CESA
Disarray at the headquarters: Economists and Central bankers tested by the subprime and the COVID recessions
Authored by Francisco Louçã, Alexandre Abreu and Gonçalo Pessa Costa, Disarray at the headquarters: Economists and Central bankers tested by the subprime and the COVID recessions explores the discussions among economic modellers, central banks research staff and decision-makers, namely on the adequacy of unconventional monetary policy and fiscal expansionary measures after the crisis and to COVID 19 recession.
Abstract:
The article explores the discussions among economic modellers and central banks research staff and decision-makers, namely on the adequacy of unconventional monetary policy and fiscal expansionary measures after the subprime crisis and as the COVID recession is developing. First, the article investigates the arguments, models and policy proposals of several mainstream schools of economics that challenged the traditional Chicagoan orthodoxy based on Milton Friedman’s views, and developed the Lucas Critique, the New Classical synthesis and Real Business Cycle approach that replaced monetarism as the main rivals to old-time Keynesianism. Second, the transformation of Real Business Cycle models into Dynamic Stochastic General Equilibrium (DSGE) models is mapped, as it extended the ideas of the iniquity of government intervention and unified academic and central bank research. Yet, a battery of criticism was levied against the DSGE models and, as the debate emerged over quantitative easing and other tools of unconventional monetary policy, the need for policy pragmatism shattered the previous consensus. The article then proceeds to discuss how the leading mainstream academic economists reacted to changes in central banks‘ practices, noticing a visible dissonance within Chicago-school and DSGE economists, as well as major contortions of central bankers in order to justify their new postures. The article concludes with a call for an extensive menu of fiscal, industrial and innovation policies in order to respond to recessions and structural crises.
Topics in Development Studies 2021
Between February and May 2021, the Topics in Development Studies Cycle offered a series of conferences in Development Studies, for example in themes as Sustainable Development, Public Policies, Environment, Human Rights, Sustainable Agriculture, among others.
This cycle is organized by the institutes participating in the PhD Program in Development Studies at the ULisboa, ISEG – Lisbon Institute of Economics and Management, IGOT – Instituto de Geografia e Ordenamento do Território, ISA – Instituto Superior de Agronomia and ICS – Instituto de Ciências Sociais
The conferences took the form of webinars due to current health constraints.
Recordings of the webinars of the Cycle Topics in Development Studies are no longer available.
Program:
- 19-02-2021 | Webinar “Planetary Logistics: Urbanization, Circulation, Disruptions“ | Niccolò Cuppini (SUPSI)
- 26-02-2021 | Webinar “Taking the Scare out of Scarcity: Why ‘perfect storm’ narratives serve to keep the poor poor” | Lyla Mehta (IDS and Norwegian University of Life Sciences)
- 5-03-2021 | Webinar “Understanding Developments in Participatory Governance” | Adrian Bua & Sonia Bussu (Montfort University and Manchester Metropolitan University)
- 12-03-2021 | Webinar “Territorial Approaches for Food Systems Transformation” | Francisco Bendrau Sarmento (FAO)
- 19-03-2021 | Webinar “Is sustainability a desire for the wealthy and a fate for the poor? Challenges for Land and Landscapes” | Jorge Cancela (FA, ULisboa)
- 26-03-2021 | Webinar “Challenges and Changes in Mobility and the Effects of COVID19 Pandemic” | Nuno Marques da Costa (IGOT, ULisboa)
- 09-04-2021 | Webinar “Enhancing Africa’s Capacity for Delivering High-quality Training and Applied Research to Address Regional Development Challenges: Experiences from ACE Project” | Jibrin Mohammed Jibrin (Africa Centre of Excellence in Dryland Agriculture, Nigeria)
- 16-04-2021 | Webinar “Global Commodity Chains and Economic Development: Issues Past and Present” | Susan Newman (Open University, UK)
- 30-04-2021 | Webinar “Trade, Robots, and Industrial Development: Evidence and policy options“ | Paulo Bastos (ISEG, Portugal)
- 07-05-2021 | Webinar “Experiments in Economics and their Ethical Dimensions” | Alice Sindzingre (SOAS e CEPN-U. Paris-Nord)
