David Bourget (Western Ontario)
David Chalmers (ANU, NYU)
Rafael De Clercq
Ezio Di Nucci
Jack Alan Reynolds
Learn more about PhilPapers
Journal of Economic Methodology 6 (2):171-198 (1999)
Both academic thinking about monetary economics and the practice of monetary policy have changed dramatically since 1971?3, when the rational expectations revolution was beginning and the Bretton Woods system was crumbling. The present paper considers whether the various changes that have taken place were influenced primarily by economic theory or by empirical evidence - or by a combination of the two. Monetary economics, like macroeconomics more generally, passed through the rational expectations period into one dominated by real business cycle (RBC) analysis, which denies monetary policy any significant role in the generation or the dampening of cyclical fluctuations in crucial real variables. Recently, however, the analysis of monetary policy by both academic and central bank economists has been increasingly conducted in small quantitative structural models that combine the optimizing aspect of RBC analysis with various assumptions implying real effects of monetary policy actions due to slow adjustment of nominal prices. These models therefore attempt to combine rather strict theoretical discipline with features that permit an enhanced degree of empirical veracity. It is apparent, accordingly, that both theoretical and empirical analysis have been essential in bringing about alterations in monetary policy analysis between 1971?3 and 1998.
|Keywords||No keywords specified (fix it)|
|Categories||categorize this paper)|
Setup an account with your affiliations in order to access resources via your University's proxy server
Configure custom proxy (use this if your affiliation does not provide a proxy)
|Through your library|
References found in this work BETA
No references found.
Citations of this work BETA
Roger Backhouse & Andrea Salanti (1999). The Methodology of Macroeconomics. Journal of Economic Methodology 6 (2):159-169.
Similar books and articles
James M. Buchanan & David I. Fand (1992). Monetary Malpractice: Intent, Impotence, or Incompetence? Critical Review 6 (4):457-469.
Dick Bryan (1992). International Accumulation and the Contradictions of National Monetary Policy. Science and Society 56 (3):324 - 352.
Maria Pia Paganelli (2009). David Hume on Monetary Policy: A Retrospective Approach. Journal of Scottish Philosophy 7 (1):65-85.
Stan du Plessis (2010). Implications for Models in Monetary Policy. Journal of Economic Methodology 17 (4):429-444.
Jan Toporowski (2007). On Rhetoric and Being Realistic About the Monetary Policy of Developing Countries. Journal of Economic Methodology 14 (1):47-55.
George Selgin (1989). More Revolutionary Than Thou. Critical Review 3 (3-4):435-443.
Thomas Ponchie, What Framework of Rules is Required to Deliver Economic Policy Coordination Within the Economic and Monetary Union?
Daniel Read (2005). Monetary Incentives, What Are They Good For? Journal of Economic Methodology 12 (2):265-276.
Maria Pia Paganelli, Endogenous Money and David Hume. Eastern Economic Journal.
Mark S. Copelovitch & David Andrew Singer, Financial Regulation, Monetary Policy, and Inflation in the Industrialized World.
Mary S. Morgan (1997). The Technology of Analogical Models: Irving Fisher's Monetary Worlds. Philosophy of Science 64 (4):314.
Robert J. McEwen (1950). Monetary Theory and Fiscal Policy. Thought: A Journal of Philosophy 25 (2):338-339.
Added to index2012-02-20
Total downloads5 ( #497,770 of 1,792,018 )
Recent downloads (6 months)1 ( #462,852 of 1,792,018 )
How can I increase my downloads?