The modern view of macroeconomics : some critical reflections /
Romer has proposed an alternative macroeconomic framework, i.e., the IS-MP-IA model. Its proponents claim that it constitutes a "modern" view of macroeconomics. We show that the new framework is closely attached to the neoclassical synthesis and, in addition, fails to take...
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| Formato: | eBook |
| Idioma: | Inglés |
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Madrid :
Universidad Complutense de Madrid,
2002.
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| Colección: | Documento de trabajo ;
2002-017 |
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| Acceso en línea: | https://eprints.ucm.es/6796/1/0217.pdf |
| Sumario: | Romer has proposed an alternative macroeconomic framework, i.e., the IS-MP-IA model. Its proponents claim that it constitutes a "modern" view of macroeconomics. We show that the new framework is closely attached to the neoclassical synthesis and, in addition, fails to take account of: (i) the recent empirical evidence on the short-run output-inflation trade-off, (ii) the recent work and evidence on the interdependence of aggregate demand and supply, (iii) the lirnits of monetary policy and (iv) the consequences for demand-management policy of (i), (ii) and (iii). Once all these aspects are incorporated, we have that short-run stabilization policy is non-neutral in the long run, loanable funds theory becomes irrelevant and aggregate demand becomes the crucial exogenous variable in the short run and, perhaps, also in the long run. |
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| Descripción Física: | 36 p. : graf. ; 30 cm. Disponible también el línea. |
| Bibliografía: | Incluye referencias bibliográfica (p. 29-36) |