Dialogue

Eastern Economic Journal (2007) 33,541–562. doi:10.1057/eej.2007.40

The New Classical Counter-Revolution: False Path or Illuminating Complement?

Brian Snowdon

1Northumbria University

Correspondence: Brian Snowdon, Professor of Economics and International Business, Newcastle Business School, Northumberland Building, Northumbria University, Newcastle Upon Tyne, NE1 8ST, UK. E-mail: www.brian.snowdon@unn.ac.uk.

Top

References

  1. Ackley G Macroeconomic Theory. New York: Macmillan, 1961.
  2. Backhouse RE. The Rhetoric and Methodology of Modern Macroeconomics, in Reflections on the Development of Modern Macroeconomics, edited by B. Snowdon and H.R. Vane. Cheltenham: Edward Elgar, 1997.
  3. Bank of England. Economic Models at the Bank of England. London: Bank of England, 1999.
  4. Backhouse RE. The Bank of England Quarterly Model. Bank of England Quarterly Bulletin, Summer 2004, 188–193.
  5. Barro RJ. Interview with Robert Barro. The Region, September 2005, 1–17.
  6. Barro RJ and Gordon DB. Rules, Discretion and Reputation in a Model of Monetary Policy. Journal of Monetary Economics, July 1983, 101–21. | Article | ISI |
  7. Barsky RB and Kilian L. Do We Really Know that Oil Caused the Great Stagflation? NBER Macroeconomics Annual 2001, 2002, 137–83.
  8. Barsky RB and Kilian L. Oil and the Macroeconomy Since the 1970s. Journal of Economic Perspectives, Fall 2004, 115–134.
  9. Benjamin DK and Kochin LA. Searching for an Explanation of Unemployment in Inter-war Britain. Journal of Political Economy, June 1979, 441–78.
  10. Bernanke B. Interview with Ben Bernanke, in Conversations on Growth Stability and Trade: An Historical Perspective by B. Snowdon. Cheltenham: Edward Elgar, 2002.
  11. Bernanke B. Constrained Discretion and Monetary Policy. www.federalreserve.gov/boarddocs/ speeches/2003/
  12. Bernanke B. The Great Moderation. Speech at the Eastern Economic Association Meetings, Washington D.C., February 2004a. www.federalreserve.gov/boarddocs/speeches/2004/
  13. Bernanke B. Interview with Ben Bernanke. The Region, June 2004b.
  14. Bernanke B. What have We Learned Since October 1979? Federal Reserve Bank of St. Louis Review, March/April 2005, 177–91.
  15. Bernanke BS and Mishkin FS. Inflation Targeting: A New Framework for Monetary Policy. Journal of Economic Perspectives, Spring 1997, 97–116.
  16. Bernanke BS and Woodford M eds. Inflation Targeting. Chicago: University of Chicago Press, 2004.
  17. Bibow J. Reflections on the Current fashion for Central Bank Independence. Cambridge Journal of Economics, July 2004, 549–76. | Article | ISI |
  18. Blanchard O. What Do We Know About Macroeconomics that Fisher and Wicksell Did Not? Quarterly Journal of Economics, November 2000, 1375–1409.
  19. Blinder AS. The Challenge of High Unemployment. American Economic Review, May 1988a, 1–15.
  20. Blinder AS. The Fall and Rise of Keynesian Economics. Economic Record, December 1988b, 278–94.
  21. Blinder AS Central Banking in Theory and Practice. Cambridge, MA: MIT Press, 1998.
  22. Blinder AS. Central Bank Credibility: Why Do We care? How Do We Define It. National Bureau of Economic Research Working Paper, No. 7161, June 1999, 1–23.
  23. Blinder AS. Interview with Alan Blinder, in Conversations on Growth Stability and Trade, by B. Snowdon. Cheltenham: Edward Elgar, 2002.237–58.
  24. Blinder AS and Reis R. Understanding the Greenspan Standard. Federal Reserve Bank of Kansas Symposium, The Greenspan Era: Lessons for the Future, Jackson Hole, Wyoming, September 2005.
  25. Calvo GA. Staggered Prices in a Utility-maximising Framework. Journal of Monetary Economics, September 1983, 383–98. | Article |
  26. Chadha B, Masson PR and Meredith G. Models of Inflation and the Costs of Disinflation. IMF Staff Papers, June 1992, 395–431.
  27. Chappell HW and McGregor RR. Did Time Inconsistency Contribute to the Great Inflation? Evidence from the FOMC Transcripts. Economics and Politics, November 2004, 233–51.
  28. Chappell HW, McGregor RR and Vermilyea TA Committee Decisions on Monetary Policy: Evidence from Historical Records of the Federal Open Market Committee. Cambridge MA: The MIT Press, 2005.
