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Managing the Modern Economy: Econometric Specification

  • Lawrence R. Klein
Chapter

Abstract

The legacy of the Keynesian Revolution is a method or an approach to macroeconomic management that attempts largely, but not entirely, to manipulate the level of demand through fiscal and monetary policy instruments in order to achieve economic stabilisation. This has been assumed to mean steady operation of the economy at or near full employment. In the open economy, this approach must be extended to include manipulation of trade policy instruments.

Keywords

Econometric Model Full Employment Final Demand Modern Economy Economic Management 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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References

  1. 1.
    Vijaya Duggal, L. R. Klein and M. D. McCarthy, ‘The Wharton Model, Mark III: A Modern IS-LM Construct’, International Economic Review, 15 (Oct 1974) 572–94.CrossRefGoogle Scholar
  2. 2.
    L. R. Klein, ‘Supply Constraints in Demand Oriented Systems: An Interpretation of the Oil Crisis’, Zeitschrift für Nationalokonomie, 34 (1974) 45–56.CrossRefGoogle Scholar
  3. 3.
    T. C. Liu and E.-C. Hwa, ‘Structure and Applications of a Monthly Econometric Model of the US Economy’, International Economic Review, XV (June 1974) 328–65.CrossRefGoogle Scholar
  4. 4.
    See P. A. Samuelson, ‘The Art and Science of Macromodels over 50 Years’, The Brookings Model: Perspective and Recent Developments, ed. G. Fromm and L. R. Klein (Amsterdam: North Holland, 1975) pp. 2–10.Google Scholar
  5. 5.
    G. Fromm and L. R. Klein, ‘The NBER/NSF Model Comparison Seminar: An Analysis of Results’, Annals of Economic and Social Measurement, 5 (winter 1976) 1–28.Google Scholar
  6. 6.
    The representative errors are from S. McNees, ‘An Evaluation of Economic Forecasts: Extension and Update’, New England Economic Review, (Sep-Oct 1976) 30–44.Google Scholar
  7. 7.
    L. Johansen, ‘Targets and Instruments under Uncertainty’ (mimeo, 1975).Google Scholar

Copyright information

© Lawrence R. Klein 1979

Authors and Affiliations

  • Lawrence R. Klein

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