From theory to practice in macroeconomic models: post-Keynesian eclecticism

Ignazio Visco

Abstract


This paper re-examines and discusses the contribution of Franco Modigliani in the construction of macroeconomic models used for prediction and for the development of economic policies. As noted by Paul Samuelson, the theoretical work done by Modigliani was instrumental in the development of the overall framework within which it is matured the " post-Keynesian eclecticism " in the second half of the twentieth century. In the transition from theory to practice are considered two aspects of the work of Modigliani: 1) the systemic approach that focuses on the relationship between the short and long term, and 2) the specific reference to the transmission mechanism of monetary policy in the use of macroeconomic model for policies of economic stabilization. Discuss, finally, briefly what remains today of this contribution, also in connection with some recent proposals on the construction of macroeconomic models.

 

 

 

JEL Codes:  B22; C5; E12; E52
Keywords: Modigliani, stabilization policy, post-keynesian eclectism


Keywords


Macroeconomic Model, Macroeconomics, Post Keynesian, Supply

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References


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