The Market Failure or Policy Failure? / [electronic resource] Hetzel, Robert L. creator author. text enk 2012 monographic eng

electronic

1 online resource (400 pages) : digital, PDF file(s). Since publication of Hetzel's The Monetary Policy of the Federal Reserve (Cambridge University Press, 2008), the intellectual consensus that had characterized macroeconomics has disappeared. That consensus emphasized efficient markets, rational expectations and the efficacy of the price system in assuring macroeconomic stability. The 2008–9 recession not only destroyed the professional consensus about the kinds of models required to understand cyclical fluctuations but also revived the credit-cycle or asset-bubble explanations of recession that dominated thinking in the nineteenth century and the first half of the twentieth century. These 'market-disorder' views emphasize excessive risk taking in financial markets and the need for government regulation. The present book argues for the alternative 'monetary-disorder' view of recessions. A review of cyclical instability over the last two centuries places the 2008–9 recession in the monetary-disorder tradition, which focuses on the monetary instability created by central banks rather than on a boom-bust cycle in financial markets. Robert L. Hetzel. Title from publisher's bibliographic system (viewed on 09 Oct 2015). HB3743 .H48 2012 330.973 9780511997563 (ebook) http://dx.doi.org/10.1017/CBO9780511997563 http://dx.doi.org/10.1017/CBO9780511997563 UkCbUP 110111 20180107143416.0 CR9780511997563