Central banks use macroeconomic models to help frame the issues that they face, to mold their ideas, and to guide them in their decisionmaking. While a wide range of models are available, economists ...

Keynesian economics is a macroeconomic theory that advocates for active government intervention to manage economic cycles, particularly during recessions and depressions. Developed by British ...

The Nobel Memorial Prize in Economic Science was awarded this morning to Finn E. Kydland, a professor of economics at Carnegie Mellon University’s Tepper School of Business and at the University of ...

John Maynard Keynes’ book The General Theory of Interest, Employment, and Money is one of the classic works of the twentieth century. Keynes published his book in 1936 during the midst of the Great ...

We construct a multiagent system (MAS) model of cyclical growth in which aggregate fluctuations result from variations in activity at the firm level. The latter, in turn, result from changes in ...

The November mid-term elections were a citizen referendum for reductions in the size and scope of the federal government. But can federal spending and the budget deficit actually be reduced ...

Continuous albeit oscillating economic growth has become a hallmark of modern economies. Arguing on the basis of theoretical models, some authors maintain that growth is even a systemic requirement of ...

There are very few economists who really buy into Keynesian theory anymore. Instead, the idea of “rational expectations” has taken its place. The difference between the two approaches is essential to ...

Just how important is money? Few would deny that it plays a key role in the economy.­ During the Great Depression of the 1930s, existing economic theory was unable either to explain the causes of the ...

JOHN MAYNARD KEYNES ranks with Adam Smith and Karl Marx among economists in the influence that his views have exerted on the general public. He had the vision to see that economics lacked a general ...