertheless still lags far behind them.
This paper discusses the above mentioned themes in this order, and finally offers some general remarks on the further directions of research with regard to macroeconomic theory
in general, and in the context of the current crisis in particular.
In Chapter 1, Kevin Hoover distinguishes three 'microfoundational programs' and argues that only one of them--that associated with Robert Lucas--is 'eliminative' in the sense that it intends to reduce macroeconomic theory
Later in the paper, we show that the impulse response functions (IRFs) created by these shocks are consistent with what standard macroeconomic theory
predicts they should be.
MASTERS OF MONEY BBC Two, 9pm When the BBC's economics editor Stephanie Flanders (above) got a call asking her to present a prime-time programme bringing macroeconomic theory
to the masses, she must have thought it was going to be an uphill struggle.
Kalecki's theory of the 'degree of monopoly' based upon a mark-up pricing strategy (operating at constant short-term returns) constitutes this important theoretical breakthrough which, Sardoni contends, restores the micro-foundations of macroeconomic theory
He has published numerous articles in the fields of macroeconomic theory
, the structure and functioning of financial markets, monetary analysis and policy as well as on subjects concerning the economic performance, financial stability and economic policy in the European Union.
Students of modern macroeconomic theory
understand that the assumption of complete financial markets is a huge analytical convenience, allowing one to aggregate individuals and firms while eschewing the need to keep careful score of how shocks idiosyncratically affect winners and losers.
clearly suggests that at the zero lower bound, fiscal contraction will reduce output and slow any recovery.
Modern macroeconomic theory
, in particular, has been criticized for its representation of the economy through highly stylized environments that abstract from distributional issues, ignore or minimize linkages between the financial and nonfinancial sectors of the economy, and, in general, rely too much on highly aggregative frameworks.
Monetary economics, financial economics, macroeconomic theory
and mathematical economics are his research and teaching areas.