Sergio Rossi - Financial stability requires macroeconomic foundations of macroeconomics

jpe:10594 - Journal of Philosophical Economics, May 20, 2010, Volume III Issue 2 -
Financial stability requires macroeconomic foundations of macroeconomicsArticle

Authors: Sergio Rossi 1

Financial stability features prominently among the goals of several post-crisis macroeconomic policies around the world. Being a systemic characteristic, financial stability requires a systemic analysis, which only macroeconomics can offer logically. Yet, the current way of doing macroeconomics is not up to the task, as it is grounded on so-called microfoundations. Considering macroeconomics as the science of aggregating data obtained at microeconomic level can lead indeed to conclusions that are either misleading or wrong. This paper points out that the true foundations of macroeconomics are macroeconomic, and that understanding the working of monetary economies of production and exchange requires a conceptual rather than a mathematical treatment of economic issues at a systemic level.

Volume: Volume III Issue 2
Section: Articles
Published on: May 20, 2010
Imported on: December 28, 2022
Keywords: financial crises,macroeconomics,monetary theory of production,[SHS]Humanities and Social Sciences

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