Sorting Out Keynesian Economics: A New Monetarist Approach
نویسنده
چکیده
A simple model of monetary/labor search is constructed to exposit and evaluate Keynesian ideas. In the model, economic agents have trouble splitting the surplus from exchange appropriately, and we consider monetary and fiscal policies that correct this Keynesian inefficiency. With either fixed nominal wages and prices, or indeterminacy in rates of exchange, the optimal policies we explore seem to lack the backward-looking flavor standard in Keynesian analysis. Optimal policies yield an efficient and determinate allocation of resources, but equilibrium policy actions, wages, and prices are indeterminate.
منابع مشابه
New Keynesian Economics: A Monetary Perspective
S ince John Maynard Keynes wrote the General Theory of Employment, Interest, and Money in 1936, Keynesian economics has been highly influential among academics and policymakers. Keynes has certainly had his detractors, though, with the most influential being Milton Friedman, Robert Lucas, and Edward C. Prescott. Monetarist thought, the desire for stronger theoretical foundations in macroeconomi...
متن کاملKeynes in Nutshell: A New Monetarist Approach (Incomplete)
A Farmer-type Keynesian model is constructed to explore and exposit Keynesian ideas. The modeling innovation is to integrate Farmer’s approach with monetary exchange and to derive optimal monetary and fiscal policies. Two approaches are taken to optimal policy an approach in the spirit of New Keynesian sticky-wage-and-price models, and an a "sophisticated policy" approach. Optimal policies typi...
متن کاملNew Monetarist Economics
This paper articulates the principles and models of New Monetarism, which is our label for a body of recent work on money, banking, payments systems, and asset markets. The approach that has something in common with Old Monetarism, but also some key di¤erences. It has little in common with New Keysianism. A series of models is described. This illustrates what has been done in recent monetary th...
متن کاملKeynesian Inefficiency and Optimal Policy: A New Monetarist Approach
A simple model of monetary/labor search is constructed to study Keynesian indeterminacy and optimal policy. In the model, economic agents have trouble splitting the surplus from exchange appropriately, and we consider monetary and fiscal policies that correct this Keynesian inefficiency. A Taylor rule does not imply determinacy, nor does it support an efficient outcome. Optimal policies yield a...
متن کاملEconomics 314 Coursebook
A. Topics and Tools ............................................................................ 1 B. The Lucas Model in Historical Perspective............................................ 2 Keynesian macroeconomics in the 1960s ......................................................................... 2 Monetarism .....................................................................................
متن کامل