How macroeconomists lost control of stabilization policy
Towards dark ages
Bibliographic Data
| ID | 21604651 |
|---|---|
| Authors | Jean‐Bernard Chatelain (0000-0001-7768-9369, St. Bernard Parish School District, corresponding author), Kirsten Ralf (0000-0002-8030-1035, Moscow State University of Technologies and Management named after K.G. Razumovskiy, corresponding author) |
| Year | 2020 |
| Volume | 27 |
| Issue | 6 |
| Pages | 938-982 |
| Publication date | 2020-11-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | European Journal of the History of Economic Thought (JOURNAL) |
| Journal identifiers | ISSN: 0967-2567 • E-ISSN: 1469-5936 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/09672567.2020.1817119 |
| OpenAlex | W3089601287 |
| Language | EN |
| Citations received | 4 |
| References cited | 79 |
This paper is a study of the history of the transplant of mathematical tools using negative feedback for macroeconomic stabilisation policy from 1948 to 1975 and the subsequent break of the use of control for stabilisation policy which occurred from 1975 to 1993. New-classical macroeconomists selected a subset of the tools of control that favoured their support of rules against discretionary stabilisation policy. The Lucas critique and Kydland and Prescott’s time-inconsistency were over-statements that led to the “dark ages” of the prevalence of the stabilisation-policy-ineffectiveness idea. These over-statements were later revised following the success of the Taylor rule
Dark Ages · Dynamic inconsistency · Lucas critique · Stabilization policy · Taylor rule · Economic Theory and Institutions · Economic Theory and Policy · Monetary Policy and Economic Impact
Macroeconomic Priorities
Discretion versus policy rules in practice
The Solution of Linear Difference Models under Rational Expectations
Rules, discretion and reputation in a model of monetary policy
Monetary Policy Rules and Macroeconomic Stability
Time to Build and Aggregate Fluctuations
Econometric policy evaluation
The Optimal Degree of Commitment to an Intermediate Monetary Target
A New Approach to Linear Filtering and Prediction Problems
Macroeconomics and Reality
Countercyclical versus Procyclical Taylor Principles
Kydland and Prescott's Nobel Prize
Imperfect Credibility versus No Credibility of Optimal Monetary Policy
Rules versus Authorities in Monetary Policy
Rules Rather than Discretion
A Positive Theory of Monetary Policy in a Natural Rate Model
An Equilibrium Model of the Business Cycle
Stabilization Theory and Policy
A Simple Model of Employment, Money and Prices in a Growing Economy
A Contribution to the Theory of Taxation
Stabilisation Policy in a Closed Economy
The Mechanism of Economic Systems--An Approach to the Problems of Economic Stabilisation from the Point of View of Control-System Engineering
Stabilisation Policy and the Time-Forms of Lagged Responses
A Mathematical Theory of Saving
The Superiority of Contingent Rules Over Fixed Rules in Models with Rational Expectations
A Feasible and Objective Concept of Optimal Monetary Policy
Enginering Dynamic Economics
The Engineering Tools That Shaped the Rational Expectations Revolution
Reacting to the Lucas Critique
Adam Smith and the Concept of the Feedback System
| Unique citing works | 4 |
|---|---|
| Citations per year | 0,5 |
| Citation span | 2018 - 2021 (4) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 4 |