We show that the equilibrium of the Solow growth model represents the pivotal point of reference for the so-called "New Consensus" model. Taking the mathematical structure of the "Solow-New Consensus" analysis as our starting point, we shall show how switching the positions of the exogenous and endogenous variables leads to very different analytical results, with particular reference to the interpretations of monetary theory and policy.
|Titolo:||The central banker as "regulator" of conflict. A 'reversed' reading of the Solow and New Consensus models|
BRANCACCIO, Emiliano (Corresponding)
|Data di pubblicazione:||2009|
|Appare nelle tipologie:||2.1 Contributo in volume (Capitolo o Saggio)|