New consensus macroeconomics and inflation targeting

Keynesian critique

Datos Bibliográficos

ID19356611
AutoresPhilip Arestis (0000-0001-8729-4846, University of Cambridge), Mark Sawyer (0000-0002-4565-5276, University of Leeds), Malcolm Sawyer
Año2008
Volumen17
Númerospe
Páginas629-653
Fecha de publicación2008-12-01
Peer ReviewedSí
Open AccessSí
TipoARTICLE
RevistaEconomia e Sociedade (JOURNAL)
Identificadores de la revistaISSN: 0104-0618 • E-ISSN: 1982-3533
EditorialFapUNIFESP (SciELO) (PUBLISHER)
DOI10.1590/s0104-06182008000400006
OpenAlexW2161368680
SCIELO_PIDS0104-06182008000400006
IdiomaEN
Citas recibidas14
Referencias citadas23

A number of countries have adopted Inflation Targeting (IT) since the early 1990s in an attempt to reduce inflation to low levels. Since then, IT has been praised by most literature as a superior framework of monetary policy. We suggest that IT is a major policy prescription closely associated with the New Consensus Macroeconomics (NCM). This paper concentrates mainly on the IT aspects of the NCM. We address the theoretical foundations of IT. This is followed by an assessment of its theoretical foundations, where a number of aspects are discussed. We then turn our attention to an assessment of the empirical work on IT, where we distinguish the work that has been done utilising structural macroeconomic models, and work based in single equation techniques. The IT theoretical framework and the available empirical evidence do not appear to support the views of the proponents

Economics · Inflation (cosmology) · Inflation targeting · Keynesian economics · Macroeconomics · Monetary policy · New Keynesian economics · Post-Keynesian economics · Economic Theory and Policy · Global Financial Crisis and Policies · Monetary Policy and Economic Impact