Summary
In this chapter we consider the significance of the “Keynesian Legacy” in modern macroeconomics from a theoretical point of view. We present the outline of a variant of the “high-dimensional dynamic Keynesian model” with debt accumulation without committing to the mathematical details, and investigate the economic implication of the model. Our model is designed to shed some light on the understanding of the Japanese economy in the 1990s and 2000s, and provide some hints on the policy prescriptions.
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
References
Agliardi E (1998) Positive feedback economics. Macmillan, London
Asada T (2001) Nonlinear dynamics of debt and capital: a post-Keynesian analysis. In: Aruka Y, Japan Association for Evolutionary Economics (eds) Evolutionary controversies in economics. Springer, Tokyo, p 73–87
Asada T (2004) Price flexibility and instability in a macrodynamic model with a debt effect. J Int Econ Stud 18:41–60
Asada T (2006a) Stabilization policy in a Keynes-Goodwin model with debt accumulation. Structural Change and Economic Dynamics, forthcoming.
Asada, T (2006b) Inflation targeting policy in a dynamic Keynesian model with debt accumulation: a Japanese perspective. In: Chiarella C, Flaschel P, Franke R, Semmler W (eds) Quantitative and empirical analysis of nonlinear dynamic macromodels. Elsevier, Amsterdam
Asada T, Chiarella C, Flaschel P, Franke R (2003) Open economy macrodynamics: an integrated disequilibrium approach. Springer, Berlin
Barro RJ, Sala-i-Martin X (1995) Economic growth. McGraw-Hill, New York
Blanchard O, Fischer S (1989) Lectures on macroeconomics. MIT Press, Cambridge
Chiarella C, Flaschel P (2000) The dynamics of Keynesian monetary growth. Cambridge University Press, Cambridge
Chiarella C. Flaschel P, Semmler W (2001) Price flexibility and debt dynamics in high order AS-AD model. Central Eur J Oper Res 9:119–145
Fisher I (1933) The debt-deflation theory of great depressions. Econometrica 1:337–357
Flashel P, Krüger M, Asada T (2003) From growth and employment cycles to KMG model building. In: Fuhmann N, Schmoley E, Sud RSS (eds) Gegen den strich: Ökonomische theorie und politische regulierung. Reiner Hampp, Munich p 75–100
Franke R, Asada T (1994) A Keynes-Goodwin model of the business cycle. J Econ Behav Organ 24:273–295
Goodwin R (1967) A growth cycle. In: Feinstein CH (ed) Socialism, capitalism and economic growth. Cambridge University Press, Cambridge, p 54–58
Harrod RF (1948) Towards a dynamic economics. Macmillan, London
Kaldor N (1960) Essays on economic stability and growth. Duckworth, London
Kalecki M (1937) The principle of increasing risk. Economica 4:440–447
Kalecki M (1971) Selected essays on the dynamics of the capitalist economy. Cambridge University Press, Cambridge
Keynes JM (1936) The general theory of employment, interest and money. Macmillan, London
Krugman P (1998) It’s baaack: Japan’s slump and the return of the liquidity trap. Brookings Pap Econ Act 2:137–205
Mankiw G, Romer D (eds) (1991) New Keynesian economics. 2 vols, MIT Press, Cambridge
Minsky H (1986) Stabilizing an unstable economy. Yale University Press, New Haven
Nikaido H (1996) Prices, cycles, and growth. MIT Press, Cambridge
Okishio N (1993) Essays on political economy. Flaschel P, Krüger M (eds) Peter Lang, Frankfurt am Main
Pally TI (1996) Growth theory in a Keynesian mode: some Keynesian foundations for new endogenous growth theory. J Post-Keynesian Econ 19:113–135
Robinson J (1956) The accumulation of capital. Macmillan, London
Romer D (1996) Advanced macroeconomics. McGraw-Hill, New York
Steindl J (1952) Maturity and stagnation in American capitalism. Oxford University Press, Oxford
Tobin J (1980) Asset accumulation and economic activity. Basil Blackwell, Oxford
Uzawa H (1969) Time preference and the Penrose effect in a two-class model of economic growth. J Polit Econ 77:628–652
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2007 Springer
About this paper
Cite this paper
Asada, T. (2007). Significance of the Keynesian Legacy from a Theoretical Viewpoint: A High-Dimensional Macrodynamic Approach. In: Asada, T., Ishikawa, T. (eds) Time and Space in Economics. Springer, Tokyo. https://doi.org/10.1007/978-4-431-45978-1_5
Download citation
DOI: https://doi.org/10.1007/978-4-431-45978-1_5
Publisher Name: Springer, Tokyo
Print ISBN: 978-4-431-45977-4
Online ISBN: 978-4-431-45978-1
eBook Packages: Business and EconomicsEconomics and Finance (R0)