Rethinking Macroeconomics in Light of the Great Crisis

Victor Beker

Chapter Chapter 10 in Modern Financial Crises, 2016, pp 201-219 from Springer

Abstract: Abstract The recent financial crisis showed that mainstream economics was unprepared to deal with it. There was a widespread belief in the self-correcting power of markets. Most economists not only did not foresee the depth of the current crisis, they did not even consider it possible. The crisis has damaged the reputation of economics, particularly of macroeconomics. This chapter reminds readers of the origin of macroeconomics as a branch of economics. A claim is made to reevaluate Keynes’ original contribution to economic analysis and return to Keynes’ thoughts, which have been ignored or misstated during the past 40 years. The chapter concludes pointing out the need to rebuild macroeconomics as a discipline in which aggregate quantities play an essential role, while prices have only second-order effects.

Keywords: Macroeconomics; Keynes; Minsky; Lucas; Inflation; Wealth effect; Price asymmetry (search for similar items in EconPapers)
Date: 2016
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:fimchp:978-3-319-20991-3_10

Ordering information: This item can be ordered from
http://www.springer.com/9783319209913

DOI: 10.1007/978-3-319-20991-3_10

Access Statistics for this chapter

More chapters in Financial and Monetary Policy Studies from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().