The World View of New Classical Macroeconomics

Peter Galbács
Additional contact information
Peter Galbács: Budapest Business School

Chapter Chapter 3 in The Theory of New Classical Macroeconomics, 2015, pp 91-147 from Springer

Abstract: Abstract We start conducting thorough research in this chapter. First of all, an attempt is made to find the ultimate sources of the main idea of new classical macroeconomics and mainstream theory as a whole: where does the tradition of freedom come from and what does it really mean for economics? In this context, the importance of the platonic tradition is highlighted again. Later on, analyzing some significant macro models, an insight into the implicit logical order that governs new classical macroeconomics in the background is gained. The central topic is the examination of how new classicals described the mechanisms of the labour market. The theoretical role of trade unions and the new classical ‘style’ of depicting wage bargaining processes are also reviewed below. As we will see, new classicals argued assuming the conclusion (i.e. petitio principii), since the most important assumption (i.e. axiom) in the theory of general macroeconomic equilibrium is the equilibrium itself. The idea of a stable economy evanishes, if we suspend this axiom.

Keywords: Labour Market; Interest Rate; Price Level; Trade Union; Real Wage (search for similar items in EconPapers)
Date: 2015
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:spr:conchp:978-3-319-17578-2_3

Ordering information: This item can be ordered from
http://www.springer.com/9783319175782

DOI: 10.1007/978-3-319-17578-2_3

Access Statistics for this chapter

More chapters in Contributions to Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().