Reconstructing Macroeconomics

Macroeconomics is in disarray. No one approach is dominant and an increasing divide between theory and empirics is evident. . This book presents both a critique of mainstream macroeconomics from a structuralist perspective and an exposition of modern structuralist approaches. The fundamental assumption of structuralism is that it is impossible to understand a macroeconomy without understanding its major institutions and distributive relationships across productive sectors and social groups. . Lance Taylor focuses his critique on mainstream monetarist new classical new Keynesian and growth models. He examines them from a historical perspective tracing monetarism from its eighteenth-century roots and comparing current monetarist and new classical models with those of the post-Wicksellian pre-Keynesian generation of macroeconomists. He contrasts the new Keynesian vision with Keynes's General Theory and analyzes contemporary growth theories against long traditions of thought about economic development and structural change.