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This book retraces the history of macroeconomics from Keynes's General Theory to the present. Central to it is the contrast between a Keynesian era and a Lucasian - or dynamic stochastic general equilibrium (DSGE) - era, each ruled by distinct methodological standards. In the Keynesian era, the book studies the following theories: Keynesian macroeconomics, monetarism, disequilibrium macroeconomics (Patinkin, Leijongufvud and Clower), non-Walrasian equilibrium models, and first-generation new Keynesian models. Three stages are identified in the DSGE era: new classical macroeconomics (Lucas), RBC modelling, and second-generation new Keynesian modeling. The book also examines a few selected works aimed at presenting alternatives to Lucasian macroeconomics. While not eschewing analytical content, Michel De Vroey focuses on substantive assessments, and the models studied are presented in a pedagogical and vivid yet critical way.
.Retraces the history of macroeconomics from Keynes's General Theory to the present
.Examines a few selected works aiming at presenting alternatives to Lucasian macro
.Studies the following theories: Keynesian macroeconomics, monetarism, disequilibrium macro (Patinkin, Leijonhufvud and Clower) non-Walrasian equilibrium models, and first-generation new Keynesian models
Introduction
Part I. Keynes and Keynesian Macroeconomics:
1. Keynes's General Theory
2. Keynesian macroeconomics
3. The neoclassical synthesis program: Klein and Patinkin
4. Monetarism
5. Phelps and Friedman: the natural rate of unemployment
6. Leijonhufvud and Clower
7. Non-Walrasian equilibrium models
8. Assessment
Part II. DSGE Macroeconomics:
9. Lucas and the emergence of DSGE macroeconomics
10. A methodological breach
11. Assessing Lucas
12. Early reactions to Lucas
13. Reacting to Lucas: first generation new Keynesians
14. Reacting to Lucas: alternative research lines
15. Real business cycle modeling: Kydland and Prescott's contribution
16. Real business cycle modeling: critical reactions and further developments
17. Real business cycle modeling: assessment
18. Second generation new Keynesian modeling
Part III. A Broader Perspective:
19. The history of macroeconomics against the Marshall–Walras divide
20. Standing up to DSGE macroeconomics
21. Looking back, looking ahead.
Description
This book retraces the history of macroeconomics from Keynes's General Theory to the present. Central to it is the contrast between a Keynesian era and a Lucasian - or dynamic stochastic general equilibrium (DSGE) - era, each ruled by distinct methodological standards. In the Keynesian era, the book studies the following theories: Keynesian macroeconomics, monetarism, disequilibrium macroeconomics (Patinkin, Leijongufvud and Clower), non-Walrasian equilibrium models, and first-generation new Keynesian models. Three stages are identified in the DSGE era: new classical macroeconomics (Lucas), RBC modelling, and second-generation new Keynesian modeling. The book also examines a few selected works aimed at presenting alternatives to Lucasian macroeconomics. While not eschewing analytical content, Michel De Vroey focuses on substantive assessments, and the models studied are presented in a pedagogical and vivid yet critical way.
.Retraces the history of macroeconomics from Keynes's General Theory to the present
.Examines a few selected works aiming at presenting alternatives to Lucasian macro
.Studies the following theories: Keynesian macroeconomics, monetarism, disequilibrium macro (Patinkin, Leijonhufvud and Clower) non-Walrasian equilibrium models, and first-generation new Keynesian models
