Model-theoretic Foundations of Controversies in Economic Policy (MGWK)

Together with Eckhard Hein, Achim Truger and Franz Prante

Goal of the project MGWK (short for the German Modelltheoretische Grundlagen wirtschaftspolitischer Kontroversen) was to develop a didactic tool to teach macroeconomic interactively and from a pluralist perspective. Text and simulations are available in English and German.

📖 You can access the English version of the book here:

• Introduction to Macroeconomics: Pluralist and Interactive

📖 And here the German version:

• Einführung in die Makroökonomik: plural und interaktiv

In the book we offer a series of interactive illustrations where the users take control of various economic policy instruments, reacting to economic problems using the appropriate policy measures.

💻 Scenarios based on the 3-equation model of the new consensus:

• New consensus model: The case of an aggregate demand shock
• New consensus model: The case of an aggregate supply shock
• New consensus model: The case of an aggregate demand shock and the preference of the central bank

💻 Alternative scenarios based on the modification of the 3-equation model:

• New consensus model with simplified labour market hysteresis: The case of an aggregate demand shock
• A post-Keynesian variation of the 3-equation new consensus model: The case of a positive aggregate demand shock with interest rate elastic mark-up
• Post-Keynesian Phillips curve with horizontal element: Demand shocks, fiscal policy and wage coordination

➡️ We have also created interactive applications that allow to play around with the 3-equation model of the new consensus:

• Aggregate demand/supply shock and exogenous policy reaction
• Aggregate demand/supply shock and endogenous policy reaction

The remaining apps and scenarios are accessible in the online book in the relative chapters. Have fun with the book❗

Visit also the project website! (in German)

Funded by:

Project partners:

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