1988 | OriginalPaper | Chapter
Speculative Markets and Macroeconomic Controversy
Author : Jerome L. Stein
Published in: Monetary Theory and Policy
Publisher: Springer Berlin Heidelberg
Included in: Professional Book Archive
Activate our intelligent search to find suitable subject content or patents.
Select sections of text to find matching patents with Artificial Intelligence. powered by
Select sections of text to find additional relevant content using AI-assisted search. powered by
During the past decade the areas of macroeconomics, speculative markets and international finance have been characterized by very sharp controversy. The main reason for the controversy is that the “conventional wisdom” has been found to be inconsistent with the empirical evidence. Consequently, the challenge is to formulate a more satisfactory theory. The basic problems in all these areas are interrelated, because of the crucial role of anticipations hypotheses. Recent work in speculative markets in general and, in particular futures markets in commodities, financial instruments, stock indexes and foreign exchange, has profound implications for the microeconomic foundations of macroeconomic controversy. The purpose of this paper is to show how the study of microeconomic markets can evaluate the controversy surrounding the various macroeconomic models.