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Lectures on Behavioral Macroeconomics / Paul De Grauwe.

By: Material type: TextTextPublisher: Princeton, NJ : Princeton University Press, [2012]Copyright date: ©2013Description: 1 online resource (152 p.) : 64 line illus. 4 tablesContent type:
Media type:
Carrier type:
ISBN:
  • 9780691147390
  • 9781400845378
Subject(s): DDC classification:
  • 330.019
Other classification:
  • online - DeGruyter
Online resources: Available additional physical forms:
  • Issued also in print.
Contents:
Frontmatter -- Contents -- Preface -- 1. A Behavioral Macroeconomic Model -- 2. The Transmission of Shocks -- 3. Trade-offs between Output and Inflation Variability -- 4. Flexibility, Animal Spirits, and Stabilization -- 5. Animal Spirits and the Nature of Macroeconomic Shocks -- 6. Stock Prices and Monetary Policy -- 7. Extensions of the Basic Model -- 8. Empirical Issues -- References -- Index
Summary: In mainstream economics, and particularly in New Keynesian macroeconomics, the booms and busts that characterize capitalism arise because of large external shocks. The combination of these shocks and the slow adjustments of wages and prices by rational agents leads to cyclical movements. In this book, Paul De Grauwe argues for a different macroeconomics model--one that works with an internal explanation of the business cycle and factors in agents' limited cognitive abilities. By creating a behavioral model that is not dependent on the prevailing concept of rationality, De Grauwe is better able to explain the fluctuations of economic activity that are an endemic feature of market economies. This new approach illustrates a richer macroeconomic dynamic that provides for a better understanding of fluctuations in output and inflation. De Grauwe shows that the behavioral model is driven by self-fulfilling waves of optimism and pessimism, or animal spirits. Booms and busts in economic activity are therefore natural outcomes of a behavioral model. The author uses this to analyze central issues in monetary policies, such as output stabilization, before extending his investigation into asset markets and more sophisticated forecasting rules. He also examines how well the theoretical predictions of the behavioral model perform when confronted with empirical data. Develops a behavioral macroeconomic model that assumes agents have limited cognitive abilities Shows how booms and busts are characteristic of market economies Explores the larger role of the central bank in the behavioral model Examines the destabilizing aspects of asset markets
Holdings
Item type Current library Call number URL Status Notes Barcode
eBook eBook Biblioteca "Angelicum" Pont. Univ. S.Tommaso d'Aquino Nuvola online online - DeGruyter (Browse shelf(Opens below)) Online access Not for loan (Accesso limitato) Accesso per gli utenti autorizzati / Access for authorized users (dgr)9781400845378

Frontmatter -- Contents -- Preface -- 1. A Behavioral Macroeconomic Model -- 2. The Transmission of Shocks -- 3. Trade-offs between Output and Inflation Variability -- 4. Flexibility, Animal Spirits, and Stabilization -- 5. Animal Spirits and the Nature of Macroeconomic Shocks -- 6. Stock Prices and Monetary Policy -- 7. Extensions of the Basic Model -- 8. Empirical Issues -- References -- Index

restricted access online access with authorization star

http://purl.org/coar/access_right/c_16ec

In mainstream economics, and particularly in New Keynesian macroeconomics, the booms and busts that characterize capitalism arise because of large external shocks. The combination of these shocks and the slow adjustments of wages and prices by rational agents leads to cyclical movements. In this book, Paul De Grauwe argues for a different macroeconomics model--one that works with an internal explanation of the business cycle and factors in agents' limited cognitive abilities. By creating a behavioral model that is not dependent on the prevailing concept of rationality, De Grauwe is better able to explain the fluctuations of economic activity that are an endemic feature of market economies. This new approach illustrates a richer macroeconomic dynamic that provides for a better understanding of fluctuations in output and inflation. De Grauwe shows that the behavioral model is driven by self-fulfilling waves of optimism and pessimism, or animal spirits. Booms and busts in economic activity are therefore natural outcomes of a behavioral model. The author uses this to analyze central issues in monetary policies, such as output stabilization, before extending his investigation into asset markets and more sophisticated forecasting rules. He also examines how well the theoretical predictions of the behavioral model perform when confronted with empirical data. Develops a behavioral macroeconomic model that assumes agents have limited cognitive abilities Shows how booms and busts are characteristic of market economies Explores the larger role of the central bank in the behavioral model Examines the destabilizing aspects of asset markets

Issued also in print.

Mode of access: Internet via World Wide Web.

In English.

Description based on online resource; title from PDF title page (publisher's Web site, viewed 30. Aug 2021)