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Konjunktur und Wachstum

Colombier, Carsten (2011): Konjunktur und Wachstum. Published in: Die Volkswirtschaft - Magazin für Wirtschaftspolitik , Vol. 84, No. 6 (1 June 2011): pp. 14-17.

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Abstract

According to mainstream macroeconomic theory, i.e. the New Neoclassical Synthesis (NNS), business cycle fluctuations and monetary impulses do not affect production and employment in the long term. Persistence of demand-side shock are only acknowledged in special cases such as hysteresis on the labour market or fairness considerations of employees. However, in the after-math of the Great Financial Crisis 2007/2008 strong criticism of NNS has been raised, in particu-lar, concerning the neglect of financial markets. This paper provides a systematic survey of mac-roeconomic theory after World-War II and the criticism levelled at NNS after the Great Financial Financial Crisis. Furthermore, alternative approaches are presented. For example, alternative the-ories such as Financial New Keynesianism or Post-Keynesianism show that business cycle fluc-tuations and monetary impulses can have long-term consequences because of imperfect financial markets and decision making under an uncertain environment. This paper shows that a clear-cut distinction between short and long run maintained by NNS cannot be upheld. As a consequence, a case-by-case assessment is necessary.

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