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ResearchPaper
2010

Medium-run macrodynamics and the consensus view of stabilization policy

Abstract (English)

Policy implications of the present consensus view of stabilization policy depend on specific assumptions with regard to the equilibrium level of production. Thereby, the interpretation of equilibrium output rests on a separation of supply-side and demandside adjustment to macroeconomic shocks promoting a dichotomy of short-term and long-term macrodynamics. In contrast to this, there are several channels that promote procyclical stimulus of aggregate demand and a changing factor utilization to the accumulation and efficiency of an economy?s productive capacity. Medium-run macrodynamics call for a rather endogenous explanation of production capacity and challenge the uniqueness of long-term equilibria.

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Notes

Publication license

Publication series

Hohenheimer Diskussionsbeiträge; 322

Published in

Faculty
Faculty of Business, Economics and Social Sciences
Institute
Institut für Volkswirtschaftslehre (bis 2010)

Examination date

Supervisor

Edition / version

Citation

DOI

ISSN

ISBN

Language
English

Publisher

Publisher place

Classification (DDC)
330 Economics

Original object

Sustainable Development Goals

BibTeX

@techreport{Schmid2010, url = {https://hohpublica.uni-hohenheim.de/handle/123456789/5359}, author = {Schmid, Kai Daniel}, title = {Medium-run macrodynamics and the consensus view of stabilization policy}, year = {2010}, school = {Universität Hohenheim}, series = {Hohenheimer Diskussionsbeiträge}, }
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