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Monday, September 11, 2017

Behavioural New-Keynesian Macroeconomics

Roger Farmer:

Behavioural New-Keynesian Macroeconomics: This is my penultimate post featuring research presented at the conference on Applications of Behavioural Economics and Multiple Equilibrium Models to Macroeconomics Policy Conference held at the Bank of England on July 3rd and 4th 2017.
Today’s post features two single authored papers: one by Xavier Gabaix and one by Michael Woodford. ...
Xavier has an exciting research agenda that combines ideas from psychology and economics. He is a prolific author who has worked on topics in finance, macroeconomics and behavioural economics.
In Xavier’s own words, “economists usually assume that people know how the economy works. This is a bit strange since economists don’t even know how the economy works”. ...
At the conference Xavier presented a paper related to this research agenda, “A Behavioral New Keynesian Model”...
Michael Woodford was one of our two keynote speakers...  Michael is one of the founders, and a long-time proponent, of New-Keynesian economics. ...
Michael addresses the question of forward guidance and specifically how central bank announcements will affect the economy when people are forward-looking but not infinitely forward looking. His goal, like Xavier’s, is to fix New Keynesian economics. ...

    Posted by on Monday, September 11, 2017 at 09:45 AM in Academic Papers, Economics | Permalink  Comments (19)


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