This article examines Michel Foucault’s contributions to the study of power in history political economy. It employs readings on economic thought investigate two moments economy: classical economy and Keynesian economics, which reasoning practice affected creation dissemination relations social realm. By reconsidering ontological dynamics that encompass modern role state, policies civil society...

T he discussion surrounding the recent deep recession seems to have shifted the focus from currently used business cycle models to the standard Keynesian model (by which we mean the “old Keynesian,” as opposed to the new Keynesian, model). In the Keynesian model, pessimism among consumers and investors about the economy will simultaneously lower aggregate consumption and aggregate investment, a...

Studies that seek to evaluate the e¤ects of technology shocks often employ structural VARs identi…ed with long-run restrictions. In the presence of a mismatch between the number of lags the data-generating process involves and the number of lags included in the VAR, estimates based on long-run restrictions can be largely biased. In this paper, I o¤er an alternative method that substantially red...

New Keynesian models with unemployment and incomplete markets are rapidly becoming a new workhorse model in macroeconomics. Such models typically require heavy computational methods which may obscure intuition and overlook equilibria. We present a tractable version which can be characterized analytically. Our results highlight that –due the interaction between incomplete markets, sticky prices ...

Those of us who take an essentially Keynesian view in macroeconomics are often accused, somewhat unjustly, I believe, of minimizing the importance of monetary forces. That contention was probably true 20 years ago for a variety of historical and institutional reasons. But much water has passed over the dam since that time, and I believe it would now be difficult to find an example of the popula...

DEVELOPMENT ECONOMICS as a separate branch of economics emerged at the end of the Second World War. During the dominance of neo-classical economics from the 1870s until the Keynesian Revolution of the 1930s, economists were more concerned with partial equilibrium analysis. They worked on the assumption that a free competitive capitalist economy would automatically ensure the maximisation of nat...

In a recent article George Boyer and Robert Smith describe the development of the neoclassical tradition in labor economics. In this paper I reexamine this subject and provide an alternative account of the evolution of thought in the field. I argue Boyer and Smith incorrectly define both the institutional and neoclassical approaches to labor market analysis. The essence of institutional economi...

Bank of Canada working papers are theoretical or empirical works-in-progress on subjects in economics and finance. The views expressed in this paper are those of the authors. No responsibility for them should be attributed to the Bank of Canada. ii Acknowledgements We would like to thank Jordi Galí and Sharon Kozicki for helpful suggestions and comments. Abstract Real wage rigidities have recen...