Classifying Monetary Economics: Fields and Methods From Past to Future

Arestis, Philip; Mihailov, Alexander

doi:10.1111/j.1467-6419.2010.00625.x

Cited by 5 publications

(3 citation statements)

References 157 publications

(183 reference statements)

Supporting

Mentioning

Contrasting

Order By: Relevance

“…He discussed whether the market behavior implied by his model resembles "certain aspects of the observed business cycle" (p. 117): in particular, he discussed money neutrality by looking into the inflation-output tradeoffs. 7 It is noteworthy that his 1972 paper is one of the very few published 5 Even the richer classification of monetary economics proposed by Arestis and Mihailov (2011), OLG models appear as essentially a money demand model, with no mentions to endogenous fluctuations. 6 Mankiw (2006, 39) is perhaps the clearest about this: "Like the neoclassical-Keynesian synthesis of an earlier generation, the new synthesis attempts to merge the strengths of the competing approaches that preceded it.…”

Section: Starting Point: Lucas Samuelson and Indeterminacymentioning

confidence: 99%

Challenging Lucas: From Overlapping Generations to Infinite-Lived Agent Models

Assous

Duarte

2017

SSRN Journal

View full text Add to dashboard Cite

Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Abstract: Terms of use: Documents inThe canonical history of macroeconomics, one of the rival schools of thought and the great economists, gives Robert Lucas a prominent role in shaping the recent developments in the area. According to it, his followers were initially split into two camps, the "real business cycle" theorists with models of efficient fluctuations, and the "new-Keynesians" with models in which fluctuations are costly, and the government has a role to play, due to departures from the competitive equilibrium (such as nominal rigidities and imperfect competition). Later on, a consensus view emerged (the so-called new neoclassical synthesis), based on the dynamic stochastic general equilibrium (DSGE) model, which combines elements of the models developed by economists of those two groups. However, this account misses critical developments, as already pointed out by Cherrier and Saïdi (2015). As a reaction to Lucas's 1972 policy ineffectiveness results, based on an overlapping generations (OLG) model, a group of macroeconomists realized that a competitive OLG model may have a continuum of equilibria and that this indeterminacy justified government intervention for competitive cycles that emerged even in deterministic models. We can identify here two distinct, but related, groups: one of the deterministic cycles of David Gale, David Cass, and Jean-Michel Grandmont, and another of the stochastic models and sunspots of Karl Shell, Roger Guesnerie, Roger Farmer and Costas Azariadis (Lucas's PhD student). Here, the OLG was the workhorse model. Following from these works, a number of authors, including Michael Woodford, argued that similar results could occur in models with infinitely lived agents when there are various kinds of market imperfections. With such generalization, some of these macroeconomists saw that once these imperfections are introduced, nothing important for business cycle modeling was lost and they could therefore leave the OLG model aside as a model of business fluctuations, to the dismay of authors such as Grandmont, Robert Solow and Frank Hahn.In this paper, we scrutinize the differences between the deterministic cycles and sunspot groups and explore the many efforts of building a dynamic competitive business cycle model that implies a role for the government to play. We then assess the transformation process that took place in the late 1980s when several macroeconomists switched from OLG to infinitelived agents models with imper...

show abstract

Section: Starting Point: Lucas Samuelson and Indeterminacymentioning

confidence: 99%

Challenging Lucas: From Overlapping Generations to Infinite-Lived Agent Models

Assous

Duarte

2017

SSRN Journal

View full text Add to dashboard Cite

show abstract

“…arguably a 'chartallist' himself, classified Marx as a 'metallist' and Keynes as a 'chartalist'. SeeTrautwein (2000) andArestis and Mihailov (2011) for more detailed overviews in terms of possible classifying the literature on monetary thought, including a good survey on the literature related to the 'credit view' of money.8 SeeMessori (1997) andAlvarado (2014) for a detailed chronology of Schumpeter's struggle with Das Wesen, the origins of which can be traced back to his Das Wesen und der Hauptinhalt der theoretischen Nationalökonomie (1908).…”

mentioning

confidence: 99%

Back to the Future: Lösch, Isard, and the Role of Money and Credit in the Space-Economy

Bieri

2017

Regional Research Frontiers - Vol. 1

View full text Add to dashboard Cite

The recent financial crisis has been a powerful reminder that the intersectoral flow of funds is also-always and everywhere-a local phenomenon with real effects. Yet, the contemporary canon of regional economic theory has enshrined the classical dichotomy, treating the spheres of money and production as analytically distinct. Consequently, the current literature has little to say about monetary phenomena and their spatial consequences. The widespread disengagement of regional scientists with respect to issues of money, credit and banking represents a radical break with the discipline's intellectual origins over half a century ago. This chapter re-examines the monetary content of some of the foundational works in regional science. In particular, I argue that August Lösch and Walter Isard, the former a student of Joseph Schumpeter's and the latter a student of Alvin Hansen's, both represent important branches in the long lineage of 20 th century continental and U.S. monetary thought, respectively. In doing so, this chapter also outlines key elements of a research agenda that reengages with regional aspects of money and credit, casting them as central pillars of a Lösch-Isard synthesis.

show abstract

“…Wynne and Sigalla (1996) and Wynne and Rodriguez‐Palenzuela (2004) provide valuable detailed analyses of measurement biases in price indexes. More wide‐ranging discussions of Monetary Economics include Sinclair's (1992) masterful book review article of Friedman and Hahn's (1990) Handbook and, in this issue, Arestis et al (2011). This wide‐ranging perspective is also well exemplified by a series of book review articles on macroeconomic themes, such as: Sayer (1989), Snell (1989), Muscatelli (1990), and Sayer (1997).…”

mentioning

confidence: 99%

Contributions on Macroeconomics and Policy

Sayer¹

2011

Journal of Economic Surveys

View full text Add to dashboard Cite

Classifying Monetary Economics: Fields and Methods From Past to Future

Cited by 5 publications

References 157 publications

Challenging Lucas: From Overlapping Generations to Infinite-Lived Agent Models

Challenging Lucas: From Overlapping Generations to Infinite-Lived Agent Models

Back to the Future: Lösch, Isard, and the Role of Money and Credit in the Space-Economy

Contributions on Macroeconomics and Policy

Contact Info

Product

Resources

About