In debate: the method of general dynamic equilibrium

La méthode de l’équilibre général dynamique en débat

Redouane Taouil ()
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Redouane Taouil: CREG - Centre de recherche en économie de Grenoble - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]

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Abstract: The 2008 crisis shook up the consensus that formed around the new synthesis which asserted itself, during the past decade, as a tradition of research centered around the analysis of nominal rigidities, money market imperfections and monetary policy within a dynamic and stochastic general equilibrium approach. It so gave rise to questionings emphasizing that the macroeconomics is in crisis due to empirical weaknesses, with regards to the hypotheses of rational expectations and financial markets efficiency. This thesis embeds two limitations: besides the fact that empirical control is not recognized as a decisive criterion in the evaluation of the relevance of macroeconomic theories, it is also counterproductive as it leads to widening the scope of the new synthesis through the integration of financial frictions. In such a context, the post-walrasian project, which main characteristic is the emphasis on observational data, does not by nature contribute to a change of paradigm.

Keywords: new synthesis; DSGE models; crisis; nueva síntesis; modelos DSGE; la nouvelle synthèse; modèles DSGE; crise (search for similar items in EconPapers)
Date: 2019
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Published in Energeia, 2019, 6 (1), pp.79-98

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-02878503

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