Keynes, the dynamic stochastic general equilibrium model, and the business cycle

Chiarella, C; Flaschel, P; Semmler, W

Keynes, the dynamic stochastic general equilibrium model, and the business cycle

Chiarella, C Flaschel, P Semmler, W

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Publisher:: Routledge
Publication Type:: Chapter
Citation:: Keynes and Modern Economics, 2013, 1st, pp. 85 - 116
Issue Date:: 2013-01

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Field	Value	Language
dc.contributor.author	Chiarella, C	en_US
dc.contributor.author	Flaschel, P	en_US
dc.contributor.author	Semmler, W	en_US
dc.contributor.editor	Ryuzo Kuroki	en_US
dc.date.issued	2013-01	en_US
dc.identifier.citation	Keynes and Modern Economics, 2013, 1st, pp. 85 - 116	en_US
dc.identifier.isbn	978-0-415-46977-7	en_US
dc.identifier.uri	http://hdl.handle.net/10453/26133
dc.description.abstract	Keynes in his General Theory has extensively responded to and criticized the classical economics that was dominant at his time. This paper elaborates on how Keynes would have responded to the dynamic stochastic general equilibrium (DSGE) model, or its more popular version, the real business cycle model, that appears to dominate macroeconomics today. Recently also many New Keynesians have employed this new paradigm in macroeconomics. We will discuss some major macroeconomic issues and show how differences in traditional Keynesian and the DSGE models may arise.4 We will also pursue a further more detailed study of why certain Keynesian ideas can usefully be applied to modem macroeconomics. This will help to resolve some important puzzles of modem macroeconomic theory.	en_US
dc.publisher	Routledge	en_US
dc.relation.ispartof	Keynes and Modern Economics	en_US
dc.title	Keynes, the dynamic stochastic general equilibrium model, and the business cycle	en_US
dc.type	Chapter
utslib.location	New York, USA	en_US
utslib.for	1401 Economic Theory	en_US
utslib.citation.edition	1st	en_US
pubs.embargo.period	Not known	en_US
pubs.organisational-group	/University of Technology Sydney
pubs.organisational-group	/University of Technology Sydney/Faculty of Business
utslib.copyright.status	closed_access
pubs.consider-herdc	true	en_US
pubs.edition	1st	en_US
pubs.place-of-publication	New York, USA	en_US

Abstract:

Keynes in his General Theory has extensively responded to and criticized the classical economics that was dominant at his time. This paper elaborates on how Keynes would have responded to the dynamic stochastic general equilibrium (DSGE) model, or its more popular version, the real business cycle model, that appears to dominate macroeconomics today. Recently also many New Keynesians have employed this new paradigm in macroeconomics. We will discuss some major macroeconomic issues and show how differences in traditional Keynesian and the DSGE models may arise.4 We will also pursue a further more detailed study of why certain Keynesian ideas can usefully be applied to modem macroeconomics. This will help to resolve some important puzzles of modem macroeconomic theory.

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http://hdl.handle.net/10453/26133