Theoretical and Applied Economics
No. 9 / 2007 (514)
Two Different Views on Monetary Policy Impact: The New Consensus and Post-Keynesian Economics
Academia de Studii Economice, Bucuresti
Abstract. The objective of this study is to make a synthesis of the differences between two new macroeconomic views. A New Consensus has arisen among neoclassical and New-Keynesian economists, such as Romer, Taylor and Walsh. This new view seeks to redefine the application of monetary policy by re-specifying the most appropriate monetary rule, which is used for inflation targeting. The framework of the monetary policy impact requires the usage of a expectations augmented Phillips curve, characterized through the lack of trade-off inflation-unemployment in the long-run. Post-keynesian macroeconomic critical, whose promoters are Arestis, Lavoie and Satterfield, argues that for most of the production levels obtained output change has no effect on inflation. This is a re-formulation of the Keynesian aggregate supply curve, which is entirely horizontal.
Contents
Overtime-whereto?
Disciplinary Accountability in the Financial Area
Assessing Discount Rate for a Project Financed Entirely with Equity Capital
The Capital Market in the Context of the Integration within the European Union
Aspects Related to Researching Consumer Preferences
Two Different Views on Monetary Policy Impact: The New Consensus and Post-Keynesian Economics
Systems of Enterprise Governance and their Effects on the Economic Performance
Evaluation of the Risk and of the Opportunities in Launching the New Banking Services