A Study in Monetary Macroeconomics
by Stefan Homburg (Author)

About the author:

Stefan Homburg is the Director of the Institute of Public Finance at Leibniz University Hannover, where he also a professor. He has previously held professorships at Bonn University and Magdeburg Universityas well as acting as a member of the Advisory Council at the Federal Ministry of Finance and the Federal Constitutional Commission.

About this book:

The financial crisis of 2007 and the following recession presenta major challenge to macroeconomic theory. The same holds true for exceptionally low interest rates during the recent years and for the puzzle that super-expansive monetary policies failed to produce high inflation. Approaches that focus on steady states, rational expectations, and individuals planning over infinite horizons, are not suitable for analysing such abnormal situations. A Study in Monetary Macroeconomics refines and improves mainstream approaches to resolve these puzzles and to contribute to abetter understanding of monetary and fiscal policies.

Using a rich institutional structure that includes features suchas credit money, external finance, borrowing constraints, net worth, realestate and commercial banks, this timely study reduces rationality requirements to cope with its complex setting. It starts with a simple baseline model, deriving results from mathematical reasoning and simulations whilst adhering to the method of dynamic general equilibrium (DGE) with optimizing agents and fully specified models. Highly topical, A Study in Monetary Macroeconomics uses a unified theoretical framework to demonstratethat a DGE approach makes it possible to develop clean models that work outside steady states and are appropriate for answering macroeconomic questions of actual interest.

Hardcover: 224 pages

Publisher: Oxford University Press; 1 edition (September 13, 2017)

Language: English

ISBN-10: 0198807538

ISBN-13: 978-0198807537