  29. Chari VV and Kehoe PJ. Modern Macroeconomics in Practice: How Theory is Shaping Policy. Journal of Economic Perspectives, Fall 2006, 3–28.
  30. Chari VV, Christiano LJ and Eichenbaum M. Expectation Traps and Discretion. Journal of Economic Theory, August 1998, 462–92.
  31. Chari VV, Kehoe PJ and McGrattan ER. Accounting for the Great Depression. American Economic Review, May 2002, 22–27.
  32. Clarida R, Gali J and Gertler M. The Science of Monetary Policy: A New Keynesian Perspective. Journal of Economic Literature, December 1999, 1661–1707.
  33. Clarida R, Gali J and Gertler M. Monetary Policy Rules and Macroeconomic Stability: Some Evidence and Some Theory. Quarterly Journal of Economics, February 2000, 147–80.
  34. Cole H and Ohanian LE. The Great Depression in the United States From A Neoclassical Perspective. Federal Reserve Bank of Minneapolis Quarterly Review, Winter 1999, 2–24.
  35. Cole H and Ohanian LE. The Great UK Depression: A Puzzle and Possible Resolution. Review of Economic Dynamics, January 2002a, 19–44.
  36. Cole H and Ohanian LE. The US and UK Great Depressions Through the Lens of Neoclassical Growth Theory. American Economic Review, May 2002b, 28–32.
  37. DeLong JB. America's Only Peacetime Infation: The 1970s, in Reducing Inflation: Motivation and Strategy, edited by C.D. Romer, and D.H. Romer. Chicago: University of Chicago Press, 1997.247–76.
  38. De Vroey MR Involuntary Unemployment: The Elusive Quest for a Theory. London: Routledge, 2004.
  39. De Vroey MR and Pensieroso L. Real Business Cycle Theory and the Great Depression: The Abandonment of the Abstentionist Viewpoint. Contributions to Macroeconomics, 6, 1, 2006, 1–26.
  40. Friedman B. The Greenspan Era: Discretion rather than Rules. American Economic Review, May 2006, 174–177.
  41. Friedman M. The Role of Monetary Policy. American Economic Review, March 1968a, 1–17.
  42. Friedman M. Should There Be an Independent Central Bank? Reprinted in M. Friedman, Dollars and Deficits, Englewood Cliffs, N.J.: Prentice Hall, 1968.
  43. Friedman M. Nobel Lecture: Infation and Unemployment. Journal of Political Economy, June 1977, 451–72.
  44. Friedman M, Schwartz AJ A Monetary History of the United States, 1867–1960. Princeton: Princeton University Press, 1963.
  45. Gali J. New Perspectives on Monetary Policy and the Business Cycle. National Bureau of Economic Research Working Paper, No. 8767, February 2002, 1–42.
  46. Gali J and Rabanal P. Technology Shocks and Aggregate Fluctuations: How Well Does the Real Business Cycle Model Fit Post-war US Data? National Bureau of Economic Research Macroeconomics Annual 2004. Cambridge Ma: MIT Press, 2005.
  47. Goodfriend M. Monetary Policy in the New Neoclassical Synthesis: A Primer. Federal Reserve Bank of Richmond Economic Quarterly, Summer 2004, 21–45.
  48. Goodfriend M. The Monetary Policy Debate Since October 1979: Lessons for Theory and Practice. Federal Reserve Bank of St. Louis Review, March/April 2005, 243–62.
  49. Goodfriend M and King RG. The New Neoclassical Synthesis and the Role of Monetary Policy. National Bureau of Economic Research Macroeconomics Annual, 1997, 231–83.
  50. Gordon RJ Macroeconomics. New York: Addison-Wesley, 2003.
  51. Green EJ. A Review of Interest and Prices: Foundations of a Theory of Monetary Policy by Michael Woodford. Journal of Economic Literature, March 2005, 121–34.
  52. Greenspan A. Monetary Policy Under Uncertainty. August 2003. www.federalreserve.gov/board-docs/speeches/2003/default.htm
  53. Greenspan A. Risk and Uncertainty in Monetary Policy. American Economic Review, May 2004, 33–40.
  54. Johnson HG. The Keynesian Revolution and the Monetarist Counter-Revolution, American Economic Review, May 1971, 1–14.
  55. King M. Changes in UK Monetary Policy: Rules and Discretion in Practice. Journal of Monetary Economics, June 1997, 81–97.
  56. King M. The Institutions of Monetary Policy. American Economic Review, May 2004, 1–13.
  57. King M. Monetary Policy: Practice Ahead of Theory. Mais Lecture. www.bankofengland.co.uk, 2005.
  58. Kydland FE and Prescott EC. Rules Rather Than Discretion: The Inconsistency of Optimal Plans. Journal of Political Economy, June 1977, 473–91. | Article | ISI |
