Some Puzzles, Anomalies and Crises in the Standard Macroeconomic Model
The 2007 financial crisis and the Great Recession have prompted a debate about the state of macroeconomics, and many orthodox economists have argued that macroeconomics has entered a Dark Age.
This book discusses the shortcomings of the standard macroeconomic model (SMM). The SMM failed to explain the real world and anticipate the global financial crises. The main reasons for this failure have been attributed to its inability to assign an active role of money and by the absence of appropriate modelling of financial markets.
The book also discusses how the SMM can be reformed to better account for the real world and policy prescriptions, such as the Chicago Plan, that can reduce the risks emanating from excessive money creation by banks.
We would like to express our deepest thanks to Mr. Syed Imaduddin Qadri for his continued encouragement and support in writing a book on this topic. This book has also benefited from discussions with various academics and practitioners. We would like to thank Yokei Yamaguchi for complementing and contributing to research work on ASD modelling. We also thank Mustafa Resit Bulut for his tireless assistance in the preparation of charts. Kadriye Baş and Syed Shahid Mahmud also provided valuable assistance.←9 | 10→ ←10 | 11→
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