Working Paper: NBER ID: w2473
Authors: Stanley Fischer
Abstract: This paper surveys much of modern macroeconomics. The focus is on the core macroeconomic issue, of the reasons for macroeconomic fluctuations and sometimes persistent unemployment. To provide continuity and perspective on how promising research leads of the past turned out, the paper starts by summarizing developments since the Barro-Fischer (1976) survey of monetary economics. Sections III and IV develop in some detail the current representations of the two basic approaches to macroeconomics: the equilibrium business cycle approach and new Keynesianism respectively. Brief sketches of developments in several areas of research in Section V broaden the coverage. Section VI contains concluding comments.
Keywords: Macroeconomics; Economic Fluctuations; Unemployment
JEL Codes: E30; E32
Edges that are evidenced by causal inference methods are in orange, and the rest are in light blue.
| Cause | Effect |
|---|---|
| Coordination failures (P11) | excessive unemployment (J64) |
| Coordination failures (P11) | fluctuations in real activity (E32) |
| Government interventions (E65) | negative economic outcomes (F69) |
| Monetary policy changes (E52) | real economic activity (E39) |
| Inflation (E31) | capital accumulation (E22) |
| Monetary shocks (E39) | output (C67) |