Clinical macroeconomics and differential diagnosis

Jeffrey D Sachs

Oxford Review of Economic Policy, 2020, vol. 36, issue 3, 712-723

Abstract: The 2008 financial crisis laid bare several deficiencies of mainstream macroeconomic analysis, most importantly the failure to engage in systematic differential diagnosis. Mainstream macroeconomics, following Keynes, has unduly privileged aggregate demand shocks in both analysis and policy prescription, whereas actual macroeconomic crises emerge from a much more diverse set of causes: demand, supply, panic, coordination failures, and, of course, even pandemic disease. The systematic application of differential diagnosis of underlying sources of shocks would improve system resilience and policy responses.

Keywords: macroeconomic policy; stabilization; economic methodology (search for similar items in EconPapers)
Date: 2020
References: Add references at CitEc
Citations:

Downloads: (external link)
http://hdl.handle.net/10.1093/oxrep/graa039 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oup:oxford:v:36:y:2020:i:3:p:712-723.

Access Statistics for this article

Oxford Review of Economic Policy is currently edited by Christopher Adam

More articles in Oxford Review of Economic Policy from Oxford University Press and Oxford Review of Economic Policy Limited
Bibliographic data for series maintained by Oxford University Press ().