Fact-Value Confusion Driving Methodological Error in Macroeconomic Theory

2021 ◽  
Author(s):  
Noah Garver
Keyword(s):  
Methodological Error ◽  
Macroeconomic Theory

Great Recession and Macroeconomic Theory: A Useless Crisis?

2019 ◽  
Vol 31 (3) ◽  
pp. 382-406 ◽  
Author(s):  
Giancarlo Bertocco ◽  
Andrea Kalajzić
Keyword(s):  
Great Recession ◽  
Macroeconomic Theory

Methodology of institutional analysis and its implication for contemporary framework of Islamic banks

Humanomics ◽  
2015 ◽  
Vol 31 (2) ◽  
pp. 183-200 ◽  
Author(s):  
Omar Javaid
Keyword(s):  
Islamic Law ◽  
Institutional Analysis ◽  
Institutional Framework ◽  
Methodological Error ◽  
Islamic Banks ◽  
Cultural Changes ◽  
Content Type ◽  
Distribution Of Wealth ◽  
History Of Evolution ◽  
History Of

Purpose – This paper aims to investigate the possibility of a methodological error made by the concerned scholars and academics of Islamic finance & economics to understand and study the modern framework of financial institutions, where they intend to practice Islamic law of contract. This error has led them to expect something which the institutional modern framework of banks, adopted by Islamic banks (for e.g.), wasn’t designed to accomplish, hence the disappointment. Design/methodology/approach – This study reviews the literature on history of evolution of banking industry and the corresponding ideological and cultural changes in the European society which drove this evolution; this is followed by a conceptual analysis to identify the institutional components inconsistent with ethos of Islamic norms and ethos. Findings – After review of history and evolution of modern banking framework, in the light of Hollingsworth frame of institutional analysis, it is inferred that the said framework was designed for a secular, liberal and capitalist society to efficiently and effectively enhance freedom and accumulate capital and wealth, without much regard for equitable distribution of wealth and economic justice. These goals are very much in contrast with the normative premise of Islamic Economics, which cannot be efficiently used to achieve the related objective. This indicates that framework of banking was narrowly understood by the concerned scholars and academics, without considering its history of evolution and intended objectives, before adopting for IBs. Practical implications – The disconnect between the Western institutional framework and ethos of Islam implies that the concerned need to look deeper and holistically while adapting Western institutions, so that necessary alteration is done in advance, if such an adoption is inevitable. Originality/value – This study introduces a new dimension for the concerned scholars, academics and practitioners to reanalyze the institutional framework adopted from the West, so that necessary adjustments can be worked out to make the said framework compatible with the ethos of Islamic economics.

A Macroeconomic Theory of Workable Competition.

Economica ◽  
1965 ◽  
Vol 32 (126) ◽  
pp. 233 ◽  
Author(s):  
John Williamson ◽  
C. E. Ferguson
Keyword(s):  
Macroeconomic Theory ◽  
Workable Competition

scholarly journals A macroeconomic theory of banking oligopoly

2021 ◽  
pp. 103864
Author(s):  
Mei Dong ◽  
Stella Huangfu ◽  
Hongfei Sun ◽  
Chenggang Zhou
Keyword(s):  
Macroeconomic Theory

Implications for Regional Science of the “Rebuilding Macroeconomic Theory Project”

2021 ◽  
pp. 016001762098659
Author(s):  
Kieran P. Donaghy
Keyword(s):  
Monetary Policy ◽  
Graduate Students ◽  
Global Financial Crisis ◽  
Financial Frictions ◽  
Regional Science ◽  
Macroeconomic Theory ◽  
Income Groups ◽  
Big Picture ◽  
Theory Project ◽  
The Global Financial Crisis

The inability of macroeconomists to anticipate the Global Financial Crisis or reproduce it in their models has led to an important stock-taking of deficiencies in, and necessary modifications to, theories and models used pervasively by researchers and taught to graduate students. This stock-taking—the so-called “Rebuilding Macroeconomic Theory Project,” organized by David Vines and Samuel Wills—has provided an opportunity for economy-wide modelers (who include regional scientists) to consider whether the theories and models they employ are adequate and appropriate to the tasks to which they put them. In this paper I provide a brief report on the project, retrace the development of macroeconomics, and summarize responses by prominent macroeconomists to a set of questions posed by organizers of the project, while drawing implications of these questions and responses for regional science. I then offer original suggestions from a regional scientist’s perspective on what is missing from the “benchmark” macro-model, how financial frictions can be introduced, how behavioral foundations might be modified, how heterogeneity of agents might be captured, and what new stylized facts need to be explained. I proceed to illustrate how several of the suggested changes can be integrated in economy-wide models by drawing on a study of the impacts of monetary policy on consumption by different income groups in Indonesia. I close the paper by posing a number of “big-picture questions” on the implications of the RMTP for economy-wide modelers and regional scientists to ponder and by offering a brief reflection and aspiration.

Contemplations and Ruminations of Methodological Error

2021 ◽  
Vol 79 (1) ◽  
pp. 49-56
Author(s):  
Rahul Tandon ◽  
Lior Aljadeff ◽  
Richard A. Finn
Keyword(s):  
Methodological Error

Macroeconomic Theory (Paul Burrows and Theodore Hitiris)

SIAM Review ◽  
1977 ◽  
Vol 19 (3) ◽  
pp. 571-572
Author(s):  
Ruth R. Shen
Keyword(s):  
Macroeconomic Theory

Macroeconomic Theory and Stabilisation Policy.

1988 ◽  
Vol 98 (393) ◽  
pp. 1209
Author(s):  
Brian Silverstone ◽  
Andrew Stevenson ◽  
Vitantonio Muscatelli ◽  
Mary Gregory
Keyword(s):  
Macroeconomic Theory ◽  
Stabilisation Policy

Seeing Like the Fed: Culture, Cognition, and Framing in the Failure to Anticipate the Financial Crisis of 2008

2017 ◽  
Vol 82 (5) ◽  
pp. 879-909 ◽  
Author(s):  
Neil Fligstein ◽  
Jonah Stuart Brundage ◽  
Michael Schultz
Keyword(s):  
Decision Making ◽  
Financial Crisis ◽  
Recent Work ◽  
Open Market ◽  
Financial Instruments ◽  
Federal Open Market Committee ◽  
Macroeconomic Theory ◽  
Making Sense ◽  
Financial Crisis Of 2008 ◽  
Positive Light

One of the puzzles about the financial crisis of 2008 is why regulators, particularly the Federal Open Market Committee (FOMC), were so slow to recognize the impending collapse of the financial system and its broader consequences for the economy. We use theory from the literature on culture, cognition, and framing to explain this puzzle. Consistent with recent work on “positive asymmetry,” we show how the FOMC generally interpreted discomforting facts in a positive light, marginalizing and normalizing anomalous information. We argue that all frames limit what can be understood, but the content of frames matters for how facts are identified and explained. We provide evidence that the Federal Reserve’s primary frame for making sense of the economy was macroeconomic theory. The content of macroeconomics made it difficult for the FOMC to connect events into a narrative reflecting the links between foreclosures in the housing market, the financial instruments used to package the mortgages into securities, and the threats to the larger economy. We conclude with implications for the sociological literatures on framing and cognition and for decision-making in future crises.

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