The Dynamics of Keynesian Monetary Growth: Macro Foundations

Description

This book is in the tradition of non-market-clearing approaches to macrodynamic approaches. It builds a series of integrated disequilibrium growth models of increasing complexity, which display the economic interaction between households, firms and government across labour, goods, money, bonds and equities markets. Chiarella and Flaschel demonstrate how macrodynamics can be developed in a hierarchical way from economically simple structures to more advanced ones. In addition it investigates complex macrodynamic feedback mechanisms. The book is organised into seven chapters. Chapter 1 discusses traditional macrodynamic model buidling. Chapters 2-4 show how Keynesian disequilibrium growth can be obtained from Tobin and Keynes-Wicksell monetary growth models. Chapter 5 treats the cases of substitution in production, and Chapter 6 provides the working model of the book. Chapter 7 discusses further extensions and gives an outlook on future work.

'Chiarella, Flaschel, and Franke have honed traditional stability analysis of aggregative macroeconomic models into an astonishingly penetrating critical tool. Their dispassionate and balanced study of current macroeconomic approaches throws much light on the conceptual contradictions that trouble this field, and motivate their suggested remedy, a return to a thorough disequilibrium dynamics in the tradition of Keynes, Metzler, and Goodwin. No serious student of mathematical macroeconomics working within any framework can afford to ignore this research and its implications.' Duncan K. Foley, Leo Model Professor, Department of Economics, New School University