Category Archives: Macroeconomics
Joseph Stiglitz: The most remarkable aspect of the recent conference at the IMF was the broad consensus that the macroeconomic models that had been relied upon in the past and had informed major aspects of monetary and macro-policy had failed. … Continue reading
Jordi Gali’s Monetary Policy, Inflation, and the Business Cycle: An Introduction to the New Keynesian Framework is self-recommending for the clarity of its writing, the coherence of its organization, and the usefulness of the references to the literature.
Here and here. Michael Woodford seems to be sitting in the same boat.
Or, adaptive Hayekian judgment vs rational expectations — Axel Leijonhufvud knocks macroeconomic heads with some obvious facts about the difference between the real world and the math constructs fashionable among the professorial elite — under the (false?) assumption that macroeconomists … Continue reading
Here. Hayek’s early work on business cycles focused on misalignments in the structure of production. Alas, this was basically impossible to formalize. Keyenes’s model, meanwhile, was adopted into the Hansen-Hicks synthesis that looked a lot like the simple Supply/Demand equations … Continue reading
On the front page of the Wall Street Journal. And Hayek also turns up again on the WSJ Op-Ed page.