The growing evidence of Keynes’s methodology advantage and its consequences within the four macro-markets framework
نویسنده
چکیده
Recent developments in econometrics and economic theory attest the growing evidence of strong uncertainty. The paper argues that these developments both question seriously the methodological foundations of the mainstream macroeconomics and support Keynes’s powerful concepts and theory. It emphasizes how replacing ‘risk’ with strong uncertainty suffices to transform the standard four-macro-markets system into a shifting demand-driven system, with the result that price rigidity is not to be considered the cause of the effective demand leadership (although, as Keynes pointed out, some rigidity is required to give us some stability in a monetary economy). As it is not based on a restrictive definition of uncertainty, Keynes’s theory is more realistic than the mainstream. It is also more general, for the equilibrium level of employment depends on the views about the future, instead of having a unique ‘natural’ anchor. JEL classification: E00, E12, E13, B22
منابع مشابه
A Call for a Backward Design to Knowledge Translation
Despite several calls to support evidence-informed policy-making, variations in uptake of evidence into policy persist. This editorial brings together and builds on previous Knowledge Translation (KT) frameworks and theories to present a simple, yet, holistic approach for promoting evidence-informed policies. The proposed conceptual framework is characterized by its impact-oriented approach and...
متن کاملA Micro- and Macro-Level Descriptive-Analytical Study of Translation Criticism in Iran: Are We Moving within a Framework?
The present corpus-driven study addresses the current situation of translation criticisms published in print or online in the Iranian media. A sample of 17 criticisms (roughly 68,000 words altogether) from a variety of valid media outlets was compiled. Having been categorized into those with, and those without an ex- plicit theoretical framework, the criticisms were examined on two levels...
متن کاملEvaluation of Corporate Governance Practices in Emerging Markets (A case study of Nigerian Banking Industry)
This study explores corporate governance practices within the context of the Nigerian banking industry using instances of corporate governance lapses that resulted in part to the Nigerian banking crises. We present multiple case analysis of publicly available documents and court papers (in the United Kingdom and Nigeria) to document instances of breach and areas of weakness in the existing Nige...
متن کاملExplaining the Government Functional Role in Spatial Planning and Management within the Framework of Neoliberalism
Introduction and Background: With the ever-increasing superiority of neoliberalism views and decreasing government investments in public affairs since the 1980s, the functional and ownership roles of the government have been reduced. These functions replaced by the actively growing roles of corporations and nongovernmental institutions in space development and management. For instance, the inde...
متن کاملA review of agent-based modeling (ABM) concepts and some of its main applications in management science
We live in a very complex world where we face complex phenomena such as social norms and new technologies. To deal with such phenomena, social scientists often use reductionism approach where they reduce them to some lower-lever variables and model the relationships among them through a scheme of equations. This approach that is called equation based modeling (EBM) has some basic weaknesses in ...
متن کامل