The Debate Over Stabilization Policy (Raffaele Mattioli Lectures) [Hardcover]

Franco Modigliani (Author)

Book Description

Publication Date: September 26, 1986 | Series: Raffaele Mattioli Lectures

This 1986 book examines some of the main issues that have characterized macroeconomics: the debate between 'monetarists' and 'Keynesians'; the response to demand shocks and supply shocks, by which the monetary authorities control aggregrate nominal income and the use and relevance of the money supply as a target; and the consumption function and the determinants of wealth. It shows that Keynesian stabilization policies succeeded in reducing instability due to demand shocks dramatically, but that no aggregrate demand policy can stabilize both price and employment simultaneously after a supply shock. However, by assigning an overall 'social cost' to (excess) unemployment and (initially) unexpected inflation, an optimism path can be derived. In looking at the consumption function and determinants of wealth the empirical evidence is shown to be most consistent with the life-cycle hypothesis. A concluding section is devoted to the impact on private and national society of the 'social security revolution'.

Editorial Reviews

Book Description

This 1986 book examines some of the main issues that have characterised macroeconomics: the debate between 'monetarists' and 'Keynesians'; the response to demand and supply shocks, by which the monetary authorities control aggregrate nominal income; and the consumption function and the determinants of wealth.

Product Details

• Hardcover: 284 pages
• Publisher: Cambridge University Press (September 26, 1986)
• Language: English
• ISBN-10: 0521267900
• ISBN-13: 978-0521267908
• Product Dimensions: 9.6 x 6.5 x 1.2 inches
• Shipping Weight: 2.1 pounds
• Amazon Best Sellers Rank: #4,443,122 in Books (See Top 100 in Books)

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