Whither New Consensus Macroeconomics? The Role of Government and Fiscal Policy in Modern Macroeconomics

Whither new consensus macroeconomics ? The role of government and fiscal policy in modern

Macroeconomics of fiscal policy in developing countries

This paper considers some aspects of the effects of fiscal policy on macroeconomic adjustment in developing countries. First, the paper reviews the notion of the fiscal deficit in the particular context of developing countries. It then spells out the conditions under which the internal and external debts are sustainable and points out the role of the “twin deficits”. The paper then presents som...

Disequilibrium macroeconomics: an episode in the transformation of modern macroeconomics

ed from issues they could not handle but which enabled them to analyse the dynamics in which they were interested. However, a more common reaction was to focus on the formal models and to confine their theorizing to what could be said rigorously. Founding macroeconomics on rigorous utilitymaximizing microfoundations was important. This was, no doubt, the reason why Patinkin’s Chapter 13 was neg...

Macroeconomics - ECON 510 a , Fall 2010 , Yale University Fiscal Policy

To study questions of taxation in the neo-classical growth model, we need to extend it to allow for government spending and taxation. Here we study the simplest possible model, where government spending is an exogenous stochastic process G(s). We assume that this spending is wasted (thrown into the ocean). It would be possible to amend the model to allow for example for the financing of public ...

Modern Macroeconomics in Practice: How Theory Is Shaping Policy

_________________________________________________________________________ Theoretical advances in macroeconomics made in the last three decades have had a major influence on macroeconomic policy analysis. Moreover, over the last several decades, the United States and other countries have undertaken a variety of policy changes that are precisely what macroeconomic theory of the last 30 years sug...