Reconciling Hayek's and Keynes' views of recessions

Paul Beaudry, Dana Galizia, Franck Portier, 1 June 2014

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There remains considerable debate regarding the causes and consequences of recessions. Two views that are often presented as opposing, and which created controversy in the recent recession and its aftermath, are:

Topics: Macroeconomic policy
Tags: Hayekian recession, Keynesianism, recession

The return of schools of thought in macroeconomics

Simon Wren-Lewis, 24 February 2012

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Topics: Frontiers of economic research, Macroeconomic policy
Tags: freshwater, Keynesianism, New Classical economics, saltwater, Schools of thought

Fiscal policy: What does ‘Keynesian’ mean?

Jonathan Portes, 7 February 2012

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I joined the UK Treasury in 1987 and subsequently went to Princeton, where I studied with Rogoff and Campbell. Eventually, I ended up in the Cabinet Office, advising the Prime Minister, on the eve of the 2008 crisis. At no point during this period, however, did I think of myself as a ‘Keynesian’. Nor was it really a meaningful question.

Topics: Macroeconomic policy, Politics and economics
Tags: Keynesianism, UK

Europe’s new fiscal compact treaty does not outlaw Keynesianism and is a stepping stone to more progress

Jacob Funk Kirkegaard, 6 February 2012

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In record time since the idea was first mulled over at the EU Council on 9 December 2011, Europe has compiled a new Fiscal Compact Treaty.1 Angela Merkel on the night of its final approval on 30 January called it a “masterpiece”. It is perhaps unsurprising, though, that not everyone agrees.

Topics: EU policies
Tags: Eurozone crisis, Fiscal Compact Treaty, Germany, Keynesianism, Stability and Growth Pact

Germany spending is not the cure

Alberto Alesina, Roberto Perotti, 17 June 2010

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A widely held view in Europe goes more or less as follows. After the shock of reunification, Germany has sought to enhance competitiveness through a variety of means. The policy was remarkably successful, turning the “sick man of Europe” into a highly competitive economy. One implication, however, was an imbalance with the rest of Europe.

Topics: EU institutions
Tags: Eurozone rescue, fiscal austerity, Germany, Keynesianism

Farewell to the natural rate: Why unemployment persists

Roger E. A. Farmer , 6 January 2010

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Is the new-Keynesian approach (Clarida, Galí, and Gertler 2000) right? Here I suggest that US data on inflation, unemployment, and vacancies is best viewed through the lens of old-Keynesian theory.

Topics: Labour markets
Tags: Beveridge Curve, Keynesianism, unemployment

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