  59. Laidler DEW. Inflation in Britain: A Monetarist Perspective. American Economic Review, September 1976, 485–500.
  60. Lindauer J Macroeconomics. 2nd ed. New York: Wiley, 1971.
  61. Lucas Jr.RE. Econometric Policy Evaluation: A Critique, in The Phillips Curve and Labor Markets, edited by K. Brunner and A. Meltzer. Amsterdam: North Holland, Carnegie-Rochester Series on Public Policy, 1976.
  62. Lucas Jr.RE. Unemployment Policy. American Economic Review, May 1978, 353–57.
  63. Lucas Jr.RE. Tobin and Monetarism: A Review Article. Journal of Economic Literature, June 1981, 558–67.
  64. Lucas Jr. RE. Nobel Lecture: Monetary Neutrality. Journal of Political Economy, August 1996, 661–82.
  65. Lucas RE, Jr. and Sargent TJ. After Keynesian Macroeconomics, in After The Phillips Curve: Persis tence of High Infiation and High Unemployment. Boston, Mass.:Federal Reserve Bank of Boston, 1978.49–72.
  66. Mankiw NG. The Macroeconomist as Scientist and Engineer. Journal of Economic Perspectives, Fall 2006a, 29–46.
  67. Mankiw NG. An Open Letter to Ben Bernanke. American Economic Review, May 2006b, 182–84.
  68. Mayer T Monetary Policy and the Great Infiation in the United States. Cheltenham: Edward Elgar, 1999.
  69. Meltzer AH. Origins of the Great Inflation. Federal Bank of St. Louis Review, March/April 2005, 145–75.
  70. Meltzer AH. From Inflation to More Inflation, Disination, and Low Inflation. American Economic Review, May 2006, 185–88.
  71. Minford P. What are the Right Models and Policies for a World of Low Inflation? National Institute Economic Review, April 2006, 92–106.
  72. Mishkin F. Why the Federal Reserve Should Adopt Inflation Targeting. International Finance, April 2004, 117–27.
  73. Mishkin F. Monetary Policy Strategy: How Did We Get Here? National Bureau of Economic Research Working Paper, No. 12515, September 2006, 1–44.
  74. Muth JF. Rational Expectations and the Theory of Price Movements, Econometrica, July 1961, 313–335.
  75. Nelson E. The Great Infiation of the Seventies. What Really Happened? Federal Reserve Bank of St. Louis Working Paper, No. 2004–001, January 2004, 1–51.
  76. Nelson E and Nikolov K. Monetary Policy and Stagflation in the UK. Journal of Money Credit and Banking, June 2004, 293–318.
  77. Orphanides A. The Quest for Prosperity Without Inflation. Journal of Monetary Economics, April 2003, 633–663.
  78. Orphanides A. The Road to Price Stability. American Economic Review, May 2006, 178–81.
  79. Patinkin D Money, Interest, and Prices: An Integration of Monetary and Value Theory. New York: Harper Row, 1956.
  80. Pensieroso L. Real Business Cycle Models of the Great Depression: A Critical Survey. Journal of Economic Surveys, February 2007, 111–42.
  81. Phelps ES. Phillips Curves, Expectations of Infiation and Optimal Unemployment Over Time. Economica, August 1967, 254–81.
  82. Prescott EC. Some Observations on the Great Depression. Federal Reserve Bank of Minneapolis Quarterly Review, Winter 1999, 25–31.
  83. Prescott EC. Prosperity and Depression, American Economic Review, May 2002, 1–15.
  84. Prescott EC. The Transformation of Macroeconomic Policy and Research: Nobel Prize Lecture. Journal of Political Economy, April 2006, 203–35.
  85. Rebelo S. Real Business Cycle Models: Past, Present, and Future. National Bureau of Economic Research Working Paper No. 11401, June 2005, 1–39.
  86. Reis R. Where Is the Natural Rate? Rational Policy Mistakes and Persistent Deviations of Inflation from Target. Advances in Macroeconomics, Vol 3, No. 1, 2003, 1–38.
  87. Rogoff K. The Optimal Degree of Commitment to an Intermediate Monetary Target. Quarterly Journal of Economics, November 1985, 1169–89. | Article | ISI |
  88. Romer CD. Origins of the Great Inflation: Commentary. Federal Reserve Bank of St. Louis Review, March/April 2005, 177–185.
  89. Romer CD and Romer DH eds. Reducing Inflation: Motivation and Strategy. Chicago: University of Chicago Press, 1997.
  90. Romer CD and Romer DH. The Evolution of Economic Understanding and Post-war Stabilization Policy. Federal Reserve Bank of Kansas City Symposium on Rethinking Stabilization Policy, August 2002, 11–78.
