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177764

Macroeconomics and behavioral finance

a tale of two disciplines

Thomas Russell

pp. 153-159

Abstract

In the last fifty years there have been two revolutions in macroeconomics. The first, the Keynesian revolution, gave birth to macroeconomics as a sub-discipline distinct from microeconomics. By combining broad behavioral relationships, (the consumption function, the investment function, the liquidity preference function, etc.) into a single system, Keynesian macroeconomics demonstrated the existence of output levels at which involuntary unemployment was an equilibrium state.

Publication details

Published in:

Leinfellner Werner, Köhler Eckehart (1998) Game theory, experience, rationality: foundations of social sciences, economics and ethics. In honor of John C. Harsanyi. Dordrecht, Springer.

Pages: 153-159

DOI: 10.1007/978-94-017-1654-3_13

Full citation:

Russell Thomas (1998) „Macroeconomics and behavioral finance: a tale of two disciplines“, In: W. Leinfellner & E. Köhler (eds.), Game theory, experience, rationality, Dordrecht, Springer, 153–159.