Finance Discipline Group
UTS Business School
University of Technology, Sydney

Working Paper Series

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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