Macroeconomic Paradigms and Economic Policy: From the Great Depression to the Great Recession

Description

The recent financial crisis has demonstrated the dangers of ignoring the factors that led to previous crises, and the effectiveness of the policies designed to deal with them. Over time, these macroeconomic policies have evolved, oscillating between state intervention and a free-market approach. Following a story that runs from the pre-Great Depression era up until the Financial Crisis of 2007-11, this book reveals an intimate connection between new macroeconomic ideas and policies and the events in the real economy that inspired them. It does this in an accessible, easy-to-follow style, first by focusing on the developments of economic theories and policies, and then by concentrating on the design of domestic and international institutions and economic governance. Written by three leading experts on the history of economic policy, the book is ideal for graduates and undergraduates studying macroeconomics, monetary policy and the history of economic thought.

Nicola Acocella is Emeritus Professor of Economic Policy at the Sapienza University of Rome. He has previously published three books with Cambridge University Press: The Foundations of Economic Policy (1998), Economic Policy in the Age of Globalization (2010), and The Theory of Economic Policy in a Strategic Context (2012) with Giovanni Di Bartolomeo and Andrew Hughes Hallett. Giovanni Di Bartolomeo is Associate Professor of Economic Policy at the Sapienza University of Rome. He is an active policy advisor for the Italian Ministry of Economics, where he contributes to build and estimate the DSGE model of the Department of Treasury. In 2012, he published The Theory of Economic Policy in a Strategic Context (Cambridge) with Nicola Acocella and Andrew Hughes Hallett. Andrew Hughes Hallett is Professor of Economics at the University of St Andrews, University Professor at the George Mason University, Virginia, and a Fellow of the Royal Society of Edinburgh. He has published papers in leading economics journals, as well as in mathematics, political science and history, and is ranked in the top half percent of economists by publications worldwide.

'This is a very useful book for those among us interested in the evolution of economic paradigms, changing economic conditions, and their impact on economic policies. The authors succeed in highlighting how these changes have affected monetary and fiscal policies and how they push us towards designing better institutions.' Paul De Grauwe, John Paulson Professor in European Political Economy, London School of Economics and Political Science 'This splendid book, written by three experts in the field, demonstrates the oscillation of macro policies between state intervention and free market policies. It is a lucid presentation of the evolution of macroeconomic policies in the light of the big macro dynamic challenges such as the high unemployment rates in the great depression, the stagflation period of the 1970s, the great moderation, and the great recession triggered by the financial market meltdown. A fascinating book, highly recommended for higher level undergrad and grad classes, and researchers, and practitioners in the field.' Willi Semmler, Arnhold Professor of International Cooperation and Development, New School for Social Research, New York