Monetary Macrodynamics: 1st Edition (Paperback) book cover

Monetary Macrodynamics

1st Edition

By Toichiro Asada, Carl Chiarella, Peter Flaschel, Reiner Franke

Routledge

448 pages | 57 B/W Illus.

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Description

This book investigates the interaction of effective goods demand with the wage-price spiral, and the impact of monetary policy on financial and the real markets from a Keynesian perspective. Endogenous business fluctuations are studied in the context of long-run distributive cycles in an advanced, rigorously formulated and quantitative setup. The material is developed by way of self-contained chapters on three levels of generality, an advanced textbook level, a research-oriented applied level and on a third level that shows how the interaction of real with financial markets has to be modelled from a truly integrative Keynesian perspective.

Monetary Macrodynamics shows that the balanced growth path of a capitalist economy is unlikely to be attracting and that the cumulative forces that surround it are controlled in the large by changes in the behavioural factors that drive the wage-price spiral and the financial markets. Such behavioural changes can in fact be observed in actual economies in the interaction of demand-driven business fluctuations with supply-driven wage and price dynamics as they originate from the conflict over income distribution between capital and labour.

The book is a detailed critique of US mainstream macroeconomics and uses rigorous dynamic macro-models of a descriptive and applicable nature. It will be of particular relevance to postgraduate students and researchers interested in disequilibrium processes, real wage feedback channels, financial markets and portfolio choice, financial accelerator mechanisms and monetary policy.

Reviews

'Monetary Macrodynamics is an elegant monograph, written in a thoroughly modern vein, balanced in its deft use of deep nonlinear dynamics, clear numerical exercises, innovative policy visions, all of it based on solid monetary macroeconomic theories. The welcome inclusion of accessibility to the software used in the interesting numerical exercises adds to the book’s considerable pedagogical attractiveness.

The emphasis on the disequilibrium, non-maximum, dynamics of a monetary economy, including an embryonic analysis of real-financial market interactions, makes this a most attractive book from which to teach interesting graduate level monetary macroeconomics, in tune with the crises of the times.

Monetary Macrodynamics, together with its intellectual ‘cousins’, Dynamic Macroeconomics and The Dynamics of Keynesian Monetary Growth, all three from the same fertile and imaginative fountain, is a perfect trilogy and a fresh antidote to the arid, antiseptic, ad hockeries of orthodox teaching material emphasising variants of DSGE modelling.'

- Vela Velupillai, Professor of Economics, University of Trento, Italy.

Table of Contents

Part I: Conventional AD-AS Modeling 1. Models of Growth, Inflation, and the Real-Financial Market Interaction 2 Neglected Textbook Results: IS-LM-PC Inflation Dynamics 3. Strange AS-AD Outcomes: Rational Expectations Inflation Theory 4. Taking Stock: Keynesian Theories of Aggregate Demand and Supply (by Amitava Dutt and Peter Skott) Part II: Matured Keynesian AD-AS Modeling 5. Expectations and the Real-Wage Feedback Channel. Two Competing Baseline Approaches 6. Beyond Neoclassical Syntheses: A Baseline DAS-AD Model 7. Reformulation and Estimation of the Baseline Model 8. Applied DAD-DAS Modelling: Elaboration and Calibration Part III: Outlook: Real-Financial Markets Interaction from a Keynesian Perspective 9. Keynes-Metzler-Goodwin Growth Dynamics and Tobinian Portfolio Choice

About the Authors

Toichiro Asada is a Professor in the Faculty of Economics at Chuo University, Tokyo, Japan. Carl Chiarella is Professor of Quantitative Finance at the University of Technology, Sydney. Peter Flaschel is Professor Emeritus at Bielefeld University, Germany. Reiner Franke is a Lecturer in Economics at Kiel University, Germany.

About the Series

Routledge Frontiers of Political Economy

In recent years, there has been widespread criticism of mainstream economics. This has taken many forms, from methodological critiques of its excessive formalism, to concern about its failure to connect with many of the most pressing social issues. This series provides a forum for research which is developing alternative forms of economic analysis. Reclaiming the traditional 'political economy' title, it refrains from emphasising any single school of thought, but instead attempts to foster greater diversity within economics.

Learn more…

Subject Categories

BISAC Subject Codes/Headings:
BUS000000
BUSINESS & ECONOMICS / General
BUS039000
BUSINESS & ECONOMICS / Economics / Macroeconomics
BUS045000
BUSINESS & ECONOMICS / Money & Monetary Policy
BUS069000
BUSINESS & ECONOMICS / Economics / General