Reconstructing Keynesian Macroeconomics Volume 3: Macroeconomic Activity, Banking and Financial Markets, 1st Edition (Hardback) book cover

Reconstructing Keynesian Macroeconomics Volume 3

Macroeconomic Activity, Banking and Financial Markets, 1st Edition

By Carl Chiarella, Peter Flaschel, Willi Semmler

Routledge

360 pages | 67 B/W Illus.

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Description

This book represents the third of three volumes offering a complete reinterpretation and restructuring of Keynesian macroeconomics and a detailed investigation of the disequilibrium adjustment processes characterizing the financial, the goods and the labour markets and their interaction.

This book offers a full treatment of the interlinkages between the real and the financial markets, including an analysis of banking, credit, and endogenous money and asset markets. It remains critical of quite frequently used conventional macro models that have dropped the tradition of studying the macroeconomic feedback channels, well-known in the history of macroeconomics. Those feedback mechanisms are known to have the potential for instabilities with respect to real markets, price dynamics and financial markets. In this volume a particular emphasis is given to the financial-real interaction.

The research in this book with its focus on Keynesian propagation mechanisms provides a unique alternative to the black-box shock-absorber approaches that dominate modern macroeconomics. The main conclusion of the work is that policy makers need to reconsider Keynesian ideas, but in the modern form in which they are expressed in this volume.

Reconstructing Keynesian Macroeconomics will be of interest to students and researchers who want to look at alternatives to the mainstream macrodynamics that emerged from the Monetarist critique of Keynesianism. This book will also engage central bankers and macroeconomic policy makers.

Reviews

"These three are nothing short of a triumph. The authors have done what many economists have failed to do: offer a critical analysis of mainstream macro building and offer their own, thought-provoking and original ideas. These three books will appeal to all graduate students and academics alike who are looking for strong technical analysis rooted in a deep understanding of macroeconomic theory."

Louis-Philippe Rochon

Associate Professor, Laurentian University

Director, International Economic Policy Institute

Table of Contents

Part I Housing Market, Household Debt and Boom-Bust Cycles 1. Boom-Bust Cycles in the Housing Market 2. Income Distribution, Credit Market and Household Debt Part II Banking Sector and Macro Dynamics 3. The Vulnerability of Traditional Banking 4. The Perils of Broad Banking and Narrow Banking 5. The Instability of Investment Banking Part III Credit Bubbles, Asset Prices and Monetary Policy 6. Tobin’s q, Investment and the Credit Market 7. Liquidity, Output and Regime Changes 8. Credit Bubble, Default Risk and Asset Pricing 9. Asset Price Volatility and Monetary Policy Rules 10. Financial Stress Regimes and Monetary Policy Part IV Stabilizing the Financial-Real Interaction 11. Taming Financial Market Driven Economic Fluctuations 12. Stabilizing a Financially Unstable Economy Part V Higher Dimensional Macrodynamics 13. Higher Dimensional Macro Structure 14. Higher Dimensional Macro Dynamics 15. Numerical Explorations of the Dynamics 16. Uncertain Outcomes in High Dimensional Macro Models and Relevance of Policies

About the Authors

Carl Chiarella is Professor at the School of Finance and Economics, University of Technology Sydney, Sydney, Australia.

Peter Flaschel is Professor at the Department of Business Administration and Economics, Bielefeld University, Germany.

Willi Semmler is the Henry Arnhold Professor of Economics at theDepartment of Economics, New School for Social Research, New York, USA.

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.

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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
BUS069030
BUSINESS & ECONOMICS / Economics / Theory