Macroeconomic Methodology

Jesper Jespersen, Professor of Economics, Roskilde University and Adjunct Professor, Aalborg University, Denmark

• Contents: Preface Introduction 1. Keynes-Inspired Macroeconomic Theory in a Methodological Perspective 2. Macroeconomic Methodology: From a Critical Realist Perspective 3. The Macroeconomic Landscape: An Example of an Ontological Reflection 4. About Uncertainty, Risk and Limited Knowledge 5. Uncertainty and ’the Economy as a Whole’ 6. Equilibrium and Path-dependence from a Perspective of Uncertainty 7. The Fallacy of Composition 8. Effective Demand: A Macroeconomic Causal Relationship 9. Methodological Perspectives for Realistic Macroeconomic Research: A Summary Bibliography Index

'Methodological practice is at the heart of divisions between schools of macroeconomic thought. Jesper Jespersen's book explains why and precisely how, and gives the reader the insight to choose between rival approaches. His own inspiration comes from Critical Realism and Popper's Three World analysis, with Keynes as the main exponent of a realist approach. The starting point of realist theory is a view of how the world is, rather than axioms, and the test is whether the theory can make, as Jespersen puts it, the "round trip back to reality", to give practical guidance to policy. This is only the focal point of a rich and attractive canvas. How I wish this book had been available when I taught methodology! And how I wish economists from all schools of thought would read it!'