The Evolution of Macroeconomic Principles
Read Mark Skousen's article
on "The Perserverance of Paul Samuelson's Economics." In answering
the questions below, consider the problems facing the U.S. economy during
the relevant time period.
a. Why might the traditional Keynesian model have been the primary focus
of most introductory macroeconomics courses during the late 1940s, the
1950s, and the 1960s? Why was there little focus on inflation and monetary
policy during this period?
b. Why would there have been little emphasis on the relationship between
savings and economic growth during the period discussed in (a)?
c. Why did monetary policy receive a greater emphasis in more recent time
periods?
d. Why is there now more emphasis on the relationship between saving and
economic growth?
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