Innovations in Macroeconomics

  • Paul J. J. Welfens

About this book


Modern macroeconomics suffers from an unclear link between short-term Keynesian analysis and long-term growth modelling. Moreover, product and process innovations have been only partially integrated. The analysis suggests new approaches to innovations in open economies in many ways, including the Schumpeterian Mundell-Fleming model and new monetary growth models. A specific focus is on the role of innovations for output, employment and exchange rate developments. A new link between monetary analysis and growth modelling in open economies is presented. Structural change, innovations and growth are considered from a new perspective. Energy innovation dynamics are also considered. With respect to economic policy - in particular innovation policy - the analysis implies major changes, concerning both EU countries and other leading OECD economies.

This important new book sets a new direction for macroeconomics. By linking several strands of fundamental economic thinking into a coherent, integrated framework it provides a pathbreaking understanding into the fundamental forces shaping macroeconomic performance. In particular, by injecting insights from the Schumpeterian model, the author succeeds in presenting a new policy framework to guide economic growth policy.
Prof. Dr. David Audretsch, Institute of Development Strategies, Indiana University, Bloomington, USA


Economic Policy Growth International Economics Keynes Macroeconomics economic growth economic integration innovation innovation policy interest rates research & development (R&D) structural change transition

Authors and affiliations

  • Paul J. J. Welfens
    • 1
    • 2
  1. 1.EIIW – European Institute for International Economic Relations at the University of WuppertalWuppertalGermany
  2. 2.Sciences PoParis

Bibliographic information

  • DOI
  • Copyright Information Springer-Verlag Berlin Heidelberg 2008
  • Publisher Name Springer, Berlin, Heidelberg
  • eBook Packages Business and Economics
  • Print ISBN 978-3-540-79411-0
  • Online ISBN 978-3-540-79412-7
  • Buy this book on publisher's site
Industry Sectors
Finance, Business & Banking