Macroeconomics and the Real World Volume 2: Keynesian Economics, Unemployment, and Policy

by Backhouse, Roger E.; Salanti, Andrea

• ISBN13: 9780199242054
• ISBN10: 0199242054
• Format: Paperback
• Copyright: 2001-06-28
• Publisher: Oxford University Press

Summary

Since the middle of twentieth century, economists have invested great resources into using statistical evidence to relate macroeconomic theories to the real world, and many new econometric techniques have been employed. In these two volumes, a distinguished group of economic theorists,econometricians, and economic methodologists examine how evidence has been used and how it should be used to understand the real world.Volume 1 focuses on the contribution of econometric techniques to understanding the macroeconomic world. It covers the use of evidence to understand the business cycle, the operation of monetary policy, and economic growth. A further section offers assessments of the overall impact of recenteconometric techniques such as cointegration and unit roots.Volume 2 focuses on the labour market and economic policy, with sections covering the IS-LM model, the labour market, new Keynesian macroeconomics, and the use of macroeconomics in official documents (in both the USA and EU).These volumes will be valuable to advanced undergraduates, graduate students, and practitioners for their clear presentation of opposing perspectives on macroeconomics and how evidence should be used. The chapters are complemented by discussion sections revealing the perspectives of othercontributors on the methodological issues raised.

Table of Contents

Introduction to volume 2	1	(22)
Roger E. Backhouse
Andrea Salanti
PART I: THE IS-LM MODEL	23	(72)
The evolution of IS-LM models: empirical evidence and theoretical presuppositions	25	(18)
Alessandro Vercelli
Whither IS-LM	43	(14)
Christopher A. Sims
IS-LM, Keynesianism, and the new classicism	57	(26)
Richard G. Lipsey
IS-LM: general discussion	83	(12)
PART II: THE LABOUR MARKET	95	(72)
Wage dynamics and the Phillips curve	97	(16)
Piero Ferri
What can recent labour research teach us about macroeconomics?	113	(32)
Andrew J. Oswald
Philip A. Trostel
Theory, evidence, and the labour market	145	(12)
Roger E. Backhouse
Labour: general discussion	157	(10)
PART III: NEW KEYNESIAN ECONOMICS	167	(64)
Imperfect capital markets: a new macroeconomic paradigm?	169	(34)
Domenico Delli Gatti
Roberto Tamborini
New Keynesian macroeconomics: the role of theory and evidence	203	(12)
Huw D. Dixon
Equity finance, internal funds, and involuntary unemployment	215	(4)
Mark Blaug
New Keynesian macroeconomics: general discussion	219	(12)
PART IV: MACROECONOMICS IN OFFICIAL DOCUMENTS	231	(46)
Using government documents to assess the influence of academic research on macroeconomic policy	233	(18)
Thomas Mayer
Macroeconomic thought at the European Commission in the first half of the 1980s	251	(18)
Ivo Maes
In defence of two policy platitudes	269	(8)
Daniel M. Hausman
Official documents: general discussion	277