The New Consensus on Monetary Policy and its Post-Keynesian Critique

The New Consensus on Monetary Policy and its Post-Keynesian Critique

This paper seeks to look at the underlying framework of the New Consensus models, providing a Post-Keynesian critique. In the light of this critique, the model is reformulated, with its basic structure intact, but with alternative post-Keynesian specifications of the Phillips curve being considered....

Full description

Saved in:
Bibliographic Details
Published in:Review of political economy Vol. 19; no. 3; pp. 387 - 404
Main Authors: Kriesler, Peter, Lavoie, Marc
Format: Journal Article
Language:English
Published: London Routledge 01-07-2007
Taylor and Francis Journals
Taylor & Francis Ltd
Series:Review of Political Economy
Subjects:
Criticism
Economic models
Economic Theories
Inflation
Inflation rates
Inflation targeting
Keynesian Economics
Monetary Policy
Output rate
Phillips curve
Policy analysis
Post-Keynesian economics
Studies
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary:This paper seeks to look at the underlying framework of the New Consensus models, providing a Post-Keynesian critique. In the light of this critique, the model is reformulated, with its basic structure intact, but with alternative post-Keynesian specifications of the Phillips curve being considered. It is shown that such modifications, either allow a long run trade-off between the rate of inflation and the level of output, the rate of capacity utilization and, therefore, unemployment, or, in our preferred specification, changes in output and capacity have no implications for inflation over a large range of capacity utilization.
Bibliography:ObjectType-Article-2
SourceType-Scholarly Journals-1
ObjectType-Feature-1
content type line 23
ObjectType-Article-1
ObjectType-Feature-2
ISSN:0953-8259
1465-3982
DOI:10.1080/09538250701453097