Authors:
- Effective demand and involuntary unemployment theory, compatible with neoclassical dynamic microeconomics, excluding ad-hoc price stickiness and money in utility assumptions
- Rigorous dynamic microeconomics foundation for Keynesian international monetary theory and monetary growth theory
- Fundamental critiques on existing new Keynesian theory and Lucas’ monetarist theory
- Includes supplementary material: sn.pub/extras
Part of the book series: Advances in Japanese Business and Economics (AJBE, volume 7)
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Table of contents (15 chapters)
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Front Matter
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Keynesian Economics and Price Theory
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Front Matter
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Applications to Labor Economics and Inflation Theory
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Front Matter
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Applications to International Economics
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Front Matter
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Applications to Economic Growth Theory
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Front Matter
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Critiques of the Existing Monetary Theories
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Front Matter
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About this book
This book reconstructs Keynesian macroeconomics so that it is compatible with the neoclassical dynamic microeconomic theory. This theory adopts three postulates: rational expectations, perfect price flexibility, and exclusion of the money in utility function (MIU). Based on the new theoretical finding that the Lucas model (1972) contains multiple equilibria, the author unifies Keynesian and monetarist theories within the same framework. The book applies the above basic theory to international macroeconomics and economic growth theory.
New Keynesian theory contains logical inconsistencies: menu costs that have no close relationship with microeconomics and MIU, which implies that the money accumulated as wealth is never spent. These two assumptions do not proximate the real world. In this volume, the author discusses how various segregated theoretical approaches in macroeconomics relate to one another and proposes how to integrate them.
Authors and Affiliations
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Institute of Social Sciences, The University of Tokyo, Bunkyo-ku, Japan
Masayuki Otaki
Bibliographic Information
Book Title: Keynesian Economics and Price Theory
Book Subtitle: Re-orientation of a Theory of Monetary Economy
Authors: Masayuki Otaki
Series Title: Advances in Japanese Business and Economics
DOI: https://doi.org/10.1007/978-4-431-55345-8
Publisher: Springer Tokyo
eBook Packages: Business and Economics, Economics and Finance (R0)
Copyright Information: Springer Japan 2015
Hardcover ISBN: 978-4-431-55344-1Published: 06 March 2015
Softcover ISBN: 978-4-431-56391-4Published: 09 October 2016
eBook ISBN: 978-4-431-55345-8Published: 04 February 2015
Series ISSN: 2197-8859
Series E-ISSN: 2197-8867
Edition Number: 1
Number of Pages: XV, 207
Number of Illustrations: 21 b/w illustrations, 1 illustrations in colour
Topics: Macroeconomics/Monetary Economics//Financial Economics, Economic Theory/Quantitative Economics/Mathematical Methods, Economic Growth