Foundations for a Disequilibrium Theory of the Business Cycle: Qualitative Analysis and Quantitative Assessment - Softcover

Chiarella, Carl; Flaschel, Peter; Franke, Reiner

Softcover

ISBN 10: 0521369924 ISBN 13: 9780521369923

Publisher: Cambridge University Press, 2011

Synopsis

In a non-market-clearing approach to business cycle theory, this book builds an advanced model of economic activity, inflation and income distribution in a Keynesian spirit. After a qualitative analysis of the basic feedback mechanisms, the authors calibrate the model to the stylized facts of the business cycle in the U.S. economy. This calibrated model is used to carry out various macroeconomic simulation studies as well as a detailed study of the macroeconomic impact of various monetary policy rules. It will appeal both to theorists and to applied and policy economists.

About this title

About the Author:

Carl Chiarella is Professor of Quantitative Finance in the School of Finance and Economics at the University of Technology, Sydney. Peter Flaschel is Professor of Economics at the University of Bielefeld. Reiner Franke is a member of the Institute of Monetary Economics at the Technical University, Vienna.

Review:

Review of the hardback: '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, New School University

Review of the hardback: 'After three diversionary decades, it is high time theorists resumed study of economic adjustments out-of-equilibrium unencumbered by assumptions appropriate for microeconomic equilibrium but invalid at the macroeconomic level. The authors of this book have met this challenge with a carefully composed dynamic analysis of aggregate demand and supply. It incorporates the ingredients of classic works of the mid twentieth century in a new synthesis that refocuses the subject on the market economy's endogenous tendency to fluctuate around a positive growth trend. It will be an essential reference for anyone who wants to understand the behavior of economic aggregates and the policy problems associated with them.' Richard Day, University of Southern California

Review of the hardback: ' ... icy-relevant approach to macroeconomic analysis decisively forward. Their careful synthesis of realistic dynamic elements and their careful analysis of the sensitivity and stability characteristics of their model in a policy context is much to be admired. In this book the Bielefeld School achieves a genuine culmination of great depth and breadth.' J. Barkley Rosser, Jr, James Madison University, from the Foreword

About this edition

• Publisher: Cambridge University Press
• Publication date: 2011
• ISBN 10: 0521369924
• ISBN 13: 9780521369923
• Binding: Paperback
• Edition number: 1
• Number of pages: 550