Aur�lien Goutsmedt
Reacting to the Lucas Critique: The Keynesians' pragmatic replies
Goutsmedt, Aur�lien; Pinzon-Fuchs, Erich; Renault, Matthieu; Sergi, Francesco
Authors
Abstract
We illustrate how the Lucas Critique was called into question by Keynesian macroeconomists during the 1970s and 1980s. Our claim is that Keynesians' reactions were carried out from a pragmatic approach, which addressed the empirical and practical relevance of the Critique.
Keynesians rejected the Critique as a general principle with no relevance for concrete macroeconometric practice; their rejection relied on econometric investigations and contextual analysis of the U.S. 1970s stagflation and its aftermath. Keynesians argued that the parameters of their models remained stable across this period, and that simpler ways to account for stagflation (such as the introduction of supply shocks into their models) provided
better alternatives to improve policy evaluation.
Citation
Goutsmedt, A., Pinzon-Fuchs, E., Renault, M., & Sergi, F. (2017). Reacting to the Lucas Critique: The Keynesians' pragmatic replies. Paris, France
Publication Date | Oct 30, 2017 |
---|---|
Deposit Date | Sep 21, 2018 |
Publicly Available Date | Oct 16, 2018 |
Peer Reviewed | Not Peer Reviewed |
DOI | https://doi.org/10.2139/ssrn.3060571 |
Keywords | history of macroeconomics, Lucas Critique, Keynesian macroeconometrics, stagflation |
Public URL | https://uwe-repository.worktribe.com/output/879478 |
Related Public URLs | https://halshs.archives-ouvertes.fr/halshs-01625169 |
Files
SSRN-id3060571.pdf
(1.4 Mb)
PDF
You might also like
Reacting to the Lucas critique: The Keynesians’ replies
(2019)
Journal Article
The standard narrative on history of macroeconomics: Central banks and DSGE models
(2017)
Presentation / Conference
A review (and a comment) on Michel De Vroey's history of macroeconomics
(2016)
Journal Article
Rebuilding "Time to Build": A history of the real business cycle models
(2015)
Journal Article
Downloadable Citations
About UWE Bristol Research Repository
Administrator e-mail: repository@uwe.ac.uk
This application uses the following open-source libraries:
SheetJS Community Edition
Apache License Version 2.0 (http://www.apache.org/licenses/)
PDF.js
Apache License Version 2.0 (http://www.apache.org/licenses/)
Font Awesome
SIL OFL 1.1 (http://scripts.sil.org/OFL)
MIT License (http://opensource.org/licenses/mit-license.html)
CC BY 3.0 ( http://creativecommons.org/licenses/by/3.0/)
Powered by Worktribe © 2024
Advanced Search