文档介绍：The Levy Economics Institute of Bard College
Strategic Analysis
November 2007
THE . ECONOMY: IS THERE
A WAY OUT OF THE WOODS?
, . ,
, and
During the last 10 years, the Levy Institute has published a series of papers on the evolving strategic
predicaments facing the . economy. Our work has never really taken hold in the United States,
which may be a consequence of the unrepentantly Keynesian structure of our model, by which
we continue to stand although it is not currently fashionable. But it may also be a result of the
rather parochial attitude of many . economists and institutions. In any event, it is high time
we looked back on our endeavor and made an evaluation of it. Some repetition is unavoidable.
Methods and Concepts
Our assessments of the . economy have not so far focused on short-term prospects, and this has
distinguished our work from that mentators whose evaluation is based on monthly and
quarterly indicators. Up to now, we have concentrated on the medium term, trying to diagnose
whether or not the configuration of “drivers”—the forces generating expansion or contraction —
would be sustainable in the medium term, and hence whether the overall stance of fiscal and mone -
tary policy was viable looking forward to a strategic time horizon, and what changes in policy, if any,
e under consideration.
Looking back, we may have erred in not being more explicit about the model we use. 1 The
following skeleton may be useful.
The Levy Institute’s Macro-Modeling Team consists of Distinguished Scholar , President . ,
and Research Scholars and . All questions and correspondence should be directed to Professor
Papadimitriou at 845-758-7700 or ******@. The authors are grateful ments from Warren Mosler and L. Randall Wray.
The real (inflation-adjusted) national e, Y, is defined as an econometric model in which exports, impo