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Innovations in Macroeconomics

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Innovations in Macroeconomics

Modern macroeconomics suffers from an unclear link between short–term Keynesian analysis and long–term growth modelling. Moreover, product and process innovations have been only partially integrated. The analysis suggests new approaches to innovations in open economies in many ways, including the Schumpeterian Mundell–Fleming model and new monetary growth models. A specific focus is on the role of innovations for output, employment and exchange rate developments. This book presents a new link between monetary analysis and growth modelling in open economies. Structural change, innovations and growth are considered from a new perspective. With respect to economic policy – in particular innovation policy – the analysis implies major changes, concerning both EU countries and other leading OECD economies.
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