Macroeconomics for the Twenty-First Century

Neva Goodwin

No 03-02, GDAE Working Papers from GDAE, Tufts University

Abstract: Macroeconomic theory has not yet come to grips with major issues of the twenty- first century. These include environmental pressures, demographic changes, the size, structure, and power of multinational corporations, and growing economic inequality. Existing macroeconomic theory also does not deal adequately with normative issues, focuses excessively on market solutions, assumes that a single macroeconomic theory can apply to all situations, and ignores issues concerning the scale of economic activity and the speed of change.

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