Introduction

Giuseppe Chirichiello
Additional contact information
Giuseppe Chirichiello: University ‘La Sapienza’

A chapter in Macroeconomic Models and Controversies, 1994, pp 1-3 from Palgrave Macmillan

Abstract: Abstract One of the most important events in macroeconomics in the last fifteen years has been the ascent of new classical macroeconomics. It has posed an interesting theoretical question, for one wonders how Keynesian theory, which was the core of macroeconomics, could have been supplanted by a theory which reaches diametrically opposite conclusions and advocates completely different policies. With the advancement of new classical macroeconomics, due especially to the work of R. Lucas, a new methodology which adopts a specific model for each problem was also established. There is now little hesitation about accepting a different model for the analysis of each phenomenon, so there are many apparently different models. Nevertheless there seem to be two features common to many of them. The first is the notion that in describing modern decentralised economies it is very useful to assume perfect competition. The second is the acceptance of an extreme form of positivism. On the basis of the Chicago-school models adopted over the past forty years, we can say that this positivism regards both the methodology adopted and the assumptions made as irrelevant as long as the theory fits the data or reproduces stylised facts of economic systems.

Keywords: Stylise Fact; Phillips Curve; Perfect Competition; Monetarist Model; Keynesian Model (search for similar items in EconPapers)
Date: 1994
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-0-230-37106-4_1

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230371064

DOI: 10.1057/9780230371064_1

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().