Business Cycle Dynamics and Stabilization Policies - A Keynesian Approach

This monograph is devoted to the analysis of the dynamics of business cycles and stabilization policies. The analysis is conducted in models of the AS-AD type, focusing on involuntary unemployment and capital accumulation. Major conclusions are the following. (1) Sectoral imbalances, once emphasized by such business-cycle theorists as K. Marx, A. Spiethoff, and F.A. Hayek, are rectified in finite time by competitive investment allocation, leaving aggregate variables as the main variables of business cycle dynamics. (2) The chronology of events during a cycle is established, which resolves the so-called real wage puzzle. (3) Owing to the crowding-out effect on investment, fiscal stabilization policies can destabilize the business cycle dynamics if implemented too intensively. (4) If coordinated properly, monetary stabilization policies can remove the destabilizing tendency of fiscal stabilization policies.

List of contents

1  An Aggregative Model of Unemployment, Cycles, and Growth.- 2  A Hicksian Two-Sector Model of Unemployment, Cycles, and Growth.- 3  Stabilization Policies and Business Cycle Dynamics.- References.- Index.

Summary

This monograph is devoted to the analysis of the dynamics of business cycles and stabilization policies. The analysis is conducted in models of the AS-AD type, focusing on involuntary unemployment and capital accumulation. Major conclusions are the following. (1) Sectoral imbalances, once emphasized by such business-cycle theorists as K. Marx, A. Spiethoff, and F.A. Hayek, are rectified in finite time by competitive investment allocation, leaving aggregate variables as the main variables of business cycle dynamics. (2) The chronology of events during a cycle is established, which resolves the so-called real wage puzzle. (3) Owing to the crowding-out effect on investment, fiscal stabilization policies can destabilize the business cycle dynamics if implemented too intensively. (4) If coordinated properly, monetary stabilization policies can remove the destabilizing tendency of fiscal stabilization policies.

Product details

• Authors: Hajime Hori
• Publisher: Springer, Berlin
• Languages: English
• Product format: Paperback / Softback
• Released: 31.05.2019
• EAN: 9789811097843
• ISBN: 978-981-10-9784-3
• No. of pages: 142
• Dimensions: 155 mm x 8 mm x 235 mm
• Weight: 250 g
• Illustrations: XIII, 142 p.
• Series: Advances in Japanese Business and Economics; Advances in Japanese Business; Advances in Japanese Business and Economics
• Subjects: Social sciences, law, business > Business > Economics; B, Economic Policy, Economics, macroeconomics, Economic theory & philosophy, Economics and Finance, Economic Theory, Political Economy, Macroeconomics and Monetary Economics, Macroeconomics/Monetary Economics//Financial Economics, Monetary Economics, Management science, Quantitative Economics, Economic Theory/Quantitative Economics/Mathematical Methods