Arbeitspapier
New Keynesian DSGE Models and the IS-LM Paradigm
New Keynesian DSGE models propose a dynamic and expectational version of the old IS-LM paradigm. Acknowledging that the Taylor rule as a substitute for the LM-curve has its merits we show that standard DSGE models do not model how the central bank achieves its targets. In filling this gap we make evident that models neglecting a store-of-value function of money but still assuming a Taylor rule are inconsistent. Our major point concerns the-so called new Keynesian IS-curve. We prove that DSGE models which typically rest on the assumption of representative agents are unable to derive the IS-curve. This implies that these models lack the capability to analyse the role of savings as a a gap in aggregate demand. By assuming overlapping generations we make evident how this shortcoming can be avoided. We also show how OLG models add a richer dynamics to the standard DSGE approach.
- Sprache
-
Englisch
- Erschienen in
-
Series: IMK Working Paper ; No. 1/2010
- Klassifikation
-
Wirtschaft
- Thema
-
Neukeynesianische Makroökonomik
Dynamisches Gleichgewicht
IS-LM-Modell
Overlapping Generations
Theorie
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Frische, Ulrich
Größl, Ingrid
- Ereignis
-
Veröffentlichung
- (wer)
-
Hans-Böckler-Stiftung, Institut für Makroökonomie und Konjunkturforschung (IMK)
- (wo)
-
Düsseldorf
- (wann)
-
2010
- Handle
- URN
-
urn:nbn:de:101:1-201101312792
- Letzte Aktualisierung
-
10.03.2025, 11:44 MEZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Frische, Ulrich
- Größl, Ingrid
- Hans-Böckler-Stiftung, Institut für Makroökonomie und Konjunkturforschung (IMK)
Entstanden
- 2010
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