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Macroeconomics and methodology

Article Abstract:

The empirical macroeconomic research is venturing into new areas beyond the conventional econometric tools. The approach is multidisciplinary as it draws heavily from methods of several natural sciences. The method aims to dilute the stringent statistical methodologies of social sciences and to diversify and provide objective conclusions in research. This trend offers hopes of interesting and meaningful results, despite doubts among puritan schools of thought regarding efficacy of macroeconomic research.

Economic research

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The new Keynesian synthesis

Article Abstract:

The new Keynesian macroeconomics provides adequately for widespread involuntary unemployment and fluctuations in aggregate demand which is absent in the neoclassical synthesis and Walrasian school of economic thought. In analysis, new Keynesian thought states that inflation rate is important in determining the degree of price adjustment friction and explains price rigidity theory within the context of nominal disturbances.

Models, Inflation (Finance), Inflation (Economics)

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Keynsian macroeconomics without the LM curve

Article Abstract:

The weaknesses of the IS-LM model are beginning to be recognized. An alternative model is presented. This model assumes that the central bank follows a real interest rate rule.

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