Two Different Views on Monetary Policy Impact: The New Consensus and Post-Keynesian Economics
The objective of this study is to make a synthesis of the differences between two new macroeconomic views. A New Consensus has arisen among neoclassical and New-Keynesian economists, such as Romer, Taylor and Walsh. This new view seeks to redefine the application of monetary policy by re-specifying...
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| Format: | Article |
| Language: | English |
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General Association of Economists from Romania
2007-09-01
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| Series: | Theoretical and Applied Economics |
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| Online Access: |
http://store.ectap.ro/articole/251.pdf
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| _version_ | 1818006885292310528 |
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| author | Marius-Corneliu Marinas |
| author_facet | Marius-Corneliu Marinas |
| author_sort | Marius-Corneliu Marinas |
| collection | DOAJ |
| description | The objective of this study is to make a synthesis of the differences between two new macroeconomic views. A New Consensus has arisen among neoclassical and New-Keynesian economists, such as Romer, Taylor and Walsh. This new view seeks to redefine the application of monetary policy by re-specifying the most appropriate monetary rule, which is used for inflation targeting. The framework of the monetary policy impact requires the usage of a expectations augmented Phillips curve, characterized through the lack of trade-off inflation-unemployment in the long-run. Post-keynesian macroeconomic critical, whose promoters are Arestis, Lavoie and Satterfield, argues that for most of the production levels obtained output change has no effect on inflation. This is a re-formulation of the Keynesian aggregate supply curve, which is entirely horizontal. |
| first_indexed | 2024-04-14T05:07:37Z |
| format | Article |
| id | doaj.art-8d5ca0e99f6f44f8908ce761bfe7993c |
| institution | Directory Open Access Journal |
| issn | 1841-8678 1844-0029 |
| language | English |
| last_indexed | 2024-04-14T05:07:37Z |
| publishDate | 2007-09-01 |
| publisher | General Association of Economists from Romania |
| record_format | Article |
| series | Theoretical and Applied Economics |
| spelling | doaj.art-8d5ca0e99f6f44f8908ce761bfe7993c2022-12-22T02:10:39ZengGeneral Association of Economists from RomaniaTheoretical and Applied Economics1841-86781844-00292007-09-01XIV918418678Two Different Views on Monetary Policy Impact: The New Consensus and Post-Keynesian EconomicsMarius-Corneliu Marinas0 Academia de Studii Economice, Bucuresti The objective of this study is to make a synthesis of the differences between two new macroeconomic views. A New Consensus has arisen among neoclassical and New-Keynesian economists, such as Romer, Taylor and Walsh. This new view seeks to redefine the application of monetary policy by re-specifying the most appropriate monetary rule, which is used for inflation targeting. The framework of the monetary policy impact requires the usage of a expectations augmented Phillips curve, characterized through the lack of trade-off inflation-unemployment in the long-run. Post-keynesian macroeconomic critical, whose promoters are Arestis, Lavoie and Satterfield, argues that for most of the production levels obtained output change has no effect on inflation. This is a re-formulation of the Keynesian aggregate supply curve, which is entirely horizontal. http://store.ectap.ro/articole/251.pdf New Consensus macroeconomicmonetary policy rulePhillips curvepotential GDPpost-Keynesian |
| spellingShingle | Marius-Corneliu Marinas Two Different Views on Monetary Policy Impact: The New Consensus and Post-Keynesian Economics Theoretical and Applied Economics New Consensus macroeconomic monetary policy rule Phillips curve potential GDP post-Keynesian |
| title | Two Different Views on Monetary Policy Impact: The New Consensus and Post-Keynesian Economics |
| title_full | Two Different Views on Monetary Policy Impact: The New Consensus and Post-Keynesian Economics |
| title_fullStr | Two Different Views on Monetary Policy Impact: The New Consensus and Post-Keynesian Economics |
| title_full_unstemmed | Two Different Views on Monetary Policy Impact: The New Consensus and Post-Keynesian Economics |
| title_short | Two Different Views on Monetary Policy Impact: The New Consensus and Post-Keynesian Economics |
| title_sort | two different views on monetary policy impact the new consensus and post keynesian economics |
| topic | New Consensus macroeconomic monetary policy rule Phillips curve potential GDP post-Keynesian |
| url |
http://store.ectap.ro/articole/251.pdf
|
| work_keys_str_mv | AT mariuscorneliumarinas twodifferentviewsonmonetarypolicyimpactthenewconsensusandpostkeynesianeconomics |