A History of Macroeconomics from Keynes to Lucas and Beyond

A History of Macroeconomics from Keynes to Lucas and Beyond

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Michel De Vroey
Cambridge University Press, 1/8/2016
EAN 9780521898430, ISBN10: 0521898439

Hardcover, 450 pages, 22.9 x 15.2 x 2.9 cm
Language: English
Originally published in English

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.

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
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.