This paper emphasizes the importance of considering the mechanisms that coordinate economic transactions in a decentralized economy, namely the role played by a self-organizing network of entrepreneurial trading firms, for theories aimed at guiding macroeconomic policy. We review a research program that aims to understand how, and how well, trading activities are coordinated in various circumst...

■ Abstract We review the use of macroeconomics in political science over the past 40 years. The field has been dominated by new classical theory, which leaves little room for economic policy and focuses attention on what democratic governments can do wrong in the short term. The resulting literatures on political business cycles and central bank independence are large and sophisticated, but the...

1. Scope of Macroeconomics 2. The Keynesian View of Unemployment 2.1 A Simple Keynesian Model 2.2 Extension of the Simple Keynesian Model: A Capital Scarce, Labor Surplus Economy 2.3 Further Extension: Industry and Agriculture 3. Money, Keynes, and the Classics 3.1 The Classical Theory of Employment 3.2 The Keynesian Revolution 3.3 Friedman’s Counter-revolution 4. New Classical Macroeconomics 4...

I would like to thank Akihisa Shibata, associate professor of the Institute of Economic Research, Kyoto University, and the staff of the Institute for Monetary and Economic Studies (IMES), Bank of Japan for their useful comments. Tomiyuki Kitamura and Junko Miyoshi of IMES Research Division I provided valuable assistance with the model analyses, graph preparations, etc. The views expressed here...

 The excess liquidity of the open economy has become one main factor influencing the monetary markets, financial markets and even the whole macroeconomic. In era of the post-crisis, many countries have implemented the loose monetary policies, especially the quantitative easing policy in the U.S. which worsened the situation of the excess liquidity. Under this background, it will be more meaning...

Stochastic sequential bargaining models (Merlo and Wilson (1995, 1998)) have found wide applications in different fields including political economy and macroeconomics due to their flexibility in explaining delays in reaching an agreement. This paper presents new results in nonparametric identification and estimation of such models under different data scenarios.

In the aftermath of the global financial crisis questions have been raised regarding the value and applicability of modern macroeconomics. Motivated by these developments and recent advances in dynamical systems theory, the papers in this special issue of Macroeconomic Dynamics deal with specific aspects of the economy as a complex evolving dynamic system. JEL classification: A1, B4, E1, G01.

Stochastic sequential bargaining models (Merlo and Wilson (1995, 1998)) have found wide applications in different fields including political economy and macroeconomics due to their flexibility in explaining delays in reaching an agreement. This paper presents new results in nonparametric identification and estimation of such models under different data scenarios.