  91. Romer CD and Romer DH. Choosing the Federal Reserve Chair: Lessons from History. Journal of Economic Perspectives, Winter 2004, 129–62.
  92. Sargent TJ The Conquest of American Inflation. Princeton NJ: Princeton University Press, 1999.
  93. Sargent TJ. Commentary: The Evolution of Economic Understanding and Postwar Stabilisation Policy. Federal Reserve Bank of Kansas City Symposium on Rethinking Stabilization Policy, August 2002, 79–94.
  94. Seidman LS. The New Classical Counter-Revolution: A False Path for Macroeconomics. Eastern Economic Journal, Winter 2005, 131–40.
  95. Snowdon B. Review of M. De Vroey, Involuntary Unemployment: The Elusive Quest for a Theory, London: Routledge. Journal of the History of Economic Thought, December 2006, 500–1.
  96. Snowdon B, Vane HR. The Development of Modern Macroeconomics: Refections in the Light of Johnson's Analysis After Twenty-Five Years. Journal of Macroeconomics, Summer 1996, 381–401.
  97. Snowdon B, Vane HR. Transforming Macroeconomics: An Interview with Robert E. Lucas Jr. Journal of Economic Methodology, June 1998, 115–46.
  98. Snowdon B, Vane HR. James Tobin, 1918–2002: An 'Unreconstructed Old Keynesian' Who Wouldn't Quit. World Economics, July-September 2002, 121–60.
  99. Snowdon B, Vane HR Modern Macroeconomics: Its Origins, Development and Current State. Cheltenham: Edward Elgar, 2005.
  100. Snowdon B, Vane HR. Milton Friedman, 1912–2006: Polemicist, Scholar, and Giant of Twentieth Century Economics. World Economics, October-December 2006, 1–56.
  101. Solow RM, Taylor JB Infiation, Unemployment and Monetary Policy. Cambridge, MA: MIT Press, 1998.
  102. Solow RM, Tobin J. Introduction to the Kennedy Reports, in Two Revolutions in Economic Policy: The First Economic Reports of Presidents Kennedy and Reagan, edited by J. Tobin and M. Weidenbaum. Cambridge, MA: MIT Press, 1988.
  103. Svensson L. What is Wrong With Taylor Rules? Using Judgement in Monetary Policy Through Targeting Rules. Journal of Economic Literature, June 2003, 426–77.
  104. Taylor JB. The Great Infiation, the Great Disination, and Policies for Future Price Stability, in Infiation, Disination and Monetary Policy, edited by A. Blundell-Wignall. Sidney: Ambassador Press, 1992.
  105. Taylor JB. Discretion Versus Policy Rules in Practice, in Carnegie Rochester Conference Series on Public Policy. Amsterdam: North Holland, 1993, Vol. 39, 195–214.
  106. Taylor JB. Comment, in Reducing Infiation: Motivation and Strategy edited by C.D. Romer and D.H. Romer. Chicago: University of Chicago Press, 1997, 276–80.
  107. Taylor JB. A Core of Practical Macroeconomics. American Economic Review, May 1997b, 233–35.
  108. Taylor JB. An Historical Analysis of Monetary Policy Rules. National Bureau of Economic Research Working Paper, No. 6768, October 1998a, 1–53.
  109. Taylor JB. Applying Academic Research on Monetary Policy Rules: An Exercise in Translation Economics. The Manchester School, Supplement, 1998b, 1–16.
  110. Taylor JB. Interview with John Taylor, in Conversations with Leading Economists: Interpreting Modern Macroeconomics, edited by B. Snowdon and H.R. Vane. Cheltenham: Edward Elgar, 1999, 193–207.
  111. Taylor JB. Lessons Learned from the Greenspan Era, in Federal Reserve Bank of Kansas Symposium, The Greenspan Era: Lessons for the Future. Jackson Hole, Wyoming, September, 2005.
  112. Tobin J. Stabilisation Policy Ten Years After. Brookings Papers on Economic Activity, 2, 1980, 19–71.
  113. Tobin J Policies for Prosperity: Essays in a Keynesian Mode, edited by P.M. Jackson. Brighton: Wheatsheaf, 1987.
  114. Walsh CE. Optimal Infiation Contracts for Central bankers. American Economic Review, March 1995, 150–67. | ISI |
  115. Warsh D Knowledge and the Wealth of Nations. New York: W.W. Norton and Co., 2006.
  116. Woodford M. Revolution and Evolution in Twentieth-Century Macroeconomics, in Frontiers of the Mind in the Twenty-First Century, edited by P. Gifford. Cambridge, MA: Harvard University Press, 2000.
  117. Woodford M Interest and Prices: Foundations of a Theory of Monetary Policy. Princeton N.J.: Princeton University Press, 2003.

Extra navigation

.
ADVERTISEMENT
The New Palgrave Dictionary of Economics