Investment-Saving Imbalances with Endogenous Capital Stock

Mazzocchi, Ronny

doi:10.2139/ssrn.2416407

Cited by 3 publications

(4 citation statements)

References 73 publications

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“…JEL: С62; D50; Е30; Е58 Съществуващият сега консенсус в макроикономиката -новият неокласически синтез (ННС), се олицетворява от теоретичната рамка на динамичното стохастично общо равновесие (ДСОР), която обединява моделите на реалния бизнес-цикъл (РБЦ) и номиналната инертност, допълнени с условието за несъвършена конкуренция. Целта е чрез една добре обоснована рамка с интертемпорална оптимизация, рационално поведение и постоянно балансирани пазари да се минимизира "триенето", което се проявява в анализите както на по-продължителните реални ефекти на монетарната политика, така и на взаимодействието между лихвите и цените (Mazzocchi, 2013a). От всички версии на ДСОР най-популярни са тези на Уудфорд, които развиват идеята на Виксел за чиста кредитна система и възможността за елиминиране на инфлацията с регулиране на номиналния лихвен процент спрямо измененията на ценовото равнище (Woodford, 2003).…”

Section: динамичното неравновесие и дисбалансът между инвестиции и сп...unclassified

“…Представеният модел всъщност следва основните стъпки на "неовикселианския" динамичен оптимизационен модел на проблема с интертемпоралната координация (Tamborini, 2006;Tamborini et al, 2014;Mazzocchi, 2013a) и може да се определи като негова лог-линейна версия. И тук съществената разлика е в интерпретацията на динамичното неравновесие.…”

Section: модел на дсор с дисбаланс инвестиции-спестяванияunclassified

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Dynamic disequilibrium and investment - saving imbalance

Radev¹

2016

etj

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The financial crises of 2007-2011 put the new neoclassical synthesis to a serious test and became the occasion for harsh criticism from both the neoclassical school and New Keynesianism. The idea of dynamic disequilibrium is once again in the spotlight, and the investment-savings imbalance turns out to be the most logical explanation for the pathological deviations from normal economic development. In this connection, the investment-savings imbalance and the possibilities of quantifying this problem within the framework of dynamic stochastic general equilibrium models are discussed. The analysis is presented through the prism of the non-equilibrium, which inherits the main features of the neo-equilibrium (see Radev, 2011).

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Section: динамичното неравновесие и дисбалансът между инвестиции и сп...unclassified

Section: модел на дсор с дисбаланс инвестиции-спестяванияunclassified

Dynamic disequilibrium and investment - saving imbalance

Radev¹

2016

etj

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“…This ‘missing inflation’ problem has drawn increasing attention in the reinterpretation of the so‐called Great Moderation and the alleged policy mistakes (Christiano et al, ; Leijonhufvud, ). An extension of our model may offer an explanation different than sticky prices or wages (Mazzocchi, ). In the course of ISI processes with investment booms and slumps the capital stock changes with respect to its optimal IGE level, and this fact may further modify the dynamic properties of the system.…”

Section: Monetary Policy With Investment–saving Imbalances: the Wicksmentioning

confidence: 99%

“…It is more challenging to find a persuasive explanation. Further analyses of this issue can be found in Tamborini () and Mazzocchi ().…”

mentioning

confidence: 99%

Wicksell, Keynes, and the New Neoclassical Synthesis: What Can We Learn for Monetary Policy?

2014

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The New Neoclassical Synthesis (NNS) provides the established macroeconomic foundation for monetary policy. The Great Recession has, however, unveiled a number of unresolved issues. Prominent scholars have stressed the connections of the NNS with the founders of macroeconomic thought, Wicksell and Keynes. Our main contention is that the NNS fails to consider, and learn from, the hallmark of Wicksell's and Keynes's approaches to business cycles, namely investment–saving imbalances (ISI). Systematic studies of macroeconomic instability, and notably the Great Recession, give prominence to this phenomenon. Drawing on Wicksell's and Keynes's insights, this paper provides a framework to deal with ISI and monetary policy according to modern theoretical standards and techniques (e.g. agents seek to optimize intertemporally and markets clear). Section 2 of the paper clarifies some basic theoretical issues underlying the NNS vis‐à‐vis Wicksell and Keynes. Section 3 presents a dynamic model whereby it is possible to assess some basic issues concerning the macroeconomics of ISI that are at variance with the NNS. Section 4 shows how system stabilization can be achieved by means of a ‘Wicksellian’ interest‐rate rule, which, however, displays dynamic features and conditions that differ from the current NNS consensus. Central banks may thus learn that ISI deserve careful symptom monitoring, and that they require greater attention to the dynamic stability of choices of policy reaction functions.

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Intertemporal Coordination Failure and Monetary Policy

Mazzocchi

2013

SSRN Journal

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Investment-Saving Imbalances with Endogenous Capital Stock

Cited by 3 publications

References 73 publications

Dynamic disequilibrium and investment - saving imbalance

Dynamic disequilibrium and investment - saving imbalance

Wicksell, Keynes, and the New Neoclassical Synthesis: What Can We Learn for Monetary Policy?

Intertemporal Coordination Failure and Monetary Policy

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