The Structure of Keynesian Macrodynamics: A Framework for Future Research
|Author(s):||Carl Chiarella, Peter Flaschel & Peiyuan Zhu|
|Date of publication:||May 2003|
|Working paper number:||129|
This paper integrates a number of traditional but partial insights of Keynesian macrotheory into a consistent whole, with all budget restrictions of all sectors carefully specified, a complete set of stock-flow interactions and the construction of a unique interior steady state. We provide detailed representations of the many feedback chains and their interaction that are present in the model. The paper provides proper foundations of a detailed analysis of the important macroeconomi features that characterize modern large economies.
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