Beyond Keynes and the Classics. Outline of the Goods Side/Money Side Model of the Business Cycle and Macroeconomic Configurations
DOI:
https://doi.org/10.52195/pm.v11i2.165Abstract
This paper presents the goods side/money side (GSMS) model as a novel way of macroeconomic analysis. The GSMS model goes beyond Keynesianism as it makes a sharp distinction between the goods side and the money side and thus avoids the indistinctness between real nominal values that come with spending in aggregate demand models. The GSMS model transcends classical macroeconomics in its traditional and modern versions as it reinstates money as an active factor in the economy. Different from monetarism, the key monetary concept of the GSMS model is «macroeconomic liquidity», which includes velocity of circulation. The present paper presents the basic features of the model and shows its use by analyzing macroeconomic configurations, the business cycle, and economic growth. The paper includes an appendix with an evaluation of macroeconomic configurations in the light of the GSMS model.
Key words: GSMS Macroeconomic Model, Monetary Policy, Economic Growth, Austrian Theory of the Business Cycle (ATB).
JEL Classification: A23, E32, E52.
Resumen: Este trabajo presenta el modelo lado del mercado de bienes/lado del mercado de dinero (GSMS) como una nueva forma de análisis macro-económico. El modelo GSMS va más allá del keynesianismo, ya que hace una clara distinción entre el lado de los bienes y el lado del dinero y, por tanto, evita la ausencia de diferenciación entre los valores nominales y reales que vienen con el gasto en los modelos de demanda agregada. El modelo GSMS trasciende la macroeconomía clásica en sus versiones tradicional y moderna, ya que restituye al dinero un rol activo en la economía. A diferen-cia del monetarismo, el concepto monetario clave del modelo GSMS es la «liquidez macroeconómica», que incluye la velocidad de circulación. El pre-sente artículo presenta las características básicas del modelo y muestra su uso mediante el análisis de configuraciones macroeconómicas, el ciclo eco-nómico y el crecimiento económico. El documento incluye un apéndice con una evaluación de configuraciones macroeconómicas a la luz del modelo GSMS.
Palabras clave: Modelo Macroeconómico GSMS, Política Monetaria, Cre - cimiento Económico, Teoría Austriaca del Ciclo Económico.
Clasificación JEL: A23, E32, E52.
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