Skip to content Skip to navigation
University of Warwick
  • Study
  • |
  • Research
  • |
  • Business
  • |
  • Alumni
  • |
  • News
  • |
  • About

University of Warwick
Publications service & WRAP

Highlight your research

  • WRAP
    • Home
    • Search WRAP
    • Browse by Warwick Author
    • Browse WRAP by Year
    • Browse WRAP by Subject
    • Browse WRAP by Department
    • Browse WRAP by Funder
    • Browse Theses by Department
  • Publications Service
    • Home
    • Search Publications Service
    • Browse by Warwick Author
    • Browse Publications service by Year
    • Browse Publications service by Subject
    • Browse Publications service by Department
    • Browse Publications service by Funder
  • Help & Advice
University of Warwick

The Library

  • Login
  • Admin

The hedgehog and the fox : from DSGE to Macro-Pru

Tools
- Tools
+ Tools

Miller, Marcus and Zhang, Lei (2015) The hedgehog and the fox : from DSGE to Macro-Pru. The Manchester School, 83 . pp. 31-55. doi:10.1111/manc.12119

[img]
Preview
PDF
WRAP-hedgehog-and-the-fox-Miller-2015.pdf - Accepted Version - Requires a PDF viewer.

Download (1362Kb) | Preview
Official URL: http://dx.doi.org/10.1111/manc.12119

Request Changes to record.

Abstract

Prior to the financial crisis of 2008/9, DSGE models-without-money set a new standard in applied macroeconomics; and they were widely adopted by Central Banks to help achieve their inflation targets. Controlling inflation did not deliver financial stability, however: far from it. The appeal of macro-models based on ‘efficient financial markets’ surely contributed to over-confidence before the crisis. But what about externalities? We examine, in particular, how steps to mitigate microeconomic principal/agent problems can create macroeconomic externalities—‘financial accelerators’ that affect balance sheets in pro-cyclical fashion. Now is the time, we argue, to embrace such a wider perspective.

Item Type: Journal Article
Subjects: H Social Sciences > HB Economic Theory
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Macroeconomics -- Mathematical models, Equilibrium (Economics), Global Financial Crisis, 2008-2009
Journal or Publication Title: The Manchester School
Publisher: Wiley-Blackwell Publishing Ltd.
ISSN: 1463-6786
Official Date: 25 August 2015
Dates:
DateEvent
25 August 2015Published
22 May 2015Accepted
Volume: 83
Page Range: pp. 31-55
DOI: 10.1111/manc.12119
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

Request changes or add full text files to a record

Repository staff actions (login required)

View Item View Item

Downloads

Downloads per month over past year

View more statistics

twitter

Email us: wrap@warwick.ac.uk
Contact Details
About Us