Macroeconomic Paradigms and Economic Policy: From the Great Depression to the Great RecessionThe 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. |
Contents
| 1 | |
The dawn of the Keynesian age | 15 |
The Phillips curve menu | 31 |
powerless economic policies | 48 |
good policies or good luck? | 74 |
The Great Recession and beyond | 101 |
Central banking | 129 |
Fiscal regimes and fiscal policies | 161 |
Further fiscal policy challenges | 191 |
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achieve Acocella adjustment aggregate assets balance bank’s Bartolomeo budget business cycle capital movements central bank Chapter commitment competition conservatism consumption coordination costs countries currency debt targets deficit demand developed discretionary DSGE economic policy effects emerged equation equilibrium European Eurozone expansionary external Federal Figure financial crisis fiscal policy fixed exchange rates forward guidance Friedman global goals gold growth Hughes Hallett imbalances implies income increase independent inflation bias inflation rate inflation target institutions intervention investment labor market long-run lower Lucas critique macroeconomic monetarist monetary authorities monetary policy money supply natural rate nominal interest rate optimal outcomes output gap Phillips curve policy instruments policy rate policymakers political problem public debt quantitative easing rational expectations recession reduce regime reserve currency result role rules Section shocks social pacts spending theory tion trade trade-off unemployment rate unions United Kingdom variables