In this edited collection, Joseph Stiglitz and Martin Guzman present a series of studies on contemporary macroeconomic issues. The book discusses a set of key lessons for macroeconomic theory following the recent global financial crisis and explores unconventional monetary policy in a post-crisis world.
This volume is divided into five parts. The introduction includes keynote speeches by the Governors of the Bank of Japan and Central Bank of Jordan. Part one focuses on macroeconomic theory for understanding macroeconomic fluctuations and crises. Part two addresses the issue of the measurement of wealth. Part three discusses macroeconomic policies in times of crises. Finally, part four focuses on central banking and monetary policy.
Joseph E. Stiglitz is an American economist and a professor at Columbia University. A recipient of the Nobel Memorial Prize in Economic Sciences (2001) and the John Bates Clark Medal (1979), he is a former senior vice president and chief economist of the World Bank, and a former member and chairman of the (US president's) Council of Economic Advisers. In 2000, Stiglitz founded the Initiative for Policy Dialogue, a think tank on international development based at Columbia University, USA. Martin Guzman is a postdoctoral research fellow at Columbia University Business School, USA, and Associate Professor at the University of Buenos Aires, Argentina. He is also a member of the INET Taskforce on Macroeconomic Externalities and a senior fellow at the Centre for International Governance Innovation.
List of Figures List of Tables Foreword Notes on Contributors Presidential Address Introduction; Joseph E. Stiglitz Towards a General Theory of Deep Downturns Keynote addresses by Central Bank Governors 1. The Practice and Theory of Unconventional Monetary Policy; Haruhiko Kuroda, Governor of the Central Bank of Japan 2. Monetary Policy in a Constrained Environment; Ziad Fariz, Governor of the Central Bank of Jordan PART I: MACROECONOMIC THEORY FOR UNDERSTANDING FLUCTUATIONS AND CRISES 3. A Theory of Pseudo-Wealth; Martin Guzman and Joseph E. Stiglitz 4. Great Recession and Beyond: Revisiting the Pillars of Economic Thought; A. Erinc Yeldan 5. Is Financial Stability Possible in the Current International System?; James M. Boughton 6. Learning, Expectations, and the Financial Instability Hypothesis; Martin Guzman and Peter Howitt PART II: MACROECONOMIC POLICIES IN UNSTABLE TIMES 7. The Short-and Long-Run Damages of Fiscal Austerity: Keynes beyond Schumpeter; Giovanni Dosi, Mauro Napoletano, Andrea Roventini, and Tania Treibich 8. Structural Divergence and Crisis in the Eurozone: The Role of NAIRU Economics; Servaas Storm and C.W.M. Naastepad 9. Managing the Exchange Rate in the Face of Volatile Capital Flows; Jonathan D. Ostry 10. Achieving Coherence Between Macroeconomic and Development Objectives; Gerald Epstein PART III: CENTRAL BANKING AND MONETARY POLICY 11. Re-imagining Central Banking; Perry Mehrling 12. Taking Banks to Solow; Hans Gersbach, Jean-Charles Rochet, and Martin Scheffel Index