Details

Autor(en) / Beteiligte

• HOWITT, PETER

Titel

INFORMATION AND COORDINATION: A REVIEW ARTICLE

Ist Teil von

• Economic inquiry, 1984-07, Vol.22 (3), p.429-446

Ort / Verlag

Oxford, UK: Blackwell Publishing Ltd

Erscheinungsjahr

1984

Quelle

Alma/SFX Local Collection

Beschreibungen/Notizen

• Axel Leijonhufvud's essays, Information and Coordination (1981) demonstrate a departure from the Keynesian orthodoxy but point in a direction other than the one that macroeconomics has followed. What unifies the essays is mainly the concern as to how, under what circumstances, and to what extent the economic system coordinates the activities of different agents through information. Leijonhufvud speculates that the economic system works well under normal circumstances but that there are limits to the size and nature of disturbance it is capable of handling. He supports the view that aggregate demand causes output to fluctuate because sticky prices prevent markets from clearing, and argues that, when large-scale unemployment arises, the problem is not to be found in labor markets but in capital markets. In his essays on inflation, Leijonhufvud believes that money should be treated as an institution. Two important differences between his methodology and modern rational expectations theory are discussed.